Cle Final B. Law Q. 3 - The employees of the Lending Store...

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The employees of the Lending Store, Inc. did join the union. The company was profitable for several years. However, the Phoenix economy recently took a severe downturn and business has slowed considerably. Also, a serious incident has occurred with one of their management employees, John Jones. While driving a company car with the Lending Store, Inc. logo printed on the side of the vehicle, this employee was involved in an auto accident. The driver of the other vehicle was seriously injured. The employee admits he purposely hit the other car when this driver shouted negative comments to him about the Lending Store apparently after seeing the company’s name on the vehicle. The employee also admits he had been drinking alcoholic beverages during his lunch hour in violation of company policy. He was on his way home when the accident occurred. The driver of the other vehicle files a lawsuit demanding reimbursement for medical bills and One Million Dollars in “other” damages. He names both John Jones and the company as co-defendants. The company does not have enough insurance coverage to pay for the damages claimed. In addition to this bad news, the poor economy has caused a significant decline in business. Now the company is losing money every month and has almost no cash on hand. The company is unable to pay this accident claim, the monthly rent for office space or its employees’ wages. Because the employees have not been paid for over a month, the employee’s union has threatened a strike. Albert and Baker have not taken their salary for the past six months in order to help the company financially. They are both very concerned that the company may not be able to continue in business given these recent and significant financial setbacks.
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