Human Resource Learning Activities
Learning Activity #1
Q1. Arnold is the chief executive officer of Beta Corporation. Arnold’s responsibilities include decisions on product development, marketing, and other significant business directions. Arnold is subject to the approval and oversight of Beta’s board of directors. Carol is a Beta manager whose duties include the firm’s day-to-day hiring, firing, purchasing, and selling. Dave is a Beta salesperson, whose daily activities are controlled by Carol. Erin writes technical manuals for Beta products according to Arnold’s instructions and subject to Beta’s control, but has no dealings with Beta customers or suppliers. Fred edits the manuals on a contract-per-manual basis and is not otherwise subject to Beta’s control. Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?
In this case, Arnold is the principal. Baskind, Osborne, & Roach (2014) defines principal as a person who gives authority to an agent to act on his or her behalf. It is also important to note that principal is not involved in the daily decisions of the business. As principal, Arnold has given the business directions to his agent Carol. Therefore, Carol qualifies to be an agent in this scenario. Carol has been given marketing responsibilities to execute on behalf of her principal (Arnold). An agent is a party engaged by the principal to act on his or her behalf when dealing with the third parties. On the other side, Dave comes out as an employee in this situation. Dave cannot qualify as an agent as his daily activities are monitored and controlled by Carol. Fred job responsibilities classify him as an independent contractor. Baskind, Osborne, & Roach (2014) noted that an independent contractor is a person who executes services for another person but without control of the organization. Similarly, Fred performs his services under the instructions of Arnold, but he is not under control of Beta Company.
Q2. Ella agrees to act as Fab’s agent in settlement negotiations with Global Insurance Company. Ella works out a profitable compromise for Fab, but deposits the company’s payment in her own account and refuses to give it to Fab. Fab files a suit against Ella. What remedies might the court impose?
Learning Activity #2
Q1. Brenda is a purchasing agent for Commodities Exchange Corporation. Dennis, a Commodities corporate officer, gives Brenda written authority to buy for the firm as many computers and peripheral devices as necessary. The next day, Dennis calls Brenda and tells her to buy only fifty notebook computers and nothing else. Brenda shows the written authority to E-Products, Inc., and enters into a contract with E-Products to buy sixty notebook computers and a selection of printers, scanners, and extra storage media. E-Products ships the order to Commodities. Is Commodities liable to E-Products under the contract? Is Brenda liable? In each case, if so, why? If not, why not?
Q2. Tropical Vittles, LLC, hires Sophie to act as its agent to buy a ten-acre tract of land from Rico for $1,000 per acre. Tropical Vittles does not want Rico to know that it is the principal or that Sophie is its agent. Tropical Vittles wants the land for a new fast-food restaurant, and believes that Rico may not sell the land for that purpose or may demand a premium price. Sophie makes the purchase, signing only her name to the contract as the buyer and not disclosing to Rico the agency relationship. The transfer of the deed is to occur on May 1. Rico learns of Tropical Vittles’s identity on April 15. Can Rico legally refuse to deed the property on May 1? Explain.