MCS 3040 Chapter Notes - Chapter 22: Alternative Dispute Resolution, Limited Liability Partnership, Fiduciary

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

Professionals who are employees are governed by the basic principles of employment law. Relationships with external professional service providers are defined by contract law. The legal or ethical obligations these professionals owe the business vary according to the capacity in which they are hired: other employees choose to retain their professional status and are hired in this capacity. The legal obligations of employed professionals are the same as those who work in private practices outside the firm. They are in a fiduciary relationship with their employer, where there exist elements of of trust, confidence, and reliance on the professionals skill, knowledge and advice. Can be liable for negligence, and their employees can be vicariously liable. Professional retaining membership in their profession continue to be bound by the rules of professional conduct and codes of ethics of their professional bodies. These obligations bring a level of independence that distinguishes a professional employee from a manager.