Question 1

An auctioneer who sells goods is likely an agent and independent contractor.

Accepted Answer

An auctioneer may be considered an agent if they are working on behalf of a seller, but they are typically an independent contractor as they are not employed directly by the seller but rather contracted to sell their goods or services.

Question 2

If you hire a builder to build a home, he is likely an independent contractor for you.

Accepted Answer

A builder hired to build a home is typically considered an independent contractor because they are hired to complete a specific project or task, rather than being an employee of the homeowner or the construction company. As an independent contractor, the builder is responsible for their own taxes, insurance, and liability, and the homeowner is not responsible for providing benefits or withholding taxes from their payments to the builder.

Question 3

Geary was fired by his supervisor for revealing to higher management a serious problem with a company product. He sued for wrongful dismissal. You would expect the court to hold that Geary would be successful because he proved that if the product had gone to market it could have cost many lives.

Accepted Answer

The success of Geary's lawsuit would depend on the specific whistleblower protection laws in place, the terms of his employment, and whether his actions were legally protected. Simply proving potential harm may not be sufficient for a wrongful dismissal claim.

Question 4

Traditionally, employees did not act as agents for their principals, but today employees may well also be agents.

Accepted Answer

Today, many employees are given the authority to act on behalf of their employers or principals, making them agents in addition to being employees. This is particularly true in industries such as sales, where employees are often given the responsibility of negotiating and finalizing deals with customers.

Question 5

An independent contractor is an agent and an employee of the person who hired her.

Accepted Answer

An independent contractor is not an employee, but rather a self-employed individual who has been contracted to perform a specific service or task for the person who hired them. Therefore, they are not considered an agent or employee of the person who hired them.

Question 6

A senior manager at a car dealership is likely both an agent and employee.

Accepted Answer

A senior manager at a car dealership is likely an agent because they act on behalf of the dealership in negotiating sales and transactions. They are also likely an employee because they work for and are compensated by the dealership.

Question 7

If the subject matter of an agency agreement is destroyed, the agency relationship continues until new subject matter is found.

Accepted Answer

The destruction of the subject matter of an agency agreement typically leads to the termination of the agency relationship, as the basis for the agency no longer exists.

Question 8

An independent contractor is usually not an agent of the principal who hired her, but can have that role too.

Accepted Answer

An independent contractor is usually not an agent of the principal, but depending on the terms of their agreement, they may be designated as an agent and have the authority to act on behalf of the principal.

Question 9

Some state courts hold that employment contracts contain implied covenants of good faith and fair dealing.

Accepted Answer

Some state courts recognize that employment contracts include an implied obligation of good faith and fair dealing between the employer and employee. This means that both parties are expected to act in good faith towards each other and not engage in any unfair or deceptive behavior that would violate the basic principles of fairness and honesty. This implied covenant may be used to support claims for breach of contract or wrongful termination.

Question 10

European nations generally have more detailed rules regarding employees than does the U.S.

Accepted Answer

European nations have more comprehensive labor laws and regulations than the US, resulting in more comprehensive and detailed rules governing employee rights and behaviors.

Question 11

Geary was fired by his supervisor for revealing to higher management a serious problem with a company product. He sued for wrongful dismissal. You would expect the court held that Geary's dismissal was proper under employment-at-will despite his good motives.

Accepted Answer

The answer of Geary was fired by his supervisor for...

Question 12

Employment-at-will means that, unless a contract holds otherwise, employers are free to fire workers at any time for any reason and employees are free to quit their jobs at any time for any reason.

Accepted Answer

Employment-at-will is the default rule in most US states, meaning that employers can terminate an employee without cause or advance notice, and employees can resign without reason or advance notice. However, there are some exceptions to this rule, such as discrimination or retaliation. Additionally, some employees may have contracts or agreements that specify certain terms of employment or require a specific reason for termination.

Question 13

An independent contractor is not an employee of the person who hires her.

Accepted Answer

An independent contractor is self-employed and provides services to clients, but is not considered an employee of those clients.

Question 14

In France v. Southern Equipment, where a worker was seriously hurt on a roofing job, the courts held that the owner of the building being roofed was not responsible for the injury suffered by an employee of an independent contractor doing the roof work.

Accepted Answer

The courts held that the owner of the building being roofed was not responsible for the injury suffered by an employee of an independent contractor doing the roof work.

Question 15

A check-out clerk at the grocery store is typically in a master-servant relationship, not an agency relationship.

Accepted Answer

A check-out clerk at a grocery store is an employee who is typically in a master-servant relationship with their employer, which means they work under direct control and supervision of their employer. An agency relationship, on the other hand, is a situation where one party (the agent) acts on behalf of another party (the principal) and can make decisions on their behalf.

Question 16

A stocker in a grocery store is an employee but not an agent for the store.

Accepted Answer

An employee is someone who works for someone else and performs the duties assigned by the employer. However, an agent has the authority to act on behalf of the employer and bind them legally. A stocker in a grocery store is an employee but not an agent as they do not have the authority to make decisions on behalf of the store.

Question 17

A real estate agent who sells a house on commission is an agent, not an employee of the home owner.

Accepted Answer

A real estate agent who sells a house on commission is typically categorized as an independent contractor, rather than an employee of the home owner. They work for a brokerage firm, but are not directly employed by the person selling the home.

Question 18

One factor that courts may consider when trying to decide if an independent contract or employee relationship exists is whether or not the contractor has the right to direct or control the work of the employer.

Accepted Answer

Courts consider whether the employer has the right to direct or control the work of the contractor, not the other way around, to determine the nature of the relationship.

Question 19

In France v. Southern Equipment, where a worker was seriously hurt on a roofing job, the courts held that the owner of the building being roofed was liable for the injuries suffered by the worker.

Accepted Answer

In France v. Southern Equipment, the court held that the owner of the building being roofed was not liable for the injuries suffered by the worker. The liability typically falls on the employer or the direct contractor responsible for ensuring workplace safety, not the building owner, unless the owner has directly contributed to the unsafe conditions or negligence can be proven against them.

Question 20

If an American company sends an American employee to work in its office in France, the employee may be under French employment law.

Accepted Answer

When an American company sends an American employee to work in its office in France, the employee may be considered as being employed by the French subsidiary, and therefore may be subject to French employment law. It is important for companies and employees to understand the legal implications and requirements of working in a foreign country.

Quiz 14: Agency and the Employment Relationship