Explain Equity Theory

question 31

Essay

Explain equity theory. What does equity theory suggest people do when they feel they are not being treated fairly? Give an example of a situation from your own experience where a person felt he/she was being treated inequitably and explain it using equity theory.

---

Definitions:

Warranties

Promises made by a seller to a buyer regarding the condition, functionality, or reliability of a product or service.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Holder

An individual or entity that legally possesses a negotiable instrument, like a check or bond, and has the right to enforce its terms.

Immunity

A provision or status that protects a person or entity from legal action or liability under certain conditions.