Frito Lay Experienced a 20% Drop in Its Sales

question 116

Multiple Choice

Frito Lay experienced a 20% drop in its sales. Even though the demand for its product decreased, Frito Lay did not cut the wages of its nonunionized workers. This is an example of

• A) an explicit contract not to cut wages.
• B) employment-at-will.
• C) poor management.
• D) an implicit or social contract not to cut wages.

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