Clark_11e-AM-Ch31.doc

Clark_11e-AM-Ch31.doc - 243 C HAPTER 31 A GENCY F ORMATION...

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Unformatted text preview: 243 C HAPTER 31 A GENCY F ORMATION AND D UTIES A NSWER TO Q UESTIONS AT THE E NDS OF THE C ASES CASE 31.1(PAGE 641) WHAT IF THE FACTS WERE DIFFERENT? Suppose that Alberty had been a full-time, hourly worker and that such status was common among television hosts, but WIPR had manipulated the benefits and tax withholdings to favor independent-contractor status. How might the result have been different? Control is generally the dispositive factor in determining whether workers are employees or independent contractors, and under the facts posed in this question, the television station would be in control. A failure to receive certain tax forms or benefits will not likely convert hourly, full-time workers in positions typi- cally occupied by employees into independent contractors. THE GLOBAL DIMENSION Would Alberty have been defined as an employee if she had been a foreign correspondent who reported on stories from international locations and WIPR had paid her travel and related expenses? Explain. No. It is unlikely that an employers payment of travel and related expenses for an otherwise independent contractor would change that individuals status to employee. If all of the other factors listed in the courts opinion were the sameparticularly the terms of the parties contracts allowing Alberty to seek other workher status would likely also be the same. CASE 31.2(PAGE 644) WHAT IF THE FACTS WERE DIFFERENT? Suppose that Motorsports sales manager had telephoned Marsha Wiedmaier. Further suppose that Marsha had vouched for Michaels creditworthiness but informed Motorsport that she and her husband owned Wiedmaier and that Michael worked for them. How might the outcome of this case have been different in that situation? If Marsha had made clear to Motorsport that Michael was not ordering merchandise on Wiedmaiers behalf, there would not have been a sufficient basis to support a theory of apparent agency. If, however, Marsha told Motorsport that she was an owner of Wiedmaier, vouched for Michaels credit, and said 244 UNIT SEVEN: AGENCY AND EMPLOYMENT that he worked for Wiedmaier, without indicating that he was not its agent, the case might have had the same result. THE E-COMMERCE DIMENSION Should the court have applied the law differently in this case if Michael had done business with Motorsport entirely online? Explain. No. Apparent authority results from a direct communication from a principal to a third party that causes the third party to reasonably believe another person has the authority to act for the principal. The communication need not be verbal and can consist of a combination of acts. Thus, the court should not have applied the law differently in that circumstance....
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This note was uploaded on 10/11/2010 for the course MGT 301 taught by Professor Pederson during the Fall '10 term at SUNY Stony Brook.

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Clark_11e-AM-Ch31.doc - 243 C HAPTER 31 A GENCY F ORMATION...

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