Reneging: A Topic to Promote Engaging Discussions About Law and Ethics in a Business Law or Legal Environment Course

• DOI: http://doi.org/10.1111/j.1744-1722.2009.01059.x
• Author: Tonia Hap Murphy
• Published date: 01 August 2009
• Date: 01 August 2009

Reneging: A Topic to Promote

Engaging Discussions About Law

and Ethics in a Business Law or

Legal Environment Course

Tonia Hap Murphy

n

I. INTRODUCTION

A 2006 study of 10,000 young adults revealed that 44 percent agreed or

strongly agreed that ‘‘If I accepted one job offer and a better one came

along, I would have no problems in telling the first company that I

changed my mind.’’ Only 32 percent disagreed or strongly disagreed.

1

Disturbing? Chao and Gardner, the authors of the study, observed, ‘‘Many

older adults interpreted this finding as a negative reflection on the

younger generation, commenting that reneging on a job acceptance

showed lack of character or ethics.’’

2

Chao and Gardner attribute this

generational difference to cultural trends and cite corporate scandals and

r2009, Copyright the Author

Journal compilation rAcademy of Legal Studies in Business 2009

325

Journal of Legal Studies Education

Volume 26, Issue 2, 325–355, Summer/Fall 2009

n

Associate Professional Specialist, Mendoza College of Business, University of Notre Dame. I

thank Sandra C. Vera-Munoz, William D. Nichols, and Mary K. Hamann of Notre Dame,

Marianne M. Jennings of Arizona State University, and my husband, attorney Patrick D.

Murphy, for their insightful comments and suggestions. I also acknowledge my research as-

sistant, Caroline Murphy.

1

Georgia T. Chao & Philip D. Gardner, Today’s Young Adults: Surfing for the Right Job (2006),

http://media.monster.com/a/i/intelligence/pdf/TRAK/Campus_YoungAdultsFINAL4-16.pdf.

The study ‘‘profile[s] young adults . . . [and] their attitudes toward work and general life,’’ in

light of a trend toward moving from job to job, ‘‘much as these young people would surf on

the Internet.’’ Id. at 3. The study defined ‘‘young adults’’ as those aged eighteen to twenty-

eight years. It compared responses from young adults to responses of a group of ‘‘older

adults,’’ aged twenty-nine to sixty-one. Id.

2

Id.at9.

lack of corporate loyalty as factors that may contribute to a lack of loyalty

in young adults.

3

Others observing positive attitudes toward reneging

have also suggested a connection to instances where employers have

reneged.

4

When instances of reneging become public, they receive considerable

attention and often provoke disapproval. For example, in the summer of

2007, basketball coach Billy Donovan signed a five-year, $27.5 million

contract with the National Basketball Association’s Orlando Magic, only to

renege a few days later, deciding to remain at the University of Florida.

Among the many media reports, the Associated Press noted, ‘‘[E]ven

though Donovan is back at Florida, his rash decision to bolt to the NBA

may come with consequences. Donovan may have to convince future re-

cruits he won’t forsake them again. The same can hold true for his current

players and assistant coaches.’’

5

Sports Illustrated reported that Donovan

3

Id. at 3.

4

See, e.g., Marilyn Moats Kennedy, Hiree, Hiree, Beware: New Hiring Trends,PHYSICIAN

EXECUTIVE, May–June 1997, at 58–59. Kennedy quotes a ‘‘young lab technician’’ who said,

‘‘My only responsibility is to myself, to cut the best deal I can. If I get a better offer closer to

graduation, I’m going to take it. Do you think the clinic wouldn’t rescind its offer if it found

someone better who’d work for the same amount of money? Please!’’ Kennedy observes that

reneging is not restricted to those newly out of college and may include established physicians.

Kennedy quotes an unnamed recruiter who stated, ‘‘The hotter the candidate, the morelikely

he/she will renege. . . . They aren’t even remot ely worried about a black eye in the industry.

They know they’re good and can workanywhere.’’ Id.at58.See also Nikki Scott, Reneging: The

Hot Economy’s Dirty Secret, http://www.vault.com/nr/newsmain. jsp?nr_page53&ch_id 5421&

article_id519572&cat_id 581 (quoting a Georgetown MBA graduate who said, ‘‘When I

started school I thought reneging was unprofessional and unethical. . .. Ho wever, after seeing

some of my friends have their offers rescinded orget laid off, I changed my mind.’’).

5

Antonio Gonzalez, Donovan Apologizes to Magic and Florida (June 8, 2007), http://

abcnews.go.com/Sports/wireStory?id=3255909. The online edition of Sports Illustrated quoted

unnamed sources who stated, ‘‘What [Donovan] did was not taken lightly around the league.

. . . It was publicly embarrassing, and for the Magic, it was personal. . . . There are a lot of GMs

[general managers] that would be hesitant to offer him a job.’’ Luke Winn, Donovan, Magic

Closing in on Agreement to Kill Deal (June 6, 2007), http://sportsillustrated.cnn.com/2007/

basketball/nba/06/06/donovan.magic/index.html. Donovan and the Magic subsequently en-

tered a termination agreement that included an agreement that Donovan would not coach in

the NBA for five years. Id. A day later, the Magic hired StanVan Gundy as the new head coach.

Reuters, Van Gundy Named Magic Coach as Donovan Returns to Florida (June 8, 2007), http://

www.reuters.com/articleID=USN0643393920070608.

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