Ethical Issues In Tuition Reimbursement Agreements
Contracts are essential in the business world and apply to both large and small businesses (Lau, 2011). Essentially, contracts are a legally enforceable promise to do something in exchange for something of value (Beesley, 2016). Elements of a contract formation include offer, acceptance and consideration (Colorado State University – Global Campus, 2016). Without proper formation, contracts can be invalid (Lau, 2011). The six elements of contract formation are offer, acceptance, consideration, mutuality of obligation, competency and capacity, and sometimes a written instrument (US Legal, n.d.). Contracts can be both bilateral, meaning an agreement between two parties, or unilateral, where action is taken by one party or group (Lau, 2011). This
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The ethical issues that may occur in this contract have to do with the statements that the employee will participate in the program efforts to the best of his/her ability and that dispute resolution will be handled by a mediator of the employer’s choosing. In the case of the employee’s best effort, the type of ethical theory applicable is virtue theory because it relates to a virtuous act that may not be held in the same regard between the employer and employee (Trinity, n.d.). In the case of an employer selected mediator, it is a case of consequentialism because the action of the employer selecting the mediator will get to the resolution of the dispute, however it may be unevenly in the favor of the employer, thereby resulting in an unbalanced decision (Trinity, n.d.).
Conclusion
For a contract to be formed validly, the main components of offer, consideration, and acceptance must be satisfied. In the example of the tuition reimbursement contract, the employee should have an opportunity to review and negotiate the terms of the contract with the employer prior to acceptance. Should the elements of the contract formation be sound, the terms of the contract will stand as the employee begins the educational opportunity presented by his or her
The ethical issues that may occur in this contract have to do with the statements that the employee will participate in the program efforts to the best of his/her ability and that dispute resolution will be handled by a mediator of the employer’s choosing. In the case of the employee’s best effort, the type of ethical theory applicable is virtue theory because it relates to a virtuous act that may not be held in the same regard between the employer and employee (Trinity, n.d.). In the case of an employer selected mediator, it is a case of consequentialism because the action of the employer selecting the mediator will get to the resolution of the dispute, however it may be unevenly in the favor of the employer, thereby resulting in an unbalanced decision (Trinity, n.d.).
Conclusion
For a contract to be formed validly, the main components of offer, consideration, and acceptance must be satisfied. In the example of the tuition reimbursement contract, the employee should have an opportunity to review and negotiate the terms of the contract with the employer prior to acceptance. Should the elements of the contract formation be sound, the terms of the contract will stand as the employee begins the educational opportunity presented by his or her