MGMT 520 Week 8 Final Exam Set 2 (New)

MGMT 520 Week 8 Final Exam Set 2 (New)

Author: Christine Farr


1. (TCOs D, E, F) Benjamin is a long-time key salesman for Morton and Dunderfield, a business supply company in Eastern Pennsylvania. The company decides to change its formal employer/employee relationship with all of its sales people, including Benjamin. Instead of compensating them with salary and a bonus based on quarterly sales, they change the relationship to that of an independent contractor who earns a sizeable percentage commission each month. With the change in this relationship, Morton and Dunderfield require all of their sales people to sign employment contracts which contain a clause that states upon leaving Morton and Dunderfield’s employ, they will not contact any former customers for a period of two (2) years. Benjamin, fearing he will lose his job, signs the agreement. After the first month, he realizes he will earn much less that he formerly did.
He seeks your advice on his options. (Points : 15)
2. (TCOs B, C, G, I) Lonestar Trucking, a large freight carrier servicing the Southwest, learns from reading in the industry trade magazine that the Federal Motor Carrier Safety Administration (FMCSA) has proposed a regulation change. The regulation, proposed pursuant to a statute that restricts drivers from operating/driving a truck for more than twelve (12) hours a day, will now require drug testing of any driver involved in an accident. The regulation was proposed due to political pressure from Mothers Against Impaired Driving (MAID), a group dedicated to eliminating deaths due to people driving while impaired. Lonestar Trucking is concerned, not just about the costs of implementing such a regulation, but how it will comply with its requirements since accidents often occur far from their base of operations. Lonestar Trucking’s employees and their union are also very upset with the proposal. They are concerned that the field drug tests used by police officers are notorious for giving “false positive” results, and that the proposed regulation will require that a test be given even when “the other diver” is clearly at fault.
What should Lonestar Trucking do regarding the proposed change? (Points : 15)

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