Agency law refers to a set of business laws that govern contractual, quasi-contractual, and non-contractual fiduciary relations. They involve the principal, the third party, and the agent – a person working in the name of and the best interest of the principal (Macgregor 2020). Regarding employee commitments, the employee acts as an agent to their employer from the agency law, in this case, the employing company. The employee is therefore expected through the agency law to maintain the confidentiality of their company. Confidentiality includes avoiding sharing the company’s secrets such as their strengths, weaknesses, opportunities, threats, and even the profits they accrue annually. Other companies may use such information to suffocate their employer in the market economically.
The agency law also expects the employee to be obedient by performing their roles diligently and following the rules under which their company operates. According to the law, the employee should be accountable for all spent funds in the organization where need be. In light of the employee’s role concerning confidentiality, employees should be committed to their employing company. Even as they commit to any other company, they need to maintain confidentiality, obedience, and accountability to their employer. Failure to meet the above-stated needs calls for punishment as outlined by the company’s rules.
The Uniform Commercial Code (UCC) is a body of laws that govern commercial and business transactions (Gabriel 2017). If a company decides to stop the shipment of products from their subcontract supplier, the decision must be taken with caution as it may attract legal repercussions. The company shipping products acts as a principal for its contractors and subcontractors. A breach of their contract with the subcontractors may force the shipping company to cater for the entire purchase of all the ordered goods, whether faulty or non-compliant and vice versa for the subcontractors if they break their contract. Because failure to comply as per the UCC as guideline attracts serious consequences, every party must be cautious with their commercial moves.
References
Gabriel, H. (2017). Uniform Commercial Code Article Two Revisions: The view of the Trenches. Barry Law Review., 23, 129.
Macgregor, L. (2020). Agency law: Continuity and change. In Research Handbook on International Commercial Contracts. Edward Elgar Publishing.