Based upon your review of the following facts:

Why did the trustees take the action they did?

Where/how do principles of agency law and potential liability come into play?

What are the rights of all of the terminated Penn State employees?

Please be as thorough as possible.

Facts:

Gerald A. Sandusky (Jerry) was a Penn State University alum who was hired in 1969 as an assistant football coach and assistant professor of physical education, a position he held until his retirement in 1999. During that time, Mr. Sandusky engaged in various acts of sexual assault with young boys who accompanied him to the campus as part of a program he had begun to help young boys who did not have father figures in their homes.

Between May 4, and May 30, 1998, there were notes and e-mails among and between Penn State University President Graham Spanier, Gary Schultz, the senior vice president for finance and business at Penn State, and Tim Curley, the Penn State athletic director regarding possible courses of action in dealing with Mr. Sandusky's actions with young boys on the campus. It is not clear how Mr. Schultz first learned of the May 4, 1998, events involving Mr. Sandusky on the campus, but his notes reflect that he knew almost immediately and instructed the University Police Department Chief, Thomas Harmon, to let him know everything as the investigation into Mr. Sandusky's conduct proceeded. His notes concluded that Mr. Sandusky's behavior was "at bestinappropriate @ worst sexual improprieties." After he received more information about a second boy's experience and the hotline report, his notes ask, "Is this opening of pandora's box? Other children?"

The correspondence and notes also indicate that Mr. Curley had notified Mr. Schultz and football coach Joe Paterno, and both had asked to be kept informed about the investigation. Other documents indicate that Mr. Spanier was also notified, but he denied being aware of the issue and noted that he received many e-mails each day that keep him informed about an array of evolving concerns.

By 2011, Mr. Sandusky was indicted (and eventually convicted) for child molestation and other charges. When the charges were announced publicly, there were also charges against Mr. Curley and Mr. Schultz for perjury, conspiracy, and endangering child welfare. Mr. Spanier was later indicted for similar charges and all three entered not guilty pleas.

The trustees for Penn State fired all three men as well as Coach Paterno. There was great alumni and public backlash for the termination of the coach. The National Collegiate Athletic Association (NCAA) imposed sanctions on the university's football programsanctions that the university accepted without protest or a hearing. The NCAA executive committee chair, Oregon State President Ed Ray, in announcing the sanctions, indicated, "I was so appalled at just the thought of those children and what was being done, and that nobody made a phone call, for God's sake." When the NCAA sanctions were accepted, the University removed the statue of Coach Paterno from in front of the stadium during the wee hours of the morning.

Why did the trustees take the action they did?

Please include discussion of:

the principles of agency law

potential liability

rights of all of the terminated Penn State employees

Please be as thorough as possible.