In CASE 12

question 7

Multiple Choice

In CASE 12.2,Edwards v.Arthur Andersen LLP (2008) ,plaintiff Edwards was a tax manager at an Arthur Andersen office in Los Angeles.Arthur Andersen was later indicted for its role in the Enron debacle,but the AA subsidiary HSBC offered to hire Edwards on the condition that he sign a "termination of non-compete" agreement (TONC) .Edwards signed the employment offer but not the TONC.The offer was rescinded and Edwards was terminated.Edwards sued.The main issue dealt with California's statutory ban on most:

• A) employee surveillance tactics.
• B) clawback agreements.
• C) confidentiality agreements.
• D) noncompete agreements.

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Definitions:

Stock

Shares of a corporation that may be bought or sold.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure by the lender if the borrower defaults.