Question:
Create a separate posting for each learning activity, i.e, one post for Learning Activity 1, a separate post for Learning Activity 2.Label each learning activity with appropriate titles, for example, "Learning Activity 1" and "Learning Activity 2". Include relevant subject titles and label each question part (e.g., 1.A. or 2.B.) to facilitate discussion.
Learning Activity 1:
This learning activity focuses on the elements of agency, the scope of the agency relationship and the liability of the principal to third parties for acts of an agent.
Scenario: ABC Company (ABC) manufactures products such as laundry detergent and household cleaners. ABC hired Tom to drive a company truck to deliver its products to various groceries stores across the United States. ABC did a background check on Tom. He had a clean driving record. The contract between ABC and Tom contained these clauses:
All parties agree that Tom is an independent contractor and not an employee of ABC. Tom has no right or authority to make any commitments or contracts on ABC's behalf without ABC's express authorization.
Tom will indemnify and hold harmless ABC from and against any and all liability, loss or damage that ABC may suffer as a result of any claims, demands, fines, costs or judgments against ABC arising out of Tom's performance or non-performance of any obligations arising under this contract or the violation of any applicable law
Tom was traveling south on Highway 68 to make a delivery to a grocery store. Sam was also driving his vehicle south on Highway 68. Tom was running late for the delivery and tried numerous times to pass Sam without success. Tom began tailgating and repeatedly honking his horn. Finally, both vehicles stopped at a traffic light. Tom jumped out of his vehicle and began banging on the driver-side window of Sam's vehicle. When Sam got out, Tom hit him numerous times with the tire jack supplied by ABC as part of the truck equipment. Sam was severely injured. Tom was later convicted of aggravated assault and battery. Sam sued ABC to recover his expenses and for other damages.
A. Is Tom the agent of ABC? Why or why not?
B. Is ABC liable for the actions of Tom? Why or why not? Do the two contract clauses quoted above affect your answer? How?
C. Assume Tom was an employee of ABC. Is Tom the agent of ABC? Is ABC liable for Tom's actions?
D. Finally, assume that Tom had been convicted previously for a road rage incident and ABC would have found this conviction in a background check. (ABC did not do this background check because it was cutting costs.) Is Tom the agent of ABC? Is ABC liable for Tom's actions?
Learning Activity 2:
This learning activity focuses on the responsibilities and duties of an agent.
Scenario: Mrs. Jones has come to see you about her aging, disabled mother. The situation has deteriorated and it is time to sell her mother's home and to place her mother in a nursing home. Mrs. Jones's mother is still mentally competent, but has been recently diagnosed with the beginnings of Alzheimer's disease. Mrs. Jones has two married sisters who live out of town and have not been involved in their mother's care. Her father died several years ago. Mrs. Jones is considering having her mother sign a "power of attorney" naming her and wants to learn more about this.
Advise Mrs. Jones on what her legal status would be if she is appointed under a power of attorney. Also discuss what her duties and responsibilities would be to her mother under a power of attorney to sell her home and manage her financial affairs. Does she owe any duties to her sisters? Why or why not?Question:
Create a separate posting for each learning activity, i.e, one post for Learning Activity 1, a separate post for Learning Activity 2.Label each learning activity with appropriate titles, for example, "Learning Activity 1" and "Learning Activity 2". Include relevant subject titles and label each question part (e.g., 1.A. or 2.B.) to facilitate discussion.
Learning Activity 1:
This learning activity focuses on the elements of agency, the scope of the agency relationship and the liability of the principal to third parties for acts of an agent.
Scenario: ABC Company (ABC) manufactures products such as laundry detergent and household cleaners. ABC hired Tom to drive a company truck to deliver its products to various groceries stores across the United States. ABC did a background check on Tom. He had a clean driving record. The contract between ABC and Tom contained these clauses:
All parties agree that Tom is an independent contractor and not an employee of ABC. Tom has no right or authority to make any commitments or contracts on ABC's behalf without ABC's express authorization.
Tom will indemnify and hold harmless ABC from and against any and all liability, loss or damage that ABC may suffer as a result of any claims, demands, fines, costs or judgments against ABC arising out of Tom's performance or non-performance of any obligations arising under this contract or the violation of any applicable law.
Tom was traveling south on Highway 68 to make a delivery to a grocery store. Sam was also driving his vehicle south on Highway 68. Tom was running late for the delivery and tried numerous times to pass Sam without success. Tom began tailgating and repeatedly honking his horn. Finally, both vehicles stopped at a traffic light. Tom jumped out of his vehicle and began banging on the driver-side window of Sam's vehicle. When Sam got out, Tom hit him numerous times with the tire jack supplied by ABC as part of the truck equipment. Sam was severely injured. Tom was later convicted of aggravated assault and battery. Sam sued ABC to recover his expenses and for other damages.
A. Is Tom the agent of ABC? Why or why not?
B. Is ABC liable for the actions of Tom? Why or why not? Do the two contract clauses quoted above affect your answer? How?
C. Assume Tom was an employee of ABC. Is Tom the agent of ABC? Is ABC liable for Tom's actions?
D. Finally, assume that Tom had been convicted previously for a road rage incident and ABC would have found this conviction in a background check. (ABC did not do this background check because it was cutting costs.) Is Tom the agent of ABC? Is ABC liable for Tom's actions?
Learning Activity 2:
This learning activity focuses on the responsibilities and duties of an agent.
Scenario: Mrs. Jones has come to see you about her aging, disabled mother. The situation has deteriorated and it is time to sell her mother's home and to place her mother in a nursing home. Mrs. Jones's mother is still mentally competent, but has been recently diagnosed with the beginnings of Alzheimer's disease. Mrs. Jones has two married sisters who live out of town and have not been involved in their mother's care. Her father died several years ago. Mrs. Jones is considering having her mother sign a "power of attorney" naming her and wants to learn more about this.
Advise Mrs. Jones on what her legal status would be if she is appointed under a power of attorney. Also discuss what her duties and responsibilities would be to her mother under a power of attorney to sell her home and manage her financial affairs. Does she owe any duties to her sisters? Why or why not?