The principal- gene consanguinity is most often applied to the organisational poser in which the principal is the senior management and the piece is the director that the senior management delegates authority to . The relationship is summarized in the physique belowFigure 1 : Principal- constituent relationship . Source : Cheeseman , 2005However , even though the principal-agent relationship was varietyulated to serve as a framework for recompense management in an organizational setting , the relationship fire too exist outside of an organizational setting (cited in Miller Jentz , 2007 . The law-suit against Microsoft is a case in point p The agent works for the principal . In the shell against Microsoft the agent is Microsoft and the principal is the customer who bought the machine that Microsoft promoted as being Vista-c apable . In this kind of principal-agent relationship , the concept of fiduciary certificate of indebtedness becomes relevant because Microsoft as the agent has the fiduciary responsibility of ensuring that its actions do non harm the interests of the principal The question of when a geological misapprehension of fiduciary responsibility is fenceed to acquire interpreted trust is great to consider in this context . The breach of fiduciary duty takes place when the principal who is also known as the beneficiary suffers evil or damage as a leave of actions taken by the agent . This is clearly applicable in the lawsuit as Microsoft s actions to promote Vista-capable machines which were not actually richly Vista-capable resulted in customers , principals in this context spending more cash than they would have if they had not been influenced by Microsoft s promotional campaigns .

Therefore , a breach of fiduciary duty has taken place in the form of the agent misleading the principal in a air that led to wealth maximization on the eccentric of the agent . In the breach of fiduciary duty that we percolate in the lawsuit , all three elements of malfeasance , nonfeasance and misfeasance are model . The officials in Microsoft committed malfeasance by over-promoting standard-quality products , in the process devising the imply for these products rise and their prices along with it . In their promotions surrounding the Vista-capable machines , there is also evidence of nonfeasance and misfeasance in that the Microsoft officials did not release all-inclusive randomness relating to the limitations of Vista-capable machinesReferencesCheeseman , Henry R ( 2005 . note Law . McGraw hill /IrwinMiller , Roger LeRoy , and Gaylord Jentz (2007 . Business Law Today : The Essentials . Southwestern college pub PAGEPAGE 1...If you motivation to deliver a full essay, order it on our website:
BestEssayCheap.comIf you want to get a full essay, visit our page: write my paper
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.