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Match the following terms with their defi nitions:
___ A. Term agreement
___ B. Apparent authority
___ C. Agency at will
___ D. A duty of an agent
___ E. Implied authority
1. When two parties make no agreement in advance about the duration of their agreement
2. When an agent has authority to do acts that are necessary to accomplish an assignment
3. When two parties agree in advance on the duration of their agreement
4. When behavior by a principal convinces a third party that the agent is authorized, even though she is not
5. Duty of loyalty

True or False:
1. A principal is always liable on a contract, whether he is fully disclosed, unidentified, or undisclosed.
2. When a contract goes wrong, a third party can always recover damages from the agent, whether the principal is fully disclosed, unidentified, or undisclosed.
3. An agent may receive profits from an agency relationship even if the principal does not know, as long as the principal is not harmed.
4. An agent may never act for two principals whose interest’s conflict.
5. An agent has a duty to provide the principal with all information in her possession that she has reason to believe the principal wants to know, even if he does not specifically ask for it.

(Multiple-Choice Questions)
1. A principal will not be liable to a third party for a tort committed by an agent:
A. Unless the principal instructed the agent to commit the tort
B. Unless the tort was committed within the scope of the agency relationship
C. If the agency agreement limits the principal’s liability for the agent’s tort
D. If the tort is also regarded as a criminal act

2. Dorris works in Morris’s pet shop. She would not be liable for the following activity:
A. When a salesperson offers to sell the shop a rare parrot, Dorris buys it for her own account instead.
B. Dorris got drunk and did obscene parrot imitations in the window of the pet shop.
C. Morris has been trying to acquire a broad-headed snake for years, but they are an endangered species and therefore cannot be sold. Dorris hates snakes, so she refuses to buy a broad-headed snake when it is offered for sale to the shop.
D. Dorris tells Morris that there are only 10 gerbils in the shop when really there are 20.
E. The rhesus monkey needed to take his medication every morning. Dorris forgot one day and the monkey died.

3. Someone painting the outside of a building you own crashed through a window, injuring a visiting executive. Which of the following questions would your lawyer not need to ask to determine if the painter was your employee?
A. Did the painter work full-time for you?
B. Had you checked the painter’s references?
C. Was the painter paid by the hour or the job?
D. Were you in the painting business?
E. Did the painter consider herself your employee?

4. Which of the following duties does an agent not owe to her principal?
A. Duty of loyalty
B. Duty to obey instructions
C. Duty to reimburse
D. Duty of care
E. Duty to provide information

5. Which of the following activities committed by an agent is not likely to create liability for the principal?
A. A car accident while driving to work
B. Accidentally spilling a glass of water in the company cafeteria, causing another employee to fall
C. Beating up a visitor because he was rude to the company receptionist
D. A truck accident while driving drunk in the middle of the workday
E. Accidentally catching the building on fire while taking a smoking break

Roy Watson sold vacuum cleaners door-to-door as an independent contractor for T & F. Before hiring Watson, the president of T & F checked with two of his former employers but could not remember if he called Watson’s two references. Watson had an extensive criminal record. T & F granted Watson sales territory that included Neptune City, New Jersey. This city required that all “peddlers” such as Watson be licensed. Applicants for this license were fingerprinted. T & F never insisted that Watson apply for such a license. Watson attacked Miriam Bennett after selling a vacuum cleaner to her at her home in Neptune City. Is T & F liable to Bennett?

Radio TV Reports (RTV) was in the business of recording, transcribing, and monitoring radio and video programming for its clients. The Department of Defense (DOD) in Washington, D.C. was one of RTV’s major clients. Paul Ingersoll worked for RTV until August 31. In July, the DOD solicited bids for a new contract for the following year. During this same month, Ingersoll formed his own media monitoring business, Transmedia. RTV and Transmedia were the only two bidders on the DOD contract, which was awarded to Transmedia. Did Ingersoll violate his fiduciary duty to RTV? Aside from his legal obligations, did Ingersoll behave ethically? How does his behavior look in the light of day? Was it right?

Sara Kearns went to an auction at Christie’s to bid on a tapestry for her employer, Nardin Fine Arts Gallery. The good news is that she purchased a Dufy tapestry for $77,000. The bad news is that it was not the one her employer had told her to buy. In the excitement of the auction, she forgot her instructions. Nardin refused to pay, and Christie’s filed suit. Is Nardin liable for the unauthorized act of its agent?

Jack and Rita Powers purchased 312 head of cattle at an auction conducted by Coffeyville Livestock Sales Co. They did not know who owned the cattle they bought. The Powers, in turn, sold 159 of this lot to Leonard Hoefling. He sued the Powers, alleging the cattle were diseased and dying in large numbers, and recovered $38,360. Are the Powers entitled to reimbursement from Coffeyville?

This is a tale of marital woe. At the urging of her husband, Phyllis Thropp placed $40,000 in a brokerage account with her husband’s friend Richard Gregory, a broker at Bache Halsey. Mrs. Thropp opened the account in her name alone and did not authorize Gregory to discuss the account with Mr. Thropp, nor did she authorize Mr. Thropp to act for her. Undeterred by this technicality, Mr. Thropp forged his wife’s name to a power of attorney that authorized him to make decisions for her. He gave this document to Gregory. In the course of the next year, Mr. Thropp ordered Gregory to sell his wife’s securities and issue checks to her. After forging her name to the checks, he cashed them and used the money to pay his gambling debts. Gregory did not process the power of attorney form according to standard Bache procedures. When the Thropps saw Gregory socially, Mrs. Thropp frequently asked him how her account was doing. Gregory somehow neglected to mention that it was not doing very well at all. He never told her about the numerous sales. Can this marriage be saved? No, the Thropps were divorced. Did Richard Gregory violate his fiduciary duty to Mrs. Thropp?

1. Antonia wants to buy a car. The dealer permits her to take an automobile home to show her mother. On the way home, she gets into an accident. Is Antonia an agent for the dealer? (If she is, the dealer is liable for the damage she caused.)
2. Suppose that Martin asks Beverly to return a shirt to the store where he recently purchased it. Is she an agent for Martin? Does it matter that he is not paying her?
3. What about a truck driver who agrees to make a detour to take a hitchhiker to her destination? Is the truck driver an agent of the passenger?

Match the following terms with their definitions:
___ A. GAAS
___ B. Tracing
___ C. Qualified opinion
___ D. GAAP
___ E. Vouching
___ F. Unqualified opinion
1. Rules for preparing financial statements
2. When accountants check backwards to ensure there are data to support a transaction
3. Clean opinion
4. Rules for conducting audits
5. When accountants check a transaction forward to ensure it has been properly recorded
6. When there is some uncertainty in the financial statements

True or False:
1. Auditors are only liable under the 1933 Act if they intentionally misrepresent financial statements.
2. Auditors generally are not liable if they follow GAAP and GAAS.
3. Accountants are prohibited under federal law from disclosing a client’s confidential information.
4. If auditors discover that company officers have committed an illegal act, they must immediately report this wrongdoing to the SEC.
5. Under federal law, accounting firms may not provide any consulting services to companies that they audit.

1. To be successful in a suit under the Securities Act of 1933, the plaintiff must prove
Important
Mistake in the Plaintiff
Registration Lost
Statement Money
A. No ........Yes
B. No .........No
C. Yes ........No
D. Yes .......Yes

2. An accountant is liable to a client for conducting an audit negligently if the accountant:
A. Acted with intent
B. Was a fiduciary of the client
C. Failed to exercise due care
D. Executed an engagement letter

3. Which of the following statements about Sarbanes-Oxley is not true?
A. All accounting firms that audit public companies must register with the PCAOB.
B. Auditors must report to the CEO of the company they are auditing.
C. Auditing firms cannot base their employees’ compensation on sales of consulting services to clients.
D. An accounting firm cannot audit a company if one of the client’s top officers has worked for that firm within the prior year and was involved in the company’s audit.
E. Every five years, the lead audit partner must rotate off an audit account.

4. For a client to prove a case of fraud against an accountant, the following element is not required:
A. The client lost money.
B. The accountant made a false statement of fact.
C. The client relied on the false statement.
D. The accountant knew the statement was false.
E. The accountant was reckless.

5. Dusty is trying to buy an office building to house his growing consulting firm. When Luke, a landlord, asks to see a set of financials, Dusty asks his accountant Ellen to prepare a set for Luke. Dusty shows these financials to a number of landlords, including Carter. Dusty rents from Carter. Ellen has been careless and the financials are inaccurate.
Dusty cannot pay his rent and Carter files suit against Ellen. Which of the following statements is true?
A. Carter will win because Ellen was careless.
B. Carter will win because Ellen knew that landlords would see the financials.
C. Carter will win because Ellen was careless and she knew that landlords would see the financials.
D. Carter will lose because Ellen did not know that he would see the financials.
E. Carter will lose because he had no contract with Ellen.

6. Ted prepared fraudulent financial statements for the Arbor Corp. Lacy read these statements before purchasing stock in the company. When Arbor goes bankrupt, Lacy sues Ted.
A. Lacy will win because it was foreseeable that she would rely on these statements.
B. Lacy will win because Ted was negligent.
C. Lacy will lose because she did not rely on these statements.
D. Lacy will lose because it was not foreseeable and she did not rely on these statements.
E. Lacy will lose because it was not foreseeable that she would rely on these statements.

Color-Dyne printed patterns on carpets. After reviewing the company’s audited financial statements, the plaintiff s provided materials to Color-Dyne on credit. These financial statements showed that Color- Dyne owned $2 million in inventory. The audit failed to reveal, however, that various banks held secured interests in this inventory. The accountant did not know that the company intended to give the financial statements to plaintiff s or any other creditors. Color-Dyne went bankrupt. Is the accountant liable to plaintiffs?

James and Penelope Monroe purchased securities offered by Hughes Homes, Inc., a retailer of manufactured housing in Tacoma, Washington. During its audit, Deloitte & Touche found that Hughes Homes’ internal controls had flaws. As a result, the accounting firm adjusted the scope of its audit to perform independent testing to verify the accuracy of the company’s financial records. Satisfied that the internal controls were functional, Deloitte issued a clean opinion. After Hughes Homes went bankrupt, the Monroes sued Deloitte for violating the 1933 Act. They alleged that Deloitte’s failure to disclose that it had found flaws in Hughes’s internal control system was a material omission. GAAS did not require disclosure. Is Deloitte liable?

The British Broadcasting Corp. (BBC) broadcast a TV program alleging that Terry Venables, a former professional soccer coach, had fraudulently obtained a £1 million loan by misrepresenting the value of his company. Venables had been a sportscaster for the BBC but had switched to a competing network. The source of the BBC’s story was “confidential working papers” from Venables’s accountant. According to the accountant, the papers had been stolen. Who owns these working papers? Does the accountant have the right to disclose the content of working papers?

Medtrans, an ambulance company, was unable to pay its bills. In need of cash, it signed an engagement letter with Deloitte & Touche to perform an audit that could be used to attract investors. Unfortunately, the audit had the opposite effect. The unaudited statements showed earnings of $1.9 million, but the accountants calculated that the company had actually lost about $500,000. While in the process of negotiating adjustments to the financials, Deloitte resigned.
Some time passed before Medtrans found another auditor, and, in that interim, a potential investor withdrew its $10 million offer. Is Deloitte liable for breach of contract?

1. As this example illustrates, what is the advantage of using GAAP?
2. What is the moral of this story?

1. Is GAAP enough to protect investors?
2. Is there a solution to this problem?

1. What does “material” mean?
2. What is the problem with this kind of manipulation?

What else could the firm have done?

Are the directors of a corporation agents of the shareholders?

1. Why would the Taylors be liable for Kenny’s negligence? Why?
2. Was there an explicit agency agreement?

1. Did the Taylors have control over their yard? Could Joyce have asked Kenny to stop mowing her yard?
2. Was Kenny acting as an agent for the Taylors?

Was the Federal Express employee an agent of the DEA?

Is a basketball player on scholarship an agent of the university team for which he plays>

1. What are the tree elements of an agency relationship?
2. Didn’t Folk consent to do what BU wanted him to do, namely, play basketball?
3. And didn’t Folk have to follow the guidelines and rules of student athletes and the terms of his scholarship given to him by Boston University?

And because of his scholarship wasn’t Folk obligated to put Boston University’s needs before his own?

Do all employees owe a duty of loyalty to their employer?

Does it make sense to hold low-level employees to the same standard as high-ranking employees?

Did Klein violate his fiduciary duty to Harrison by using confidential information after the agency relationship terminated?

What did Klein do wrong?

1. Klein felt he had been unfairly fired by the Beatles. What if he had simply told Bright Tunes information about “My Sweet Lord” out of spite, not to benefit himself?
2. Suppose that, during his employment by the Beatles, Klein develops relationships with all the top music industry executives. After he leaves the Beatles, he represents other music groups, negotiating contracts, etc. If it weren’t for his relationship with the Beatles, no one would return his phone calls, but now he has a thriving business. Has he violated his fiduciary duty to the Beatles by using information he learned while working for them to represent other groups?

1. Is there anything wrong with what KPMG did?
2. What is a fiduciary duty?
3. If KPMG wanted to start a consulting business, what should it have done?

Oliver and Campbell signed a contract agreeing that Campbell would represent Oliver in his divorce. Near the end of the trial, Oliver decided he would handle the case himself and fired Campbell. Does Oliver have the right to fire Campbell? Campbell wanted to finish the case because a “big win” would enhance his reputation.

Did Joan have the right to convey the Shelburne farm to a trust that she had established? Does the property belong to the trust or to Mr. Gagnon?

1. What is a power of attorney?
2. When does it expire?

1. Mr. Gagnon never explicitly told Joan that he had revoked the power of attorney, so why wasn’t she still operating under it at the time she transferred the property into the trust?
2. But Mr. Gagnon never sold the property, he merely entered into a purchase and sale for the property; why would that end Joan’s power under the power of attorney?

1. Does Anne Dawson have express authority to act for the Pure Brush Company?
2. Does she have implied authority?
3. Does she have any authority?

1. What has Pure Brush Company done to make Connie Lynch believe that Dawson was authorized to act?
2. Is there anything else the company could have done?

1. Did Lambo and Kennedy have express or implied authority to sell the worthless stock?
2. How practical would it have been for Paulson to tell customers that it had not approved of these particular securities?

What did Paulson do to confer apparent authority?

How practical would it have been for Paulson to tell customers that it had not approved of these particular securities?

Is it fair to hold Paulson liable for something it did not know about? Would it be fair to hold the Pure Brush Company liable for Anne Dawson’s unauthorized actions?

Did the roommate who left town have apparent authority in this case?

1. Is this rule fair? William Zeckendorf used agents to purchase a large parcel of land without any of the sellers knowing he was behind the deal. Whatever happened to a “meeting of the minds”?
2. Why is Coffeyville liable to the Powers?

Is it fair for Coffeyville to be liable? What did it know about the cattle?

What is the liability of Christie’s in these sales?

1. Why wouldn’t Morris be liable on the contract?
2. Did Morris intend to be personally liable on the contract?
3. Did Hopkins know about the LLC?
4. Is Morris personally liable on the contract?

Why would he be liable if Hopkins knew she was working for “Ct. Arena Football II, LLC”? Wasn’t Morris an agent for a disclosed principal?

1. What is a master?
2. What is a servant?
3. Are all agents servants?
4. What kind of agent is an employee?

1. Why do we care whether an agent is a servant or an independent contractor?
2. You said “generally not liable for the torts of an independent contractor.” When is a principal liable for these torts?

Did the trial court properly grant Furr’s motion for summary judgement? Is Duran entitled to a trial?

1. Then why would the store be liable for his assault on Duran?
2. Was the store negligent?

What are the policy arguments in favor of holding the principal liable for the torts of an independent contractor if the principal was negligent in hiring him?

1. What is the policy argument against holding the principal liable for the torts of an independent contractor if the principal was negligent in hiring him?
2. Was Romero an agent for Furr’s?
3. Was Romero a servant?

I thought principals were only liable for the negligent torts of their agents. Romero’s tort was intentional.

Did Coopers’ negligence cause the loss to Oregon?

1. Was Coopers negligent in advising Oregon on the gain from the sale of its subsidiary?
2. Did this negligence cause a delay in Oregon’s public offering?
3. Did Oregon receive less money in the public offering because of the delay?

1. After work, Evans went to someone’s house to socialize. On his way home from the party, he ran into O’Connor. How could that possibly be within the scope of the McDonald’s business?
2. But the accident didn’t happen at Duffer’s house, it happened on the way home from Duffer’s. Does that mean that any commuter on the way to or from work is acting within the scope?

1. Is Coopers liable for this harm that resulted from its negligence?
2. What did cause Oregon’s harm?
3. What caused this decline?

I’m still confused. Could you give another example?

Liberatore’s abuse of Doe happened while Liberatore was employed by Sacred Heart, how then could the court conclude that the abuse did not happen during the scope of Liberatore’s employment?

1. Did Alexander Grant breach its duty of trust to Wagenheim and CDS?
2. What should Alexander Grant have done?

What does the Court mean when it says “a reasonable jury could conclude that the Diocese, Sacred Heart, and Bishop Timlin were negligent or reckless in supervising and retaining Liberatore” and also “a reasonable jury could not find that the Diocese, Sacred Heart and Bishop Timlin were negligent or reckless in hiring Liberatore”?

1. Was CDS having financial problems?
2. What would an accountant normally do after discovering such a discrepancy?
3. What did Alexander Grant do?

1. What is wrong with protecting its clients? Weren’t Alexander Grant’s motives completely pure?
2. Once it resigned, could it then warn its other clients?
3. Wouldn’t its clients have been angry if Alexander Grant had not warned them?

What evidence was there that the Defendants were negligent or reckless in retaining or supervising Liberatore?

1. Who hires the accounting firm and pays its bill?
2. What incentive does that create for the auditors?
3. Who, besides company officers, is concerned about the company’s financial health?
4. What about the auditors’ liability to third parties such as investors and suppliers?

What duty do the auditors owe to the board of directors?

Do we know whether the Diocese, Sacred Heart or Timlin knew that Doe was sleeping in Liberatore’s bed at the rectory? Does that matter?

Was Grant Thornton liable to Ellis for its negligence in preparing keystone’s financial statements?

1. Grant Thornton was negligent in preparing Keystone’s financial statements. Was Ellis harmed by this negligence?
2. Was Grant Thornton liable to Ellis? Why not?

Why wasn’t Ellis within the group covered by the Restatement doctrine?

Was KPMG’s failure to disclose this information a material omission? Should the accounting firm be liable to investors?

1. What caused the value of the Fund to fall sharply?
2. Did investors understand that they would lose money if rates went up?
3. So what were the investors complaining about?

1. But did these undisclosed facts affect the outcome of the investment?
2. So, again, what were the investors complaining about?
3. Was KPMG liable?

Was Price Waterhouse liable for fraud? Did it act with scienter?

1. Why did Altris’s shareholders file suit against Price Waterhouse?
2. Did Price Waterhouse admit any wrongdoing?

Were there warning signs that Price Waterhouse should have noticed?

Is Price Waterhouse liable?

Is this outcome fair?

1. Was Potts responsible for the Kahler audit?
2. Did he know there was a problem with the Kahler audit?
3. Why would the company want to do that?
4. Why was Potts so careless?

1. What did Potts do?
2. What else did he do?
3. What should Potts have done?

1. What is the purpose of the accountant-client privilege?
2. Does the accountant-client privilege mean that an accountant cannot disclose anything her client tells her?
3. To which of the questions in the case should the privilege extend?

Would a company be liable if its employees download copyrighted software or sent libelous e-mails? Would cyberspace guidelines reduce a company’s liability?

Was Liberatore acting within the scope of his employment? Was the Church negligent in hiring and supervising him? Was the Church liable for his criminal acts?

Match the following terms with their definitions:
___ A. Employee at will
___ B. Public policy rule
___ C. FLSA
___ D. Wrongful discharge
___ E. OSHA
___ F. Whistleblower
1. A federal statute that ensures safe working conditions
2. When an employee is fired for a bad reason
3. An employee who discloses illegal behavior on the part of his employer
4. An employee without an explicit employment contract
5. A federal statute that regulates wages and limits child labor
6. An employer may not fire a worker for a reason that violates basic social rights, duties or responsibilities

Circle true or false:
1. An employee may be fired for a good reason, a bad reason, or no reason at all.
2. An employee may be fired if she disobeys a direct order from her boss not to join a labor union.
3. Promises made by the employer during the hiring process are not enforceable.
4. In some states, an employer is not liable for false statements they make about former employees unless they know these statements are false or are primarily motivated by ill will.

True or False:
1. The federal government has the right to inspect workplaces to ensure that they are safe.
2. Any employer has the right to insist that employees submit to a lie detector test.
3. Federal law limits the number of hours every employee can work.
4. Children under 16 may not hold paid jobs.
5. Only workers, not their spouses or children, are entitled to benefits under the Social Security system.

(Multiple Choice Question)
1. Mike is an employee at will. “You’re fired!” says Regina, his boss. “Why?” asks Mike. “Never mind why,” Regina replies. “I can fire you for any reason at all. Scram!” Can Regina fire Mike for any reason at all?
A. Yes.
B. Regina must have a good reason to fire Mike if he has worked at the firm for more than one year.
C. Regina may fire Mike if he is out for more than three weeks while serving on a jury.
D. Regina may not fire Mike for logging onto pornographic Web sites at work.
E. Regina may not fire Mike for testifying in court that Regina was violating federal pollution laws.

2. Under the FMLA:
A. Both men and women are entitled to leave from their jobs for childbirth, adoption, or medical emergencies.
B. An employee is entitled to 12 weeks of paid leave.
C. An employee is entitled to leave to care for any member of his household, including pets.
D. An employee who takes a leave is entitled to return to the exact job she left.
E. All employees in the country are covered.

3. Which of the following statements is true under the public policy doctrine?
A. An employee can be fired for any reason.
B. An employee can be fired for threatening a coworker.
C. An employee can be fired for filing a workers’ compensation claim.
D. An employee can be fired for violating company policy even if he does so to save someone’s life.
E. An employee can be fired for refusing to lie under oath on the witness stand.

4. A whistleblower
A. Is always protected by the law.
B. Is never protected by the law.
C. Is always protected when filing suit under the False Claims Act.
D. Is always protected if she is an employee of the federal government.
E. Is always protected if she works for a private company.

5. Jack was furious when Hermione left the company in the middle of a very busy sales period. He promised that he would get even with her. Another employer called to check Hermione’s references. Which of the following statements should Jack make, if his goal is to limit his company’s potential liability?
A. Hermione was generally a good worker, but she was often late arriving at the office. (This is true.)
B. Hermione tried to run over a coworker with her car. (This is true.)
C. Hermione wore inappropriate clothing. (This is not true.)
D. Hermione doesn’t know her debits from her credits. (This is not true.)
E. Hermione worked for this company for a year and a half. Her title was Chief Knowledge Officer. (This is true.)

6. An unemployed CPA generally would receive unemployment compensation benefits if the CPA:
A. Was fired as a result of the employer’s business reversals.
B. Refused to accept a job as an accountant while receiving extended benefits.
C. Was fired for embezzling from a client.
D. Left work voluntarily without good cause.

When Theodore Staats went to his company’s “Council of Honor Convention,” he was accompanied by a woman who was not his wife, although he told everyone she was. The company fired him. Has Staats’s employer violated public policy?

When Walton Weiner interviewed for a job with McGraw-Hill, Inc., he was assured that the company would not terminate an employee without “just cause.” McGraw-Hill’s handbook said, “[The] company will resort to dismissal for just and sufficient cause only, and only after all practical steps toward rehabilitation or salvage of the employee have been taken and failed. However, if the welfare of the company indicates that dismissal is necessary, then that decision is arrived at and is carried out forthrightly.” After eight years, Weiner was fired suddenly for “lack of application.” Does Weiner have a valid claim against McGraw-Hill? Apart from the legal issue, did McGraw-Hill do the right thing? Was the process fair? Did the company’s behavior violate important values?

Debra Agis worked in a Ground Round restaurant. The manager, Roger Dionne, informed the waitresses that “there was some stealing going on.” Until he found out who was doing it, he intended to fire all the waitresses in alphabetical order, starting with the letter “A.” Dionne then fired Agis. Does she have a valid claim against her employer?

Reginald Delaney managed a Taco Time restaurant in Portland, Oregon. Some of his customers told Mr. Ledbetter, the district manager, that they would not be eating there so often because there were too many black employees. Ledbetter told Delaney to fire Ms. White, who was black. Delaney did as he was told. Ledbetter’s report on the incident said: “My notes show that Delaney told me that White asked him to sleep with her and that when he would not that she started causing dissension within the crew. She asked him to come over to her house and that he declined.” Delaney refused to sign the report because it was untrue, so Ledbetter fired him. What claim might Delaney make against his former employer?

Nationwide Insurance Co. circulated a memorandum asking all employees to lobby in favor of a bill that had been introduced in the Pennsylvania House of Representatives. By limiting the damages that an injured motorist could recover from a person who caused an accident, this bill would have saved Nation wide significant money. Not only did John Novosel refuse to lobby, but he privately criticized the bill for harming consumers. Nationwide was definitely not on his side—it fired him. Novosel filed suit, alleging that his discharge had violated public policy by infringing his right to free speech. Did Nationwide violate public policy by firing Novosel?

1. Mark Lewis says he was fired for refusing to sell customers parts and service that they did not need. What is the difference between being an aggressive salesperson and committing fraud? How many of us need everything we buy?
2. Did Firestone violate public policy by firing Lewis?

What did it want Mark Lewis to say?


1. Did Firestone expect Lewis to break the law?
2. What if Firestone had simply ordered him to tell customers that their cars needed maintenance when he did not believe that to be the case, and then had fired him when he refused?

Does the public policy doctrine protect an employee from being fired for disagreeing with his boss at a hearing?

Why did Ormet fire Wells?

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