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28.1
b a c k n e x th o m e
Chapter 28 Objectives Recognize how the relationship of
employer and employee arises. Identify the statutory modifications of an
employer’s defenses under the common law.
Describe the liability of an employer to third parties for acts of employees.
Name the duties an employee owes the employer.
© 2002 West Educational Publishing To accompany Law for Business, 14e, by Ashcroft and Ashcroft
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28.2
b a c k n e x th o m e
Employer/EmployeeRelationships
Contracts arise only from a contract of employment.
Parties seldom mention contract period; terms of compensation determine the contract period.
Terms other than compensation are determined by custom, law, and union contracts.
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28.3
b a c k n e x th o m e
Duties and Liabilitiesof Employers
Explain what is meant by: Duty to exercise care. Duty to provide reasonably safe place to
work. Duty to provide safe tools and appliances. Duty to provide competent employees for
the task. Duty to instruct employees as to any
possible dangerous nature of employment.
Let’sDiscuss
Let’sDiscuss
Let’sDiscuss
Let’sDiscuss
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28.4
b a c k n e x th o m e
Common-Law Defensesof the Employer
Contributory Negligence Rule
The Fellow-Servant Rule
Assumption-of-Risk Rule
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28.5
b a c k n e x th o m e
Statutory Modificationof Common Law
Modification of common-law defensesWorkers’ Compensation
Allows an employee or beneficiary to recover damages for injury or death.
Does not consider employee negligence a factor.
Occupational Safety and Health ActApplies to every business conducting
interstate commerce except governments.
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28.6
b a c k n e x th o m e
Employees’ Duties to Employers
Job performanceEmployees must perform their jobs
faithfully and honestly to advance employer’s interests.
Business confidentialityEmployees must not divulge any
sensitive business matters.Granting of right to use inventions
Inventions belong to the employee who devised them, but the employer has the right to use the invention without charge.
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28.7
b a c k n e x th o m e
Social Security ActYes or no - can the following receive
Social Security benefits? People who are over 65 and retire from
the workforce Yes Farmers and self-employed business
people Yes Samuels, age 66, who hasn’t yet applied
for benefits No
QuickQuiz
QuickQuiz
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