MBA 630_Turnip Plaza Hotel.docx - Running head TURNIP PLAZA...

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Running head: TURNIP PLAZA HOTEL1MBA 630 Leading in the Multicultural Global EnvironmentProject 2: Making Decisions That are Legal and EthicalTurnip Plaza HotelStudentUMUCProfessor James WelchDate: October 26, 2018
TURNIP PLAZA HOTEL2Turnip Plaza HotelThe case being investigated in this essay is that of Mark Piper, a tour guide employed at Turnip Plaza Hotel in Port Austin Michigan. Mark has developed a reputation for being a skilled tour guide and, consequently, was approached by a representative of a rival company offering him more money and a promotion. Mark’s manager, Edward, heard about the offer and made a counteroffer to provide Mark with a 50 percent raise and a promotion. Consequently, Edward turned down the offer from the competitor and chose to remain with Turnip Plaza. Within a month, Mark was fired due to corporate restructuring and Edward is now concerned that Mark will take legal action against Turnip’s parent company, Colossal Corporation. After reviewing thecase, the essay presented below addresses: the legal theories that may be used to enforce Edward’s promise, the types of damages that Mark could be awarded if litigation occurred, the ethical elements of the case, and a recommendation regarding what action, if any, the vice president of Colossal Corporation should take.Theories Related to the CaseSeveral legal theories can be identified when looking at the case. The most notable relatesto the issue of verbal versus written contracts for employment. What can be argued from reviewing the case is that Edward made an enforceable employment contract with Mark; impacting Mark’s decision to remain with the company rather than take a competing offer. The establishment of a verbal agreement for an employment contract can be enforceable if the promise is definite such that the employee can be assured that it will occur (Rasmuben, 2014). Further, the fact that Edward made specific promises to Mark indicates that the contract was not implied: i.e., Edward told Mark that he could expect a promotion as well as a 50 percent raise in salary (Rasmuben, 2014). Because these elements of the verbal agreement are precise, there is an
TURNIP PLAZA HOTEL3indication that the verbal agreement was explicit, therefore making it enforceable in a court of law (Rasmuben, 2014).Based on this assessment it would seem that Edward did make a legally enforceable verbal labor contract with Mark, suggesting that Mark could address the problem through the courts. However, there are some caveats. Mark could sue Colossal Corporation claiming breach of contract. However, research indicates that the enforceability of labor contracts varies by state (Micheli, 2017). What this suggests is that some effort would be needed to review state laws regarding labor contracts to determine if Mark had a case against his employer. Because Mark is employed in the State of Michigan, it may be possible to argue that Mark has been wrongfully terminated (Finkin, Velde, Corbett, & Befort, 2009). The employer made an oral promise to

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