MIT 15 617 - Lecture Notes (2 pages)

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Lecture Notes



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Lecture Notes

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Lecture Notes


Pages:
2
School:
Massachusetts Institute of Technology
Course:
15 617 - The Law of Corporate Finance and Financial Markets
The Law of Corporate Finance and Financial Markets Documents

Unformatted text preview:

15 617 Spring 2004 John Akula Lecture 13 3 31 04 1 2 3 4 Looking ahead Exercise The manager and M A Forms of doing business What is it like to be a manager Will there be jobs Conflict of Board of Directors Position of acquiring We have a system called At will employment either party can walk away from a party for any reason whatsoever We downsize in the US with very few problems and trepidation If you have a contract and it was broken and you were fired you can sue for damages You need to mitigate find a new job if the money is less you get the difference from the court Employment lawyers will tell you to get a severance package not limited by responsibility to mitigate Compensations timing the law is pro employer So you might get that bonus Violation of an employer s obligation of good faith If you are a salesperson and there is a clear idea of what you need to do to get compensated you will win in court if your boss calls you after a time t before compensation 1 Non competition agreements 2 Trade secrets 3 duty of loyalty 1 I the employer agree that after I leave his job I will not join a company that puts me in direct contact with my former employer a Legitimate interest that the employer is trying to protect training Law says that this is not a legitimate interest i You are at risk if you teach someone sensitive skills 1 legitimate interest good will 2 IP 2 Protecting trade secrets is very important a Constraints must be reasonable i Time ii Function iii Geography b blue pencil states those narrow down a contract c Scenario you are a programmer and you emailed home your code so you have proprietary You leave the job then What do you do i Your new boss will fire you b c you took something tangible b c he doesn t want to face a lawsuit 3 One issue in Duty of Loyalty is what s yours and what s your bosses a When your boss is paying you you can t have a 2nd job b Duty of loyalty gets thrown into high relief when you are leaving c Usually a serial monogamy model d



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