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Don Has an Employment Contract with Dunkirk Ice Cream

question 66

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Don has an employment contract with Dunkirk Ice Cream. He sells ice cream and novelty ice cream products. He has nine children and doesn't make enough money, so he decides to see if another dairy will hire him, too. "After all," he reasons, "most stores carry four or five different brands." His employment contract prohibits him from competing. If Don sells for another dairy in addition to Dunkirk, will he be in trouble under his contract?


Definitions:

Securities And Exchange Commission

A U.S. government agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.

Shareholder

An individual or entity that owns shares in a corporation, thereby holding a portion of the corporation's equity and potentially having voting rights.

Proxy Materials

Documents distributed to shareholders that provide information and voting instructions for a corporate meeting.

Inside Information

Confidential information about a company that has not been made public and could influence an investor's decision to buy or sell the stock.

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