Obviously, incomplete are not only an issue for economists investigating the efficiency of transactions. It also imposes a problem in legal conflicts over employment contracts. In some typical cases, US American judges often resort to the
„employment at will“ principle. Write a short essay (not more than one page) on 1) what this principle means, The employment-at-will doctrine avows that, when an employee does not have a written employment contract and the term of employment is of indefinite duration, the employer can terminate the employee for good cause, bad cause, or no cause at all. the employment-at-will doctrine reflected the belief that people should be free to enter into employment contracts of a specified duration, but that no obligations attached to either employer or employee if a person was hired without such a contract.
Under this model the worker can quit when he or she wants to and subject to some exceptions, the employer can terminate him or her for any or no reason
2) Under which circumstances judges apply this rule
While a majority of jurisdictions recognize the common law doctrine of employment-at-will 5 as a default rule6 that has evolved from a transnational conception of the common law,7 it has arguably undergone substantial erosion over the past three decades,
On one side are power, property, and prerogative-the ultimate manifestation of which is the legal doctrine known as employment at will.
On the other side are the federal statutes and policies prohibiting discrimination in employment based on specified invidious characteristics."2 Accordingly, federal courts will have to decide whether
§ 1981 “Equal rights under the law” applies, or should apply, within the context of a given state's
jurisdiction. A majority of courts in the
Southern District of New York have held that employment-at-will is not a contract pursuant to New York state law.43 By contrast, a minority of courts in