Nadia, the President of XYZ Co

question 17

Multiple Choice

Nadia, the president of XYZ Co., and Ramon orally agreed that Ramon would work as a computer programmer for XYZ Co. for a three-year period. Their oral agreement also covered other matters such as his pay and the availability of one week of paid vacation. On the day he talked with Nadia, Ramon signed an employee handbook including a provision that his employment was at will, meaning that at any time he could quit or the company could discharge him. A month later, Ramon received a three-year contract for employment with XYZ Co. in the mail incorporating the amount of his salary and other issues he had discussed with Nadia. Ramon signed it and mailed it back, but he changed the vacation provision to three weeks instead of one week. Brendan, the human resources manager for XYZ Co., called Ramon after receiving the agreement and told Ramon that the contract was only a draft for discussion purposes and that he was actually firing Ramon because he seemed too focused on vacation. Assuming the court follows the reasoning of the court in the dispute discussed in the text involving Michael Gallagher and Medical Research Consultants, which of the following would be the most likely result in the dispute between Ramon and XYZ Co. if Ramon claims he had a three-year contract of employment?

• A) XYZ Co. will win because even if a three-year oral agreement for employment was made, it would not have been enforceable because the statute of frauds requires that agreements that cannot be completed within one year be in writing. Further, the draft Ramon returned was not signed by XYZ Co.
• B) XYZ Co. will win because although the three-year oral agreement for employment was initially enforceable, Ramon reopened negotiations by altering the later contract to provide that he was to receive three weeks of vacation.
• C) XYZ Co. will win because as a matter of law, no other document can alter the provisions of an employee handbook.
• D) A jury will decide if Nadia orally agreed to a three-year contract; and, if so, Ramon gets his job back along with the extra weeks of vacation.
• E) As a matter of law, since the contract was sent to Ramon, he received a guarantee of employment for three years; but he does not get the extra weeks of vacation he inserted.

Understand the distinctions between par-value and no-par-value shares and their implications on market value.

Differentiate the roles and rights of shareholders and debenture holders in a corporation.

Describe the restrictions on share transferability in closely held corporations.

Recognize the liability limitations of shareholders regarding corporate debts.

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Definitions:

Independent Variables

Factors that are manipulated by researchers to observe their effect on dependent variables in experiments.

Dependent Variables

In experimental research, the variable that is being measured or tested, and is expected to change as a result of manipulations to the independent variable.

Experimental Test

An experimental test is a research method where the researcher manipulates one or more variables under controlled conditions to study their effect on other variables.

Hypothesis

A proposed explanation for a phenomenon, based on limited evidence as a starting point for further investigation.