Employment and Debtor/ Creditor relations, Agency

Posted on: 2nd July 2023

Question

Assignment Overview

In this assignment, you will be presented with a variety of hypothetical scenarios. For each scenario, you need to explain the reasoning behind your answer and use at least one reference from the background materials to support each answer. You are free to cite additional sources that are not included in the background materials. However, any citation should be from credible sources such as articles from ProQuest or textbooks from Ebrary rather than random web pages. Your paper should be a minimum of 4 full pages (excluding title and references pages) and include a minimum of 3 scholarly sources.

Case Assignment

You own and operate a full-service 24-hour auto repair shop—the only 24-hour shop in your town. In fact, you are pretty sure it is the only 24-hour auto repair shop in the state. Your business is now a success, but you had a lot of trouble initially finding an auto mechanic willing to work the late shift. You are now concerned that this mechanic could leave you at any time and open—or help someone else open—another 24-hour shop. You decide to ask him to sign a non-competition agreement saying that if he ever leaves your shop, he cannot work as an auto mechanic anywhere in your state for the next seven years. He looks at you and says, “Are you out of your mind?” What alternative terms of a non-competition agreement do you think would be more reasonable?

You are the owner of a boutique that sells bathing suits and beach apparel, and you are many months behind on your loan payments to the bank (you owe a total of $100,000). The bank now wants you to hand over all of your remaining company funds to pay back the loan. However, it is mid-April, and the summer season is coming up. That is when you typically do 60% to 70% of your business for the year. If you pay the bank now, you will not have funds to pay the rent or your staff; so, to stay in business, you will need the bank to wait until after the summer season. If you end up needing to file for bankruptcy, which type would be most appropriate for this situation: Chapter 7, Chapter 11, or Chapter 13? Would your answer change if the summer season were over, but you were still unable to pay back the bank loan? Explain your answers.

You are employed by a small college as a special-event planner. For events that you organize, you hire independent contractors to do the audio-visual setup and supply equipment such as microphones, speakers, projectors, etc. On the day of an event, you ask one of your independent contractors to make some last-minute changes to the AV sound equipment. Perhaps under stress by this request, the independent contractor rams into the back of someone’s car on his way to the campus. The driver of the car your independent contractor hit is transported to a hospital by ambulance with neck pain. A few weeks later, the college receives a letter from an attorney demanding payment of medical expenses for the driver of the car your independent contractor hit. Do you think the college will be liable for these medical expenses? Explain your reasoning.

The company you work for is going through some tough times, and your boss has no choice but to let an employee go. Your boss has told you that he is relieved that your business is in an “employment-at-will” state. You know your boss was upset earlier that your co-worker Ann had come late to an important client meeting because she had stopped off to vote on the last election day. The client nearly canceled his order because he felt disrespected by Ann being late, even though she was able to smooth things over when she arrived. Therefore, you are not surprised when you overhear your boss firing Ann and telling her that her termination is performance-based, and the company simply can’t tolerate employees who are deliberately late for important meetings. Is your boss’ firing of Ann legally justifiable? Explain your answer.

Your company makes a popular hot dog relish. The relish is packed in jars and sold in local grocery stores. While you were out of town, the supply of jars was running low, so your factory supervisor took the initiative and placed an order for more jars. Since the jars were absolutely necessary for keeping operations going while you were gone, you happily pay the supplier for the order when you get back. Now the factory supervisor is placing jar orders anytime supplies are low. Even though you never gave him formal permission to do this, you keep paying the supplier. One day you notice that the price of the jars the supervisor is ordering is higher than other suppliers’ prices. You call the supplier and ask for a price reduction because you never authorized the factory supervisor to place orders in the first place. Do you think the supplier might insist on getting his original price even though you say the employee was not authorized to place the order? Explain your answer.

Assignment Expectations

The minimum length requirement for the Module 3 Case Assignment is 4 full pages (excluding title and reference pages). The 4 full pages will include an introduction, a body of work (supported with three scholarly sources), a conclusion, and a References page (see APA 7 template).

Provide a minimum of at least 3 scholarly sources using APA Style.

Provide an APA-formatted title page and use the APA 7th Assignment Template.

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Solution

Debtor/ Creditor relations, Agency, and Employment

Terms of Non-compete Agreement

An employer may use a non –competition agreement to protect its confidential information through a reasonable agreement with employees. Non –competition agreements must be appropriate in duration and scope. The reasonableness of the time of the contract will mostly depend on the specific facts of each case, mostly between six to two months. For any confidential information between an employer and employee, the period tends to be longer. Non- competition agreement should also be signed on the goodwill established by an employer in terms of customer relations. Such plans prevent a former employer from capitalizing on the contract and competing with the original employer.

In the case of the 24hour auto shop, the employer doesn't consider the time factor as the agreement is supposed to be signed before the employment and not after work. In addition to this, the employer doesn't offer a reasonable deal in scope, geography, and time. The 24hour employer further isn't fair to the employee by limiting his capability of opening a different repair store in another locality.

In conclusion, the non-compliance agreement help secure the employers’ interest through protecting the information of proprietors. However, it infringes on the freedoms of workers by imposing a restrictive mechanism over a period not less than 3yrs.It is advisable  that  since there are no significant  industrial benefits, that individuals  seek an attorneys advise to free them from the noose. In the long run, this agreement is important in creating sanctity through establishment of healthy business competition

References

Kim, Y., Su, L., Wang, Z., & Wu, H. (2021). The effect of trade secrets law on stock price synchronicity: Evidence from the inevitable disclosure doctrine. The Accounting Review, 96(1), 325-348.

Creditors / debtors : Types of Bankruptcy

Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their obligations. There are mainly seven types of bankruptcy: Chapter 7 liquidation, chapter 13 repayments, chapter 11 significant reorganization, chapter 12 family farmers, chapter 15 used in foreign cases, and chapter 9 municipalities.

Chapter 11 emphasizes keeping your assets, like a home or vehicle, while also reorganizing your debt .often used by businesses, chapter 11 can also be used by individuals to reorganize their debts through a court-approved plan. If you prefer to discard most of your debts and start over with a clean financial slate, chapter 7 bankruptcy may be right. It allows liquidation of most debts to be discharged without repayment. But even this may not be necessary as many people whose income is low enough can get rid of most of their debt via chapter 13. In this type of bankruptcy, the court approves a repayment plan that typically lasts three to five years.

In conclusion, if I were in the same situation, I would have opted for chapter 7 bankruptcy. So that I could be able to pay the rent together with the staffs salary, when the summer approaches I will be flexible supported by chapter 13 that will allow me a repayment plan that last for three to five years.

Reference

Tung, F. (2020). Financing Failure: Bankruptcy Lending, Credit Market Conditions, and the Financial Crisis. Yale J. on Reg., 37, 651.\

Rašević, M. (2022). THE LEGAL TREATMENT OF THE INITIATION AND IMPLEMENTATION OF BANKRUPTCY AGAINST LEGAL ENTITIES IN REPUBLIC OF SERBIA. Pravo-teorija i praksa, 39(1), 98-110.

Workers Disputes

Every worker has a right to workers' compensation insurance coverage that covers workers against accidents and injuries while on duty(Quinter.,et al., p 456) I think the college will not be liable. There are several reasons why I believe this is true, including the fact that the relationship between the insured and uninsured driver was nonexistent or barely known. In addition, the crash was an accident rather than intentional behavior. There was no causal connection between the actions of the independent contractor and the injuries sustained by the driver; the college has many independent contractors that it contracts with time. Hence, it is unlikely to know if one or more of these individuals may have a history of driving carelessly and therefore jeopardizing other people in their wake. New Jersey law allows an unpaid volunteer classification as a non-employee (Risk.,p20,287).

In conclusion, although the contractor is an independent contractor and not an employee of the college, the college may still be liable for accidents caused by the independent contractor. However, the level of responsibility for these accidents depends on how much control the college has over the independent contractor's actions.

Reference

Quintner, J., & Galbraith, M. (2022). The great trade-off in Workers’ Compensation: Perceptions of injustice by those experiencing persistent pain. Pain medicine, 23(3), 456-465.

Risk, Z. A. (2020). Employees Who Aren't Employees: The Case for a Single Definition of" Employee" in Michigan Employment Law. JL Soc'y, 20, 287

Labor Disputes

In the scenario of Ann and my boss, there are legally enforceable implications that could justify her innocence as much as my boss' firing of Ann would be legally justifiable. First, the background: At-will employment means that an employee can be fired for any reason or no reason at all in most states. However, there are some exceptions to the general rule. One exception involves workplace discrimination, which includes discrimination based on race, color, religion, gender, etc. Another exception applies to firing someone to retaliate against them because they had filed a worker's compensation claim in the past or because they had complained about unsafe working conditions.

Another exception is that employers cannot fire employees because they have exercised their off-duty constitutional rights (for example, their right to free speech, free exercise of religion, or freedom to petition a government authority). And lastly, there are also some professions and businesses where an at-will rule does not apply – such as employers who receive federal funding.

Hence, every employee has a right to be indispensable until the employers’ justification for discharging them is within the confines of the law( Bagentos, pg. 55). Failure to observe such doctrines, would lead to compensation ad penalties that are equivalent to damages caused to the individuals.

Organisation Communication Flow

With the price of jars rising, I think it would be good to check with our supplier and see if he can sell us a case at a lower price. After all, I don't believe he was authorized to make the order. Supervisor took the initiative, placed an order for new jars, and paid for them with my money. Since I have always accepted his charges in the past, the supplier will probably not budge on lowering my price even though I never permitted my employee.

Since this supplier filled your original request for jars, I cannot claim breach of contract because the fees are too high. It is also unlikely that I will win a case of unjust enrichment because you never told the supplier that I wanted to save money on the purchase; therefore, the supplier does not have to refund the price difference. I might be able to avoid an argument altogether if I make it clear to my employees and suppliers that someone in management should approve any order over a specific amount. This will prevent disputes over who has the authority to place an order.

In conclusion, the breach of contract is not allowed in business. Therefore, it is important that all parties learn to be ethical in all their dealings for the smooth running of operations. In this case, therefore, I chose to make the right over entitlement and indifference that guarantee what am permitted as an employee.

Reference

Bagenstos, S. R. (2020). Consent, Coercion, and Employment Law. Harv. CR-CLL Rev., 55, 409. International labor organization (2022), labor disputes prevention and resolution https://www.ilo.org/ifpdial/areas-of-work/ 

Purshouse, C., & Bracegirdle, K. (2018). The Problem of Unenforceable Surrogacy Contracts: Can Unjust Enrichment Provide a Solution?. Medical Law Review, 26(4), 557-584.

Granite state college,(2022), Introducing organization communication, https://granite.pressbooks.pub/organizational

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