As a part of a downsizing initiative, Richmond and Sons fired an employee before his employment contract lapsed. Is the employee responsible for mitigating damages? Explain.
What will be an ideal response?
If a contract has been breached, the law places a duty on the innocent nonbreaching party to make reasonable efforts to mitigate the resulting damages. The extent of mitigation of damages required depends on the type of contract involved. If an employer breaches an employment contract, the employee owes a duty to mitigate damages by trying to find substitute employment. The employee is only required to accept comparable employment. The courts consider such factors as compensation, rank, status, job description, and geographical location in determining the comparability of jobs.
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On November 2, 2014, Quaint General Store concluded that a customer's $400 account receivable was uncollectible and that the account should be written off. What effect will this writeoff have on Quaint's 2014 net income and balance sheet totals assuming the allowance method is used to account for bad debts?
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_____________include any amount that has been incurred due to the passage of time, but not paid as of the balance sheet date
Fill in the blank(s) with correct word
A buy-sell agreement made using proceeds from a key-life insurance is not considered valid
Indicate whether the statement is true or false
What are three general defenses an employer can raise if sued for violating Title VII of the Civil Rights Act?