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MMLU-Pro / 1012 / An employee was hired under a written contract to work for an employer for five…

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question

An employee was hired under a written contract to work for an employer for five years at a monthly salary of $1,500. In addition, the employment contract provided that the employer would pay the employee an annual bonus "to be determined by the employer within two weeks after the year's profits have been ascertained. "At the end of the first year, the business showed a net profit of $50,000. Accordingly, the employer and the employee agreed that the employee should receive a bonus of 5,000.Thisamountwassubsequentlypaidtotheemployee.Attheendofthesecondyear,thebusinessrealizedanetprofitof5,000. This amount was subsequently paid to the employee. At the end of the second year, the business realized a net profit of 10,000. Once the profit had been calculated, the employer telephoned the employee and offered him a second-year bonus of 1,000.Theemployeerefusedanddemandedabonusof1,000. The employee refused and demanded a bonus of 2,000. The employer refused the employee's demand and immediately terminated his employment. Following his dismissal, the employee brought suit for breach of contract against the employer. Which of the following is the most accurate statement?
Plain-text mathematical notation (without MathML)
An employee was hired under a written contract to work for an employer for five years at a monthly salary of $1,500. In addition, the employment contract provided that the employer would pay the employee an annual bonus "to be determined by the employer within two weeks after the year's profits have been ascertained. "At the end of the first year, the business showed a net profit of $50,000. Accordingly, the employer and the employee agreed that the employee should receive a bonus of 5,000.Thisamountwassubsequentlypaidtotheemployee.Attheendofthesecondyear,thebusinessrealizedanetprofitof10,000. Once the profit had been calculated, the employer telephoned the employee and offered him a second-year bonus of 1,000.Theemployeerefusedanddemandedabonusof2,000. The employer refused the employee's demand and immediately terminated his employment. Following his dismissal, the employee brought suit for breach of contract against the employer. Which of the following is the most accurate statement?
Original LaTeX notation
An employee was hired under a written contract to work for an employer for five years at a monthly salary of $1,500. In addition, the employment contract provided that the employer would pay the employee an annual bonus "to be determined by the employer within two weeks after the year's profits have been ascertained. "At the end of the first year, the business showed a net profit of $50,000. Accordingly, the employer and the employee agreed that the employee should receive a bonus of $5,000. This amount was subsequently paid to the employee. At the end of the second year, the business realized a net profit of $10,000. Once the profit had been calculated, the employer telephoned the employee and offered him a second-year bonus of $1,000. The employee refused and demanded a bonus of $2,000. The employer refused the employee's demand and immediately terminated his employment. Following his dismissal, the employee brought suit for breach of contract against the employer. Which of the following is the most accurate statement?

category

law

options

  1. The employer is excused for his obligation to pay a bonus, because of the unforeseen downtum in business during the second year.
  2. The employee is entitled to a $2,000 bonus as he demanded, since the contract did not specify the conditions for the bonus amount.
  3. The employer can terminate the contract as the profits were not as expected.
  4. The employee is not entitled to any recovery, because employment contracts are generally terminable at will.
  5. The employer has the right to decide the bonus amount, thus there is no breach of contract.
  6. The employer is not obligated to pay a bonus as it was discretionary based on profits.
  7. The employee is entitled to a bonus equivalent to the first year since the contract did not specify the bonus amount would change.
  8. The employee can sue for breach of contract but cannot claim for the second year's bonus.
  9. The employee is not entitled to a bonus, but the employee can sue for loss of wages.

src

ori_mmlu-professional_law

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Source and history

upstream_id / Original problem ID
1012
task_id
c7d97ffd-b069-5a72-b695-1b14277c3b07
task_key
default--test--1012
task_revision_id
1
config / split
default / test

Official source

initial import