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Evaluating Remedies for Procedural Unfairness
Two co-founders of a startup, one technical and one in sales, agreed to a 50-50 equity split. It was later discovered that the sales co-founder secured this equal split by knowingly presenting misleadingly pessimistic sales projections to the technical co-founder. This created a false sense of high risk that made the 50-50 split seem more generous than it actually was. The original agreement is now being challenged on the grounds that the process was unjust.
Evaluate the following potential remedies. Argue which remedy is the most fair and why. Your justification should focus on how the remedy addresses the flawed process that led to the original agreement.
- Remedy A: Maintain the 50-50 split, but the sales co-founder must issue a formal apology for the deception.
- Remedy B: The agreement is automatically voided and reset to a 60-40 split in favor of the technical co-founder as a penalty for the deception.
- Remedy C: The original agreement is voided, and a new negotiation is initiated, this time with a neutral third-party mediator and access to transparent, verified company data for both parties.
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Library Science
Economics
Economy
Introduction to Microeconomics Course
Social Science
Empirical Science
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CORE Econ
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