Tracy is an employee of Zebra Toy Company, and both parties are free to terminate her employment at will. One afternoon she has lunch with a friend who works in marketing for her company's biggest competitor, Tiger Toys. Over a period of about three months, Tiger Toy representatives convince Tracy to work with them. Tiger offers a larger base salary with bigger commissions than she had with Zebra. When Tracy leaves Zebra, it sues Tiger Toys claiming it intentionally interfered with a contractual relationship. Will Zebra Toy Company be successful?
What will be an ideal response?
No. The existing contract could be terminated at will by either party, meaning that although Zebra Toy Company had a contract with Tracy, Zebra Toy had no long-term assurances because both Tracy and Zebra Toy could end the contract "at will" at any time.
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Which of the following statements is correct regarding the statement of cash flows?
A) Analysts prefer the direct method to the indirect method. B) Companies prefer the direct method because it is easier and less expensive to prepare. C) A survey of large companies showed 98% of them use the indirect method. D) All of these choices.
Which of the following is NOT one of the four types of customization occurring within manufacturing supply chains?
a. make-to-stock (MTS) b. make-to-order (MTO) c. customize-to-stock (CTO) d. engineer-to-order (ETO)
All of the following statements about the rules governing agency relationships are true EXCEPT
A) An agent must be authorized to act on behalf of a principal. B) An agency agreement may grant certain powers to the agent as well as denying the agent other powers. C) The principal is responsible for the acts of agents only if the acts are criminal. D) Knowledge of the agent is presumed to be knowledge of the principal with respect to matters within the scope of the agency relationship.
A firm that is growing more slowly than its sustainable growth rate may face which of the following scenarios if it generates excess cash rather than make greater investments in its own business?
A) Use the excess cash to acquire other businesses. B) Use the excess cash to increase dividends. C) Do nothing and become "cash rich." D) All of the above are realistic scenarios.