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Wilma Had Worked for Acme Inc for More Than Ten

Question 10

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Wilma had worked for Acme Inc for more than ten years.Unfortunately, she fell out of favour with the company after she began to complain, on behalf or herself and her co-workers, about working conditions.Eventually, the relationship became intolerable and Wilma reluctantly agreed to leave.Acme provided a severance package, but only after Wilma contractually promised that she would not sue the company in connection with her dismissal.Wilma now believes that her employment was improperly terminated.She cannot sue the company, however, unless she can escape from the severance contract.Which of the following statements is most likely to be TRUE?


A) Because of the relationship that always exists between an employer and an employee, a court will assume that Wilma was subject to undue influence unless Acme can prove otherwise.
B) The concept of duress of goods has been extended to situations in which a person has been improperly fired and therefore cannot afford to buy the necessities of life.
C) If Wilma sues for economic duress, she is more likely to win if she signed the severance contract without receiving independent legal advice.
D) The facts reveal a clear case of an unconscionable transaction.
E) To succeed in a claim for economic duress, Wilma would have to prove that Acme Inc was motivated primarily by the desire to enjoy a financial advantage as a result of terminating Wilma's employment.

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