Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mario had been well known as a racing-car driver for president blamed the drop in sales on Mario's poor many years. He had driven a

image text in transcribed
Mario had been well known as a racing-car driver for president blamed the drop in sales on Mario's poor many years. He had driven a number of different types showing on the race circuit, and Mario blamed the of racing cars during his racing career, either under unreliability of the new model of the car for his poor the sponsorship of automobile manufacturers or as an performance. The argument ended with the president "independent." Following a spectacular race in which Mario had dismissing Maria. Tay, Mario received a cheque from the won first prize, a sports-car distributor offered him a company to cover his salary to that date, along with a position in his organization as director of marketing. formal notice of his termination. The offer included a starting salary of $80,000 per year, Prior to his dismissal, Mario had arranged for a twoparticipation in a profit-sharing plan open only to senior week holiday in Europe. He decided to follow through management, a generous pension plan, and a variety of with these plans, then look for other employment on his other benefits including the use of a company-owned return. car. The position also gave him a place on the board of directors of the company. As a part of his duties, Mario was expected to enter ing toe returned from his holiday, but could find noth and drive company racing cars in a number of highly he found a position as a staff writer for a sports car publicized race events held each year. During his first year with the company. Mario won Under the terms of his employment at the time of his four of the five races that he had entered and worked dismissal, Mario was entitled to receive fin addition to hard at all other times to boost sales for the company. his salary of s100.000 per year) pension contributions by As a result of his efforts, sales increased by 20 percent. the company on his behalf of 46,000 per year, director: Mario received a year-end bonus of 510,000 in addition fees of 85.000 per year, a profit-sharing plan payment the president of the company that his salary for the next He eventually brought an action for wrongful do: missal against the company and in addition, alleged year would be raised to 8100,000 . missal against the company and, in addition, allegred The second year of Mario's employment did not damage to his reputation as a professional driver in match the previous year. Mario won only two of the five a result of his reputation as a professional driver is races, and, in spite of spending extra time promoting claimed 100.000 for damage to his reputation. the employer's sports cars, sales decreased by 3 per- Indicate the arguments that might be raised by the cent. At a year-end directors' meeting, a bitter argument parties to this action. Discuss the factors that would be occurred between Mario and the company president over the poor sales performance of the company. The taken into consideration by the court

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting And Auditing In Europe The Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

2015th Edition

1137461330, 978-1137461339

More Books

Students also viewed these Accounting questions