When qualified applicants are scarce, recruiting becomes extremely competitive, particularly when two companies go after the same candidate, as often happens in the case of searching for professionals.

After interviewing three short$-$listed candidates, a high$-$tech company, Company X$,$ made an offer to one and advised the other two candidates that they were unsuccessful. The successful candidate was given one week to consider the offer. The candidate asked for a week$$s extension to consider the offer but was granted only an additional three days.

At the end of the time period, the candidate verbally accepted the offer and was sent a contract to sign. Rather than returning the signed contract, the candidate informed Company X that he had accepted a position at Company Y$.$ He had received Company Y$\text{'}$s offer after verbally accepting the first position at Company X$.$ Company Y knew that the candidate had verbally accepted Company X$$s offer.

Before accepting Company Y$$s offer, the candidate had consulted a respected mentor who advised him to ignore his verbal commitment to Company X and to accept Company Y$$s offer. There were no substantial differences in the salaries being offered by each company or in the work that each would expect the candidate to perform. The candidate simply saw Company Y as the more prestigious of the two employers.

Questions

$1.$ Did the candidate act in an appropriate manner? Why$/$why not?

$2.$ What should the candidate have done?

$3.$ What would you have done if you had been in the candidate$$s position?

$4.$ Did Company Y act ethically, knowing that the candidate had verbally accepted another offer?

$5.$ Does a verbal acceptance constitute a legal and binding contract?

$6.$ What should the candidate$$s mentor have advised him to do$?$

$7.$ Should Company X take any action to enforce the verbal commitment? Should it take any legal action against the candidate or Company Y$?$ Why or why not?

$8.$ How can situations like this be avoided?

$9.$ Describe what Company X should have done to maintain the candidate$$s interest in the position.

$10.$ Explain how you would prevent this problem from occurring in future recruitment plans.