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Mary is in an interview with the BAH Company and she asks the company about the stability of the company and its future plans. Tom, the interviewer, assures Mary that the company is solid and has long-term plans for growth and opportunity. Tom, however, knows that the plant and position that Mary is interviewing for will be closed in six months. Tom offers Mary the position of plant manager because he needs someone to manage the facility until they close the plant, but he doesn't tell Mary of his plans. This is an example of which of the following?
Answer option B is correct.
Tom is committing fraudulent misrepresentation as Mary has asked about the well-being of the company. Tom knows the plant will be closing and just needs a manager for the plant for the next six months. He hires Mary without telling her this news and implies that the company has a commitment to Mary for a long time.
Answer option C is incorrect. A constructive discharge is a workplace environment which is so hostile that the employee feels obligated to quit.
Answer option D is incorrect. The Latin phrase respondeat superior means 'let the master answer.' It means the employer can be held liable for the actions of the employee.
Answer option A is incorrect. Defamation happens when an employer or employee tries to defame the reputation of the other during or after a termination process. For example, an employer may give negative references about the terminated employee.
Chapter: Employee and Labor Relations
Objective: Federal Employment Legislation