Essay: Employment Discrimination and Globalization Entity

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[. . .] There have already been instances when the manufacturers have conveyed to me that they are having difficulty obtaining the raw materials they need to manufacture the shoes in a timely fashion. At this early juncture, I have learned that some of the hides purchased by a plant had to be returned because the hides were inadequately cured and are tearing during the manufacturing process.

I have entered into contracts with a number of domestically located independent and chain shoe stores. There is a strong seasonal aspect to selling the type of shoe that Sexy Shoes for Her manufactures. Generally, there are two major shipments each year for spring / summer and fall / winter collections. Each store's contract contains stipulations about the number of days a shipment must arrive at the store before the seasonal merchandise displays change. Typically, the contracts read that seasonal shipments will arrive 30 days before they are needed by the store. The seasonal merchandise display changes are not uniform across stores.

I have employees who function as operations managers for the manufacturing plants, and employees who are account managers for the stores that sell the shoes made by my company. During the start-up period, I consulted with an attorney ("breach of contracts," n.d.) about doing business internationally, and I consulted with the Small Business Administration about doing business domestically. These consultations provided me with basic information about entering into a contract and about the contract authority of my employees. My attorney was emphatic that my company is vulnerable to four types of contract authority liability arising from the actions of my employees (Reed, Shedd, Morehead, & Pagnattaro, 2008). Through their actions and because of the inferred or presumed authority attributed to my employees by those with whom the company normally engages in business transactions, my company is can be liable for actual, express / written, implied, and apparent contract authority (Reed, et al., 2008). For instance, any time one of my employees is given directions or instructions either orally or in writing, that employee has been given actual authority to carry out an action (Reed, et al., 2008). Once the employee has acted according to authority that was once granted to him, that employee will have implied authority in subsequent similar situations (Reed, et al., 2008). Implied authority can be problematic for me if a former employee presents himself to those with whom the company normally transacts business as though he were still employed by the company (Reed, et al., 2008). This situation carries apparent authority and the third parties involved cannot be held at fault for acting on that apparent authority unless I have explicitly notified them that the former employee has terminated his employment with the company (Reed, et al., 2008).

The responsibility of my company toward normal business transactions is immense. Certainly, hearing my attorney's explanations about vicarious liability (Reed, et al., 2008) left me with a greater understanding of the rationale and the need for explicit employee manuals and for exacting training standards for employees.

After due consideration of the company's actual, if not legal, vulnerability to ill-chosen acts by employees, I reviewed the contractual clauses that appear to provide the most opportunity for supply and demand slippage. The contracts with the shoe stores all contain what the store managers referred to as boiler-plate language. Several of these boiler-plate clauses give me pause. I refer specifically to: Time of performance, indemnification language, savings / severability clause, non-waiver clause, attorney fee language, liquidated damages clause, merger and integration clause, statute of limitations language, choice of law and forum, and arbitration clause (Baily & Desiderio, 2007; "contract clauses," n.d.).

The shoe stores with which I contract have only to prove that my company's breach of contract has caused them material harm in for the court to find favor with them and to award them damages (Reed, et al., 2008). As long as my suppliers are able to make shipments during the time period before my customers switch over their seasonal displays of merchandise, as I understand the contract language, it will be difficult for them to prove material harm. However, once that time has elapsed, if shipments from my company have not been forthcoming, then reasonably the stores could claim material harm. The material harm issue would be exacerbated if the stores have limited their purchases of merchandise from other companies since they were assuming that my company's merchandise would complete their need for seasonal stock (Baily & Desiderio, 2007.

Upon review of the contracts, I determined that the contract language that poses an immediate threat to my company is the "time is of the essence," savings / severability, and non-waiver clauses ("contract clauses," n.d.). "Time is of the essence" (Baily & Desiderio, 2007) is the basis for the complaints from my shoe store customers, who report that they are not receiving shipments on time. From my perspective the savings / severability and non-waiver clauses are especially important because they enable me to hold the customers to the other parts of the contract ("contract clauses," n.d.) even if they claim that the contract has been breached due to my company's inability to meet their shipment deadlines.

Further, my attorney explained that if my contracts with my suppliers do not contain a "time is of the essence clause," I might still be able to turn their contracts into a "time is of the essence contracts" by 1) notifying customers that time is now of the essence (when it becomes imperative to do so) and 2) by giving them reasonable time to perform. It is, at least, a tactic; however, I am doubtful that I can get my Indian suppliers to comply with Western-style contracts, regardless of the wording (Rubenstien, 2008; Sharif & Mainuddin, 2003; Huq, n.d.).

Employee relations. Until my business records proceeds of 500,000 annually, my enterprise will not need to be compliant with the Fair Labor Standards Act of 1938 ("industries," n.d.). However, since I anticipate rapidly exceeding that earnings amount, I will begin phasing in procedures that will ensure that my operations are compliant by the time earnings cross over the critical mark.

Since my company has been organized as a Limited Liability Company, the entity known as the LLC is vicariously liable for the acts of my employees (my company's agents) when they act within the scope of their employment and authority. Respondeat superior means that the company is responsible for the tortuous actions of employees unless they are engaged in frolic or detour activities, which are not part of their duties and responsibilities (Reed, et al., 2008). My business is vulnerable to intentional torts, negligence torts, and strict liability torts.

The majority of my employees will not have customer-facing work. This is reassuring since it seems that liability could increase exponentially if this were the case. At present, my company has -- as part of its plan to limit liability and to reduce start-up costs -- determined to ship merchandise through a commercial shipper. The logistics team established a relationship with DHL and UPS. There are no immediate plans to purchase trucks or to hire truck drivers.

I remain concerned about issues of quality manufacturing with my Indian suppliers. Shoes, unlike handbags, say, can potentially be a source of personal hazard. A number of lawsuits are filed each year in which the plaintiff claims that the shoes they purchased were poorly designed or manufactured, and as a result, they have sustained an injury. It will be absolutely critical that my off-shore operations managers ensure that the highest standards regarding quality manufacturing are upheld. In addition, I am considering putting a warning on the inside of the lid of my shoe boxes to remind the purchasers that they need to take certain precautions when wearing shoes with high heels, platforms, open toes, and straps.

Environmental issues. California has some of the most stringent environmental protection laws in the U.S. My company will focus on meeting California's regulations that apply to the manufacture, distribution, and sales of leather shoes. Not only is this essential for the company to have business relationships with shoe stores in California, but it is the sort of business practice that buys good will and gives customers confidence in a product. While Sexy Shoes for Her is not likely to have a strong association in the minds of our customers with green business, neither do I want the company to acquire a reputation that we discount such concerns.

Tanneries create a tremendous amount of waste and have the potential to seriously pollute the waterways by which they are sited (Haq, n.d.; Sharif & Mainuddin, 2003). Not all tanning of leather uses strong chemicals, as vegetable tanning can be used with lighter weight leathers that are not expected to be very durable (Sharif & Mainuddin, 2003). My company strives to influence our suppliers to contract with tanning operations that are sited in areas that use effluent treatment plants. For suppliers who are not… [END OF PREVIEW]

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Employment Discrimination and Globalization Entity.  (2011, April 12).  Retrieved April 20, 2019, from https://www.essaytown.com/subjects/paper/employment-discrimination-globalization/5270027

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"Employment Discrimination and Globalization Entity."  Essaytown.com.  April 12, 2011.  Accessed April 20, 2019.
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