Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
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William Schmalz entered into an employment contract with Hardy Salt Company. The contract granted Schmalz six months’ severance pay for involuntary termination but none for voluntary separation or termination for cause. Schmalz was asked to resign from his employment. He was informed that if he did not resign, he would be fired for alleged misconduct. When Schmalz turned in his letter of resignation, he signed a release prohibiting him from suing his former employer as a consequence of his employment. Schmalz consulted an attorney before signing the release and upon signing it received $4,583.00 (one month’s salary) in consideration. Schmalz now sues his former employer for the severance pay, claiming that he signed the release under duress. Is Schmalz correct in his assertion?
AOL, LLC, mistakenly made public the personal information of 650,000 of its members. The members filed a suit in California, alleging violations of federal law and California state law. The member agreement between AOL and its members included a provision declaring Virginia as the location of any court dispute. AOL asked the court to dismiss the suit on the basis of that "forum-selection" clause in its member agreement. Under a previous decision of the United States Supreme Court, a forum-selection clause is unenforceable "if enforcement would contravene a strong public policy of the forum in which suit is brought." California courts previously have declared in other cases that clauses similar to the AOL clause contravene a strong public policy. If the court applies the doctrine of stare decisis, will it dismiss the suit? Explain. [Doe 1 v. AOL LLC, 552 F.3d 1077 (9th Cir. 2009)] (See The Common Law Tradition.)
Dr. John Holm signed a two-year employment agreement with Gateway Anesthesia Associates, PLLC. During negotiations for the agreement, Gateway’s president, Dr. Jon Nottingham, told Holm that on comple-tion of the contract he would become a partner in the firm and that during the term he would be paid “like a partner.” The written agreement did not reflect this promise—the con-tract read that Holm would be paid based on “net collections” for his services and did not state that he would become a part-ner. Later, Gateway told Holm that it did not intend to make him a partner. Holm filed a complaint in an Arizona state court against Gateway, alleging breach. Before the trial, Holm filed a motion to reform the contract to express what he had been told. Nottingham did not dispute Holm’s account. What is the basis for the reformation of a contract? Is it appropri-ate in this case? Why or why not?
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