Deck 3: The Employment Relationship: Creation and Termination of Employment

Question 1

Whenever you begin to draft a contract or start a negotiation, you should take the perspective of which of the following?

A) The integrated whole
B) The worst-case scenario
C) The best-case scenario
D) Enhancing ambiguity

Answer 1

B

Question 2

The formation of a contract has which of these four fundamental aspects?

A) Offer, consideration, capacity, and authority
B) Acceptance, capacity, authority, and integration
C) Offer, rescission, authority, and capacity
D) Agreement, consideration, capacity, and legality

Answer 2

D

Question 3

A liquidated damages provision in a contract will be upheld so long as:

A) The contract is an integrated whole
B) The provision does not operate as a penalty
C) The damages amount is reasonable in relation to the anticipated damages for breach
D) All of the above
E) B and C

Answer 3

E

Question 4

A non-breaching party must make reasonable efforts to lessen the consequences of the breach, according to this principle.

A) Promissory estoppel
B) Mutuality of obligation
C) Specific performance
D) Mitigation of damages

Question 5

Which of the following is an example of an employer terminating an employment contract after an employee has breached that contract by engaging in behavior that violates the standards of job performance?

A) Just cause termination
B) Violation of authority
C) Punitive termination
D) Without cause termination

Question 6

Which clause restricts the ability of the employee to terminate the employment contract early or to take a comparable job with a competitor elsewhere?

A) Liquidated damages
B) Promissory estoppel
C) Restrictive covenant (covenant not to compete)
D) Punitive employment

Question 7

Many states have passed __________ statues providing that employees who report illegal activities allegedly committed by their employer shall not be subject to discrimination or retaliation by the employer.

A) Good faith and fair dealing
B) Non-reassignment
C) Restrictive covenant
D) Whistleblower

Question 8

Sometimes employees attempt to bring defamation claims against employers who disclose unfavorable information about them. However, employers have a(n) __________ to disclose pertinent information in good faith to those who have a legitimate need for that information.

A) Absolute privilege
B) Absolute immunity
C) Qualified privilege
D) Good faith disclosure privilege

Question 9

Which of the following prohibits improper interference with existing contracts?

A) Tortious interference with contractual relations
B) Misrepresentation
C) Contractual freedom
D) Good faith and fair dealing

Question 10

__________ refers to the legal competence of a party to enter into a contractual relationship.

A) Legality
B) Consideration
C) Integration
D) Capacity

Question 11

You may have an enforceable contract if there is no consideration.

Question 12

Minority is an example of lack of capacity to enter into a contract.

Question 13

The Statute of Oral Contracts requires that certain types of contracts be in writing in order to be enforceable.

Question 14

In most contract cases, a non-breaching party may be compensated for the loss of the bargain through punitive damages.

Question 15

A non-breaching party must act reasonably to lessen the consequences of the breach, according to the principle of mitigation of damages.

Question 16

Specific performance is often used as a remedy in personal services contracts.

Question 17

Courts will not uphold penalty provisions in a contract.

Question 18

Liquidated damages provisions are used when parties are not able to ascertain the exact damages attributable to a breach.

Question 19

The amount of authority designated by the principal to an agent is known as promised authority.

Question 20

In an employment contract, the reassignment clause gives an employer the right to transfer an employee to a different employment position than the one for which he or she was originally hired.

Question 21

List the three elements of promissory estoppel.

Question 22

Give three examples of types of contracts that must be in writing according to the Statute of Frauds.

Question 23

List three ways in which an employee may violate the morals clause of an employment contract.

Question 24

What are four common performance incentives used in current NCAA Division I football coaches' contracts and men's basketball coaches' contracts? How are they similar or different?

Question 25

Discuss the concept of employment at will. Then discuss the exceptions to employment at will based on contract law and public policy. What is your view of this rule? Do the public policy exceptions to the rule give enough protection to employees?

Question 26

Coach Able has been the football offensive coordinator at NCAA Div. I Smart University for 5 years. The head coach of 20 years, Coach Goodnight, has just retired amid allegations of recruiting violations. Coach Able has been selected by Smart University to take over as head coach. Smart University has a tradition of academic excellence among its athletes and prides itself on a number of Academic All-Americans. Smart U. wants to continue the excellence it has achieved in its football program both competitively and academically and also ensure that its coaches are held to a high standard of compliance to NCAA rules and regulations. Since football is Smart U's only revenue sport it cannot afford an NCAA investigation into recruiting practices and it must avoid any bad publicity associated with the football program.
Discuss the importance and legal significance of termination for cause clauses in coaches' contracts? You should specifically address whether NCAA rules compliance is commonly included or should be included among the circumstances that could lead to termination for cause. Locate and provide at least three sample clauses in current D-I football coaches contracts with these types of clauses. Lastly, if you were proposing a clause to be included in Coach Able's contract related to NCAA compliance would you recommend any of your sample clauses? If so, why? If not, could you craft an acceptable clause from the samples you located and based on your research regarding the importance of these clauses?