James Schoenberger Interviewed for a Position with the Chicago Transit

question 32

Essay

James Schoenberger interviewed for a position with the Chicago Transit Authority (CTA).He talked with the person who would ultimately be his supervisor,Zu Christian,and was offered a salary of $19,300.Under CTA procedures,only the Placement Department could give final salary figures.When Placement's figure for Schoenberger was computed,it was lower,and Schoenberger sued for the higher figure.CTA claimed Zu Christian had no authority to offer a particular salary.Discuss the legal issues in the case from both CTA's and Schoenberger's perspectives.

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Definitions:

Note Payable

A written agreement where one party promises to pay another party a certain amount of money at a future date or on demand.

Accounting Equation

The foundational principle of accounting that maintains that assets equal the sum of liabilities and owner's equity.

Equity

Ownership interest in a company, representing the amount of assets that would be returned to shareholders if all debts were paid.

Balance Sheets

Financial statements that show the assets, liabilities, and equity of a company at a specific point in time, providing a snapshot of its financial position.