In: Operations Management
Avery, Danny, LeBron, Anthony, and JaVale would like to delegate their contract duties to Michael, Ron, Scottie, Toni, and Luke. Avery, Danny, Lebron, Anthony, and JaVale will be able to delegate their contract duties unless:
Delegation would violate public policy |
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The contract prohibits delegation |
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There is substantial interest in their personal performance |
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Avery, Danny, LeBron, Anthony, and JaVale would be prohibited from delegating their contract duties in all of the listed circumstances |
Michael owns a bar named Poor Richard's Pub, and he has decided to sell the bar to Dwight. Michael would like to include a noncompete agreement in the contract to sell Poor Richard's Pub to Dwight. In order for the noncompete agreement to be enforceable, it must be:
Ancillary to the agreement to sell Poor Richard's Pub |
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Reasonable in time |
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Reasonable in geographic area |
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Reasonable in scope of activity |
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All of these answer choices are correct |
1. An individual cannot delegate his duties bound by a contract to another if the contract has a prohibition clause for the delegation. Moreover if the delegation has probability of violating public policy, then it will be considered invalid. If the individual is thinking about his personal interests and is transferring his contractual obligations to another, then the act is considered invalid as per law.
Answer: Avery, Danny, LeBron, Anthony, and JaVale would be prohibited from delegating their contract duties in all of the listed circumstances
2. A noncompete agreement is usually signed when one party does not want the other party to work in competing environment of his or her business. Usually a noncompete agreement has a specific time duration associated with it. Some parties also make the agreement location as well as market specific. Hence when Michael drafts the noncompete agreement for Dwight, the agreement must be reasonable in scope of activity, geographic area and must have a time duration for its validity. Moreover the agreement must be ancillary to sell the company.
Answer: All of these answer choices are correct