Davis Hosiery Mills Has Each New Employee Sign a Form

question 41

Multiple Choice

Davis Hosiery Mills has each new employee sign a form acknowledging receipt of the company's handbook. The handbook states that employees will be terminated for good cause only. It also contains a disclaimer, in small print, which informs the employee that the employment relationship is "at will." An employee of Davis Hosiery sues for wrongful termination.

• A) The employee cannot sue because termination for good cause is not generally recognized as a limitation to employment-at-will, even when placed in an employee handbook.
• B) Davis Hosiery will win the case because the employee signed a form acknowledging that the employment relationship at Davis Hosiery is "at will."
• C) Depending on the statutes or court decisions in the state where Davis Hosiery is located, the employee can proceed with the lawsuit because the disclaimer was neither prominent nor conspicuous.
• D) The employee cannot sue if she lost her copy of the handbook.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with all other factors being held constant.

Demand Curve

A graph showing the quantity of a good that consumers are willing and able to purchase at different prices.

Luxury Good

A product that is not necessary for basic survival but is deemed as highly-desirable within a culture or society, often associated with wealth or quality.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumer income.