Running head: WEEK FOUR1

Chapter 26 - 28

Jessica Valverde

Florida National University

Business Law II

Professor Hiram Paz

December 7, 2015
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Chapter 26 - 28

1. What are the duties of agents and principals in an agency relationship? Make sure to briefly
describe each of these duties.

2. What is the liability of agents and principals in agency relationships?

3. What is employment at will? List exemptions to employment at will.

4. List three federal acts that are important to employment law in the United States and briefly
describe the effect of each.

5. What are the major employment discrimination laws? Briefly describe each.

6. Explain the union organization process. Make sure to provide a step-by-step explanation.

1. Agent's duties to the principal

1. Duty of performance—an agent's duty to the principal that includes performing

the lawful duties expressed in the contract and meeting the standards of

reasonable care, skill, and diligence implicit in all contracts.

2. Duty of notification—an agent's duty to notify the principal of information he or

she learns from a third party or other source that is important to the principal.

3. Duty of loyalty—A duty an agent owes the principal not to act adversely to the

interests of the principal. This includes not competing with the principal, not

engaging in dual agency, not self-dealing, not misusing confidential information,

or not usurping an opportunity that belongs to the principal.

4. Duty of obedience—a duty that agents have to obey the lawful instructions of the

principal during the performance of the agency.

5. Duty of accountability—a duty that an agent owes to maintain an accurate

accounting of all transactions undertaken on the principal's behalf.

Principal's duties to the agent

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6. Duty of compensation—a duty that a principal owes to pay an agreed-upon

amount to the agent either upon the completion of the agency or at some other

mutually agreeable time.

7. Duty of reimbursement—a duty that a principal owes to repay money to the agent

if the agent spent his or her own money during the agency on the principal's

behalf.

8. Duty to indemnify—a duty that a principal owes to protect the agent for losses the

agent suffered during the agency because of the principal's misconduct.

9. Duty to cooperate—a duty that the principal owes to cooperate with and assist the

agent in the performance of the agent's duties and the accomplishment of the

agency.

10. Duty to provide safe working conditions—a duty that a principal owes to provide

safe premises, equipment, and other working conditions. This includes inspection

by the principal.

2. If a principal’s identity is disclosed or partially disclosed at the time an agent forms a

contract with a third party, and the agent is acting within the scope of his or her authority, the

principal is liable to the third party under the contract. If the principal is disclosed, the agent is

ordinarily not liable; but if the principal is partially disclosed, the agent is liable. If a principals

identity is undisclosed at the time of contract formation, an agent is liable to the third party under

the contract, and the principal is also bound except under limited circumstances. Under the

doctrine of respondeat superior, a principal is liable for any harm caused to another agent’s torts

if the agent was acting within the scope of employment at the time the harmful act occurred.
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3. Employment relationships have generally been governed by the employment-at-will

doctrine. Under this doctrine, the employee or employer may terminate the employment

relationship at any time and for any reason, unless doing so would violate provisions in the

employment contract. Most US employees are considered at-will employees. Because of the

disruptive effects of the employment-at-will doctrine for employees, the courts have carved out

various exceptions to the doctrine. For instance, federal statues have modified the employment at

will doctrine to protect some employees who report employer wrongdoing. Additionally, court

rulings have carved out exceptions to the doctrine base on the existence of an implied

employment contract or on the ground that an employee’s discharge cannot violate a fundamental

public policy. State exceptions to the employment-at-will doctrine include tort theory, contract

theory and public policy. Public policy being the most widespread, as it limits employers from

firing employees who refuse to engage in illegal activities, or who have to miss work for jury

duty services.

4. FLSA or The Fair Labor Standards Act advises standards for wages and overtime pay,

which affect most private and public employment. It requires employers to pay covered

employees at least the federal minimum wage and overtime pay should be one-and-one-half-

times the regular rate of pay.

The Family and Medical Leave Act (FMLA) requires employers of 50 or more

employees to give up to 12 weeks of unpaid, job-protected leave to eligible employees for the

birth or adoption of a child or for the serious illness of the employee or a spouse, child or parent.

The occupational safety and Health Act. OSHA obligates a covered employer to "supply

each of his employee’s employment and a place of employment which are free from recognized

hazards that are causing or are likely to cause death or serious physical harm to his employees."
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The Act provides three kinds of rights: a "right to know" certain kinds of information, such as the

chemical composition of toxic substances to which workers are exposed; a right to try to control

workplace hazards by filing OSHA complaints; and a right contained in Section I I(c) not to be

retaliated against for engaging in activities that OSHA protects.

5. What are the major employment discrimination laws? Briefly describe each.

National Origin Discrimination. It is unlawful to discriminate against any employee or

applicant because of the individual's national origin. No one can be denied equal employment

opportunity because of birthplace, ancestry, culture, linguistic characteristics common to a

specific ethnic group, or accent. Also, participation in schools, churches, associated with a

national origin group should not be a cause for discrimination.

US Congress passed the American with Disabilities Act to eliminate discrimination

against those with handicaps. It prohibits discrimination based on a physical or mental handicap

by employers engaged in interstate commerce and state governments.

Race discrimination law. It is unlawful to discriminate against any employee or applicant

for employment because of race or color in regard to hiring, termination, promotion,

compensation, job training, or any other term, condition, or privilege of employment.

Stereotypes and assumptions about abilities, traits, or the performance of individuals of certain

racial groups are also discriminatory and penalized.

6. Explain the union organization process. Make sure to provide a step-by-step explanation.
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6.1 An organizing committee is to be built. Leaders are identified and an organizing

committee representing all major departments and all shifts and reflecting the racial, ethnic and

gender diversity in the workforce is established. Organizing committee training begins

immediately. Committee members must be prepared to work hard to educate themselves and

their co-workers about the union and to warn and educate co-workers about the impending

management anti-union campaign. The organizing committee must be educated about workers’

right to organize and must understand UE policies and principles of democracy and rank-and-file

control.

6.2 The adopting and programming of issues. The committee develops a program of union

demands (the improvements you are organizing to achieve) and a strategy for the union election

campaign. A plan for highlighting the issues program in the workplace is carried out through

various organizing campaign activities.

6.3 Union Cards are to be given out for prospective member to sign. Employees are asked

to join the elections and support the union program by signing membership cards. The goal is to

sign-up a sizable majority. This "card campaign" should proceed quickly once begun and is

necessary to hold a union election.

6.4 Winning the Elections. The signed cards are required to petition the state or federal labor

board to hold an election. This is a process that lasts a few weeks, to determine who is eligible to

vote and schedule the election. The union campaign must continue and intensify during the

wait. If the union wins, the employer must recognize and bargain with the union. Winning a

union election not only requires a strong, diverse organizing committee and a solid issues

program, but there must also be a plan to fight the employer’s anti-union campaign.
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6.5 Contract Negotiation. The organizing campaign does not cease after the election. The real

goal of the campaign, a union contract, is still to be achieved. Workers must be

mobilized to support the union’s contract demands and pressure the employer to meet them.

References:

Miller, R., & Hollowell, W. (n.d.). Business law: Text & exercises (Seventh ed., pp. 348-387).