The contractors’ recruitment provides flexibility to the employers and gives them complete control over any business management changes; it is a great opportunity for the executives to adapt to market changes under the pressure of time and workload. Nevertheless, to hire a contractor, it is necessary to follow some important tips, such as, have a team within the organization to specialize in the contractor’s project; reviewing the contractor’s agreement in case of long term cooperation concerning all the running schedule points; and document all the meetings and deals made by the contractor. The issues identified above should have been the key elements in Aker’s recruitment activities. The immediate termination of the agency can put his business under the threat of bearing responsibility for all Potter’s operations with 200 customers. (Osten, M. and Kanter, 2006)
The termination of the agency is to be correctly fulfilled for the employer to protect his liability from the customers and employees; the termination process covers the following steps: mutual agreement – the parties are to agree to terminate the agency relationship; achieved purpose – in case the workers being hired for definite tasks fulfilled them, the termination of relationships is done automatically; time-lapse – the period of agent’s tasks fulfillment is set in the contract; events occurrence – in case of bankruptcy, death or insanity, the termination is automatic. (Emerson, 2003) Agency termination is considered to be a complicated process; in case of its mistakes, the employer sticks to employment law and breach of contract. It is necessary to underline the fact that after the contractual relationship and agency termination, the commercial representative has the right to claim against compensation if he loses his commission claim in case of transaction continuation with canvassed customers. Potter is to follow all the terms of proper termination of the agency not to bear responsibility for Aker’s operations with the customers and their contractual relationship. In case of contracts or agreement absence, the employment and agency termination can take place by Employment at Will Doctrine.
The process of repossession is to cover the strict following of regulations under the agency law; the case study under analysis touched property repossession by the employee; it is necessary to evaluate his potential liability of this operation. Al Agent is to check the contract before the repossession commitment for him to avoid legal troubles; the document must cover all the points of mutual agreement, in the case of terms breakage, the parties bear responsibility by agency law. This case is to be analyzed through the principal’s liability for the agent’s torts. It should be stressed that the principle is to authorize the commission being tortfeasor liable. In case the agent demonstrates no actions for the principle, then he is to present them personally. The principle is liable for the agent’s torts being committed within the authority’s scope. If the tort does not occur during employment performance, the principle is not liable for it. (Cheeseman, 2006)
The principle’s liability on the agent’s contract is dependant on the agent’s authority. In the case of broker contracting as an agent for the definite principle, the latter is entirely liable to the contract’s party. “It is a general principle of the law of agency that a principal is not bound by the acts of the agent not within the actual or apparent scope of the agency, simply because the agent falsely asserts that they are within it”. (Cheeseman, 312)
References
Cheeseman, H. R. Business law: legal environment, online commerce, business ethics, and international issues. Sixth Edition. Pearson Prentice Hall, 2006.
Emerson, R. Business Law. Barron’s Educational Series, 2003.
Osten, M. and Kanter, B. Managing the Relationship with a Contractor. 2006. Web.