Assignment:
Case: The White Arch Casino
Enoch Thompson was employed for several years as a dealer at the White Arch CASINO (WAC) in Las Vegas, Nevada. WAC is one of Colossal Corporation's entertainment/gaming division companies. Over the years, Thompson developed a reputation as one of the most skillful high-stakes POKER dealers in Nevada. He was often requested by top poker players at the Texas Hold'em Tournament of Champions, a televised annual event in Las Vegas.
Nine months ago, Thompson was approached by Shirley Eugest, the manager of the Venetian Flamingo Casino-a rival company of WAC. Eugest offered Thompson a substantial salary increase to leave WAC and come to work for her. Thompson agreed to think about this offer and get back to Eugest in 48 hours. When he returned to WAC, he asked several of the other dealers what they thought about the offer. One of those dealers immediately went to WAC's manager, Sal Pending, and told him the details of Eugest's offer to Thompson.
Upon hearing of the offer, Pending called Thompson into his office and said: "If you stay with WAC, I promise that next year you will receive a promotion with a 50 percent raise and a five-year contract." This sounded good to Thompson, and he turned down the offer from Eugest to stay with WAC. However, last week he was dismissed from WAC due to corporate downsizing. Although nothing has happened at this point, the vice president of human resources is concerned that Thompson might try to hold WAC to Pending's promise.
Your task is to research the issue and write a memo to the vice president answering the following questions: Can Thompson LEGALLY enforce Pending's promise? What theory or theories might Thompson use to try to enforce Pending's promise? If Thompson were to file a lawsuit and win, what sort of damages or other remedies might he be entitled to? Include the reasoning process you used and any evidence that lead you to your conclusions.
Finally, regardless of the LEGAL implications, the vice president would like your view on the ethical issues. Was the promise legally enforceable? Was the promise morally enforceable? Is it right to downsize Thompson?
Step 1: Gather and Analyze Information
After reading the file, you realize that in order to formulate a sound response to the VP's questions, you will need to review a number of specific foundational issues involving legal contracts, including the following:
1. What laws govern contracts?
2. What are the elements of a legal contract?
3. What form can or must a contract take?
4. Can a contract be modified?
5. What are the methods of discharging a contract?
Find answers to these questions about contract formation and execution and also look into possible contract remedies for when a breach of contract occurs. As you read, be sure to record your thoughts pertaining to the case and note the places in the readings that prompted your thoughts.
After you have refreshed your understanding of contract law generally, you should supplement that understanding by doing legal research on specific laws related to contracts in Nevada and Delaware. Again, make sure to take notes as you read. Good notes will help you write your memo.
In the next step, you will begin to apply what you've learned to the specifics of this case.
Step 2: Legal and Ethical Responsibility
You are concerned about the question of Sal Pending's role in this situation with Enoch Thompson. More specifically, you wonder whether Pending had the authority to make the promise he made (or any promises) to Thompson. Review the legal responsibilities of agents and employees to help formulate your answer. You should also review ethical business decision making, as it pertains to keeping promises in business situations. In the next step, you will use what you have learned to create an outline that will prepare you to write the memo.
Step 3: Focus on Your Rationale and Conclusions: Create Your Outline
You've finished your research. You've reflected on how the facts and the law come together in this situation. You've analyzed the possible arguments and determined which seem most reasonable, all things considered. Now it is time to formulate them, making sure to address all the concerns that your VP expressed to you when you met. Outline the memo that you will draft for your VP. Review your outline to make certain it covers all relevant points and progresses in a logical order.
Step 4: Communicate Your Findings and Conclusions to the HR VP: Create Your Memo
First, review how to write a memo. Once you have a sense of memos in general, use your outline and research notes to prepare your memo for the VP. Be sure to meet the following requirements:
Format your memo following the example linked above, including APA-formatted in-text citations and an APA-formatted reference list (do not format the body of the memo using APA style, just the reference list). See references and citations for details.
Include a specific recommendation on what action, if any, the VP should take based on your analysis and conclusions.
Support your conclusion with references to legal principles and laws.
The memo should be no more than 10 pages (double spaced, 12-point font; the reference list does not count towards page limit).