The Legal Environment of Business: Text and Cases
The Legal Environment of Business: Text and Cases
9th Edition
ISBN: 9781305764460
Author: Frank B Cross/ Roger LeRoy Miller
Publisher: CENGAGE C
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Chapter 2, Problem 6BCP
Summary Introduction

Case Summary: A company, HA, and its workers entered into a collective bargaining agreement. The agreement stipulated that if any employee violated any work-place-rule, that employee would be discharged. The discharged employee could submit the case for arbitration. The agreement restricted the subject matter of arbitration only to determination of the rule being reasonable and its violation by the employee. An employee, RG, was discharged and he appealed for arbitration. The Arbitrator passed the order of reinstatement in favor of RG. The order was appealed against in the court.

To Explain: The extent of power of the courts to set aside an arbitration order.

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n employee was terminated for smoking in a no smoking area. The union claimed that he should be reinstated because the company failed to follow due rocess procedures. When the company and the union could not agree, this case was referred to arbitration and the arbitrator ruled in favor of the employee. How should the company respond? our Response The company should reinstate the employee and follow due process in the future. The company should appeal the case to the district court. The company should request a hearing by a three-member panel of administrative law judges. The company should appeal the case to the NLRB. Feedback
Marleen was employed by Acme, Inc. When she accepted the job, as part of her compensation package, she agreed that any dispute between her and Acme would be resolved through non-binding arbitration. When Marleen was passed over for promotion three times, she alleged that Acme violated her civil rights and initiated arbitration proceedings. If either party disagrees with the decision of the arbitrator, will a court hear the case?   a.   Yes, because here arbitration is non-binding.   b.   No, because the purpose of arbitration is to reduce the number of cases heard by a judge.   c.   Yes, because arbitration is disfavored in that it deprives plaintiffs of their day in court.   d.   No, because the agreement to arbitrate was contractual and included an agreement to abide by the arbitrator’s decision.
The union (Union) member-employees of the Erie Resistor Company (Company) struck Company over the terms of a new collective bargaining agreement that was being negotiated between Company and Union. Company continued production operations during the strike by hiring new hires and crossover union members who were persuaded to abandon the strike and come back to work. Company promised all replacement workers super seniority. This would take the form of adding twenty years to the length of a worker’s actual service for the purpose of future layoffs and recalls. Many union members accepted the offer. Union filed an unfair labor practice charge with the National Labor Relations Board (NLRB). Is Company’s offer of the super seniority lawful? Explain your answer.
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