Which of the Following Was the Result on Appeal in Brown

question 2

Multiple Choice

Which of the following was the result on appeal in Brown v. Sabre, Inc., the case in the text in which the plaintiff sued on the basis that, after acquiring his employer's business, the new employer failed to honor its statement to employees that the company would honor accrued vacation benefits?

• A) That the acquiring employer was bound by federal law to honor the accrued vacation benefits regardless of whether it expressly promised to do so.
• B) That the acquiring employer was bound by federal law to honor the accrued vacation benefits only because it had initially agreed to do so.
• C) That the acquiring employer was bound by state law to honor the accrued vacation benefits regardless of whether it expressly promised to do so.
• D) That the acquiring employer was bound by state law to honor the accrued vacation benefits only because it had initially agreed to do so.
• E) That the acquiring employer was not bound to honor the accrued vacation benefits and had reserved the right in its employee handbook to change company policy.

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Definitions:

Crowding Out Effects

Refers to a situation where increased government spending leads to a reduction in private sector investment due to rising interest rates.

ARRA

The American Recovery and Reinvestment Act of 2009, a legislative package aimed at stimulating the U.S. economy during the financial crisis through investment in infrastructure, education, health, and renewable energy.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes, often enacted by a governmental or corporate entity.

Short Run

A period in economics during which at least one input, such as factory capacity, is fixed and cannot be changed.