Brown,at age 45,was hired as the general manager of the CountrySide Shipping Company by Carrothers,the company president.The initial contract of employment was for a three-year term,and was embodied in an exchange of letters between Brown and Carrothers in 1992.At the end of the three-year term,Brown continued on as general manager,receiving annual increases in salary,executive profit sharing,pension contributions,and discretionary bonuses,if business was exceptionally good in a given year.In January 2004,for no apparent reason,Carrothers called Brown into his office and told him his services were no longer required.Carrothers offered Brown a week's salary as "severance pay." At the time of termination,Brown was earning a salary of $70,000 per year,received company-paid pension contributions of $5,000 annually,and,in 2003 had received $3,000 from profits shared,and a $5,000 bonus.
-Any earnings received by Brown for a reasonable time after he left the employ of the company would be taken into consideration in determining the damages to which he might be entitled as a result of his termination.

Question

Quizplus · Accepted Answer

This statement is correct as it reflects the principle of mitigation of damages, which requires an employee to make reasonable efforts to mitigate their losses by seeking new employment after termination. Any earnings received during this period would reduce the damages they might be entitled to from their former employer.

Brown,at Age 45,was Hired as the General Manager of the CountrySide