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CHAPTERS 28 & 30. Agency: The Inside Relationship & Employmenet Law. Creating an Agency Relationship. Agency is a relationship in which the agent agrees to perform a task for, and under the control of, the principal. CREATING AN AGENCY. To create an agency, there must be: A principal , - PowerPoint PPT Presentation
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Creating an Agency Relationship
Agency is a relationship in which the agent agrees to
perform a task for, and under the control of, the principal.
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CREATING AN AGENCY
To create an agency, there must be: A principal, An agent, Who mutually consent that the agent will
act on behalf of the principal, and Be subject to the principal’s control, Thereby creating a fiduciary relationship.
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DUTIES OF AGENT TO PRINCIPAL
Duty of Loyalty Obey her principal’s instructions Must act with reasonable care. An agent with special skills is held
to a higher standard. Must give accurate information.
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PRINCIPAL’S REMEDIES WHEN THE AGENT BREACHES A DUTY
The principal can recover damages caused by the agent’s breach.
The agent must refund any profits made from the agency, if he breaches his duty of loyalty.
The principal may rescind a transaction with an disloyal agent.
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DUTIES OF PRINCIPAL TO AGENT
Duty to Reimburse the Agent for Reasonable Expenses
Torts Committed by the Agent Contracts Entered into by the
Agent Duty to Cooperate
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TERMINATING AGENCY
Five ways an agency relationship is terminated by the parties: By completion of term. By completion of the purpose. By mutual agreement. In an agency at will, either party can
terminate at any time, for any reason. Wrongful termination.
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OTHER CAUSES OF AGENCY TERMINATION
Principal or Agent Can No Longer Perform Required Duties
Change of Circumstances
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EFFECT OF TERMINATION I
Termination of the agency ends the agent’s power to
act on behalf of the principal.
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EFFECT OF TERMINATION II
Principal’s duty to reimburse expenses of the agent ends with the end of the agency.
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EFFECT OF TERMINATION III
Confidential information remains confidential and
unusable, even after the end of the agency.
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POWER COUPLED WITH AN INTEREST
RARE-only agent can terminate.
Principal has no rights under this form of agency-is
created by law
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EMPLOYEE AT WILL
Without a contract, a worker is an employee at will.
An employee at will can be fired for a good reason, a bad reason or no reason at all.
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NATIONAL LABOR RELATIONS ACT
NLRA Created the National Labor Relations
Board to enforce labor laws Prohibits employers from penalizing
workers who engage in union activity Requires employers to “bargain in
good faith” with unions.
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FAMILY AND MEDICAL LEAVE ACT
The Family and Medical Leave Act (FMLA), guarantees both men and women up to 12 weeks of unpaid
leave each year for childbirth, adoption, or medical emergencies
for themselves or a family member.
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WRONGFUL DISCHARGE
Wrongful discharge prohibits an employer from
firing a worker for a bad reason.
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PUBLIC POLICY RULE
The public policy rule prohibits an employer from firing a worker for a reason that violates basic social rights, duties, or responsibilities, such as: Refusing to Violate the Law Exercising a Legal Right Performing a Legal Duty
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THE CIVIL SERVICE REFORM ACT
Along with Whistleblower Protection Act protect Federal
employees who report wrongdoings.
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SARBANES-OXLEY ACT
The Sarbanes-Oxley Act of 2002 protects employees of publicly traded companies who provide
evidence of fraud to investigators.
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OTHER PROTECTION FOR WHISTLEBLOWERS
State Statutes protect whistleblowers from retaliation from employers in all fifty states.
Common law typically prohibits the discharge of employees who report illegal activity that relates to their own jobs.
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TRUTH IN HIRING Oral promises made during the
hiring process can be enforceable. Employers may be liable for
promises that they cannot keep or for failure to disclose important information in the hiring process.
An employee handbook creates a contract.
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COVENANT OF GOOD FAITH & FAIR DEALING
In some cases, courts will imply a covenant of good faith and fair
dealing in an at-will employment contract.
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DEFAMATION
Employers may be liable for defamation when they give
false and unfavorable references about a former
employee.
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INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
Employers who condone cruel treatment of their workers face
liability under the tort of intentional infliction of
emotional distress.
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WORKPLACE SAFETY
Sets specific health and safety standards.
Obliges employers to keep workplace “free from recognized hazards.”
Requires records of all injuries and accidents.
Allows inspection of workplaces and fines for unsafe conditions.
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EMPLOYEE PRIVACY
In many places, off-duty conduct cannot be regulated by the employer.
Alcohol and drug testing is allowed sometimes.
Employers may not require or even suggest the use of lie detector tests, except in investigations of crimes.
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ELECTRONIC MONITORING OF THE WORKPLACE
The Electronic Communications Privacy Act of 1986 (ECPA)
permits employers to monitor workers’ telephone calls, e-mail
messages, and even “instant messages” if:
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DEFENSES TO CHARGES OF DISCRIMINATION
There are three possible defenses for a charge of discrimination: Merit Seniority Bona Fide Occupational
Qualification
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SEXUAL HARASSMENT
Involves unwelcome sexual advances, requests for sexual favors, and verbal or physical conduct of a sexual nature.
Hostile Work Environment Pregnancy
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AMERICANS WITH DISABILITIES ACT
A disabled person is someone with a physical or mental
impairment that substantially limits a major life activity, or someone who is regarded as having such an impairment.
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