Reference no: EM13778028

Albert and Baker form a corporation and start their business as the Lending Store, Inc. They begin making mortgage loans. They lease a large office building and eventually hire twenty employees. After several months it becomes obvious that one of their more experienced employees, Mary Smith, has some personal problems. Ms. Smith is 60 years old and has a permanent disability that requires her to work from a wheelchair. She is often late for work because of health issues and has some absences each month. She shows up ten minutes late for work one morning and Albert fires her on the spot without explanation. The company then promotes from within and allows John Jones to take Ms. Smith's position. John Jones is 25 years old. He has no mortgage lending experience but is on time for work every day.

1. Mary Smith is unhappy about being fired. She is unable to find another comparable job so decides to sue the company to either get her job back or to recover past and future wages. Explain the possible legal claims that Ms. Smith could pursue against the company.

2. Albert and Baker come to you for advice again. Explain the best defenses the company would have against any legal claims made by Ms. Smith. Include in your explanation what you believe would be the most likely outcome of this lawsuit known as Smith v. Lending Store, Inc.

3. The other employees of the company are concerned that Mary Smith was terminated unfairly. Some of them are considering joining the White Collar Workers of America Union to protect themselves from a similar fate. Explain the steps these employees would have to take in order to allow a union to represent them in their relationship with the Lending Store, Inc.

4. Albert and Baker do not prefer to deal with a union and are most concerned that their employees would go on strike and financially damage the company. While a strike may be possible with any union, explain to Albert and Baker some of the circumstances under which the union could not legally go on strike against the company.

5. The Lending Store, Inc. has now decided to hire a few part-time independent contractors. These persons will take mortgage loan applications for the company at various shopping malls. Explain the type of relationship the company will have with this category of worker. Include in this explanation some of the key differences between an independent contractor and a regular employee of the company.