Are you authorized to handle business matters on behalf of others? (2017.03.10)
Are you authorized to handle business matters on behalf of others?
March 10, 2017
Hello to my fellow business partners! I am Jack, your host of the programme today. To provide quality service to our customers or partners, we may proactively handle their sign up procedures or order products for them. However, is there something we should be aware of? Today, we are honoured to have Sally from the department of Ethics Leadership to talk about what we should be paying attention to while helping others. Let’s give Sally a round of applause with me.
Sally: Thank you Jack for introducing me. Occasionally, we may neglect some key things when we try to help our friends to become a member of our team as soon as possible or when we place orders to meet business targets. Will you choose answer A or B in the following circumstances?
Mary loves using NU SKIN products. and she is also a business partner Amy’s good friend. Recently, Mary told Amy that she was considering to be a NU SKIN business partner. Amy got Mary’s personal information, filled in and submitted all contractual documents for the sign up to NU SKIN on behalf of Mary without her consent, adding her as Amy’s downline. Is Amy’s behavior correct?
Answer A: Correct. Mary expressed her wish to sign up as NU SKIN business partner. As she is a good friend of Amy, it is reasonable for her to be Amy’s downline. As for the contractual documents, it is also natural for friends to sign on each other’s behalf. It is not necessary to be authorized.
Answer B: Incorrect. Firstly, Mary did not give Amy her personal information for the sake of signing up as NU SKIN’s business partner. Moreover, Mary did not explicitly authorize Amy to handle the signup procedures for her. On the other hand, contractual documents must be signed by Mary herself. Therefore, not only has Amy violated the NU SKIN Policies and Procedures, she has also violated relevant statutory regulations in Hong Kong and Macau.
Jack: Amy did not obtain Mary’s prior written authorization to sign up on her behalf, so answer B is correct.
Sally: Jack, you’re right! Also, I would like to remind everyone that even if customers or partners authorize you to handle the sign up procedures on their behalves, it does not mean that you could sign any contractual documents for them. Forging others’ signatures will violate both NU SKIN Policies and Procedures and the laws of Hong Kong and Macau. Therefore, all of you should be cautious.
Sally: What will be your answer in the following situation?
In order to meet the sales target of this month, Max used her downline, Tracy’s distributor account to order products. As Tracy and Max have been good friends for years, she placed orders in Tracy’s distributor account with neither her consent nor authorization. Furthermore, she has never mentioned this to Tracy. Did Max handle this matter correctly?
Answer A: Correct. It is nothing special for Max to use Tracy’s distributor account to place orders as they have been friends for years.
Answer B: Incorrect. Before Max places any orders in other distributor’s account, she must obtain authorization from the account holder, or else it would constitute a violation of NU SKIN Policies and Procedures. Upon NU SKIN’s request, you must provide NU SKIN with a copy of a written document proving that you has obtained the authorization from that business partner.
Jack: Max did not obtain Tracy’s written authorization before placing orders in her distributor account, making this a violation of NU SKIN Policies and Procedures.
Sally: Right! Through this brief programme, I hope all of you will understand that you must obtain your friends’ or business partners’ written consent and authorization before handling any business related matters for them. Not only can this reduce the risk associated with handling matters on others’ behalf without their authorization, this can also protect the rights of you and your business partners.
Please read the following excerpt from the Policies and Procedures or directly contact Ethics Leadership for more information:
Chapter 1 Your Distributorship
1 Becoming a Distributor
1.1 Applying to Become a Distributor (excerpt)
You may apply to become a Distributor by completing the following steps:
(a) Complete, sign, and return an online or hardcopy Distributor Agreement to the Company; and
(b) Purchase a not-for-profit Business Portfolio.
Chapter 2 Operating Your Business
3 Ordering Products or Services
3.7 Submitting Orders in the Name of Another Distributor
You are prohibited from submitting orders in the name of another Distributor without the other Distributor’s prior written approval. You must provide a copy of written approvals to the Company upon request.
The Crimes Ordinance of Hong Kong, (Chapter 200), Section 71
A person who makes a false instrument, with the intention that he or another shall use it to induce somebody to accept it as genuine, and by reason of so accepting it to do or not to do some act to his own or any other person’s prejudice, commits the offence of forgery and is liable on conviction on indictment to imprisonment for 14 years.
MACAO PENAL CODE, Section 244
1. In the event of any loss to others or the territory , or the intention to obtain improper benefits for himself or others, the following actors shall be sentenced to up to three years in prison or subject to a fine:
a) Making false documents, forging or modifying the documents, or abusing the signatures of others to produce false documents; b) The important facts on legal, posted on documents improperly; or c) The use of any of the above two documents made, forged or altered by another person.
2. Subject to a penalty if attempt crime.