Newcorp Legal Scenarios

Legal Encounter 1:

One of NewCorp's liabilities is that they are responsible for paying their employee Pat. A right that NewCorp is entitled to is that they can observe Pat’s performance and discharge him will. On the other hand, one of Pat's liabilities is that he has to fulfill his duties for NewCorp as an agent, and Pat has the right to continue using his health insurance plan after he is terminated.

The Fair Labor Standards Act is a federal law that enforces New Corps liability of having to pay Pat for the hours that he spends working. The law also requires companies to pay at least a minimum wage rate, and to pay overtime as required. Agency law is a common law that governs contracts and in the first scenario Pat signed a document that allowed NewCorp to observe his performance and discharge him at will. As long as NewCorps has a written document signed by Pat that has his acknowledgement of certain provisions, then by agency law it allows NewCorp to enforce the document.

Agency law also governs Pats liability of being an agent for his company. He was hired to accomplish certain task on behalf of NewCorp. This law helps to ensure that Pat is doing what he was hired for, because it gives NewCorp the right to terminate an agent who is not meeting certain requirements. Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) law Pat is still allowed to use his health insurance plan even after his employment is terminated. COBRA extends, and allows, employees who have been terminated by their employer to still use his or her employer’s health insurance plan.

Legal Encounter 2:

There are two liabilities that NewCorp is responsible for in the second scenario. The first one is that they are responsible for managing conflicts that have spiraled out of control between two employees because it can affect their job performance. Second, they are responsible of ensuring that their employees are not working in a hazardous environment...