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Legal Risk and Opportunity in Employment

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An agency relationship exists by common consent and specifies duties and responsibilities on both sides. NewCorp and its employees have an agency relationship, which NewCorp is the principal and the employees are the agents. NewCorp currently faces three encounters. In lieu of obtaining legal advice, NewCorp has requested Team C to make the following assessments regarding the legal risks and opportunities involved in these three legal encounters. The assessments will include the liabilities from NewCorp’s perspective as well as the employee’s perspective along with the regulatory and compliance requirements. The assessments will also reference some of the legal principles in this week’s reading materials that support our decisions.

Legal Risk and Opportunity in Employment
Encounter 1
NewCorp hired Pat as a manager of real property, which includes responsibilities for the activities related to maintaining leased office space in Vermont. Upon employment, he signed an understanding that the company observed employment “at will” in respect to discharge. He was also given an employee handbook that outlined the company’s process for dealing with unsatisfactory employees, which stated that an employee would be notified of unsatisfactory performance and placed on a corrective action plan. If the employee’s performance did not improve to a satisfactory level within the specified time frame, the employee could be terminated.
After three months of employment with NewCorp, Pat’s boss explained to him things were not working out and that he would be discharged with 30 days of severance pay. Pat was never informed of any problems or unsatisfactory performance, but believes that because his opinion differed from other NewCorp employees at the school board meeting that this contributed to the decision to fire him. Even though Pat was aware of the

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