Explain Agency law and the implications of Agency law
Explain Agency law and the implications of Agency law that apply in this situation. Describe at least one (1) way the company may be able to cancel or return the order in question.
Agency law means when you get hire by someone you their agents and the person you got hire by is the principal. This usually is done by written contract or power of attorney. By hiring the agent you are giving him/her control to act as the principal. For example in this case the agent was my friend who ordered the improper ordered act like the principal. Agents act in duty of loyalty, duty of good conduct, duty of care and duty to act in terms of the contract. The business will be liable for the employee action due to the he is acting as the agent.
- For six months, every week, Chuck rents a RYDER truck and journeys to Tennessee where he purchases a truckload of widgets from Widgets, Inc.
- RYDER is fully aware of the nature of the transported items and initially pays particular attention to Chuck’s attire each time he appears to rent the truck. Chuck wears customized attire from his former employment with Widgets, Inc. The shirt bears the name Widgets Inc. and the logo is quite noticeable.
- Chuck wears his custom attire when driving to Tennessee as he expects to visit his former colleagues when at the company. He thinks it is funny to wear the old uniform when visiting the company. He visits and talks to his friends and colleagues, has lunch every time and leaves with his purchase.
- Chuck experiences monetary issues in his personal life. He rents the RYDER truck but fails to pay RYDER truck for several rental periods.
- RYDER then submits an invoice to Widgets, Inc. for payment.
As a small-business owner, you are faced with rising costs, particularly employment costs, insurance, et cetera. You decide to hire some friends and pay them as they work rather than go through the expense and procedure of bringing in “actual” employees. Your friends wear the business uniform, deal with vendors and customers, and tell friends and family that they work for the business. One friend / employee orders way too much from a vendor. The vendor has dealt with the person numerous times; in fact, the person has been ordering from the vendor for months.