Bruce Was a Union Representative Working for Ace Manufacturing Co

question 130

Multiple Choice

Bruce was a union representative working for Ace Manufacturing Co. The union and management had just concluded a collective agreement that set out terms under which certain functions of the plant would be computerized. A few months after the agreement was signed, the management started installing the computers, and in the process laid off three people who were no longer required. This in fact was exactly what Bruce had taken great care to prevent by the provisions that were included in the collective agreement. The management was in clear violation of these terms. Bruce called the members of the union out on strike and set up a picket line that effectively shut down the plant. Which of the following is true with regard to the legal position of the parties?

• A) In this type of dispute, the workers can slow down and disrupt production, but they can't walk off the job.
• B) The picket line has the legal right to physically block people from the plant if they are not persuaded to turn back.
• C) The management was in the wrong and would be unsuccessful in getting an injunction to stop the strike and picketing.
• D) The union was right in objecting to the layoffs, but it should have followed the grievance procedures in the collective agreement. Their strike is illegal.
• E) If the workers disagreed with the layoffs, management could lock them out.

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Definitions:

Equity Method

An accounting method for recording investments in which the investor recognizes income from the investee in proportion to its share of the investee’s profit or loss.

Investment in Subsidiary

Refers to the holding of shares or interests by one company (the parent company) in another company (the subsidiary).

Goodwill

A non-material asset generated from purchasing another company at a cost exceeding the fair market value of its tangible net assets.

Paid-In-Capital Accounts

Accounts representing the funds contributed by shareholders over and above the nominal value of the shares; it's an equity item on the balance sheet.