(a) Distinguish between a broker and a factor. (b) State three duties of an employer to an employee. (c)State four duties of an employee to an employer

Answer Details

(a) Distinction between a broker and a factor

A broker is a mercantile agent who brings buyers and sellers together to make a contract but does not take possession of the goods and does not sell in his own name. He earns a commission called brokerage. A factor (also called a commission agent) is a mercantile agent who is given possession of the goods and sells them in his own name, often on credit, in return for a commission.

(b) Three duties of an employer to an employee

1. Payment of agreed wages/salary: The employer must pay the worker as and when due.
2. Provision of a safe working environment: The employer must ensure the workplace is safe and healthy.
3. Provision of work and tools: The employer should provide the work to be done and the necessary tools or equipment.

(Other acceptable duties: payment of compensation for injury sustained at work, and provision of leave and other entitlements.)

(c) Four duties of an employee to an employer

1. Obedience to lawful instructions: The worker must carry out reasonable and lawful orders given by the employer.
2. Faithful and honest service: The employee must serve diligently and not defraud the employer.
3. Proper care of the employer's property: The worker should use the employer's tools and materials carefully and avoid waste.
4. Keeping trade secrets confidential: The employee must not disclose the employer's business secrets to outsiders.