Ch 16

Question 1

What obligations continue after an employment contract ends?

Answer 1

General duties:
-Duty not to disclose confidential info ie. trade secrets, er’s customer list, etc.
Apply’s to non-managerial ees

Question 2

What additional duty does an fiduciary ee have after employment ends?

Answer 2

• Duty not to solicit or compete

It is an implied term of the contract.

Question 3

Can a non-managerial ee establish a business in direct competition with his previous employer?

Answer 3

yes

Question 4

What is a fiduciary employee?

Answer 4

a senior or key ee who holds a position of trust and who could significantly affect an er interests. Depends of the role within the company not the job title.

Question 5

How long is a reasonable about of time for restrictive covenants>

Answer 5

Depends on how long it takes ers to develop relationships. Usually 6-18mo.

Question 6

What is included in a manager’s duty of good faith?

Answer 6

To retain employees.

Question 7

If an employee does not give notice of resignation can she compete against former er during the notice period?

Answer 7

Yes, unless there is a clause of non-compete.

Question 8

What are the factors in determining whether a fiduciary duty has been breached?

Answer 8

• position held
• Nature of the opportunity and it’s ripeness
• when was the breach depends on how much info the fiduciary had and how it was obtained.
• How he left the job (resigned/fired)