1. John was employed by ABC Accounting, a CPA firm, for three years. As a condition...

Transcribed Image Text:

1. John was employed by ABC Accounting, a CPA firm, for three years. As a condition of employment, he was required to sign a covenant not to compete. He left the firm in 2020 to start a new accounting firm, doing business in much the same way as ABC. The partners at ABC were alarmed that John would start a competing firm, even though John had moved to an entirely new state some thousand miles away from ABC and had not solicited any of their clients to come with him. A formal demand was sent to John in 2021 in writing, suggesting that that John was in violation of the covenant not to compete, and stating he should immediately stop doing any accounting work of any type. You are John's lawyer. Do you advise John to stop accounting work of any type and shut down his new business? As part of your representation to John on this issue, please list at least five factors defining the reasonableness of a typical covenant not to compete and give a one sentence example of each so John understands. 2. John wanted to continue his medical coverage that he had under ABC. He heard a rumor that ABC was going to discontinue the medical plan, which was yet another reason he wanted to leave. ABC had 30 total employees at the time John quit. he leaves? -Can John go on his employers medical plan if he makes his decision 59 days after -How long can he stay on the medical plan after he leaves? -Can he force his employer to pay the premium for the medical plan? -Under what circumstances (what factors are to be considered) to enroll in a former employers medical plan? 3. Shortly after John left ABC, one of ABC's clients complained that their 2019 tax return, which had been prepared by John, contained addition errors, which cost the client some $15,000 in taxes, fines and costs by the IRS. The client's claim was proven to be true, John had prepared the return with addition errors just as the client claimed. He did so by mistake...the errors were not done intentionally. 3. Shortly after John left ABC, one of ABC's clients complained that their 2019 tax return, which had been prepared by John, contained addition errors, which cost the client some $15,000 in taxes, fines and costs by the IRS. The client's claim was proven to be true, John had prepared the return with addition errors just as the client claimed. He did so by mistake...the errors were not done intentionally. -Did John commit a tort? -What is the tort called? -What are the elements of the tort he committed that need to be proven? -Give a one sentence example of each element (just use the facts above or make some facts up if you need to) -Does each element have to be proven, or is it a tort if just one or two elements are proven? 4. -Does the client have to prove John INTENTIONALLY committed the math errors? Finally, John was accused by ABC of damaging information in the company computer system used by employees. He also may have been involved in selling company passwords (trafficking passwords). Is there a statute he can be charged under? List five types of activities covered by this statute having to do with computer fraud. Please give a one sentence example of each. 1. John was employed by ABC Accounting, a CPA firm, for three years. As a condition of employment, he was required to sign a covenant not to compete. He left the firm in 2020 to start a new accounting firm, doing business in much the same way as ABC. The partners at ABC were alarmed that John would start a competing firm, even though John had moved to an entirely new state some thousand miles away from ABC and had not solicited any of their clients to come with him. A formal demand was sent to John in 2021 in writing, suggesting that that John was in violation of the covenant not to compete, and stating he should immediately stop doing any accounting work of any type. You are John's lawyer. Do you advise John to stop accounting work of any type and shut down his new business? As part of your representation to John on this issue, please list at least five factors defining the reasonableness of a typical covenant not to compete and give a one sentence example of each so John understands. 2. John wanted to continue his medical coverage that he had under ABC. He heard a rumor that ABC was going to discontinue the medical plan, which was yet another reason he wanted to leave. ABC had 30 total employees at the time John quit. he leaves? -Can John go on his employers medical plan if he makes his decision 59 days after -How long can he stay on the medical plan after he leaves? -Can he force his employer to pay the premium for the medical plan? -Under what circumstances (what factors are to be considered) to enroll in a former employers medical plan? 3. Shortly after John left ABC, one of ABC's clients complained that their 2019 tax return, which had been prepared by John, contained addition errors, which cost the client some $15,000 in taxes, fines and costs by the IRS. The client's claim was proven to be true, John had prepared the return with addition errors just as the client claimed. He did so by mistake...the errors were not done intentionally. 3. Shortly after John left ABC, one of ABC's clients complained that their 2019 tax return, which had been prepared by John, contained addition errors, which cost the client some $15,000 in taxes, fines and costs by the IRS. The client's claim was proven to be true, John had prepared the return with addition errors just as the client claimed. He did so by mistake...the errors were not done intentionally. -Did John commit a tort? -What is the tort called? -What are the elements of the tort he committed that need to be proven? -Give a one sentence example of each element (just use the facts above or make some facts up if you need to) -Does each element have to be proven, or is it a tort if just one or two elements are proven? 4. -Does the client have to prove John INTENTIONALLY committed the math errors? Finally, John was accused by ABC of damaging information in the company computer system used by employees. He also may have been involved in selling company passwords (trafficking passwords). Is there a statute he can be charged under? List five types of activities covered by this statute having to do with computer fraud. Please give a one sentence example of each.

Answer rating: 100% (QA)

1 As Johns lawyer I would advise him not to immediately stop all accounting work without further evaluation as the enforceability of the covenant not to compete depends on various factors including it... View the full answer