Canaural Inc was a small Canadian company that manufactured audio components. Until recently, the brains behind the

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Canaural Inc was a small Canadian company that manufactured audio components. Until recently, the brains behind the operation were two key employees: Jurgen Ballack and Karl Heinz. DeutscheSonic GmbH is a large German company that trades around the world. Its success is due in part to its tactic of ruthlessly "squeezing out" its competitors. A year ago, it set its sights on Canaural. DeutscheSonic realized that Ballack and Heinz were the key players in Canaural. It therefore secretly approached them with lucrative job offers. Ballack and Heinz initially resisted. They explained that their contracts required them to give six months' notice to quit, and that Canaural was a small operation that was unlikely ever to challenge DeutscheSonic. DeutscheSonic, however, was not to be denied. Its president explained the situation to Ballack and Heinz: "Wake up boys! Canaural is going to die. You can either be my assassins, or you can be buried along with the rest of your little company. Get rich or get dead!" It turned out to be an easy choice. Ballack and Heinz quickly experienced a change of heart, abruptly quit their jobs with Canaural, and joined DeutscheSonic. Without Ballack and Heinz, Canaural soon crumbled beneath DeutscheSonic. The Canadian company has, in effect, been wiped out. Explain the causes of action and the remedies that are available to Canaural.

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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