Rashid v R G R, Inc – 10.77

Rashid v R G R, Inc
Digest no. 10.77

Section 29(1)(a)

Cite as: Rashid v R G R, Inc, Oakland Circuit Court, Docket No. 84-284496 AE (April 3, 1986).

Appeal pending: No
Claimant: Robert Rashid
Employer: R.G.R., Inc.
Docket no.: B84-05596-97032W
Date of decision: April 3, 1986

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HOLDING: Voluntary sale of a business and resulting unemployment of the business’ employee-owner disqualifies the employee-owner from unemployment benefits under 29(1)(a).

FACTS: The claimant was the sole shareholder and principal corporate officer of a corporation which operated a car wash. The claimant sold his interest in the enterprise to a competing entity. It was understood by the claimant at the time of sale that if he sold the business he would not be retained as an employee by the new owner.

DECISION: The claimant was disqualified for benefits under Section 29(1)(a).

RATIONALE: The claimant contended he sold out to his competitor because he was left with no other business alternative. However, as of the date of sale the business was earning a sizable profit and was in no immediate danger of failure. The claimant was not forced to sell his business. Rather he sold it because it was more profitable to sell for the offered price than to compete for available business. The claimant had a choice between reasonable alternatives. Therefore, both the sale of his business and the resulting unemployment were voluntary.

Digest Author: Board of Review (original digest here)
Digest Updated:
7/99