In EEOC V Fed Ex, the EEOC Sued Fed Ex

question 5

Multiple Choice

In EEOC v Fed Ex, the EEOC sued Fed Ex on behalf of a deaf employee who was denied reasonable accommodation under the Americans with Disabilities Act (ADA) over a two year period. The court found for EEOC, and entered judgment for compensatory and punitive damages. Fed Ex appealed, in part based on the award of punitive damages, contending, among other things, that Fed Ex had made a good-faith effort to comply with the law. In particular, Fed Ex offered evidence of its ADA compliance policy set forth in the employee manual. The court ruled:

• A) the establishment of an ADA compliance policy was sufficient to establish a good faith effort to comply with the ADA
• B) the establishment of an ADA compliance policy was not sufficient by itself to establish a good faith effort to comply, in the absence of any affirmative steps to ensure the implementation of its policy
• C) a good faith effort was not required
• D) none of these

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Definitions:

Covenant Compliance

Refers to a borrower's adherence to the conditions set forth in loan agreements with lenders.

Accounting Principles

Fundamental concepts and rules that underlie financial accounting practices.

Financial Covenants

Provisions in a loan agreement that limit the borrower's actions in certain ways, ensuring the repayment of the loan.

Executive Compensation

Refers to the total package of benefits, including salary, bonuses, stock options, and other financial rewards, that is provided to executives of a company.