In the Case of Michael Silvestri V

question 5

Multiple Choice

In the case of Michael Silvestri v. Optus Software, Inc., the court held:

• A) an objective standard is typically applied to satisfaction clauses in employment contracts.
• B) an objective standard must be used in determining what is satisfactory performance in any "satisfaction" contracts.
• C) idiosyncratic judgments as to what constitutes satisfactory employee performance are inherently unfair and should not be allowed.
• D) in judging a high-level manager's satisfactory performance, a subjective test is appropriate.

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Definitions:

Special Sensor

A device designed to detect, measure, and respond to specific inputs from the physical environment, such as light, heat, motion, moisture, pressure, or any one of a great number of other environmental phenomena.

Transfer Price

The cost incurred for products or services exchanged between the divisions or departments within the same organization.

Minimal Acceptable

The lowest level or standard considered satisfactory or acceptable for a specific purpose or requirement.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.