The Law of Corporations and Other Business Organizations

Chapter Review Questions

1. How can an employer be certain that an
employee benefit plan will be considered
a qualified plan by the IRS?

2. When is an employee’s contribution to a
plan considered to be fully vested?

3. What are integrated plans?

4. What unique benefit does an ESOP offer
to the employer?

5. If Andrews Electronics wants to adopt an
employee benefit plan that will pay its
employees a specific amount upon their
retirement, what type of plan would the
company most likely want to adopt?

6. The owners of Gabrielle Foods, Inc.
would like to adopt an employee benefit
plan that would encourage their employees
to save money for retirement. They
are willing to pay up to a certain amount
per employee, per year, provided that the
employee invests an equal amount of his
or her pretax income. What type of plan
might the owners of Gabrielle Foods, Inc.
adopt?

7. What is employment “at will”?

8. May an employee’s actions be restricted
even after termination of employment?

9. Why were covenants not to compete void
under the common law of England?

What is the modern view toward covenants
not to compete?

10. If an employment agreement remains silent
on the issue, is the employer necessarily
entitled to all inventions of the employee
while the employee is working for
the employer?