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Assignment 2: Dropbox Assignment Legal Rights of an Employer and the Employees In this assignment, you will consider the rights and duties of employers and employees in an organization, and learn...

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Assignment 2: Dropbox Assignment
Legal Rights of an Employer and the Employees
In this assignment, you will consider the rights and duties of employers and employees in an organization, and learn about intellectual property laws in the workplace.
Jeremy Jacob works as a buyer for Cranes Hardware Stores, located in Biloxi, Mississippi. On his lunch breaks, Jacob spends time on the computer sending e-mail to his friends and occasionally playing online poker. Sometimes Jacob sends the e-mails from his personal account and sometimes when he is in a hurry, he sends them from the account of Cranes Hardware Stores.
On Friday morning, Jacob is summoned to Human Resources where he is confronted with e-mails sent to friends containing jokes of a sexual nature. The director also questions him about the use of the Internet to play poker and other computer games. Jacob claims he has the right to do what he wants to do on his lunch breaks. Jacob is terminated for violating provisions of the employee handbook. The employee handbook contains the following provisions.
Cranes Hardware Stores Employee Handbook
  1. E-Mail Policy: All employees are responsible for using the e-mail system in accordance with this policy. The e-mail system is the property of Cranes Hardware Stores. E-mail is to be used for company business only. Use of the e-mail system for personal purposes is prohibited. Employees have no right or expectation of privacy in data stored in, created, received, or sent over Cranes e-mail system.
    As the owner of the e-mail system, Cranes may monitor, access, retrieve, review, and delete any information stored in, created, received, or sent over the e-mail system, for any reason and without the permission of the employee.
    Cranes’s policies against sexual harassment and discrimination apply to the e-mail system. Therefore, no e-mail messages should be created, sent, or received containing material offensive material related to race, religion, gender, age, national origin, or any other classification protected by law.
    Violations of Cranes’s e-mail policy may result in disciplinary action up to and including termination.
  2. Internet Policy: Although Cranes Hardware Stores acknowledges that the Internet may have useful applications to Cranes business, employees may only access the Internet for specific business purposes. "Surfing the net" is not a legitimate business activity.
    The company has the right to monitor any and all of the aspects of its computer system, including, but not limited to, monitoring sites visited by employees on the Internet, monitoring chat groups and news groups, reviewing material downloaded or uploaded by users to the Internet, and reviewing e-mail sent and received by users.
    Employees may not use the company's Internet connection to download games or other entertainment software, including wallpaper and screen savers, or to play games over the Internet.
    Violations of Cranes's e-mail policy may result in disciplinary action up to and including termination.
  3. Cranes Hardware Stores Dispute Resolution: All disputes arising out of the employment relationship that cannot be resolved through the complaint procedures will resolved through Alternative Dispute Resolution (ADR).
Consider the following situations at Cranes Hardware Stores:
Even though it was only noon, Jacob stopped by the Beer and Burger Bar, hoping a few beers would make him feel better. Several hours later when he is driving home, Jacob is pulled over by a state trooper. Detecting a strong odor of alcohol, the officer requests that Jacob take a breathalyzer test. Jacob refuses. Noticing a beer can on the seat of the car, the officer searches Jacob's car. When searching the car, the officer finds a loaded pistol and some marijuana.
Three weeks after Cranes terminated Jacob, a representative from the human resources department at Rowe's Home Supply called to obtain a reference because Jacob applied for a job with their company.Jean Brianna, the human resources manager for Cranes answered the standard questions, but then made the following statement.
"Off the record, Jacob was terminated for a cause. Jacob is threatening a wrongful termination lawsuit. I wouldn't hire him because he's nothing but trouble and we believe he was involved with drugs too."
Brianna knew the statement about the drugs was untrue, but she did not want Jacob to get the job. Rowe's did not hire Jacob.
A new position in Internet marketing was created for Amanda Lucy, the niece of Cranes's owner. Lucy was a junior at State University, majoring in marketing. Lucy created a website to advertise Cranes on the Internet. She copies images from various websites and pastes them into Cranes's site. Beth Ann is a full time law student who works part time in the office as a bookkeeper. After reviewing the new website, Ann tells the Lucy and the general manager, Marshall, that using some of those images and text without permission is an intellectual property violation. Lucy explains that she can use the images because everything on the Internet is fair game and besides, she read about the fair use doctrine in her business law class and believes her use qualifies.
After Jacob resolves his issues with the state trooper, he creates a blog about his former company called Cranes Hardware Hell. The blog contained a picture of Cranes Headquarters engulfed in flames. On the blog Jacob promises readers that he will provide various stories about what it's like to work for Cranes and encourages others to tell their stories. In the first article, Jacob uses pseudonyms to describe the executives and some of the managers in unflattering ways. Another story provides details about a coworker who is having an affair with her manager.
Based on the different situations described in the scenario, create a 6- to 9-page Microsoft Word document that includes the answers to the following questions:
  • Jacob claims the employer violated his rights. In your opinion, what are the legal rights of the employer and the employee in this situation? Explain. Is Jacob correct in his allegations? Why or why not?
  • Since Jacob believes he was wrongfully terminated and various rights were violated, he plans to consult with a lawyer and sue Cranes. What are Jacob's options with regards to resolving his claims through the court or ADR?
  • Jacob claims the state troopers violated his rights. Do you agree?
  • Has Brianna committed any offenses? Why or why not?
  • Did Lucy violate intellectual property laws? If yes, how? If no, why not?
  • Has Jacob committed any violations in his Internet postings concerning his former company? Why or why not?
  • What are the ethical issues related to this scenario?
Support your responses with examples.
Cite any sources in APA format.
Submission Details
Name your document SU_BUS1038_W3_A2_LastName_FirstInitial.doc.
Submit your document to the W3 Assignment 2 Dropbox by Saturday, October 25, 2014.
Assignment 2 Grading Criteria Maximum Points
Explained the legal rights of the employer and the employee in this situation. Analyzed and described whether Jacob is correct in his allegations. 30
Explained Jacob’s options with regards to suing Cranes and resolving his claims through the court or ADR. 30
Analyzed the rights of the state troopers and Jacob. Identified if any rights were violated in the traffic stop. 30
Analyzed and provided reasons on whether Brianna has committed any offenses. 20
Analyzed and explained whether Lucy violated intellectual property laws. 20
Explained whether Jacob has committed any violations in his Internet postings concerning his former company. 20
Described the ethical issues related to this scenario. 10
Written components. 40
Total: 200
Answered Same Day Dec 22, 2021

Solution

David answered on Dec 22 2021
130 Votes
Westlake Lanes
Westlake Lanes is a bowling place located in downtown Raleigh which is situated in North of
Carolina. Given’s Grandfather Dane Sugar was the founder of Westlake Lanes, he founded
Westlake Lanes in 1970’s by securing a long-term lease for 11,000 Square feet and a $150,000
ank loan to renovate the property and make it a nice place to hang out. Total 16 Ten-Pin
owling lanes were installed at Westlake Lanes and they also cultivated popular bowling league.
After the death of Dane Sugar in year 2008, Westlake Lane is struggling with declining sales and
increasing costs. Since year 2004 Westlake is facing reduction in sales and increase in costs
specially employees related costs, this has increased the maintenance cost of organization which
makes it compulsory for Dane to fund the business by line of credit available to them, even after
utilizing the line of credit the requirement of funds was growing, In late 2008 due to increased
costs and falling revenues the board of directors were forced to loan the business $100,000 from
their personal savings accounts.
Shelby Givens which has joined Westlake Lanes as the general manager is highly concerned
with the financial performance of the organization. Shelby has agreed to work on one condition
that if she turn the business profitable within one year than in such case company have to
compensate her by paying $75,000 (her grandfather’s salary) and a 25% equity share. Now the
date of board meeting is approaching near and she is not sure whether the company would be
able to pay back the debt owed to its board members or not.
Financial analysis of Westlake Lane Bowling
We have analyzed the financial health of the company for a period of 4 years i.e. 2006 to 2009.
In order to analyze the financial performance we have used certain financial tools such as ratio
analysis & horizontal analysis. Horizontal analysis is done to analyze the difference in both
amount and percentage form between same items of different years. Horizontal analysis provides
various benefits like:-
1. It helps in analyzing the difference between the relative figures of two or more period.
After the difference has been analyzed the reason for the difference is spotted out and if the
difference is negative then in such case co
ective measures are taken in order to avoid
occu
ence of such situation in future.
2. Manager’s performance evaluation on the horizontal analysis.
3. Horizontal analysis helps investors to analyze the performance of an entity which will
further help them in taking the decision whether to invest in an entity or not.
In the Horizontal analysis of the financial statement of Westlake Lane bowling we have noticed
following major points:-
a) Total revenue of the company has fallen during all the four years under analysis with the
major fall in total revenue during 2008 -2009. Among all sources of revenue the biggest losers
are Food & Soda along with Beer sales. Fall In revenue shows that the company is not aggressive
in its marketing strategy due to which the total revenue dipped to such low level and this has
caused huge losses to the company. (Annexure – 1)
) The cost of sales has also reduced but not with the same proportion as fall in total sales
which has again caused loss to the company. (Annexure – 1)
c) Rising General expenses has been the biggest reason for fall in overall profitability.
During year 2006 -2007 when the total revenue is on fall general expenses increased by 9.09% as
compared to last year which added more loss to the financial statements of the company. High
general expenses shows that the expenses spent on maintenance is not justified, in order to
educe the losses scrutiny of each general expense must be done very carefully and useless
expenses must be eliminated. (Annexure – 1)
d) During year 2006 net income after tax was $41,976.53 and company distributed whole of
this amount as dividend which shows that Westlake Lane bowling company is not following
prudent dividend policy, because as per prudent dividend policy company should have first tried
to reduce its mounting debt burden which has increase drastically during last few years.
(Annexure – 1)
In order to analyze the financial statements in more depth we have also performed ratio analysis
and judged the company on three parameters which are as under:-
1) Liquidity,
2) Solvency, &
3) Profitability.
Liquidity ratios:-
These ratios are computed to judge the short term liquidity of the business. Two most important
liquidity ratios are cu
ent ratio and quick ratio. These ratios determine the ability of firm to
meets its cu
ent liabilities out of its cu
ent/quick assets. (Annexure – 2)
Cu
ent ratio and liquidity ratio of Westlake Lane has fallen dramatically during last few years,
falling liquidity is a proof of poor management of cu
ent assets, low level of liquidity ratio is
very dangerous of any kind of organization because in case of emergency if company is not be
able to a
ange the funds to repay the short-term liabilities than in such case they have to sell
their non-cu
ent assets which will hinder its business. (Annexure – 2)
Solvency ratios:-
Solvency ratios are helpful in analyzing the long term solvency position of the company such as
Debt equity ratio etc. solvency ratios help in determining the ability of the business to meet its
short term as well as long term liabilities. (Annexure – 2)
To analyze the solvency ratio we have computed total asset to debt ratio and debt to equity ratio,
in last few years the company has bo
owed huge amount of money which has caused its
solvency ratios to rise. Rising debt in capital structure is not safe for an organization as it might
lead to liquidation on non-payment of the loan and interest upon it. (Annexure – 2)
Profitability ratios:-
Profitability ratios show how profitably the business is running. Few examples are net profit
atio, Return on investment, return on equity etc. these ratios help investors to evaluate the
profitability of the business and make the decision of investing their funds accordingly.
(Annexure – 2)
Careful analysis of profitability has revealed a very interesting point about the operating
activities of the organization. The gross profit percentage has remained almost same for year
2006 to 2009 whereas the net profit ration has reduced drastically, this shows that the loss is not
due to...
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