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BUL Unit 3 10 30 Monday HCB 102 Agency Law Principal Agent Relationship ex employment legal consensual relationship when one party acts on behalf of another Agent works for principal Types of Principals Disclosed agent reveals to 3rd party that they are working for a principal Undisclosed agent doesn t reveal that they re working for a principal Partially Disclosed 3rd party knows agent represents principal but doesn t know their identity Fiduciary Relationship principal agent relationship is one of trust and confidence Just like Attorney client Patient doctor Imputed Knowledge Rule agent is presumed to pass information to principal even if they don t law assumes they did Agent has different types of Authority Actual Authority Express principal employer tells agent they have authority to do something specific Example binding the company Implied not specifically told they can do something but it is implied Example handling cancellations Apparent Authority other parties assume that agent has authority to do something after they have previously had that authority even when they may not anymore Based on appearances Ratification agent does something they don t have authority for but the principal ratifies it okays it Principal doesn t HAVE to ratify an agents actions in general Termination of Agency Lapse of Time if agency agreement doesn t provide specific time authority for an agent terminates after reasonable period Purpose Achieved Mutual Agreement Termination of one party Death or Insanity Impossibility destruction of subject matter impossible for agent to perform duties Changed Circumstances you win the lottery and then decide not to sell your house Bankruptcy War Independent Contractor Liability Rules Contractor controls details of the work they perform Employer not responsible for what the contractor does Exceptions inherently dangerous work illegal work ratification of tort Respondeat Superior Rule An employer is liable for torts of employee Exception Frolics and Detours principal not responsible for agent s frolics not doing their work Detour is a minor departure from duty and principal IS responsible Tort Liability for Negligent Hiring Rule principal liable for negligent hiring improperly selecting people Must have proof to prove principal could have known the decision was bad ex criminal record Or improper training General Rules of Tort Liability 1 Agents employees and independent contracts personally liable for their own torts 2 Employer liable under respondeat superior for torts of employee if employee is acting within scope of employment 11 4 Employment Law Political Rallys are NOT an excuse to leave work national guard service or jury duty ARE Family and Medical Leave Act if employee has worked for 12 months 1250 hours they may take up to 12 weeks of unpaid leave for certain reasons Applies to employers with 50 employees birth of a child adoption foster placement with employee care of sick child parent or spouse grandparents cousins siblings not covered you have serious health condition renders employee unable to do job Employment At Will Doctrine most employment either party may terminate employment at any time for any reason Public Policy employer can t fire employee for filing a workers comp claim or reporting illegal activity whistleblowing protection Job Applications questions MUST relate to job Conditions of Employment Pay Benefits Fair Labor Standards Act restricts child labor under 14 No hazardous occupation sets minimum wage work over 40 hrs wk for HOURLY employees is time and a half pay at least some workers exempt from overtime req executive employees prof employees some sales and computer workers Unemployment Compensation if fired for misconduct or voluntarily resigns they re not eligible COBRA person can stay on employers insurance for 18 months after fired Extremely expensive Workers compensation in all 50 states if person injured on job they can receive workers comp insurance benefits instead of suing employer Employer pays for this insurance Pays of employees salary medical bills Could sue manufacturer of product but not coworker or employer Domestic workers agricultural workers and temp workers not covered Worker Safety regulated by OSHA occupational safety and health act Privacy of Employee in private sector can require drug alcohol testing lie detector prohibited genetic testing prohibited employer electronic monitoring legal but highly unethical Employer can monitor email usage at work phone conversations etc 11 6 Employment Discrimination Title VII of Civil Rights Act of 1964 intent forbids employers to discriminate in application process selection or retention of any employee on basis of gender race nat origin color religion procedure individual must file complaint w the appropriate agency BEFORE filing civil lawsuit If voluntary settlement isn t achieved the agency will issue right to sue letter so individual can sue employer Types of Discrimination Disparate Treatment conscious and intentional Very clear Disparate Impact Unintentional a practice that has adverse effect on protected group Prima Facie Case selection rate has to be more than 4 5th Constructive Discharge employer causes conditions to be intolerable and employee feels compelled to quit reasonable person would quit Religious Discrimination Title VII prohibits employer from discrimination based on beliefs practices and observances Must treat all religions equally They MUST reasonably accommodate religious practices good Friday off unless accommodation would result in undue hardship ex doctor in an ER police Age Discrimination in Employment Act of 1967 ADEA Protects employees who are at least 40 years of age Disability Discrimination Americans w Disabilities Act of 1990 ADA Applies to employers w 15 employees and those in interstate commerce disability 1 physical mental impairment that limits life activities 2 record of impairment 3 regarded as having impairment doesn t have to be diagnosed Requires employer to make reasonable accommodations as long as it doesn t create undue hardship Sexual Harassment Quid Prop Quo benefit offered to employee in exchange for sexual favors Or the opposite effect when they refuse and suffer consequences Hostile Environment working environment is abusive with ridicule intimidation etc Employer Defenses to Discrimination Business Necessity qualification is necessary to perform job Bona Fide Occupational Qualification BFOQ particular trait is essential


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FSU BUL 3310 - Principal-Agent Relationship

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