Baxter, at Age 45, Was Hired as the General Manager

question 28

True/False

Baxter, at age 45, was hired as the general manager of the CountrySide Shipping Company by Carrothers, the company president. The initial contract of employment was for a three-year term and was embodied in an exchange of letters between Baxter and Carrothers in 2008. At the end of the three-year term, Baxter continued on as general manager, receiving annual increases in salary, executive profit sharing, pension contributions, and discretionary bonuses, if business was exceptionally good in a given year. In January 2020, for no apparent reason, Carrothers called Baxter into his office, and told him his services were no longer required. Carrothers offered Baxter a week's salary as "severance pay." At the time of termination, Baxter was earning a salary of $70,000 per year, received company paid pension contributions of $5,000 annually, and, in 2019, had received $3,000 from profits shared, and a $5,000 bonus. One week's salary as severance pay would be the equivalent of reasonable notice for Baxter under the circumstances.

---

Definitions:

Asbestosis

A lung disease resulting from the inhalation of asbestos particles, causing scarring of lung tissue.

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, sinuses, and larynx, leading to symptoms like coughing and sneezing.

Influenza

A highly contagious viral infection that affects the respiratory system, commonly known as the flu.

Allergy

An immune system response to a foreign substance (allergen) that is not typically harmful to the body, which can cause various symptoms.