5. state Farm insurance hired James Falls as an agent trainee. after completing an internship phase, he was given an "agent start-up kit." He hired Michelle Quinlan, who had to pass online computer tests to be licensed to work for a state Farm agent. a problem with the internet kept the tests from being marked as completed on her transcript. she told Falls, who contacted Yolanda wilson, another state Farm employee, for help. They could not solve the problem. since Quinlan was not working the next day, she gave Falls her coursework user name and password in case he needed to get into the online transcripts. The next day, wilson told Falls that Quinlan’s transcripts were still not showing up as completed. Falls logged onto Quinlan’s account and completed coursework she had not com- pleted. when state Farm later found out that Falls had completed the coursework, it terminated him. Falls sued state Farm for breach of contract. state Farm alleged that Falls had failed to act in good faith and thus it was justified in ending their agreement. was state Farm so justified?

Respuesta :

Answer:

Duties of the Agent:

  1. Performance agent must use skills represented to the principal or must use due diligence, good faith and skill in performing duties.
  2. Notification the principal must be notified of all matters relating to subject matter of the agency by the agent.
  3. Loyalty an agent has the duty to follow all clearly stated instruction of the principal and lawful instructions.
  4. Obedience all clearly stated instruction of the principal and lawful instructions must be followed by the agent.
  5. Accounting an agent has the duty to provide all property and funds received records as well as funds paid out on behalf of the principal to the principal.

Legal Reasoning:

In Falls v. State Farm Insurance (State Farm), 4.10-CV-00758 (2011), the district court denied Falls' motion and granted State Farm's motion because Falls signed a Declaration that provided for automatic withdrawal of a candidate for a State Farm Agent for ethical or integrity violations.

Therefore, State Farm WAS justified.