Rules Of An Employer - As a small-business owner

Rules Of An Employer

As a small-business owner, you are faced with rising costs, particularly employment costs, insurance, and the like. You decide to hire some friends and pay them as they work rather than go through the expense and procedure of bringing in “actual” employees. Your friends wear the business uniform, deal with vendors and customers, and tell friends and family that they work for the business. In one instance, one friend orders way too much from a vendor.

• Explain agency law terminology and the three ways an agency relationship is created, per the text reading. What are the implications of agency law that apply in the above scenario? Is your business liable for the improper order? Why or why not? Be sure to explain the scope of employment.
• Explain the applicability of the employment-at-will doctrine and identify and explain all the exceptions. If your employer does not like your hairdo, can he fire you? Pursuant to the doctrine, explain your answer per the law.