Business Law

Business

Quiz 28 :
Agency Law

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Quiz 28 :
Agency Law

Intentional torts: For the intentional trot, a principal is not liable to an employee unless: (1) The employee planned to serve some purpose of employer or (2) The employer was careless in hiring or supervising employee In this situation, school is directly liable for the intentional trot by its employee, because the custodian thought he was serving the purpose of his employer.

Situation: M has worked at pb.com for low salary. Company provides lot of facilities such as free food, laundry, dry-clean and more. M avails these facilities with her friends from outside the company. And also she was using the company computer for personal use such as chatting with friends using various social networks. The colleagues of M take papers from office to their homes for their children. Ethics and activity of employees: These kinds of activities are unethical. The pb.com only provides the facilities such as free food, laundry, dry-clean and more to their employees only. But M brings her friends, those who are not related to the company and avail the facilities. Hence, this is unethical. Using company resources for personal use is also an unethical activity. Using internet for personal use such as chatting with friends using various social networks in office time, and bringing the office resources to home is an unethical activity.

Creating an agency relationship: There is a mutual consent among principal and an agent. The agent's role is to act on behalf of their principal but the control remains with the principal. Therefore it forms a "fiduciary relationship." Gratuitous agents (agent is not being paid) are liable, if they commit "gross negligence", but not liable for "ordinary negligence". Hence, option img "no, because A was not grossly negligent" is correct. Likewise, Option "a" "no, because an agreement with agent is invalid unless an agent receives any payment" is wrong. Even the agent who has not received a payment is liable. Option "c" "no, because extra semester cost is unreasonably high" is wrong. "A" was not grossly negligent. Therefore, there is no need to consider the extra semester fees. Option "d" "yes, because A disobeyed his instructions" is wrong, because A is not liable.

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