Why Must Collective Agreements Be Considered During a Merger

question 101

Multiple Choice

Why must collective agreements be considered during a merger?

• A)to follow the protocols for notification periods for layoffs and terminations
• B)to help management create an environment of trust,fairness,and equity
• C)to ensure that employees will continue to work with the same compensation
• D)to interpret the legalities of downsizing and restructuring

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Definitions:

Pooling Agreement

An agreement made by shareholders whereby they promise to vote the same way on a particular issue. Also called shareholder agreements and voting agreements.

Breach of Contract

The failure of one party to fulfill any of its contractual obligations without a valid legal reason, leading to possible legal action by the other party.

Chemical Plant

An industrial facility where chemical processes are carried out, especially the manufacture of chemicals or pharmaceuticals.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from personal liability for the corporation's debts and obligations.