As a small business owner, you are faced with rising costs (particularly employment costs), insurance, and the like. You decide to hire some friends who wear your business uniform, deal with vendors and customers, and tell their friends and family that they work for you. In one instance, a friend, Leo, orders way too much from a vendor.

• Explain agency law terminology, the three ways an agency relationship is created per the chapter reading, and how this area of law applies to the scenario.
  • How does "scope of employment" factor into a legal liability for Leo's actions?
  • If Leo was an employee-at-will - can you fire him? What legal exceptions exist to the EAW? (Be sure to define and explain all terms.)
• If the employee in the scenario is an "employee-at-will" - what does this mean and what are the exceptions to firing an employee-at-will?

Answer rating: 100% (QA)

1 Agency law terminology refers to the legal relationship between a principal and an agent The princ... View the full answer