In this assignment, you will formulate an enforceable plan to mitigate corporate liability for the tortious actions of its agents.
The principal has the ability to manage its liability to third parties for the tortious acts of employees. You will design a corporate policy that will avoid or mitigate that liability. Specifically, you are to devise a plan by which you can communicate with and exercise control over employees dispatched to service clients outside the corporate office.
Using appropriate legal terminology and the principles of agency law, prepare a memo to the Director of Human Resources establishing the guidelines for employees traveling for business related purposes. Specifically address the following elements:
1. Why is a corporate-wide travel policy needed for employees doing business outside the office? Describe two circumstances when the corporation would be liable for injury to a third party due to the actions of an employee to justify the need for the travel policy.
2. What specific activities are permitted? Which are prohibited? Why?
3. How are these policies to be communicated to the employees? Outline a specific short and long-term communications plan.
4. Is the expense of a training program warranted or not? If so, detail the training method. If not warranted, explain why not.
5. How will the policy be enforced?