FADEC doesn't do it automatically - our SOP says option 2 AFTER you have levelled, cleaned up and are about to resume climb.
Doc -
In the A320/321, the FADEC is not controlled by the FMGC. I think you are getting the FADEC and A/THR confused. Eng failure is detected by the FADEC, not the FWC. At no time will the FMGC command an increase in thrust on the live engine, unless you move the thrust levers.
Zeke -
You won't get THR MCT until you perform one of the actions described by Coyote in his original post. What you may be thinking of is a flashing LVR MCT caption underneath the MAN FLX if an engine failure is detected and the thrustlevers are still in FLX or TOGA (assuming Accel Alt has been reached).
Don't touch Clear EO!! Unless you are ABSOLUTELY SURE you don't have an engine failure. Even then, no harm in waiting until you're on the ground...! I also believe you would get a few more indications than that if an eng had failed...
MSTR CAUTN/WRNG
HYD PTU
Lots of ECAM etc etc...
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...proceeding below Decision Height with CAUTION...