Newcorp Essay

1018 WordsJun 3, 20095 Pages
Newcorp Legal Encounters: In violation? Legal Encounter #1 Pat Grey started off on the wrong foot by expressing himself at a school board meeting. After the meeting management had been “noticeably unfriendly.” Although Pat has freedom of speech and simply expressed his opinion he must realize as an agent to Newcorp. The relationship is fiduciary in which the agent must act in the principal’s best interests (Jennings, 2006). Even though the principal is undisclosed the agent must possess a form of loyalty and his opinion may not have represented the company well. Pat invested in Newcorp by relocating his family, sold his home, wife left her job, and children would start a new school to be part of Newcorp. After three months Pat’s boss said he would be discharged with a 30 day severance package. Newcorp will not be able to terminate Pat based off employment at will based on the personnel manual. The personnel manual states an employee will be notified of unsatisfactory performance and will be placed on a Corrective Action Plan. If the performance is still subpar then termination can occur. Newcorp never informed Pat of unsatisfactory performance to exclude the termination at will. This action breaks the binding contract between principal and agent. The agent signed under the statement so the two were in complete understanding. This tort could end up in court favoring the agent. If the company is upset with Pat’s actions at the school board meeting, the matter should be discussed. The duty of loyalty should be explained and put the matter aside. Pat lacked his duty of care in which his statements were an act of guesses and not based off information. Based off the information Newcorp does not have the right to terminate Pat on the basis of unsatisfactory work. If management had a talk with Pat about his actions and gave a written warning, Pat

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