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Mr Lopez, the Owner of the Firm, Had a Large

question 64

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Mr. Lopez, the owner of the firm, had a large family. His six children were all in their late teens or early twenties and were in school or had jobs. However, in the summer of 2016, two of the six got laid off and the other four were having trouble finding work. Lopez spent ten days reorganizing his firm to find jobs for his family. He decided that the foreman at the plant, Mr. Wedman (who had been with the firm for twelve years, seven as foreman) could go back to being a carpenter to make room for his oldest son, who had management experience. There was no written employment contract with Wedman. On Friday afternoon, Lopez called Wedman into the office and told him that on Monday he would return as a carpenter and that he would be under the direction of his son. Wedman said he didn't want to be a carpenter or under the direction of his son and wouldn't do it. Lopez dismissed him immediately with no severance pay. Which of the following is true?


Definitions:

Motorcycles

Two-wheeled vehicles powered by an engine, designed for individual or small number passenger transport.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision.

Sailboats

Sailboats are vessels propelled partly or entirely by sails and are used for navigation, racing, or recreation.

Surfboards

Sporting equipment used in the sport of surfing, designed to ride waves by standing or lying on them.

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