ABC, Inc Solicited Bids from Various Independent Contractors to Landscape the the Grounds

question 5

Multiple Choice

ABC, Inc. solicited bids from various independent contractors to landscape the grounds of its new office complex. Drew, head of facilities management told Patty, his secretary, that he would not accept any bids from Hispanic contractors. Drew explained that he would authorize hiring only American contractors to work on the grounds. A Hispanic contractor brings a lawsuit against ABC for discrimination.

• A) Drew's refusal to hire Hispanic companies is a violation of the Independent Contractors Act of 2006.
• B) Drew's refusal to hire Hispanic companies is a violation of Title VII of the Civil Rights Act.
• C) The Hispanic contractor cannot prevail in a discrimination case because Drew's conversation with his secretary is confidential and cannot be used as evidence.
• D) Drew's refusal to hire Hispanic companies is not a violation of Title VII of the Civil Rights Act because that law does not cover discrimination against independent contractors.

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Definitions:

Price-Earnings Ratio

A valuation metric for a stock, calculated by dividing the current market price of the stock by its earnings per share.

Incremental Value

The additional or extra value generated by making a specific business decision, considered when evaluating multiple options.

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A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.

Merger Premium

The additional cost or amount by which a company's purchase price exceeds the pre-merger valuation of the target company.