Baxter,at Age 45,was Hired as the General Manager of the CountrySide

question 88

True/False

Baxter,at age 45,was hired as the general manager of the CountrySide Shipping Company by Carrothers,the company president.The initial contract of employment was for a three-year term,and was embodied in an exchange of letters between Baxter and Carrothers in 1982.At the end of the three-year term,Baxter continued on as general manager,receiving annual increases in salary,executive profit sharing,pension contributions,and discretionary bonuses,if business was exceptionally good in a given year.In January,1994,for no apparent reason,Carrothers called Baxter into his office,and told him his services were no longer required.Carrothers offered Baxter a week's salary as "severance pay." At the time of termination,Baxter was earning a salary of $70,000 per year,received company paid pension contributions of $5,000 annually,and,in 1993,had received $3,000 from profits shared,and a $5,000 bonus.For a person in Baxter's position,reasonable notice might be in the range from six months to a year or more.

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