Flashcards Studio

Makati Global Placement (MGP), a private overseas employment agency, contracts with GlobalReach Recruiters, Inc. (GR) to handle overseas recruitment for MGP’s employer clients. The written agreement designates GR as an independent contractor. Nonetheless, MGP publicly brands GR as its recruitment partner and permits GR to hold information sessions and to issue job offers in GR’s name, with all placements for MGP’s overseas postings. An applicant, Arielle Santos, applies through GR and pays 21,000 PHP for processing. Arielle is deployed to the United Arab Emirates on a job offer that misstates salary and benefits. She files illegal recruitment charges against GR; MGP denies liability, arguing that GR is an independent contractor. (a) Identify the governing doctrine that determines whether MGP is bound by GR’s recruitment acts. (b) Distinguish the controlling rule and the test for whether the principal is bound by an agent’s recruitment acts, focusing on actual authority, apparent authority, and agency by estoppel. (c) Apply the facts: can MGP be held liable for illegal recruitment and misrepresentations, and what remedies may Arielle pursue?