Armenda Malone and Stephen Krantz were induced to leave other employment and join ABIs CD-Rom division as

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Armenda Malone and Stephen Krantz were induced to leave other employment and join ABI’s CD-Rom division as national account managers in part because of a favorable commission agreement at ABI. Their employment relationship with ABI had no set duration, and as such they were employees at will. For the first two quarters of their employment, their commission reports were approved by the president of the division and paid without incident. Thereafter, a new management team took over the division. When the mid-level manager presented third quarter commission reports based on the prior practice to the new vice president, Bruce Lowry, for approval, he was told, “You got to learn how to f— these people.” Lowry then utilized severable variables—some of which the mid-level manager found “ridiculous”—to reduce the commission figures. After much discourse that carried on well into the fourth quarter, Lowry announced that a new model for determining commissions would be implemented. Commissions for both the third and fourth quarters, ending in December, were then calculated based on this model. ABI asserts that because Malone and Krantz were employees at will, the employer had the right to interpret or alter how it pays employees as it sees fit. Krantz and Malone left ABI and have sued for what they believe are the full commissions earned in the third and fourth quarters. Present a legal theory on behalf of Malone and Krantz for the payment of back commissions. Assess the strengths and weaknesses of Lowry’s approach to employee relations. How would you decide this case? [Malone v American Business Information, Inc., 647 NW2d 569 (Neb)]

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Andersons Business Law and the Legal Environment

ISBN: 978-0324786668

21st Edition

Authors: David p. twomey, Marianne moody Jennings

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