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Business law assignments Paper

Assignment:  Peter S. Yung began working for Rio Rojo Publishing, Inc. pursuant to the agreement linked below. Rio Rojo is a publisher of industrial manuals and instructions.

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For fiscal year 2019, the company’s year-end pre-tax net income was $1,140,000.  For fiscal year 2020 the year-end pre-tax income was $3,427,110.  Yung was paid a bonus in 2019 of $57,000.  He received no bonus for 2020.  Pursuant to the agreement, he purchased 50,000 shares of the company’s stock in 2019 for $20.00/share.

In November, 2020 Rio Rojo learned that Yung had been involved developing a database for industrial users.  While Rio Rojo had not been involved in online publishing or database creation other than to post their industrial manuals and materials, they were angry that Yung had expanded on his own into this new area. Rio Rojo terminated Yung on Dec. 24, 2020.

Yung claimed that he had been wrongfully terminated. He demands the following:

  • Lost wages for the remainder of the contract
  • Bonuses of an additional $44,267 for fiscal year 2019 and for $171,356 for fiscal year 2020
  • The right to purchase an additional 50,000 shares of the Company’s stock at $20.00 for both 2020 and 2001 (for a total of 100,000 shares).

Rio Rojo claims that Yung breached the contract and wants the return of the salary that he has been paid for the entire time of his employment.

You’ll find their employment agreement here: Yung v. Rio Rojo down below in the file section

What conclusion?  Be sure that you completely discuss the reasoning that each party would use, regardless of your conclusion.

Double-space, use a serif font, and begin your paper with the statement, “I verify that this work is entirely my own, with the exception of any materials from the assignment, which have been noted as quotations when appropriate,” followed by your typed name. There is no page limit; write enough to explore the issues in depth, not so long that it becomes repetitive. 

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