Debtor/Creditor Relations, Agency, and Employment

Debtor/Creditor Relations, Agency, and Employment

Scenario 1

When running a business, it is important to protect your interests. This includes protecting your business from competitors who may try to take advantage of your success unfairly. One way to do this is to have key employees sign non-competition agreements. A non-competition agreement is a contract in which an employee agrees not to work for a competitor of the company they are currently employed by. Non-competition agreements can help protect your business from the unfair competition (Pivateau, 2019). However, while this is an excellent strategy for increasing your ROI, it is critical to ensure that the contract conditions are fair. For instance, If you are worried that an employee might leave your company and start a competing business, you could ask them to sign a non-competition agreement. This would mean that they could not work as an auto mechanic in your state for the next seven years. However, this may be too restrictive, and the employee may refuse to sign the agreement.

A more reasonable alternative might be to ask the employee to agree not to run a competitive business near your company for some time. This would allow them to work as an auto mechanic in another town but still protect your business from unfair competition. It is important to consult with an attorney before having an employee sign a non-competition agreement. This will ensure that the agreement is legally binding and enforceable. For example, an agreement that is too restrictive in terms of geography or period may be deemed unenforceable by a court. An attorney can help you draft an agreement that will be reasonable and enforceable.

Scenario 2

If you cannot pay back your loan to the bank, you may have to file for bankruptcy. The type of bankruptcy most appropriate for this situation would depend on your specific circumstances. If you are behind on your loan payments and cannot pay the rent or your staff, then there is a need for filing for Chapter 7 bankruptcy (Dinterman & Katchova, 2021). This type of bankruptcy is a form of debt relief that allows you to get rid of your obligations and begin again. However, if you are behind on your loan payments but can repay your debt over time, filing for Chapter 13 bankruptcy is important. You may use this approach to restructure your debts and establish a payment schedule if you declare Chapter 13 bankruptcy. If you are a business owner and cannot pay your debts, filing for Chapter 11 bankruptcy is needed. Chapter 11 bankruptcy enables you to restructure your firm while arranging payment terms with your creditors. The type of bankruptcy most appropriate for this situation would depend on your specific circumstances. If you are behind on your loan payments and cannot pay the rent or your staff, then filing for Chapter 7 bankruptcy is critical where you can discharge your debt and start over. However, if you are behind on your loan payments but can repay your debt over time, filing for Chapter 13 bankruptcy is required, allowing you to plan for your debt and create a repayment plan. If you are a business owner who cannot pay your bills, you might have to file for Chapter 11 bankruptcy. This is a way to restructure your company and make deals with your creditors to pay what you owe (Dinterman & Katchova, 2021). The answer would be different if the summer season were over, but you were still unable to pay back the bank loan. In this case, you may need to file for bankruptcy regardless of the type of bankruptcy that would be most appropriate for your specific situation. If you cannot pay back your loan, you may need to consider all of your options to protect your business and yourself. It is important to speak with an attorney or financial advisor to discuss your specific circumstances and determine which type of bankruptcy would be most appropriate.

Scenario 3

Depending on the legal relationship between the college and the independent contractor, it may be held responsible for these medical expenditures. If a college is held to be the employer of an independent contractor, it is responsible for his behavior while he worked. If the entity is considered a freelancer, on the other hand, the school would not be responsible for his behavior. The degree of power an employer has over a worker is determined by its influence over him (Veliotis & Steve, 2021). If the employer has a lot of power over the employee, they are regarded as employees. However, the independent contractor usually has little control over their working conditions. If the college had a lot of power over an independent contractor in this situation, the college would be responsible for its actions. However, if the college had little control over the independent contractor, it would not be responsible for his conduct. For example, if the independent contractor were required to work on the college campus, use college equipment, and follow college policies, the college would have a great deal of control over him (Veliotis & Steve, 2021). In this case, the college would be liable for his actions. However, the institution would not have much power over him if the independent contractor was not obligated to work on a college campus, use college equipment, or comply with school regulations. Therefore, the institution would not be held responsible for his actions in this scenario.

Scenario 4

In most jurisdictions, an employer in an “employment-at-will” state may fire someone without any reason. However, this broad rule is not always applied. One exception is when the firing violates a public policy. For example, it is against public policy to fire an employee for taking time off to vote. Therefore, if Ann were fired solely because she took time off to vote, her firing would be illegal. When the employer and employee have a written or oral agreement, there are certain circumstances in which it is valid (Arnow-Richman, 2021). For example, if Ann had an employment contract that said she could only be fired for “good cause,” her firing would only be legal if her boss had good cause to believe that she was not performing up to par. In this case, it is possible that Ann’s boss could argue that her tardiness constituted “good cause” for termination. However, if Ann can prove that she was fired because her boss disapproved of her political views (as evidenced by the fact that he was upset about her taking time off to vote), she may have a claim for wrongful termination (Arnow-Richman, 2021). Finally, even in an “at-will” state, an employer cannot fire an employee in a way that violates the law. For example, an employer cannot fire an employee because of their race, religion, gender, or national origin. If Ann can prove that she was fired because of her political views (as evidenced by her boss’s upset about her taking time off to vote), she may have a claim for wrongful termination.

Scenario 5

The supplier may demand his original price for the jars since the firm has a business relationship with him. However, the company has been ordering jars from the supplier and paying for them, so the supplier has reason to believe that the company will continue to do business with him. In addition, if the factory supervisor were authorized to place orders on behalf of the company, the company would be liable for the payment. The supplier might also argue that the company benefited from the ordered jars, so it should have to pay the full price. Ultimately, because it would be up to the firm to prove that the factory supervisor was not authorized to make the purchases, this may be difficult.

References

Arnow-Richman, R. (2021). Temporary Termination: A Layoff Law Blueprint for the COVID Era. Wash. UJL & Pol’y, 64, 1.

Dinterman, R., & Katchova, A. L. (2021). Survival analysis of farm bankruptcy filings: Evaluating the time to completion of chapter 12 bankruptcy cases. Agribusiness, 37(2), 324-347.

Pivateau, G. T. (2019). An Argument for Restricting the Blue Pencil Doctrine. Belmont L. Rev., 7, 1.

Veliotis, S., & Steve, B. (2021). The Tax Cuts and Jobs Act of 2017 and the Gig Economy: Why the Employee vs. Contractor Debate Matters More than Ever. Compensation & Benefits Review, 08863687211060242.