Question 1

Elaine is employed by a large multinational company in a top management position where she oversees a staff of 100 employees.There is no formal written employment contract between Elaine and the company,but she is paid an annual salary of $150 000.00 and given a company car; an expense account; and,at the end of each year,a bonus.One day,Elaine,who is an avid supporter of the Conservative Party,has an argument with the president of the company,who is an avid supporter of the Liberal Party.A couple of weeks later,Elaine receives a memo from the company's head office advising her that she is being transferred to the company's shipping department and that her company car,expense account,and bonus have been terminated.Elaine comes to you,her lawyer,for advice.In this case you,will tell Elaine

Accepted Answer

Constructive dismissal occurs when an employer makes significant changes to an employee's job without their consent that are unacceptable to the employee, and the employee chooses to resign as a result. Elaine's transfer to the shipping department, along with the termination of her company car, expense account, and bonus, would likely be seen as significant changes to her job that are unacceptable to her. Therefore, she may have been constructively dismissed by the company. The lack of a written employment contract does not prevent this from being a valid claim.

Question 2

Albert is employed by a large construction company and is in charge of purchasing the company's building supplies.When Albert enters into contracts for the company with its suppliers,Albert is

Accepted Answer

Albert acts as an agent when he enters into contracts on behalf of the company, and he is also an employee since he works for the company in a non-independent capacity.

Question 3

Damages for wrongful dismissal

Accepted Answer

Damages for wrongful dismissal are meant to compensate the employee for not receiving the required notice of termination. Therefore, the amount awarded will be equivalent to the salary the employee would have received during the notice period they were entitled to but did not receive. The length of the notice period may vary depending on the employee's length of service and the terms of their employment contract. There is no set formula or fixed amount for these damages, as each case will be assessed on its individual merits.

Question 4

Martin is employed by a delivery company and uses one of the company's trucks to make his deliveries.One day after work,Martin borrows the truck,and while he is driving home,he loses control of the truck and collides with Alice's car,causing damage to the car and injuries to Alice.In this case,Alice will

Accepted Answer

Martin is the sole tortfeasor in this situation because he was not acting within the scope of his employment when the accident occurred. Therefore, the delivery company is not vicariously liable.

Question 5

When an employer has hired an employee for a specified period and the time has elapsed

Accepted Answer

When an employer has hired an employee for a specified period, the agreement automatically terminates at the end of the period, and no notice is required before termination.

Question 6

Gerald,who is 59 years old,has been employed by a large telephone company for 14 years in one of the company's top management positions,although there is no formal written contract of employment between them.The company is not doing well financially and wants to let Gerald go,but does not know what kind of notice to give Gerald.If the company comes to you,its lawyer,for advice,you will tell it that the length of the notice period will depend on

Accepted Answer

The length of the notice period for terminating an employee without a formal written contract, especially in a top management position like Gerald's, typically depends on several factors. These include the employee's age, the length of employment with the company, the employee's position within the company, and the availability of similar employment given the employee's experience and education. All these factors collectively help determine a reasonable notice period, ensuring fairness to the employee while considering the employer's circumstances.

Question 7

John works for a large plumbing company on a job-by-job basis.While the company finds John each of his jobs,he has his own tools and uses a company truck with the name of the company on it.John's work is always subject to supervision by the company.In this case,John can be said to be

Accepted Answer

John's work is subject to supervision by the company, which is a characteristic of an employer-employee relationship. Additionally, John is using a company truck and the company finds him each job, further indicating that he is an employee rather than an independent contractor or agent.

Question 8

In early September,John is employed by a technology company for an indefinite term as its quality control supervisor.John was hired on the basis of his resumé,which stated that he had extensive experience in quality control supervision,which was not true.A month later,although the company had not found out about John's misrepresentation,the company summarily dismissed John,because his actions as quality control supervisor made no sense and had jeopardized the safety of the 10 employees under his control.In this case

Accepted Answer

The company has the right to dismiss John for just cause because his actions as the quality control supervisor endangered the safety of the employees under his control. The fact that John had misrepresented his qualifications only strengthens the company's case for just cause dismissal.

Question 9

Notice is not required

Accepted Answer

Notice is not required when the employee is dismissed for cause. In all other cases, notice is required regardless of the length of employment.

Question 10

Incompetence,disobedience,and misconduct justify an ending of the contract of employment for breach,but illness justifies an ending of the contract of employment for

Accepted Answer

Illness would justify an ending of the contract of employment for frustration. Frustration occurs when there is a significant change in circumstances that makes it impossible or radically different to fulfill the terms of the contract, and it is not due to the fault of either party. Therefore, frustration of the contract would be the appropriate legal justification for ending the employment contract due to illness.

Question 11

Where the employment of an employee is NOT ended for just cause

Accepted Answer

If an employee's employment is not ended for just cause, they may have a claim for wrongful dismissal. This means that the employer would be liable to pay the employee damages for breaching the employment contract. Reinstatement is not always an option, and the termination is not automatically voidable or deemed frustrated. Anticipatory breach may apply in some cases but is not the best choice for this question.

Question 12

George works for a large national corporation as its vice-president of sales.He earns $100 000.00 a year and has a company car and gas expense account,both of which are valued at total of $8000.00 a year.Five years into his employment with the company,the company wrongfully dismisses him and refuses to give him a letter of reference.Also,when George applies for other jobs and the companies to which George has applied for other jobs contact his company,it lies about his performance.In a wrongful dismissal lawsuit against the company,one of the heads of damages that John will seek for the actions of the company after it dismissed him will be

Accepted Answer

The Wallace decision, named for the court case Wallace v. United Grain Growers, established that employers have a duty to act in good faith when dismissing employees, which includes providing reasonable notice or pay in lieu of notice, and providing a reference upon request. By wrongfully dismissing George and lying about his performance to potential employers, the company breached this duty and could be liable for damages pursuant to the Wallace decision. Option A, damages for loss of income based on a reasonable notice period, is also possible, but it falls under the umbrella of damages pursuant to the Wallace decision. Options B, D, and E are not relevant in this scenario.

Question 13

Which of the following is NOT relevant in determining how much notice is reasonable in case of wrongful dismissal?

Accepted Answer

While the economic situation of the employer may be a factor in their ability to provide severance pay or benefits upon termination, it is not directly relevant in determining how much notice is reasonable for a wrongful dismissal. The other factors listed (age of employee, length of service, expertise and training, and possibilities for re-employment) can all play a role in determining an appropriate notice period.

Question 14

Allen,a research technician,has a contract of employment with a research company under which the term of Allen's employment is three years and Allen agrees to a confidentiality clause respecting anything related to the business of the company.Two years into his contract,Allen decides to make some extra money by selling some of the company's new designs to a competitor for $200 000.00.A month later,the company finds out what Allen has done and fires him.In this case

Accepted Answer

Allen breached the confidentiality clause in his contract by selling the company's designs to a competitor. The company has therefore properly dismissed him for just cause. The fact that his three-year contract was not yet over is irrelevant in this case.

Question 15

Dismissal for cause is

Accepted Answer

Dismissal for cause is dismissal for justified reasons, such as a breach of contract by the employee.

Question 16

The usual minimum notice requirement for a week hiring is

Accepted Answer

The usual minimum notice requirement for a week hiring is one clear week's notice.

Question 17

Henry is a carpenter by trade who has his own tools and his own truck.Henry works for a construction company,and after each job,he provides the company with an invoice for the work he has performed.In this case,Henry is

Accepted Answer

Henry is an independent contractor because he has his own tools and truck and provides an invoice for his work. He is not an employee of the company since he is not on their payroll and is not subject to their control or direction. He is also not an agent of the company since he is not acting on their behalf or representing them to others.

Question 18

The usual minimum reasonable notice for a monthly hiring is

Accepted Answer

The usual minimum reasonable notice for a monthly hiring is one month's notice, reflecting the rental period's length and providing both parties adequate time to make arrangements.

Question 19

John Jones is in the roofing business and enters into a contact with George Hopkins to put a new roof on George's house.John,who is extremely busy,decides to contract out the work to Albert.When Albert arrives,George refuses to let him do the work.In this case,under the contract

Accepted Answer

George can refuse to let Albert do the work because the contract for a personal service, like roofing a house, often implies that the work will be done by the specific person contracted, unless otherwise agreed upon.

Question 20

Which of the following is NOT true?

Accepted Answer

D  A) The relationship between employer and employee is not typically with an independent party; employees are not independent contractors.  D) The distinction between an agent and an employee is not solely based on function; it also involves the degree of control the employer has over the work performed.

Quiz 18: The Contract of Employment