Marketing West, Inc. v. Sanyo Fisher (USA) Corp

In Marketing West, Inc. v. Sanyo Fisher (USA) Corp. (1992) 6 Cal.App.4th 603, several sales representatives worked for a company pursuant to an oral agreement that they could be terminated only for good cause. During the course of their employment they were presented with written agreements to sign. They were told that these agreements, which provided for termination without cause, "did not mean anything" and did not change the terms of their employment relationship, but were merely a "formality" necessary to a reorganization process. (Id. at p. 609.) The court in Marketing West found that the employees could not have reasonably relied on oral representations that contradicted the unambiguous termination-without-cause provisions of the written agreements. (Id. at p. 611.) "The employer's alleged statements, which in essence are promises that the agreements were without meaning, are similar to a promise not to enforce a note made contemporaneous with the execution of a note containing a promise to pay the note on demand." (Id. at p. 612.)