BUSI 18 Foothill College Unequal Bargaining Power in The Marketplace Discussion

Unequal Bargaining Power in the Marketplace

Contracts are agreements that are enforceable in court. You’ve learned how the law can be used as a sword or a shield to protect you from competitors in the market place. If you have a patent on an invention that can save businesses money (e.g., pop open lids for can foods or soda cans), you can make a ton of money (even if its a fractional penny per can, and the cans using your invention are in the billions; after a while that’s a lot of money). The patent can be used as a shield to protect you against your competitors and a sword to stop them from copying and using your invention without paying a fee.

Contracts are supposed to be the result of arms-length negotiations where everyone gets the benefit of their bargain. But not all parties have equal bargaining power in the negotiations. The only thing that is equal is that either party has the power to walk away from the deal.

Many high tech workers and scientists sign employment agreements where they assign their property rights to inventions or discoveries that they have made to their employer. Is that equal bargaining power?

Reading Assignment

Please read the following articles on non-compete clauses and unequal bargaining power and how large companies use their market size to dictate terms to their employees or smaller vendors:

‘Money and Greed’: how non-compete clauses force (low-wage) workers to fight for rights: (Links to an external site.)

Study Finds Many Companies Require Non-Compete Clauses For Low-Wage Workers: (Links to an external site.)

Can an Employer Ask a Low-Wage Worker to Sign a Non-Compete Agreement? (Links to an external site.)

Fowl play: the chicken farmers being bullied by big poultry: (Links to an external site.)

Small businesses facing ‘bullying’ by corporate customers: (Links to an external site.)

Discussion Assignment

After reading the articles, discuss the following: what are your thoughts on how large companies or powerful people take advantage of businesses, employees or consumers  who rely on them for their livelihood or wellbeing. Can you name examples of other companies, people or industries who employ similar practices. Is a covenant to compete permissible in California, why or why not? Are there any ways around any restrictions. Remember to include the source link to the material that you used or cited.

The Importance of Having a Will

Unless You Want Your Money to Go to the Tax Man

Overview of the Law

A will is a legal document that sets forth your wishes regarding the distribution of your property after your death. It allows you to be in control of how your property is to be distributed after your death. The will identifies the beneficiaries that you want to give some of your property to, any specific personal items that you want to give to a certain person, and the person who will manage your property until its final distribution.

If you die without a will, the property that you own at the time of your death (i.e., your estate) will be sent to probate where the court will decide on your behalf. It means leaving your property in the hands of strangers who may not know or care about your final wishes. Probate cost money and takes more time to unwind your affairs. Your heirs may fight to determine who gets what from your estate. The legal costs can significantly diminish the value of your estate.

Having a will can prevent your heirs from fighting over the spoils, unless you are into that kind of thing. It shows that you have thought about them and plan appropriately for their future. The will is not really about you, but about how you want to remember you after you are no longer here.

Reading Assignment

Please read the following articles on famous people who died without a will and what happened to their estate.

28 Celebrities Who Died Without a Will (Links to an external site.)

7 legendary stars who died without wills: Aretha Franklin, Prince and more (Links to an external site.)

Discussion Assignment

After reading the article, Discuss why it is important to have a will? What are some of the reasons why people refuse to have a will. What are some of the consequences if you die without a will? Remember to include the source link to the material that you used or cited.