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Peggy realizes she can’t really run this company by herself and day to day operations will entail tasks such as securing sales contracts, knocking on doors, making phone calls, developing her ideas into marketable gaming software and updating the games to keep customer interest. She has always thought of herself as a polite person, but Peggy knows there are all kinds of rules under the law on how to deal with employees and she is a bit intimidated. She has heard that her employees are actually her agents and she is known as the principal in this legal relationship.  Peggy tells you that at least they can only speak for her or bind her to contracts that she specifies in detail, such as sending a sales person to sign a contract with ABC Digital to buy her video game.  You tell Peggy that this express authority is not the only way she can be held to an agreement by an employee.  Define the two other ways agents can bind principals to agreements or actions and give an example of each. When Peggy looks shocked, explain to her the duties her employees owe her when acting on her behalf to carry out company business. (You answer should be at least 5-7 sentences.) 

 



Peggy now has a good grasp of agency law, but knows that she may sometimes do irresponsible things on the job.  She asks you if the company would be responsible if an employee on the job injures someone on the job.  What if they run someone over with the company car?  What if they steal something from a customer? 

(You answer should be at least 5-7 sentences.) 

 



Jack retired from teaching when he was in his mid-50’s after a 25-year career at a state university. Three years later, he decided to re-enter the job market and applied for a position at a nearby private college. Jack was one of two candidates. The other candidate was a 30-year-old, part-time instructor. Both of the candidates presented their credentials to the departmental faculty. Jack mentioned his teaching awards and high student evaluations, his 17 authored books in the field, and numerous published papers. The other candidate had published two articles in a regional journal. Two weeks later, Jack received a letter notifying him that the other candidate had been selected for the position by faculty vote. Jack decided to investigate. He discovered that the vote was made based on the faculty’s question, “Which candidate has the greatest long-term potential for the college?” He also learned that the other candidate’s in-laws were long-time contributors to the college. What recourse might Jack have against the college under discrimination laws? Explain. Would the school have a possible defense? (You answer should be at least 5-7 sentences.) 

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