Jeff Had Worked for Sweetums Candy Shoppe for the Last

question 5

Multiple Choice

Jeff had worked for Sweetums Candy Shoppe for the last 12 years. His boss came in one morning and told Jeff that although he had always been a great employee, he was being let go for financial reasons. He gave Jeff only 2 weeks' notice. Jeff checked his employment contract and verified that the agreement provided that only 2 weeks' notice was required. Under the terms of the employment standards legislation, Jeff is entitled to a minimum of 8 weeks' notice. If Jeff sues for wrongful dismissal, what is the Court likely to find?

• A) The contractual term overrides the common law and statutory provisions by virtue of the freedom to contract. Jeff would lose his lawsuit.
• B) The contractual term does not comply with the legislation, so the Court would substitute the minimum notice period set out in the statute. Jeff would be entitled to 8 weeks' notice.
• C) Jeff is not entitled to any notice. When a business runs into financial difficulty, that it considered just cause to terminate an employee.
• D) Jeff is entitled to the amount set out in the legislation, plus any amount specified in the contract. Jeff should have been given 10 weeks' notice.
• E) The contractual term does not comply with the legislation, so it is void. The Court would award damages calculated on the basis of a reasonable amount of notice.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, computed by dividing the change in total cost by the change in quantity produced.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of the other party once the contract has been concluded.

Automobile Driving

The operation and control of a car, including the mastery of various techniques and understanding of road rules for safe transportation.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.