Essay on Liability and Bankruptcy Law

Essay on Liability and Bankruptcy Law

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Businesses need to be aware of all instances of when and where they ask employees to perform their job duties. Employees also need to be aware of what the company expects of them when performing their job. If their job requires time away from the office the principal can be held liable for actions their employees take while doing work within their scope of employment. In the following paragraphs we will discuss areas of Agency Law and how it applies to the employer, agent and employee.

Vicarious Liability is the theory in which the Respondeat Superior Doctrine was derived which means "let the master answer" (Cheeseman, 2007, pg. 400). Vicarious liability basically means that if an employee injures a third party while performing duties for his employer, the principal, that the principal can be held liable without fault. The third party would find it more advantageous to sue the company for medical expenses, lost wages, pain and suffering and possibly punitive damages. This theory would apply to the study case under the assumption that Mr. Jones was representing the company while out on a business lunch. This is evident due to him violating company policy by consuming alcoholic beverages at lunch. He was driving a company owned vehicle and was working within his time schedule of his job.

Additionally, The Lending Store, Inc. would not want to be responsible for the unruly nature of their employee whether he was acting in his the scope of his employment. The Lending Store would definitely use the defense that he was not acting in the scope of his employment because he ignored company policy by drinking alcoholic beverages at lunch. They make also use the defense for frolic and detour due to Mr. Jones making a trip hom...

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...reorganization is taking place, Albert and Baker would still be left to manage the business which is referred to as debtor-in-possession with also keeping their immediate property protected. Currently, the housing market has fallen of the chart. This would greatly affect the rebound of The Lending Store Inc., especially here in Arizona but gives them the chance to hold onto a dream they made real.

As a consumer, I would like for most individual, families and business to pursue what they have started. These entities need to realize the impact of their and their employee's poor decisions. In society today, people are not living realistically. They expect to keep up with the Jones's and are willing to do anything to have it all. We all need to live within our means, not go outside our means and make other people responsible for our inept actions in finances.

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