Question

In: Operations Management

AB Distribution, Inc., employed QY, Inc., to run its tire mounting and distribution operation in Mount...

AB Distribution, Inc., employed QY, Inc., to run its tire mounting and distribution operation in Mount Valley, Ohio. Robert Chase worked for QY as a second-shift supervisor at Titan. He suffered a heart attack in 2000 and underwent heart bypass surgery in 2001. He also had arthritis. In July 2006, AB Distribution decided to terminate QY. Chase applied to work at AB Distribution, Inc. On his application, he described himself as having a disability. After a physical exam, AB’s doctor concluded that Chase could work in his current capacity, and he was notified that he would be hired. Despite the notice, Natalia Baron, an AB employee, wrote “not pass px” at the top of Chase’s application, and he was not hired. He took a job with APCO Systems, a parking ramp management company. This work involved walking up to five miles a day and lifting more weight than he had at AB. In September 2008, AB eliminated its second shift. Chase filed a suit in a federal district court against AB, in part, under the Americans with Disabilities Act (ADA). AB Distribution argued that the reason it had not hired Chase was not that he did not pass the physical, but no one—including Baron—could explain why she had written “not pass px” on his application. Later, AB claimed that Chase was not hired because the entire second shift was going to be eliminated

5-A. What must Chase establish to make his case under the ADA? Can he meet these requirements? Explain.

5-B. In employment-discrimination cases, punitive damages can be appropriate when an employer acts with malice or reckless indifference to an employee’s protected rights. Would an award of punitive damages to Chase be appropriate in this case? Discuss.

Solutions

Expert Solution

5-4 Chase must establish that there was no plan of AB to eliminate the second shift at the time he was about to be hired and he was rejected for a cause that was never there ( he passed the physical examination). As the company (AB) conducted his medical examination and notifid that he will be hired, it can be established that there was a vacancy and an intent of hiring on part of the company. The only cause of rejection was the writing " not pass px" on the application by an employee who probably had nothing to do with recruitment process. However, Chase can not claim relief under ADA because no disability was notified by the doctor.

5-5 Yes. The employer rejected the application of Chase, despite notifying him of recruitment after being cleared by the doctor for any known reasons. The circumstances indicate that the reason for rejection was the false note written by an employee who presumably had nothing to do with recruitment, indicating his failure in the test. The company is liable for negligence of not verifying the facts and acting on wrong information that led to the rejection. The claim of eliminating the second shift does not hold because had it been so, why medical examination and other formalities were conducted on Chase. In the light of the facts, Chase must get punitive awards.


Related Solutions

A tire manufacturer believes that the life of its tires follow a normal distribution with a...
A tire manufacturer believes that the life of its tires follow a normal distribution with a mean of 46,000 miles and a standard deviation of 4,000 miles. What mileage can he guarantee each tire to last so that 99% of the tires last longer than the guaranteed lifetime?
Economics, Inc. has started its operation in late 2016. At the beginning it was generating revenue...
Economics, Inc. has started its operation in late 2016. At the beginning it was generating revenue from sales commission and after it expanded its operation by providing management services. By the end of 2017 the company has hired you as independent consultant to help with comprising final balance sheet and income statement. Required: Provide ALL adjustments by the end of 2017. Fill in the worksheet. Prepare closing entries, income statement, statement of retained earnings, and balance sheet for 2017. The...
64-Larkspur, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered...
64-Larkspur, Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $224000 loss in the year of disposal. The loss on disposal of the segment was $124000. If the tax rate is 31%, and income before income taxes was $1624000, net income is $1276000. the losses from discontinued operations are reported net of income taxes at $348000. the income tax expense on the income before discontinued operations is $455880. the income from continuing operations...
Mr. Nixon and Mr. Ryan are employed by HD Inc., which provides its employees with free...
Mr. Nixon and Mr. Ryan are employed by HD Inc., which provides its employees with free parking. If the parking were not available, Mr. Nixon would pay $15 a month to a city garage. Mr. Ryan uses public transportation to commute. HD offers a complete family medical plan to its employees in which both Mr. Nixon and Mr. Ryan participate. Mr. Nixon’s family consists of five people, while Mr. Ryan is single. Consequently, Mr. Nixon’s annual cost of comparable medical...
The following transactions occurred at Pharaoh Inc. during its first year of operation: a. Issued 100,000...
The following transactions occurred at Pharaoh Inc. during its first year of operation: a. Issued 100,000 common shares at $5 each; 1,000,000 no par shares are authorized. b. Issued 10,000 common shares for a building and land. The building was appraised for $20,000, but the value of the land is undeterminable. The shares are selling for $10 on the open market. c. Purchased 1,000 of its own common shares on the open market for $16 per share. d. Declared a...
Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory...
Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory 100Sets Direct materials purchased (AQ) 1,600Sets Finished goods manufactured 700units Direct materials purchase-price variance$656Favorable Budgeted Finished goods to manufacture 800Units Direct materials purchases 2,000Sets Direct materials per unit of finished goods 2Sets Direct materials price per set (SP)$5.20 What was the actual purchase price (AP) per set of direct materials purchased (to two decimal places)? Multiple Choice $4.79. $4.84. $5.16. $5.24. $5.23.
Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory...
Kennedy Inc. has the following data for its operation in August: Increase in direct materials inventory 100 Sets Direct materials purchased (AQ) 1,600 Sets Finished goods manufactured 700 units Direct materials purchase-price variance $ 560 Favorable Budgeted Finished goods to manufacture 800 Units Direct materials purchases 2,000 Sets Direct materials per unit of finished goods 2 Sets Direct materials price per set (SP) $ 4.60 What was the direct materials usage variance in August, rounded to the nearest dollar? Multiple...
The following events apply to Equipment Services Inc. in its first year of operation: Acquired $60,000...
The following events apply to Equipment Services Inc. in its first year of operation: Acquired $60,000 cash from the issue of common stock. Received an $8,200 cash advance for services to be provided in the future. Purchased $2,000 of supplies on account. Earned $36,000 of service revenue on account. Incurred $16,100 of operating expenses on account. Collected $28,500 cash from accounts receivable. Made a $15,100 payment on accounts payable. Paid a $2,000 cash dividend to stockholders. Recognized $1,600 of supplies...
Mucho Tacos, Inc., sells franchises. Mucho Tacos imposes on its franchisees standards of operation and personnel...
Mucho Tacos, Inc., sells franchises. Mucho Tacos imposes on its franchisees standards of operation and personnel training methods. What is the potential pitfall to Mucho Tacos if it exercises too much control over its franchisees?
Cordell Inc. experienced the following events in 2018, its first year of operation: 1.   Received $40,000...
Cordell Inc. experienced the following events in 2018, its first year of operation: 1.   Received $40,000 cash from the issue of common stock. 2.   Performed services on account for $82,000. 3.   Paid a $6,000 cash dividend to the stockholders. 4.   Collected $76,000 of the accounts receivable. 5.   Paid $53,000 cash for other operating expenses. 6.   Performed services for $19,000 cash. 7.   Recognized $3,500 of accrued utilities expense at the end of the year. Required a.   Identify the events that result...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT