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Lecture 6

Week 6 Key terms and summary

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Week 6 October-16-13 10:02 AM Key Concepts:  Employment at will (EAW): common law doctrine- you as an employer can fire anyone on a contract for any reason o US: greater than other legal statue  Dismissal at will (Employees)  Employees can quit at will  No right to due process  Proper notice must be given-  Due Process and Procedural Process:  Contract at will: Reading: Epstein: In Defense of the Contract at Will  The balance between private ordering and government regulation has shifted towards the latter to redress a perceived imbalance between the individual and the firm o Examples: National Labor Relation Act (1935)- structure for collective bargaining o Tittle VII, Civil Right Act (1964)- extensive protection to all individuals  These two statues are pervasive but most of the employment relations remain subjected to the traditional common law rules which support freedom of contact and voluntary exchange  Payne v. Western and Atlantic Railroad (1884): men must be left without interference to buy and sell where they please and to discharge or retain employees at will for good cause or for no cause or even for bad cause without thereby being guilty of an unlawful act per se. it is a right which an employee may exercise in the same way to the same extent for the same cause or want of cause of the employer  The act-will relationship is not an archaic relic of 19th C: laissez faire o The contract will is this thought to be unwise because it invites the exercise of arbitrary power by person with a dominate economic position against a person whose mobility is said to be limited by the structure of labor markets. o The absence of viable alternative employment opportunities is thought to leave employee vulnerable to coercion and exploitation. o In the extreme situation employers (managers) are said to fire workers out of personal animosity: the animosity may stem from the workers refusal to grant personal or sexual favors or from a simple and irrational dislike (LOOK AT REVIEW)  Three reasons for promoting and defending the contract at will: 1. Entitlement against regulation: gives more freedom- Liberty Based- individual l liberties are preserved 2. Presumption in case of contractual silence: min. default when there is no contract is established
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