The principal- gene consanguinity is most often applied to the organizational poser in which the principal is the senior management and the ingredient is the director that the senior management delegates authority to . The relationship is summarized in the physique belowFigure 1 : Principal- agent relationship . Source : Cheeseman , 2005However , even though the principal-agent relationship was varietyulated to serve as a framework for remediate management in an organizational setting , the relationship oust 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-ca pable . In this kind of principal-agent relationship , the concept of fiduciary duty becomes germane(predicate) because Microsoft as the agent has the fiduciary responsibility of ensuring that its actions do not harm the interests of the principal The question of when a geological open frame of fiduciary responsibility is fenceed to acquire interpreted trust is primal to consider in this context . The breach of fiduciary duty takes place when the principal who is also known as the donee suffers evil or damage as a outcome 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 amply Vista-capable resulted in customers , principals in this context spending more notes 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 mathemat! ical function of the agent . In the breach of fiduciary duty that we give ear in the lawsuit , all three elements of malfeasance , nonfeasance and misfeasance are stand for . The officials in Microsoft committed malfeasance by over-promoting standard-quality products , in the process do the imply for these products rise and their prices along with it . In their promotions surrounding the Vista-capable machines , in that respect is also evidence of nonfeasance and misfeasance in that the Microsoft officials did not release wide-eyed randomness relating to the limitations of Vista-capable machinesReferencesCheeseman , Henry R (2005 . note Law . McGraw mound /IrwinMiller , Roger LeRoy , and Gaylord Jentz (2007 . Business Law Today : The Essentials . Southwestern college pub PAGEPAGE 1...If you indispensability to deliver a full essay, order it on our website: OrderEssay.net
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