Your Employer Uses an Escalator Clause to Determine Your Raise

question 242

True/False

Your employer uses an escalator clause to determine your raise each year. In an inflationary environment, your employer is more likely than you are to want to use the chained CPI for urban consumers as the price index in this clause.

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Definitions:

Detriment

A loss or harm suffered as a result of an action or decision.

Illusory Promise

A statement or promise that is vague or lacks commitment and does not legally bind the person making it.

Illusory Promises

Statements or agreements that appear to assure a commitment or obligation but in fact do not actually bind the party to any specific action or result.

Unilateral Contract

A type of agreement where an offer can only be accepted through the performance of an action by the party receiving the offer.