Legal Encounter: Rights and Liabilities

Legal Encounter: Rights and Liabilities

  • Submitted By: noramyagmar
  • Date Submitted: 01/12/2009 11:55 AM
  • Category: Business
  • Words: 2125
  • Page: 9
  • Views: 3880


Legal Risk and Opportunity in Employment
Nordog (Nora) Myagmar
University of Phoenix

Legal Risk and Opportunity in Employment
The following paper is to serve as an assessment and answers to the questions asked in regards to three distinct legal encounters involving NewCorp. It covers the rights and liabilities of NewCorp as an employer and its employees as they work together to operate a business.
Identified as well are the legal principles that support the recommendations provided.
A principal-agent relationship is one in which one party acts on behalf of another. In an agency relationship, one party agrees to act on behalf of another party according to directions. It is a relationship that exists by common consent—both sides agree to it—and a relationship that is fiduciary in nature—there are duties and responsibilities on both sides. In the employer-employee relationship, the employers are referred to as the principals. Agents are people hired by a principal to do a task on behalf of the principal (Jennings, 2006, chap. 18). Thus, NewCorp and its employees have an agency relationship, where the NewCorp is the principal and the employees are agents.
Legal Encounter 1:
NewCorp hired Pat Grey as a manager and Pat relocated from another city to work for NewCorp in Vermont. They built a master-servant relationship, which is one in which NewCorp as the principal and master exercises a great deal of control over Pat Grey as their agent and servant (Jennings, 2006, chap. 18).
However, after Pat had been on the job for three months, he was explained that things did not seem to be working out and that he would be discharged with 30 days severance pay. Pat was surprised because NewCorp gave no indication of any problem on the job.
Most employees work at the discretion of their employers, which is to say that they have employment at will. An employee...

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