Esther Was an Employee of Serve U Right Inc

question 46

Multiple Choice

Esther was an employee of Serve U Right Inc. which created customized computer programs for clients. Esther was one of only two people in Canada who knew the new language, Jolted Java, just released by Microtext Ltd., which she learned while employed at Serve U Right. Esther approached management requesting an increase in salary to reflect her skills and was told that her acquiring a new language while employed by them was sufficient compensation. Esther indicated that she would look elsewhere and she was reminded that her employment contract contained a confidentiality clause. If Esther were to leave her employment and go to work for the other company, using this language, Serve U Right would:

• A)Be able to successfully stop her re-employment with their competitor for beach of the confidentiality clause.
• B)Not be successful as the courts will not stop individuals from applying their skills in earning a living.
• C)Be able to successfully stop Esther from leaving their employment as she has a contract and is a key employee.
• D)Not be successful in stopping Esther from leaving but could stop her from working for the competition for a reasonable time or until the new language is in more general use.
• E)Be able to successfully stop her re-employment on the basis of general equitable principles protecting confidential information.

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Definitions:

Risk Of Loss

The responsibility for the financial impact of damage, destruction, or disappearance of goods or property, assigned by law or by contract.

F.O.B. Boston

A term indicating that the seller is responsible for goods transportation and risk until the goods are loaded onto a ship in Boston.

Risk Of Loss

Legal term defining which party bears the financial responsibility for damage, destruction, or loss of property, particularly in transactions of goods.

FOB Seattle

A shipping term indicating that the seller's responsibility ends when the goods are placed on board a ship at the Seattle port; the buyer is responsible for freight and risks from that point.