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Chapter 14. Common Law Rules in Employer-Employee Relations . Employer-Employee Legal Classifications. Master-servant relationship One person employs another in tasks not involving contracts Principal-agent relationship One person employs another to contract with third persons

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chapter 14

Chapter 14

Common Law Rules in Employer-Employee Relations

employer employee legal classifications
Employer-EmployeeLegal Classifications
  • Master-servant relationship
    • One person employs another in tasks not involving contracts
  • Principal-agent relationship
    • One person employs another to contract with third persons
  • Employer-independent contractor relationship
    • One person hires another and has no control over how the contractor performs the work
effect of employer employee classifications
Effect of Employer-Employee Classifications
  • Respondeat superior
  • Nondelegable duties
  • Consensual relations
  • Gratuitous agent
types of agents
Types of Agents
  • General agent
    • Has authority to act on another’s behalf in many different matters
  • Del credere agent
    • Sells goods for another on credit and guarantee that agent will pay if buyer does not
  • Special agent
    • Accomplishes particular tasks
how agency authority is created
How Agency Authority is Created
  • Express authority
    • Agreement in writing
  • Implied authority
    • Agreement by inference
  • Apparent authority
    • Agreement by conduct
  • Ratification
    • Agreement conferred retroactively
common law duties
Common Law Duties
  • Master-to-servant
    • Provide safe work place
    • Provide safe tools
    • Reasonably pay servant
common law duties1
Common Law Duties
  • Principal-to-agent
    • Pay agent specified amount
    • Advance money if the contract provides for it
    • Reimburse ordinary expenses
    • Indemnify agent for losses sustained while agent performs tasks
    • Duty of care
common law duties2
Common Law Duties
  • Agents-to-principals
    • Duty to account
    • Duty to use care and skill
    • Duty to follow instructions
    • Fiduciary duty
agent or servant liability torts
Agent or ServantLiability: Torts
  • Indemnity
  • Respondeat superior principal
  • Scope of employment
  • Distinction between where agent’s responsibilities end and duties begin can be difficult to ascertain
agent liability to third persons contracts
Agent Liability to Third Persons: Contracts
  • Agents may be subjected to liability to third persons with respect to contracts in three ways:
    • On the contract
    • For the tort of fraud
    • For breach of warranty of authority
liability for crimes
Liability for Crimes
  • Employee liability
  • Employer liability
    • Criminal conspiracy
  • Corporate employers
  • Respondeat superior
  • Superior agent rule
how agencies end
How Agencies End
  • Voluntary completion of the tasks for which agent was hired
  • Death of principal or agent
  • Insanity of principal or agent
  • Bankruptcy of principal
  • Physical incapacitation of agent
  • Illegality of activities for which the agent was hired
ending of employment relationship employment at will
Ending of Employment Relationship: Employment-at-Will
  • Wrongful dismissal lawsuits in general
  • Employee actions causing wrongful dismissal
  • Legal limits on wrongful dismissal
  • Notice of ending of agency
recap terms to know
Recap – Terms to Know
  • Employer-employee legal classifications
  • Respondeat superior
  • Nondelegable duties
  • Consensual relations
  • Gratuitous agent
  • General, del credere, and special agent
  • Express, implied, and apparent agency
  • Indemnity
  • Respondeat superior principal
  • Employment-at-will