Business law

1. Jack has been a very successful CEO of GZ company for over 20 years. Before he retired, the company’s board of directors voted to grant Jack certain benefits for the rest of his life in recognition of his successful leadership at the helm of the company and his hard work on its behalf. Such benefits included generous private pension and health insurance plans, free use of the company private jet and use rent-free of luxury apartments in New York and London. Jack received confirmation in writing of all these benefits. Five years after Jack’s retirement, GZ is not doing very well financially and the new CEO wants to reduce the company costs. Jack receives a communication from his former employer saying that GZ is discontinuing all his benefits. If jack sues GZ, what is the likely outcome?

2. Hotel Fancy in Los Angeles (California) contracts with a famous Italian chef, Gigi Mangia, to become its head chef for $10,000 per month. The contract states that, should Gigi leave the employment at Hotel Fancy for any reason, he will not work as a chef for any hotel or restaurant in California for 5 years. After six months Gigi resigns due to a dispute with the hotel director. One month later, he is hired by restaurant Italia Mia, a famous Italian restaurant in San Francisco (also in California), to be the head chef of the restaurant. When Hotel Fancy learns of Gigi’s employment it seeks to prevent him for working at the restaurant. Discuss the issues and the likely outcome of the case.