Rocking the Boat
An agent is a person acting on behalf of the interests of another person or organization. "A person authorized to act for and under the direction of another person when dealing with third parties….An agent can enter into binding agreements on the principal's behalf and may even create liability for the principal if the agent causes harm while carrying out his or her duties" (Agent, 2013, Nolo). In the instance of Melinda, Melinda believed she was acting on behalf of the cruise line and simply performing the necessary duties of her job. Given that Melinda put the purchase on her credit card, however, it is unclear that the terms of her agency were such that she would be allowed to do so with the expectation of reimbursement. The reaction of the company implies that she was expected to go through specific channels and to not do so leaves her liable for the charges, given that the company cannot expect employees to be reimbursed for every non-approved purchase they make ostensibly on behalf of the company. Regardless, reimbursement policies must be clarified in the company literature and the fact that the employee acted in good faith should be taken into consideration.
"Under a legal doctrine sometimes referred to as 'respondeat superior' (Latin for 'Let the superior answer'), an employer is legally responsible for the actions of its employees. However, this rule applies only if the employee is acting within the course and scope of employment. In other words, the employer will generally be liable if the employee was doing his or her job, carrying out company business, or otherwise acting on the employer's behalf when the incident took place" (Employer liability for an employee's bad acts, 2013, Nolo). Steve would likely be considered a case of 'negligent hiring,' particularly if he had a history of drinking on the job. This underlines the importance of doing extensive, appropriate background checks on employees. However, in contrast, Paul was not an authorized agent or an official employee, even though he purported to be one. The company would not be liable for his actions.
Q2.A sweet business idea
Given that Dan and Carla wish to retain control over the evolution of…
