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Mgmt 597 Week One Assignment

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Chapter 9
In this case, Family Health Care (FHC) and Dennis Winkel had a written employment contact. A modified verbal contract was entered into which included a higher salary for Winkel as well as profit-sharing bonus. FHC delivered on increase in salary but failed to execute on the profit sharing.
The issue is whether the verbal contract is sufficient to override the written contract between the two parties. Montana law states a written contract can be altered only in writing or by an executed oral agreement. FHC did not execute on the profit-sharing and therefore may not be liable to pay.
FHC upheld the modified oral agreement when it paid the higher salary. Executing part of the verbal contract could infer acknowledgment of the modified written contract to pay the profit-sharing.
Vranich defense was that there contract could not be enforced because it was not in writing. Presenting this defense seems unethical only if there was actually a verbal amendment to the written contract. Otherwise, there may be no ethics issue at all.
In my opinion, Winkel should receive the profit-sharing bonus. Dr. Vranich enforced the oral agreement when the higher salary was paid and was not ethical in the decision to not honor the profit-sharing agreement. According to the case file, the jury agreed and awarded Winkel the profit-sharing.
After reading the case online, there were many issues at play regarding this written, verbal contract. The best solution would have been for the contract to be properly renegotiated after the departure of the Dr. Quan because this would have eliminated any confusion regarding pay and profit-sharing.

Chapter 10
Peter Andrus insured his apartment building through J.C. Durick insurance. Durick insurance notified Andrus that his policy must insure 80% of the property value however Andrus only wanted to insure the remaining balance on

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