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Did daniel have authority to make the october 10 contract

Assignment Help Business Law and Ethics
Reference no: EM13467299

Select ONE of the scenarios below and explain the best solution. Include comments related to ethical issues that may arise.

Scenario 1

Specialty Automotive operates several manufacturing plants throughout the United States, all of which are unionized. Carol Smith, a devout Adventist, was hired six weeks ago to work at the Specialty Automotive facility in Ohio. For the purpose of this question, assume that the Adventist religion is legally recognized. Since Carol lacks seniority, she was assigned to the evening shift on the production line, which required her to work on Friday nights. Carol's religion prohibits her from working from sundown Friday until sundown Saturday, but she did not mention this during her interview. Eventually, Carol was fired for her continued Friday night absence from work. Accommodating Carol would require Specialty to use a temporary employee to replace her every Friday night. This would mean that Specialty would incur additional expenses as reports showed that lower efficiency and increased accidents occur when temporary employees are used.

Carol sued Specialty, claiming religious discrimination. Specialty defended claiming that Carol was not fired for religious discrimination but for absenteeism.

  • Is this a case of unfair discrimination? Why or why not?
  • How does the union factor into the result?
  • Will Carol succeed in her discrimination suit? Why or why not?

Scenario 2

Mercury Marine Manufacturing, Inc. (Mercury) hired Daniel as Director of Purchasing. Daniel was authorized to make contracts to buy materials for Mercury. On many occasions, Daniel contracted to buy fasteners from Allied Industries. On September 30, Mercury terminated Daniel's employment. On October 10, Daniel contacted Allied to purchase materials on behalf of Mercury. Daniel provided a new delivery address, accepted delivery and wrongfully kept the materials. Allied was not aware that Mercury terminated Daniel. On October 15, Mercury provided written notice to Allied Industries that Daniel had been terminated.

  • When was Daniel's express authority to act for Mercury effectively terminated?
  • Did Daniel have authority to make the October 10 contract with Allied? If so, what type of authority did he have?
  • Is Mercury obligated to perform the October 10 contract?
  • What should Mercury have done differently?

Reference no: EM13467299

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