29 Jan As Phil is pulling
MGMT520 Legal, Political, and Ethical Dimensions of Business
WEEK 5 CASE ANALYSIS
This week our case analysis revolves around employment law. Specifically, how does the principal-agent relationship impact liability issues for a business. lets take a look at the following scenario.
Phil is employed by Boudon Enterprises (BE). BE hired him began employing him in 2015 to work on the redevelopment of their computer system. Phil is paid an hourly wage and received a W2 from BE at the end of each year. BE also provides Phil with healthcare insurance and they take federal, state and local taxes out of his paycheck.
One day, Phil decides to go out for lunch at Joe’s Bar and Grill with some co-workers to celebrate his birthday. His Boss Jim pays for everyone’s lunch and buys 6 rounds of beers which Phil drinks each of the 6 beers. Jim pays for lunch including the beers with a BE corporate credit card. Jim tells eveyrone at lunch, don’t tell anyone at work that BE paid for everything.
As Phil is pulling out of Joe’s Bar after a good 2 hour lunch where he consumed 6 beers, he does not see Nicole pulling into the Bar’s parking lot. A car accident occurs and Nicole breaks her wrist and suffers a concussion where she misses a month of work.
1. Is Phil an employee or a indepedent contractor? Explain?
2. Does Respondeat Superior come into play here? Defined the term and exlain whether it is relevant in this situation.
3. At the time of the accident, is Phil in the scope of employment? Why or why not?
4. Is BE liable for Nicole’s injuries? Why or why not?
5. Does it matter who paid for the beers? Why or why not
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