If a Former Employer Gives a Glowing Statement About a Candidate

question 6

Multiple Choice

If a former employer gives a glowing statement about a candidate and the new employer later learns of misconduct on the part of the employee during his/her previous employment,the new employer may sue the former for _____.

• A) negligence
• B) misrepresentation
• C) defamation
• D) misappropriation
• E) libel

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Definitions:

Bonus Formula

A pre-determined method for calculating additional compensation to be given to employees, often based on performance.

Principal-Agent

Describes the relationship between a principal (e.g., an employer) and an agent (e.g., an employee), highlighting the potential issues arising from differing interests and information asymmetry.

Payment Scheme

The structure or method by which payments are made and received, often detailing terms, conditions, and the timing of payments.

Inefficient

A condition or situation where resources are not used to their best potential, resulting in lost opportunities or wastefulness.