Daniel A. Peak dpeak@unomaha.edu
and Michael J. O'Hara mohara@unomaha.edu
University of Nebraska at Omaha, Omaha, NE, USA 68182
Abstract
This article examines university liability created by internship and consulting relationships. Business clients participating in outreach relationships formulate performance expectations based on perceptions of experience and / or qualifications. Clients assign tasks accordingly, and the university incurs liability that is conditioned by business clients’ expectations. Substantial liability is related to unusually large and rare unfavorable outcomes in the outreach engagement, known as tail events. Tail events can significantly and negatively impact the client. Both the liability for and the probability of tail events increase as universities continue to expand business outreach activities. As internship and consulting engagements increase, the probability of a tail event also increases. The responsibilities of IT intern engagements and potential liability of the sponsoring university are analyzed. The university is the primary insurer for the client and indemnifies its representatives. All internship engagements should be formalized by written contract. An example con-tract is attached.
Keywords: University liability, Consulting, Internship, Intern, Information Technology, Contract, Outreach
1. General terms of the relationship
This is an academic contract between the Intern/Consultant (___________________), and the University (____________________________________________), and the Client (___________________________________________________________). Actions required of the Client may be completed by the Client Supervisor (_________________________________________).
The Intern/Consultant (circle one) has has not attained the age of majority. This internship (circle one) is is not for academic credit.
All parties agree that they are about to enter a complex relationship that may appear to be a hybrid relationship with academic and employment aspects. However, the parties further agree that the academic relationship shall be superior and shall not be compromised by any requirements of any simultaneous employment relationship. Further, the parties agree that those in the academic relationship will not unreasonably frustrate the objectives of any employment relationship that the Intern/Consultant may have running simultaneously with the internship/consultancy. (NOTE: in the remainder of the this document the terms "Intern" and "internship" will be used instead of "Intern/Consultant" and "internship/consultancy.")
2. Financial Terms and Time Requirements
The Client shall:
(a) pay the Errors and Omissions Policy premium (estimated premium $_____________); (b) pay the University $_______________; and (c) compensate the Intern as follows (circle the letter for all that apply and fill in blanks were necessary):
RELATIONSHIP
a. solely an academic relationship, no employment relationship
b. academic relationship coupled with employment relationship
c. solely an employment relationship, minimal academic relationship (i.e., no registration for academic credit).
COMPENSATION
d. zero dollars of compensation
e. ______ dollars per hour of compensation
f. ______ dollars per month of compensation
g. ______ dollars per academic term of compensation
h. ______ dollars of compensation for the entire engagement
i. there (circle one) are are not any item-8 payment obligations of the client.
The University shall pay nothing to either the Client or to the Intern, unless required by a separate document attached to this academic contract (see below, item 8, "Attached, Other Documents"). There (circle one) are are not any item 8 payment obligations of the University.
The Intern shall pay (a) the normal costs associated with enrollment for academic credit, (b) the normal costs associated with travel to and from the Client's place of business and/or the agreed upon site for the internship, and (c) the normal costs born by the Client’s employees in compliance with the Client's requirements (e.g., dress codes). The Intern shall have no other financial obligations springing from this academic contract unless explicitly required by a separate document attached to this academic con-tract (see below, item 8). There (circle one) are are not any item 8 payment obligations of the Intern.
This engagement shall start on the _____ day of _____ in the year _____.
This engagement shall end on the _____ day of _____ in the year _____.
This engagement corresponds with the academic term(s) ______________________.
3. Description of responsibilities and duties:
Each party agrees to complete this academic contract and to complete all of item 8 in good faith, and without arbitrariness or capriciousness.
a. of the University.
The University agrees to provide regularly scheduled off-site and on-site academic supervision of the Intern's academic performance. This regularly scheduled academic supervision shall be scheduled by the Academic Supervisor in consultation with the Client and the Intern. No later than the start of the internship, the Academic Supervisor shall deliver to the Intern and to the Client a written schedule for such academic supervision. This schedule (circle one) is is not attached under item 8. However, all parties agree that the supervision provided by the Client should be more immediate and more significant in terms of immediate error detection than the academic supervision provided by the University.
Liability Issues of Internship Engagements
The University agrees to obtain an Errors and Omissions Policy (or policies) covering the Intern and the Academic Supervisor in this engagement, to provide the Client, the Intern, and the Academic Supervisor with a copy of the Policy, and to bill the Client for the premium. This policy (circle one) is is not attached under item 8. The University agrees to provide the Client with forms for evaluating the Intern at the scheduled conclusion of the internship. These forms (circle one) are are not attached under item 8.
b. of the Client.
The Client agrees to provide a learning environment with genuine responsibilities appropriate for this Intern. The Client agrees to minimize irrelevant low-level office tasks (e.g., photocopying) assigned to the Intern. The Client agrees to provide the Intern with timely and significant on-site supervision of the Intern's performance, including timely and significant feedback on and guidance for the Intern's performance. At the scheduled conclusion of the internship, the Client agrees to provide the Intern, the Academic Supervisor, and the University with a written evaluation of the Intern's performance. The Client's evaluation will be on forms supplied by the University. These forms (circle one) are are not attached under item 8.
c. of the Intern.
The Intern is expected to devote no less than total hours and no more than total hours working at (report to address) as assigned by the Client. Additionally, the Intern is expected to devote no less than _____ total hours and no more than _____ total hours working at the University as assigned by the Academic Supervisor. The Intern is expected to honor the Client's work schedule requirements, dress codes, and other requirements for employees at this level of engagement. The Client's dress code (circle one) is is not other than normal business dress. The Client's dress code (circle one) is is not attached under item 8. Attached, Other Documents.
4. Description of Objectives and Deliverables
The objective of this academic contract is to provide the Intern with a real-world context for the application and refinement of existing knowledge and skills, as well as fostering the development of new knowledge and new skills appropriate to this Intern. The Client shall provide the Intern a work space including (circle all that apply) desk, telecommunications, computer, software, internet access, tools, and other.
Deliverables by the Client to the Intern (circle one) do do not include intellectual property, and ownership of such property (circle one) is is not provided for
in Item 8.
The Client shall provide the University and the Intern a written evaluation on forms supplied by the University (see also item 3.b. above). The Intern shall have two sets of deliverables: one for the Client and one for the University. The Intern's deliverables to the Client are __________________________________________________.
Deliverables by the Intern to the Client (circle one) do do not include intellectual property, and ownership of such property (circle one) is is not provided for in Item 8.
The Intern's deliverables to the University are for academic evaluation and are ___________________________________________________________.
Deliverables by the Intern to the University (circle one) do do not include intellectual property, and ownership of such property (circle one) is is not provided for in Item 8.
The University shall deliver to the Client (a) a copy of the Errors and Omissions Policy including a bill for the exact premium, (b) a written schedule for academic supervision, (c) an Intern trained to the level appropriate for this engagement, and (d) _________________________________________________.
Deliverables by the University to the Client (circle one) do do not include intellectual property, and ownership of such property (circle one) is is not provided for in Item 8.
5. Adhesion terms
The are some terms which the University must have in all academic contexts. First among these is Academic Freedom. Additionally, the University is bound to its Charter and Bylaws, which are hereby incorporated by reference. (Copies may be obtained by contacting the University's Corporate Secretary at (___) ___ - _____).
6. Errors and Omissions Policy
Prior to the start of the Intern's engagement under this academic contract, the Academic Dean shall secure and the Business Client shall pay for an Errors and Omissions Policy (or policies) covering the actions of the Intern and the Academic Supervisor.
7. Liquidated Damages Clause
All parties agree that an internship is fraught with potential losses and that such losses typically are minimal but occasionally can be substantial. Substantial losses are particularly likely when the Intern is acting at the fringe of the Intern's knowledge base and when acting at the Client's site. Since the primary objective of this internship is educational, not commercial, the parties agree that each party will be responsible for his/her own attorneys' fees and will only be entitled to recover liquidated damages in an amount no greater than payments made by the recovering party pursuant to item 2 of this academic contract and not including any payments listed under item 8.
8. Attached, Other Documents
The following documents are attached to this academic contract and made a part of this academic contract.
a. Contact Information Sheet (attached at the end of this form)
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
9. Choice of Law and Choice of Forum
This academic contract, and any necessary and related interpretation of the item 8, shall be controlled by the law of the State of ___________ and all lawsuits shall be commenced and conducted in the Court located in ___________ County of the same State.
10. Signatures
This academic contract is not effective until all signatures have been affixed and until the student has complied with all other normal registration procedures. Each of the parties agrees to accept as valid a signature of any other party on a copy of this academic contract transmitted by a facsimile machine.
_________________ ____________
Intern or Consultant date
__________________ ______________
Business Client date
______________________ _______________
Academic Supervisor (see note #1) date
_________________ _________________
Academic Dean date
NOTE #1: The Academic Supervisor of a Student Intern is the faculty member of record who is responsible for assigning the academic grade for the internship. The Academic Supervisor for a Faculty Intern or a Faculty Consultant is the faculty member's Department Chair. When the Department Chair is the Faculty Intern or Faculty Consultant, then the Dean is the Academic Supervisor.
Item 8 a. CONTACT INFORMATION SHEET
INTERN
Student Identification Number: ___ - ___ - ____
Academic Term of _____________ Registration YEAR ____________
HOME ADDRESS
CITY STATE ZIP
HOME PHONE (_____)________-__________
PHONE AT CLIENT (_____)________-__________
FAX (_____)________-__________ E-MAIL
ACADEMIC SUPERVISOR
UNIVERSITY ADDRESS
UNIV CITY STATE ZIP
UNIV FAX (_____)________-__________ UNIV E-MAIL
HOME ADDRESS
HOME CITY STATE ZIP
HOME PHONE (_____)________-__________
HOME FAX (_____)________-__________ HOME E-MAIL
PHONE AT CLIENT (_____)________-__________
FAX AT CLIENT(_____)________-__________ E-MAIL AT CLIENT
CLIENT SUPERVISOR
BUSINESS ADDRESS
BUS CITY STATE ZIP
BUS FAX (_____)________-__________ BUS E-MAIL
HOME ADDRESS
HOME CITY STATE ZIP
HOME PHONE (_____)________-__________
HOME FAX (_____)________-__________ HOME E-MAIL