Question
When Justin Chua, CFA, was hired as a portfolio manager by One World Bank, a global investment bank, he was required to sign an employment
When Justin Chua, CFA, was hired as a portfolio manager by One World Bank, a
global investment bank, he was required to sign an employment contract that
includes a noncompete clause, prohibiting him from working in the same industry
for five years after leaving the bank. One year following his appointment, Chua
was laid off due to downsizing. After a threemonth job search, he received an
offer for the same position by another investment bank in a country where
noncompete clauses are considered a violation of human rights and hence illegal.
According to the CFA Institute Code of Ethics, Chua should:
a) Accept the job offer since the noncompete clause is not enforceable in that country.
b) Not accept the job offer because it is a violation of Standard I(D) Misconduct.
c) Accept the job offer because Chua did not resign voluntarily and the noncompete clause is unfair to him.
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