Legal and Ethical Environment Courts, ADR, and Agency law.docx

Legal and Ethical Environment: Courts, ADR, and Agency law
• Read: Bagley, C. (2008, April). Winning legally: The value of
legal astuteness. Academy of Management Review, 33(2), 378-
390 (B).
• Read: AMBA610 Custom Text: Chapters 1, 2, 3, 4, and 11.
From Kubasek, N.K., Brennan, B.A., and Browne, M.N. (2009).
The Legal Environment of Business: A Critical Thinking
Approach (6th ed.). Boston, MA. Pearson Learning
Solution
s. (This differs from what’s in the syllabus.)
• Read: Read Gizmo, Inc. case posted in the conference area.
• Post a substantive response to Topic 1:• Read: Read The
Wheels for Hire case posted in the conference area. •Plaintiffs’
and Defendants’ attorneys must post a well-reasoned analysis to
support their respective clients’ positions. •Judges should read
the arguments posted in Topics 2(a) and 2(b) and post in 2(c) a
well-reasoned opinion ruling in favor of either the plaintiff or
the defendant based on the law and the facts presented. •Will
either of their grievances be heard in court? Why?•What will
the results of each be?

The Judgment:
The judges should read the arguments posted in Topics 2(a)
and (b) and post one main, well-reasoned opinion finding for
plaintiff or defendant in 2(c) based on the law and the facts
presented.
Judges' rulings.
Becky Sharp and Sydney Carton applied to become
administrative assistants for Gizmo, Inc. (GI). After the
interviewing process, both were hired and asked to sign
contracts that contained the same provision: “If there is any
dispute as to employment practiced or employee/employer
actions, this dispute will be decided via binding arbitration.”

Both signed the contract after being given ample time to review
it and to consult an attorney. Several months later, Sydney
became addicted to cocaine, and Becky became pregnant with
her first child. When Becky experienced complications during
her pregnancy, GI initially agreed to grant her medical leave,
but shortly thereafter the company informed Becky that her
position had been eliminated due to a “reorganization.”
Fearing that Sydney might have trouble picking up the slack for
the recently released Becky, GI asked him to take a surprise
drug test. Sydney was confused and alarmed and refused to take
the test. GI informed him that because of his refusal, he was
fired. Becky decided to file a lawsuit in state court under the
state and federal Family and Medical Leave Acts that guarantee

pregnant women a set number of weeks off for pregnancy.
Sydney, on the other hand, submitted his case to an arbitrator.
Will either of their grievances be heard in court? Why?
What will the results of each be?

Each student must post his or her response to this topic no later
than 11:59PM on the final day of this conference week.
Wheels for Hire, a new and used car dealership, hired Sam
Spade to perform various duties, such as cleaning and gassing
vehicles, moving vehicles from one lot to another and
maintaining the showroom and vehicle lots. In this position,
Sam had access to keys to the vehicle through an "ignition kiosk
access process." Under this process, a designated attendant,
Curly Hurley, keeps the keys in a restricted kiosk. When any

employee wants to move a company vehicle, s/he must fill out a
key "tag" or request form, which contains spaces for the date,
time, stock number of vehicle, name of employee checking out
the vehicle, and the destination of the vehicle. For example, the
vehicle might be taken to a body shop for repairs or to a gas
station, or to a company lot at a different location. Every time
an employee checks out a vehicle, the reason must be for
company business use. It was not necessary to put the expected
return time on the tag, but if a vehicle was expected to be gone
for a long time, this information was supposed to be put on the
tag. Sometimes Curly fills the tag out for the employee. When
the tag is completed, Curly adds the information from the tag to
key control log, gives the keys to the employee who has
requested them, and hangs the tag on the board in the control
shack. When the vehicle is returned Curly crosses out the entry
for the vehicle in the control log, replaces the keys, and
removes the tag from the board. Sometimes vehicles are gone
for more than one day, but a new page of the control entry is
started each day. Some vehicles may be removed permanently
if they are sold from another lot. In these cases, the managers
of the other lots call to let Curly know that the vehicle will not
be coming back. Sometimes employees would drive cars back
and leave the keys with other employees. This practice was
acceptable to the dealership.

One day Sam asked Curly if he could use a car for 30 minutes
on his lunch break to go to his mother's house. Curly told him
it was okay as long as he brought it back because, otherwise,
she could get in trouble. Sam took the car and left. On his way
back to the dealership, Sam rear-ended a car stopped at a stop
light, causing injuries to the driver and a passenger. Sam told a
police officer at the scene of the accident that he was on a lunch
break from his job and that he had permission to drive the car,
but his boss was not aware he had the car.
The plaintiffs sued the car dealership on the grounds that it was
responsible for the injuries caused by Sam.

There are three subtopics posted in this topic: 2(a) For the
Plaintiff; 2(b) For the Defendant; and 2(c) The Judgment.
Plaintiffs’ and Defendants’ attorneys must post a well-reasoned
analysis to support their respective clients’ positions. This is
not a team assignment. It is an individual assignment. Each
individual Plaintiffs’ and Defendants’ attorney should post his
or her argument no later than 11:59 PM on day 4 of this week's
discussion.
Judges should read the arguments posted in Topics 2(a) and 2(b)
and post in 2(c) a well-reasoned opinion ruling in favor of
either the plaintiff or the defendant based on the law and the
facts presented. Each individual judge is required to post only

one decision on the case. Earlier postings are encouraged, if at
all possible, in order to give everyone more opportunity to
discuss the rulings. Individual judges may ask questions of
both sides but should post only one opinion per judge.
Everyone should participate in the Judge's topic and discuss
your views of the judges' rulings.
The Judge
Individuals assigned the role of Judges should read the
arguments posted in topics 2(a) and 2(b), and each individual
judge should post a well-reasoned opinion finding for the
plaintiff or the defendant based on the law and the facts
presented.

Plaintiff A
Wheels for Hire and Sam Spade have a principal – agent
relationship where Sam is the employee of Wheels for Hire.
Sam, in acting as an agent for Wheels for Hire, has access to the
keys of the vehicles owned by Wheels for Hire under the
“ignition key access process”, a process that outlines how
vehicles may be utilized by the employees for business reasons.
Under this ignition key access process, there is expressed
authority by the principal that the agent will utilize the vehicle
and act on the principal’s behalf under the principal’s control
and consent. When signing out a company vehicle, Sam has a
duty of performance, meaning that he must perform within the
lawful duties expressed in the agency contract with reasonable
care, skill and diligence.
Although Sam was not conducting company business, he was
utilizing company property and as such, operating under the
authority of the company which makes Wheels for Hire liable
for the injuries caused by Sam. At the very least, tort liability
may deem both Wheels for Hire and Sam responsible and be

found to be jointly and severally liable. Either way, the
plaintiff is justified in filing a lawsuit against the dealership,
Wheels for Hire.
Plaintiff B
Wheels for Hire is legally responsible for the resulting injuries
and damages from the accident involving Sam Spade. This is a
direct result of the company having instituted a program,
“ignition kiosk access process” (IKAP) and subsequently failing
to properly monitor its activity and responsibilities – a direct
liability of the company.
Regardless of the reasoning, timing, or circumstance behind
Sam Spade’s excursion during his lunch break, the company is
still liable for their employees’ conduct and asset use,
especially under warranted systems. Sam used a system, IKAP,
to check out a company owned vehicle or asset. This, in and of
itself, is the company recognizing Sam as an extension of the
company, despite possible misinterpretations or misuse of the
company system. This specifically means that Sam’s actions can
be accounted for on behalf of the company since the company
allowed them to happen via their own system of choice.
Additionally, Wheels for Hire has distinctly assigned

responsibility and authority in Curley Hurley for the purposes
of managing and maintaining the operation of the IKAP. Curley
Hurley’s position is recognition on behalf of the company,
signifying that the employee using the company asset (vehicle
in the situation) is doing so as an agent of the company and
acting as a representative of the aforementioned company
verifying the prerequisites. Thus, all responsibility is
centralized to the company as a whole. In this particular
situation, this would mean that Sam Spade’s actions are directly
accountable by the company.
Ultimately, the system allows for subordinates or delegated
authorities to operate without sufficient oversight.
Subsequently, this has allowed Curley Hurley to authorize
inappropriate use of company assets as part of a company
emplaced system. Additionally, this particular system also has a
distinct lack of day to day record keeping that would otherwise
be determined paramount, yet the dealership has recognized this
system as acceptable. Regardless, Curley Hurley operated as an
authoritative agent of the company, authorizing the use of a
vehicle by Sam Spade under the guidance and control of Wheels
for Hire. This makes the accident, in turn, the responsibility of
the company, Wheels for Hire, as a whole.
Plaintiff C PLAINTIFF COMPLAINT TO THE COURT OF

COUNTY X
Driver; Passenger, Plaintiffs,
v.
Wheels for Hire; Sam Spade; Curly Hurley; Defendants.
Case No. 14-0001
Plaintiffs, Driver and Passenger, and their complaint, allege as
follows:
1. Plaintiff One, Driver, is a citizen of X County, in the state
of XX; Plaintiff Two, Passenger, is a citizen of X County, in the
state of XX; Defendant One, Wheels for Hire, conducting
business in X County, in the state of XX; Defendant Two, Sam
Spade, is a citizen of X County, in the state of XX; and
Defendant Three, Curly Hurley, is a citizen of X County, in the
state of XX.
2. Plaintiff One will be known as Plaintiff and Defendant Two
will be known as Defendant unless otherwise specified.
3. On May 9, 2014, Plaintiff was lawfully driving his

automobile on Main Street in Anytown, XX.
4. At approximately 1:00 p.m., on May 9, 2014 the Defendant
negligently failed to stop at a red light on Main Street, and as a
result crashed into Plaintiff's car.
5. As a result of the collision, the Plaintiffs suffered injuries
to their person.
WHEREFORE, Plaintiffs demand judgment in the amount of
$xx,xxx,xxx.xx, plus costs of this action.
Chris Ladnier
Attorney for Plaintiffs
23 Bourbon Street,
New Orleans, LA70116
JURY DEMAND
Plaintiff demands a trial by jury in this matter.

Chris Ladnier
Supporting Facts:
6. Wheels for Hire, Defendant One, is a new and used car
dealership.
7. Wheels for Hire hired Sam Spade, Defendant Two, with
duties including but not limited to cleaning and gassing
vehicles, moving vehicles from one lot to another, and
maintaining the showroom and vehicle lots.
8. Sam Spade had access to keys to all dealership vehicles.
9. Curly Hurley, Defendant Three, maintains the key process
which includes a restricted kiosk.
10. Key process consists of requesting employee filling out a

key "tag" or request form, key log entry, and key for tag
accountability.
11. Customary practice for the key process includes Curly
filling out key tag for requesting employee, vehicles are gone
for more than one day, some vehicles may be removed
permanently if they are sold from another lot via lot manager
notifying Curly, and employees would drive cars back and leave
the keys with other employees.
12. Sam Spade used a dealership car for 30 minutes in
conjunction with his lunch break with expressed permission
from Curly.
Legal Definition:
13. Respondeat Superior - "Under the doctrine of respondeat
superior an employer is liable for the negligent acts or
omissions of his employee which are committed within the
scope of his employment. Liability based on respondeat
superior requires some evidence that a master-servant
relationship existed between the parties. The test to determine
if respondeat superior applies is whether the person sought to be
charged as a master had the right or power to control and direct
the physical conduct of the other in the performance of the act.

If there is no right to control, there is no liability." (REF:
http://www.law.cornell.edu/wex/quotation/%5Bfield_short_title
-raw%5D_123)
Case Law:
14. Wilson v. United States, 989 F.2d 953, 958 (8th Cir. 1993)
Summary:
15. Per the definition at paragraph 13 and the establishment of
the principal-agent relationship at paragraph 7, Wheels for
Hire, Defendant One, is liable for Sam Spade's, Defendant Two,
negligent act while working within the scope (paragraphs 7 and
12) of his employ by his employer within regular business hours
(paragraphs 4 and 12) and following customary practices
(paragraph 11).
Chris Ladnier

Defendant A Plaintiff Vs. Wheels for Hire Defendant’s analysis
Key facts within this case:
•Wheels for Hire does employ Sam Spade to perform various
duties such as; maintaining the showroom and vehicle lots,
cleaning and moving vehicles from one lot to another.
•Sam Spade had access to keys to the vehicle through an
"ignition kiosk access process."
•The designated attendant during the day of the incident was
Curley Hurley, who is also employed by Wheels for Hire and
has the responsibility of managing the vehicle keys in a
restricted area.
•Wheels for Hire’s policy on moving a vehicle is as follows:
Any employee who wants to move a company vehicle he or she
must fill out a key-tag or request form including the date, time,
length of use, stock number of vehicle, name of employee
checking out the vehicle the destination of the vehicle and this
should only be for company business use.
•It is known that sometimes Curly Hurley fills key-tags out for
other employees, adds the information from the tag to key

control log then gives the keys to the employee who has
requested them and hangs the tag on the board in the control
shack. It is then Ms. Curly’s responsibility to cross out the
entry for the vehicle in the control log upon return, replaces the
keys, and removes the tag from the board. If a vehicle is gone
for more than one day she is to create a new page of the control
entry for each day and if a vehicle is sold from another lot Ms.
Curly is to be notified by the lot manager that the vehicle will
not be coming back.
•It is also known that sometimes employees would drive cars
back and leave the keys with other employees. This practice
was acceptable to the dealership.
Conflict:
•The day of the incident Sam Spade asked Curly Hurley who
isn’t a manager if he could use a car for 30 minutes for personal
use, which isn’t permitted
•Curly gave Sam verbal authorization to use the vehicle for
personal use
•Upon return to the dealership Sam Spade rear-ended a car
stopped at a stop light, causing injuries to both the driver and a

passenger.
•Sam told police at the scene of the incident that he was on a
lunch break from his job and that he had permission to drive the
vehicle, but at no time was a manager aware he had the vehicle.
Concluding analysis and arguments:
Since both employees Sam Spade and Curly Hurley violated the
companies vehicle use policy Wheels for Hire should not be
liable for damages incurred in this case. Sam Spade wasn’t
authorized to remove the vehicle from the premises for personal
use and Curley Hurley doesn’t have the proper authority to
approve any request of that nature. Both individuals were
negligent and committed a criminal act by unlawfully removing
company property against policy. Each individual should be
liable for covering the damages incurred from the incident and
Wheel for Hire doesn’t take responsibility for any negligence in
this case.
Defendant B
Deffendant’s analysis in the case of Plaintiff vs Wheels for Hire

Facts:
1.
Sam Spade is an employee of Wheels for Hire with various
responsibilities to include cleaning and gassing vehicles as well
as moving vehicles per need of the dealership.
2.
Curley Hurley is an employee of Wheels for Hire with
responsibilities restricting vehicle keys.
3.
Wheel for Hire implemented a system to monitor/restrict
employee access to its vehicles.
4.
Sam had permission from Curly to use vehicle for personal
reasons on the day of incident.
5.
Sam rear-ended another vehicle at the stop light.
Issues:
1.

Curley Hurley knowingly gave permission to Sam to use
company vehicle for personal reasons.
2.
Despite Curley’s approval, Sam did not have the proper
permission to use company car for personal reasons.
3.
Sam rear-ended another vehicle during an authorized use of the
company vehicle.
4.
Plaintiff is suing Wheels for Hire for Sam’s wrong doing.
Reasons and Conclusion:
Wheels for Hire should not be responsible for damages caused
by Sam. As noted Sam did not have proper authorization to use
company vehicle at the time of incident. The permission
obtained from Curley is not considered valid because acted
outside her scope when she authorized for Sam to use company
vehicle for personal reasons.
Under the doctrine of respondeat superior, an employer may be

liable for negative actions of his employee only if the said
employee was acting within his/her scope. However, in this case
both Curley and Sam acted outside of their scope and should
both be held liable.
Defendant C:
Acting as the defendant for the Wheels for Hire trial, an
analysis of the legal reasoning needs to be taken into
consideration before giving the defendant response. The legal
reasoning process includes identifying facts and issues of the
trial.
First, the facts that are identified when reviewing the case are
listed as follows:
•Sam is an employee of the Wheels for Hire car dealership
performing various duties (cleaning, gassing vehicles, and
moving vehicles from one lot to another)
•Sam has access to keys to the vehicle through ignition kiosk
•Curley Hurley, another employee working at the car dealership,
manages restricted kiosk. Sometimes she handles filling out the
form for other employees. Her every day duties include:
placing tag into the log, distributes keys, and hangs the tag from
the control shack
•Each employee who wants to drive a car needs to fill out a

form to receive the key. The form includes date, time, stock
number, name of employee taking it out, and destination.
•Vehicles are used for company use only
•The company does not expect for the return time to be put on
the tag but they are supposed to be taking the action if the
vehicle is taken out for a long period of time
These facts demonstrate how the company operates when taking
out a company vehicle. Employees of the firm agree to these
terms and processes through an implied contract. These facts
will help support the defendant’s response and answers the
complaint of the Plaintiff.
Second, the issues that are identified when reviewing the trial
are listed as follows:
•Sam asked Curly is he could use a car for 30 minutes on his
lunch break to go to his mothers house
•Sam did not fill out proper paperwork to take out the vehicle
•Sam did not receive proper authority to use the car for this
particular scenario
•Curly should not had given authority to Sam to take out the

vehicle
•Curly did not properly accomplish her duties (managing the
restricted kiosk, placing the tag information into the log, and
hanging tag from the control shack)
•When Sam took out the company car he rear ended a stopped
car at a stop light which caused injuries to the driver and
passenger
These issues offer many reasons why Wheels for Hire should
not be held accountable for expensing funds to cover the
injuries of the driver and passenger of the vehicle Sam had hit.
There are two individuals involved in this case that should be
held accountable. The first individual is Sam as he clearly did
not use the car for business purposes and was using the vehicle
on his personal time rather than work time. Sam also did not
implement the form process when taking a company vehicle out
to a destination. The second individual is Curly who did not
abide by her roles and responsibilities of managing the
restricted kiosk for the company. She also wasn’t suppose to
give car keys to Sam when the company processes, which is
stated in the facts of the case, were not met by either individual.
Both Curly and Sam disobeyed civil law and the implied
contract that the company had presented and was agreed upon

by both employees. Both individuals conducted acts of stealing
company property as the company processes were not met and
higher authority was not aware of Sam using the vehicle for
personal use. Each individual is liable for covering these costs
with their personal insurance. Wheels for Hire is not liable for
expensing these costs to the plaintiff but the individual
employees need to be held accountable for these actions.
Reply to Thread
MS Project - Lesson #2 - Managing Project Resources
Objectives - Microsoft 2010
· Create a list of resources
· Assign resources to tasks
· Enter resource information
· Assign costs to resources and tasks

· Assign variable resource pay rates and costs rate tables
Resources are the people, equipment, and materials necessary to
complete a task. MS Project focuses on two aspects of
resources: availability and cost. Availability determines when a
specific resource can work on a task and how much work they
can do and cost refers to how much money will be required to
pay for that resource.
MS Project works with two types of resources: work resources
and material resources. Work resources are the people and
equipment that do the work of the project. These can be a
single individual, a group of people who have common skills
(such as electrician), or equipment (such as a truck or
diagnostic tool). Equipment resources need not be portable; they
can be fixed, such as a conference room or lab. Material
resources are consumables that you use up during the project,
such as cabling or bricks.
We will be creating our resources and assigning them to tasks.
Please follow all instructions carefully!
Adding Resources
1. Log onto Windows.
2. Open your completed file MyLab1b_XXX.mpp (or download

the MyLab1b_XXX.mpp file from Doc Sharing.) Check the
addendum at the end of this lesson to make sure that your
beginning file is correct. If it is not, then correct your file as
needed or download the completed MyLab1b_XXX.mpp file
from Doc Sharing.
3. Save as MyLab2_XXX.mpp, where XXX are your initials.
It is important to note, that when entering resources in MS
Project to NEVER add resources to a summary task. ONLY
ADD RESOURCES TO THE WORK PACKAGES. When
adding resources to summary tasks, MS Project will add the
value of that resource to each work package below the summary
and add that time to the resource's usage. This will affect both
cost and potentially cause resource over-allocations. Also, MS
Project does not add the value of the cost on some reports, when
the resource is assigned at the summary task level.
Resources can be entered into Project in several different
locations. The Assign Resources dialog box is one method.
The Resource Sheet is another method and the Task Information
box is a third method.
4. Make sure you have not clicked or highlighted any of the
tasks in your project!
5. On the Resource tab, click on the Assign Resources button.

It is the one with the "faces" on it.
The Assign Resources dialog box appears.
6. In the first Name field, type Project Manager and press enter.
(Do not press Assign!) See Figure1
Figure 1
7. After the first resource name as been entered, the selection
moves to the next row.
8. Type Systems Manager and press enter. (Do not press
Assign).
9. Type Systems Administrator and press enter. You should
now have three resources displayed in the Assign Resources
dialog box. Do NOT enter anything in the Units column and do
not press Assign.
10. Click Close.
11. You can also enter resources on the ResourceSheet view,
which is preferred.
12. From the Task tab, select the Down Arrow in the View
dropdown on the words Gantt Chart.

13. Select ResourceSheet. The Resource Sheet displays the
names you entered on the Assign Resources dialog box. Your
screen should look similar to Figure2. The values you see are
default values when you create a resource.
Figure 2
14. Click in the Resource Name field below Systems
Administrator.
15. Type Wiring Contractor and press enter. The name is
entered along with the default information for that resource and
the cursor should move to the next entry for a resource.
16. For Type, leave the default of work, since this is a work
resource. Work resources are people and equipment. The other
options are material and cost.
17. Type Financial Officer for the next resource and press enter.
18. Type Conference Room for the next resource and press
enter. (Why is conference room a work resource and not a
material resource?)
19. For your final resource, enter Systems Analyst.
20. You should now have seven resources listed.
You will notice that the “Max Units” field defaults to 100%.

For an individual resource, this represents the amount of that
resource’s time you have available to your project. For
example, if you only have one Systems Manager, 100%
maximum units means that 100% of the Systems Manager’s time
is available to work on the project. You can assign different
percentages, but it will change the availability of the resource.
For example, if you have the maximum units at 50% for the
Systems Manager, the 50% of the Systems Manager’s time is
available to you, which could mean 4 hours out of a 8-hour day.
For a group resource, people with common skills, it would
represent the number of people assigned, though not necessarily
the same people. For example, if you had Systems
Administrators at 200% maximum units, that would mean you
would have two Systems Administrators available for your
project or task, but not necessarily the same two administrators.
While each resource (whether group or individual) can be
assigned to a task at less than their maximum units, if you
assigned more work (or units) than the maximum, you will be
overallocating that resource.
Assigning Resources to Task
While there are several ways to assign resources to a task, we
will use the following method:

1. From the View tab, change to the Ganttchart view.
2. Selecttask #6, "Proposal to Accounting".
3. On the far right of the Task ribbon, in the Properties group,
select Details.
4. Your screen now is divided in an upper and lower half. The
upper pane is the Gantt Chart View and the lower pane is the
Task Details Form .
Lower Pane
Upper Pane
Figure 3
5. Right click in the lower pane. Notice there are 8 different
views. Scroll through them all so you can see the differences.
6. Next select the Resources and Predecessors view.
7. In the Lower Pane, in the Resource Name column, select the
Project Manager.
8. Then press OK.
9. The Project Manager has now been assigned to the task and a
unit value of 100% is displayed. The resource name is also

display next to the task on the Gantt chart.
10. The concept of unit is sometimes confusing. You can think
of it as one whole person being assigned to the task, but a better
way is you are saying that this resource will be devoting 100%
of his/her time to this particular task. Therefore, if the task is 3
days of work (or 24 hours given a normal 8-hour day), the
Project Manager, in this case, will be spending all of his/her
time on this task for these 3 days. It also it very important to
say that you have just assigned 24 hours of work to the Project
Manager. (Please note that the column says Units, not Max
Units). We will return to resource scheduling later.
11. You can also assign a resource to a task with a unit other
than 100% (as long as you do not exceed the maximum units
listed on your Resource sheet).
12. Selecttask7, "Research Products and Services".
13. In the Resource Name column select the Systems Analyst
and type 50 in the Units field (for 50%). You do not have to
enter the % sign. Then press OK.
14. To assign multiple resources to a single task, follow the
next procedures very carefully.
15. Select the task, "Design and Diagram New System". In the
Resource Name Column, select Systems Manager. Do not press
OK or the Enter key, just select the name! (If you accidentally
pressed OK, select the Systems Manager and press the Delete
key and then the Enter key, which will only remove the

assignment to the task, not the resource.)
16. On the row below the Systems Manager. Select the Systems
Analyst.
Figure 4
17. Then press OK.
18. What we have indicated to MS Project is that both the
Systems Manager and the Systems Analyst will be assigned to
this task and each will be assigned 40 hours of work (5 days).
More about this in the next lab.
Figure 5
19. Check to make sure the time duration for this task is still 5
days, if it is not, you need to remove the resources from the
task, reset the task back to 5 days and repeat steps 13-16 again.
Providing Resource Details
Resource details provide additional information about a
resource and usually are entered on the Resource sheet.
Information includes maximum units, costs, project/accounting
codes, calendars, etc.
1. In the Upper Pane, In the Task tab and the Properties Group,
press Details, to remove the Lower Pane, then From the View

group, select the ResourceSheet view.
2. Select the Project Manager name and tab to the column,
Initials. (We will not be using the material label for work
resources or Cost label for costs).
3. The Initials column is where you can give abbreviated
"nicknames" to each resource. You should give each distinctive
letters or names of at least two characters.
4. Enter PM.
5. The next column, Group, again is optional for giving a name
for a group of resources, such as Network Staff, Project Team,
etc.
6. Assign each resource to a group in the Group Column as
below:
Resource NameGroup
Project ManagerManagement
Systems ManagerManagement
Systems AdministratorIT Staff
Wiring ContractorContractor
Financial OfficerAdministration
Conference RoomEquipment
Systems AnalystIT Staff
7. A maximum unit is where you enter the number of units for
each resource available to you for the project. Since there

usually is only one project manager, leave this default of 100%.
8. Tab to Standard Rate.
In any project, there are two types of costs: resource costs and
fixed costs. This information is crucial in identifying project
budgets, cost overruns, etc. Each resource and task can have a
cost associated with it (with the exception of summary tasks).
Costs can be an hourly wage, rental on equipment, license fees,
contractor expenses, material charges, etc. Costs can be
prorated, paid up front or paid out at the end of the project.
As you create budgets for your project and assign costs, it is
important to determine whether the cost is a resource cost or a
fixed cost. Resource costs are fairly easy, with one exception.
Wages, salaries, etc are resource costs. However, a fixed
contract, say for installing wiring, is a fixed cost and is
assigned to the task not the resource. The exception, and one
that is hard to discern, is cost per use. Cost per use is a
resource cost and is applied when then is a set charge every
time you use the resource. For example, if you have a piece of
equipment delivered to a construction site, you might be
charged a delivery fee for the equipment (as well as an hourly
rate). The delivery fee would be a cost per use.

Let's start with the easiest: resource costs.
1. Under the Standard Rate for the Project Manager, enter 125.
Tab to the next column. (Note: if the resource is paid other than
hourly, you can enter weekly, monthly or yearly salaries).
2. The next column, Overtime Rate, you would enter the amount
of overtime pay rate for the resource. Please note that on this
sheet you cannot enter a formula to calculate overtime rate, you
must calculate it for yourself. (Microsoft left this one out!)
Since our Project Manager does not technically qualify for
overtime rate, one might leave this blank, however, I would
enter the sameamount for overtime as standard.
3. Enter 125 for overtime rate for the Project Manager.
Let's go to the next easiest: fixed costs
1. Our wiring is being done via a contractor. This is a typical
example of a fixed cost. Even though this task is being done by
a resource, the Wiring Contractor, it is being done at a fixed
price. Unlike resource costs, the fixed cost is notdependent on
the amount of time or the number of resources it takes to
complete a task. (Note: you can have both fixed costs and
resource costs assigned to the same task, such as the contractor
is working on a fixed price for materials, but a resource cost for
labor).

2. First let's assign the WiringContractor as the resource for the
task14, Install Wiring.
3. From the View tab, change to the Gantt chart view. Split the
Window and assign the Wiring Contractor to task 14, Install
Wiring. (100% unit).
4. The Wiring Contractor will be charging a fixed contractual
price (materials and labor) of $4,000 to install the necessary
wiring. The amount of $4,000 is NOT a resource cost, but a
fixed cost and must be assigned to the task!
5. We now need to change the current table we are using, which
is called the Entry table.
6. Select the Upper Pane, Go to the View tab and in the Data
group select the Tables dropdown.
7. Select the Cost table and the figure 5 should appear on your
screen. (Move your Gantt chart if you have problems seeing the
table).
Figure 5
8. Notice the column Fixed Cost. For task 14, enter 4000 for
the fixed cost.
9. Tab to the next column. The word Prorated is now
highlighted in a pull down menu box. Press the down arrow and

select End. This means the charge will not be added to our
project until this task is completed.
Let's go to the hardest: cost per use
1. Return to the Resource Sheet and Highlight Conference
Room.
2. Tab over to the Cost/Use column.
3. Since we have a very cost-conscious company, they charge
for use of the conference room. This would not be a fixed cost,
but a cost per use. Every time I use the conference room there is
a charge!
4. Enter 100 for the Cost/Use for this resource.
5. To see the effect of this, return to the Gantt Chart View.
6. Change from the Table: Cost to Table: Entry. (Can you
figure how to do that?).
7. Go to the summary task Project Meeting. Expand the
summary task to see all the project meetings.
Figure 6
8. Select Project Meeting 1 and assign the Conference Room as
a resource.
9. Switch from Table: Entry to Table: Cost.
10. Notice the $100 under the Total Cost column, but not the

fixed cost column.
11. Assign the Conference room to all the Project Meetings.
(Hint: Return to the Entry table. One easy way to do this is in
the Entry Table to select the Resource Name column in the
proper row, and select the Conference Room resource for each
of the meetings)
12. Check now the cost for the summary task, Project Meetings,
on the Table: Cost. Why $800?
Assigning Cost Rate Tables and Variable Resource Rate
Variable resource rates are time-stamped so new rates are
applied to the project at an appropriate time. For example,
during a project a resource earning $20 an hour at the beginning
of the project receives a pay increase later in the project. By
entering a pay rate effective on a certain date, the resource costs
can be tracked appropriately. (You can also enter pay rates this
way rather than resource sheet).
1. If your Window is still Split, close the split now.
2. Go the ResourceSheet.
3. Select the SystemsAnalyst.
4. Double-click on the name Systems Analyst and the Resource
Information window appears:

Figure 7
5. This is the Resource Information dialog box. Here you can
enter information about the resource, including e-mail
information, working schedule, etc. Spend some time looking
over all the information you can enter by clicking on the four
tabs.
6. Click on the Costs tab. In the Cost Rate table area, tab A is
selected by default: (Figure 8)
Figure 8
7. Leave the effective date for the firstrow blank; do not put a
date in it.
8. In the first row for Standard Rate, enter 40.
9. Tab to the Overtime Rate; enter 60.
10. Go to the second row, under Effective Date.
11. A down arrow appears. Click the down arrow and select
November 15, 2013. This is the date that the new cost rate for
the resource will become effective.
12. Click in the Standard rate field for this row and enter 10%
for a 10 percent raise! (Include the % sign.) This time MS
Project will automatically calculate the new hour wage.
13. Click in the Overtime rate field for this row and enter 10%
again. What happened?

14. Before we leave, you will notice the tables B, C, etc. These
are cost rate tables. They are used if your resource can do more
than one type of work each at different rates. For example, a
worker may charge one rate for painting, but another rate for
plastering. Another example would be a different rate for
hazardous work. To apply different rate tables, you would go to
the task usage sheet, find the task the resource is assigned and
apply the correct rate table there. For the purposes of this lab,
we will not be doing that in this project.
15. Click OK to accept the changes made to the rate table and
close the Resource Information window.
(Note: To set up material resources on the assignment sheet,
you would enter the name of the resource (such as wiring or
nails), then enter Material in the type field, and in the Material
Label field the unit of measurement (such as Feet for wiring or
Pounds for nails). You would then enter the amount charged
per unit of measurement in the Standard Rate column, such as
1.50. However, we will not be dealing with material resources
for the purposes of these labs.)
On Your Own
Finish the Resource Sheet with the following information:

Resource Name
Initials
Max. Units
Std Rate
Ovt Rate
Cost/Use
Systems Manager
SM
100%
$75000.00/yr
$75000.00/yr
0
Systems Administrator
SAD
300%
$25.00/hr
$37.50/hr
0
Wiring Contractor
WC
100%
0
0
0
Financial Officer

FO
100%
$85.00/hr
$85.00/hr
0
Make the following additionalresourceassignments to the
appropriate tasks: (Hint: go to Gantt Chart view and, if
necessary, change to Table: Entry, and remember to split the
window). Try using the Task Information box to assign these
resources. Make sure to change the percentage of each resource
BEFORE assigning!!
Inventory Current EquipmentSystems Administrator 200%
Assess Current Dept NeedsSystems Administrator100%
Issue RFP'sProject Manager100%
Evaluate BidsProject Manager100%
Purchase EquipmentFinancial Officer50%
Install HardwareSystems Administrator200%
Install SoftwareSystems Administrator300%
On the last one, be very careful to select each resource BEFORE
entering OK!
Test SystemSystems Manager100%
Systems Analyst100%

Systems Administrator100%
From the Project tab, select Project Information and then press
the statistics button. Check your project information statistics
with the one provided in the addendum to this lab. If it is not
correct, you will need to un-assign all resources from all tasks,
check your resource sheet cost values and then go back to the
beginning of the lab and re-assign your resources. Your project
duration should never change from 41 days! After verifying
that everything is correct – save the file.
If you look at the resource sheet you will see that the Systems
Administrator is RED and marked with an Exclamation Point.
Do not be alarmed. This means that the resource is over-
allocated (has more work than hours available). We will fix
over-allocation problems in Lesson 5.
When finished with the lab, print out the following after
checking all column widths and proper header/footer
information. Then staple the printouts IN ORDER to the back
of your question/answer sheet:
1. A printout of your Task Table: Entry showing all columns,
but no Gantt chart. (Format to print on 1 page)

2. A printout of your TaskTable: Cost showing all columns but
no Gantt chart. (Make sure to widen Task Name column so the
entire column can be read).
3. The project Summary Report.
4. Your project's Budget Report. (Print on one page)
5. Your project's Who Does What report.
6. Your project's Overallocated Resources report. (You should
have overallocated resources. If not, make sure your
assignments are correct and all your resources are 100% default,
with the exception of the Systems Administrator)
7. Save the file.
Again, with the exception of the Summary report, all printouts
must contain the proper header and foot information.
When submitting required printouts, if you are not bringing
them to class, from the Print Preview Page, take a screen shot
(in Windows <ALT><Prt Scr>) of the report and paste the
screen shot to a MS Word Document. Make sure to crop the
screen to show only the report. After cropping, resize the image
appropriately. If the printout is on more than 1 page, paste each
page individually. Save the Word document containing printouts
as Week_2_Printouts_XXX.docx (where XXX are your initials)
and submit this file to the Weekly iLab Dropbox.

When you have completed this lesson please save it as
MyLab2_XXX.mpp and submit the file to the Weekly iLab
Dropbox.
Also complete the Review Question page and submit this page
to the Weekly iLab Dropbox.
Addendum
Task Information for Beginning of Lesson 2
Project Information at end of Lesson 2 Review Questions
Name ____________________________
Answer the following questions:
1) What is a resource?

2) Why aren't resources assigned to summary tasks?
3) What is the difference between Start, Prorated and End in
association with costs?
4) Give a real-world example of the difference between a fixed
cost and a cost per use?

5) Why is a fixed cost entered with the task and not the
resource?
6) Why is the resource cost for the Wiring Contractor $0.00?
7) Which resource is Overallocated and why?
Turn in this sheet with your MS Project file to the Week 2 iLab
Dropbox.
MS Project Lesson #2Page 1

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