1. Marvin is a CPA employed by Alice in her small CPA firm. Marvin signs an empl
ID: 360754 • Letter: 1
Question
1. Marvin is a CPA employed by Alice in her small CPA firm. Marvin signs an employment agreement with Alice that states that Marvin must give one month's notice if he wants to quit his job and Alice must give him 2 weeks' notice if she wants to fire him without cause. In addition, Marvin agrees that if he quits he will not open a C the United States for a period of 10 years. Assume Marvin gave one day's notice and immediately opened his own CPA firm within 2 blocks of Alice's firm and Alice sued to enforce all of the terms of their agreement. You are the judge. Who wins the lawsuit and why? If you were Marvin's attorney what would you have told him to do differently so he would have had a stronger case? If you were Alice's attorney what would you have told her to do differently so she would have had a stronger case? PA firm within
Explanation / Answer
When Marvin was employed in Alice’s CPA firm, Marvin has signed an employment agreement about serving the notice period or firing clauses. When Marvin gave only one-day notice period it is against the employment agreement rules, Alice sued against Marvin. Now the question arises, who will win the lawsuit. Alice will win the lawsuit as both the employer Alice and employee Marvin agreed upon the notice period serving and not opening a CPA firm in the US within 10 years. As both of them have agreed it is enforceable by law and it is limited to the terms of negotiation before commencing active employment.
If I were Marvin’s attorney, I would have told Marvin to disagree with the contract terms of opening CPA firm and for not serving the notice period, Marvin is liable to pay to Alice if it is not written anywhere.
If I were Alice’s attorney, I would have told Alice to provide the proof of the original agreement in the court in which Marvin has signed. As it is not clearly mentioned whether the opening of CPA firm within 10 years is written or verbal, I am considering both, if written then Marvin is in trouble and if unwritten then Alice cannot sue for opening a new CPA firm in the next 2 blocks only can sue Marvin for not serving notice period.
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