The city of BigTime, Texas, was suddenly needing to expand

| December 20, 2015
Question 5.5.(TCO E) The city of BigTime, Texas, was suddenly needing to expand their Fire Department to add four new stations, which would require 92 new department employees. The city announced through various media the need for a total of 92 new Fire Department Employees with fairly attractive wages, and very attractive benefits such as health insurance, vacation time, pension funds, etc. Applicants were told they must apply within the next 15 days, and be willing to complete a series of qualification tests. A total of 280 people applied for these Fire Department Positions, 155 men and 125 women. All of these potential employees were first required to complete a background and reading/math test; 119 of the women (95%) and 136 of the men (88%) made satisfactory scores on this initial test, and advanced to the second and final requirement of a physical test. The physical test had a number of requirements including:

  • Climbing a ladder up to a 3rdfloor window, picking up a 100 pound bag of sand, and then climbing back to the ground;
  • Dragging a 100 foot long piece of a 4 inch hose full of water 200 yards in under 2 minutes; and
  • Running a mile in under 8 minutes.

Only 11 of the women (9%) and 120 of the men (88%) made passing scores on this physical test, and qualified for further consideration for the 92 new Fire Department jobs. Is this hiring policy acceptable under Title VII of the 1964 Civil Rights Act, and this Federal Statute’s further development over the last 50 years? Does this hiring process involve Disparate Impact? Disparate Treatment? Should the BigTime City Fire Department be required to modify their hiring procedure?

Question 6.6.(TCO G) You have been serving as a legal/financial advisor to a family of small business owners who operate under several different company structures in the retail business. There are five active members of the family running four different companies. The family members have all accumulated a significant amount of personal wealth, averaging about $750,000 each. The family members have used two of the four companies which have been incorporated to accumulate significant debt. The equity in the two corporations is in the RED (negative), and the family members are transferring additional debts into these corporations. The family is considering further such debt transfer, and then filing Bankruptcy to try and unload the total family and business debts. As their lead Legal/Financial Advisor, the family members have ask you to define the three Chapters of the Bankruptcy Code, Chapters 13, 11, and then 7, and then recommend which one they should pursue. They also tell you to advise them on any risk they may incur in shifting debt and possibly funds among themselves personally, and between themselves and the two corporations that are absorbing the debt in preparation for the Bankruptcy Filing.

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Statistical Process Control (SPC) in Practice
A teenage worker in a fast food hamburger store was operating the french-fry machine

Category: Business

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