Question
In 2007, Tareq who operated a business under the name downtown grocery, employed Marcus as a clerk in his store at a weekly salary $450.
In 2007, Tareq who operated a business under the name downtown grocery, employed Marcus as a clerk in his store at a weekly salary $450. Marcus received regular annual salary increases in the year 2008 to 2012. By 2012, he was earning $700 per week.
Early in 2012, Marcus approached Tareq with a request for a further increase in his wages. Tareq refused on the basis that low business profits limited his ability to pay more than $700 per week. A length discussion followed and the two parties reached the following agreement.
Marcus would receive $700 per week and, in addition would receive 20% of the net profits. He would continue to perform the duties of clerk, but would also assume responsibility for the meat department. He would make all management decisions concerning meat purchases and pricing.
Tareq would continue to handle the general management of the business. He would draw the amount of $100 per week and would be entitled 80 percent of the net profits.
Marcus would be permitted to examine the business accounts books, and he would be consulted in all major business decisions by Tareq.
A few weeks after the agreement was reached, Tareq discovered that Marcus was purchasing the groceries( for his personal use) at a competitor's store. In a rage, he barred Marcus from entering the store and told him that he would send him his severance pay by mail.
Shortly thereafter, Marcus instituted legal proceeding for the declaration that he was the partner in the downtown grocery.
Discuss the merits of the action taken by the Marcus and discuss the arguments that might be raised by the parties. How would you expect the matter to be decided?
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