Case summary:
Person A began working for company P at the age of seventeen and after 38 years of service, got promoted to assistant treasurer. In appreciation of person A’s long service, dedication and hard work, resolution was passed by the board of directors to give a salary hike of $4,000 and retirement pay of $2,000 per month through-out her life with a expressed hope that person A would continue working for the company for many years to come. Person A chose to retire after two years. Company paid retirement pay to person A for seven years and discontinued the payments after it.
To discuss: About the proper outcome.
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
Bundle: Smith and Roberson’s Business Law, Loose-Leaf Version, 17th + MindTap Business Law, 1 term (6 months) Printed Access Card
- Give any one exception to agreement in restraint of legal proceedings. Explain too.arrow_forwardKhalil bought Roots Café in New York from its previous owner. Khalil was eating a meal at Roots Café and mentioned to the owner that he would like to own a business of his own someday. The owner also had purchased the restaurant but was never able to make it a profitable business. The owner offered to sell Khalil Roots café. Khalil got a loan from a family member and was able to buy the company assets for $8,000 less than the seller's asking price. Through which of the following sources has Khalil found out that Roots Café was for sale? * Advertisement Hidden market A "for sale" sign Restaurant associationarrow_forward1. Explain the difference between the terms ‘ratification’, ‘rectification’ and ‘restitution’.arrow_forward
- What happens when homeowners owe more to subcontractors than the total price they were to pay the general contractor because the general contractor has not paid the subcontractors and the general contractor is no longer solvent? a. Courts and states have differing standards of equity applied in resolving these issues b. The homeowners cannot be liened by the subcontractors c. Homeowners are always exempt from paying more than they owed the general contractor d. The homeowners must pay the full amount due to all subcontractorsarrow_forwardOliver, while he was so drunk that he didn’t know what he was doing, bid successfully at an auction for the purchase of a house. It was clear to the auctioneer that Oliver didn’t know what he was doing. However, after Oliver sobered up, he confirmed the contract with the auctioneer. He then subsequently refused to complete the contract. Is Oliver bound to the contract? Required: Answer this question using the IRAC * method.arrow_forwardWhat is a release of liability clause (exculpatory clause)?arrow_forward
- If Barney’s employer withholds $11,928 for federal taxes, which is 14% of his gross annual salary, then would Barney owe additional taxes by April 15th of the next year or would he receive a refund, and in either case, by how much?arrow_forwardConsidering the potential for civil liability today, professionals like accountants must be aware of their legal obligations. Under common law and statutory law, outline and explain the concepts in the Chapter 22 reading regarding: Potential liability to clients, explaining breach of contract, negligence and fraud, potential liability to third parties.arrow_forwardHow can a party to a contract be discharged from performance, and what are the legal implications?arrow_forward
- Business contracts may contain exclusion clauses as a means of limiting or excluding liabilities. Explain what is meant by the term “exclusion clause” and how case law and statutes regulate the use of such clauses in business contracts.arrow_forwardJohn worked as a sales representative for ABC Corporation for five years. During his time there, he signed a non-compete agreement, which stated that if he left the company, he would not work for a competing company within a 50-mile radius for two years. After five years, John decided to leave ABC Corporation and start his own business selling similar products. He opened his business just 20 miles away from ABC Corporation's headquarters. ABC Corporation filed a lawsuit against John, claiming that he violated the non-compete agreement and was taking away their customers. Questions: Is the non-compete agreement enforceable in this case? Is the 50-mile radius reasonable? Is John's new business considered a competitor to ABC Corporation?arrow_forwardOn Chapter 12, Recognizing Employee Contributions with Pay; define Principal and define Agent. Also, what is the difference between outcome-oriented and behavior oriented contracts?arrow_forward
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON