Assignment 2: Research Project Legal and Ethical Challenges in a Multinational Organization  Part I Read the scenario and the questions that follow. Identify the legal issue(s) and apply legal concepts and possible arguments for each question. Prepare a resolution for each question using laws, cases, examples, and/or other relevant materials. In a separate section of the paper, identify potential ethical issues and propose a solution for each issue. Finally, provide suggestions to help the organization to avoid future occurrences of the legal and ethical issues identified in the dilemma. Support your answers with information from the textbook and at least two scholarly sources other than the text and course lectures. prepare an 8- to 12-page APA format paper that identifies the legal issues and potential solutions and answers all questions presented, supported by relevant legal authority. Properly cite all sources using APA format. This assignment requires application of the concepts learned in  Weeks 1–3  and is worth significantly more than previous assignments. Submission Details Walexron is a publicly traded, US multinational corporation headquartered in Little Rock, Arkansas, operating in all 50 states, Europe, Asia, South America, and Africa. In 2009, Walexron was created by the consolidation of a large discount retailer, express carrier, and energy company with the intent to become one of the most powerful and efficient companies in the world. Manuel Perez was hired by Walexron as a full-time employee in one of the retail store in Brownsville, Texas, in 2009 and was terminated in 2012. Perez filed a lawsuit based on wrongful termination in which he asserted the company terminated him after he complained about various employment practices that violated state and federal laws. Walexron filed a petition to compel arbitration as required by the employee handbook. Walexron claimed the arbitration policy was displayed on page 51 in the employee handbook that Perez agreed to abide by as evidenced by his signature acknowledging receipt of the handbook. The clause provides, in part, that arbitration will be the exclusive forum for resolving all disputes between Employer and Perez “arising out of claims for wrongful termination, discrimination, retaliation or harassment in violation of state or federal law, alleged violation of state or federal family and medical leave laws and other laws pertaining to employment, and for unpaid wages under state or federal law.” Another provision of the Handbook provides that it “is not intended to create a contract of employment and does not in any way alter the at-will employment relationship between [Employer] and its Employees.” Perez signed a document titled “Acknowledgment of Receipt of Employee Handbook,” which states that the Handbook contains important information about Employer’s general personnel policies and Perez’s privileges and obligations as an employee. The document also states, “I understan.

1. Assignment 2: Research Project
Legal and Ethical Challenges in a Multinational Organization
Part I
Read the scenario and the questions that follow. Identify the
legal issue(s) and apply legal concepts and possible arguments
for each question. Prepare a resolution for each question using
laws, cases, examples, and/or other relevant materials. In a
separate section of the paper, identify potential ethical issues
and propose a solution for each issue. Finally, provide
suggestions to help the organization to avoid future occurrences
of the legal and ethical issues identified in the dilemma.
Support your answers with information from the textbook and at
least two scholarly sources other than the text and course
lectures. prepare an 8- to 12-page APA format paper that
identifies the legal issues and potential solutions and answers
all questions presented, supported by relevant legal authority.
Properly cite all sources using APA format.
This assignment requires application of the concepts learned in
Weeks 1–3
and is worth significantly more than previous assignments.
Submission Details
Walexron is a publicly traded, US multinational corporation
headquartered in Little Rock, Arkansas, operating in all 50
states, Europe, Asia, South America, and Africa. In 2009,
Walexron was created by the consolidation of a large discount
retailer, express carrier, and energy company with the intent to
become one of the most powerful and efficient companies in the
world.
Manuel Perez was hired by Walexron as a full-time employee in
one of the retail store in Brownsville, Texas, in 2009 and was
terminated in 2012. Perez filed a lawsuit based on wrongful
termination in which he asserted the company terminated him
after he complained about various employment practices that

2. violated state and federal laws. Walexron filed a petition to
compel arbitration as required by the employee handbook.
Walexron claimed the arbitration policy was displayed on page
51 in the employee handbook that Perez agreed to abide by as
evidenced by his signature acknowledging receipt of the
handbook. The clause provides, in part, that arbitration will be
the exclusive forum for resolving all disputes between Employer
and Perez “arising out of claims for wrongful termination,
discrimination, retaliation or harassment in violation of state or
federal law, alleged violation of state or federal family and
medical leave laws and other laws pertaining to employment,
and for unpaid wages under state or federal law.” Another
provision of the Handbook provides that it “is not intended to
create a contract of employment and does not in any way alter
the at-will employment relationship between [Employer] and its
Employees.”
Perez signed a document titled “Acknowledgment of Receipt of
Employee Handbook,” which states that the Handbook contains
important information about Employer’s general personnel
policies and Perez’s privileges and obligations as an employee.
The document also states, “I understand that I am governed by
the content of the Handbook and that [Employer] may change,
rescind or add to any policies, benefits or practices described in
the Handbook from time to time in its sole and absolute
discretion, with or without prior notice.” Perez asserts that
English was not his first language and had difficulty reading
and understanding the handbook.
Over the past two years, Walexron had 36 claims brought to
arbitration by employees. All 36 claims were arbitrated by the
same dispute resolution agency selected by Walexron.
Six months ago, a customer testing a treadmill sold in one of the
retail stores was injured when the machine stopped abruptly and
threw the customer into a wall. During a review of the

3. discovery documents, it was determined that Dee Struction, an
employee of Walexron, deliberately tampered with the machines
in retaliation for being passed over for promotion to store
manager.
Walexron entered into an agreement with Chuangxiang Toys in
China to manufacture remote control helicopters, which would
carry the name RC Ranger Helicopter W450. Walexron requires
its overseas suppliers to conduct quality control testing on most
of its imported products before selling them in the stores. In a
recent study, there was a small indication that the helicopters
had the potential to catch fire if the batteries overheat.
Walexron’s executives approved the design anyway, and the
helicopters were delivered to Walexron’s stores in the United
States, Canada, and South America. Initial market response to
the Ranger Helicopters was positive, and many competitors
eyed the unique feature of the camera located in the helicopter.
A Walexron employee, Lou Scannon, leaked the findings of the
safety study to the public and a consumer watchdog group. In a
press conference called by Scannon, Lou explained the safety
testing process for the Ranger Helicopter and results in detail.
Walexron hired Scannon as Director of Purchasing in 2012 and
offered him a 5-year contract. In January 2013, Scannon
verbally agreed to a confidentiality provision as an addition to
his 5-year written employment contract.
Kwong Lee, a customer of the photo department at a Walexron
store in New Jersey, completed her order online, supplying her
full name and phone number. When she picked up her prints at
the store, she noticed the receipt showed her name as Ching
Chong Lee. Lee was visibly upset and later so angry that she
could not eat or sleep.
The express delivery service division of Walexron regularly
picked up packages of documents from Goin Postal, a packing,

4. shipping, and crating business located in New York. Walexron
delivered Postal’s packages all over the world. Goin Postal was
a partnership formed by Minnie Stree, Alf Abett, and Duncan
Doenutts. Goin Postal was behind on its payments and owed
Welexron over $200,000. After collection efforts failed,
Welexron sued Goin Postal and obtained a judgment for
$200,000 judgment in Welexron’s favor.
On the advice of the legal department, the board of directors for
Welexron decided to seek enforcement of the judgment against
Alf Abett, acting on a tip that Mr. Abett had inherited a large
sum of money and that the other partners had no personal
assets. As it turned out, Mr. Abett only inherited $10,000 and
did not have the funds to pay the judgment. Welexron incurred
substantial attorney fees in attempting to collect its judgment
from Goin Postal.
Adam Upp worked in the accounting department and had been
with the retail division for 10 years. Adam started out as a
cashier in one of the stores, was promoted to store manager, and
eventually promoted to the accounting department at
headquarters. Adam received numerous positive job evaluations
over the years with the company. Adam and his life partner Pat
receive medical, dental, and life insurance benefits as part of
Adam’s employment package with Walexron.
Adam reported to the Director of Accounting, Eve Ann Jellical,
who recently transferred to the retail division from the express
delivery division. Eve took away a good portion of Adam’s
responsibility and froze his pay. Other employees heard Eve
Ann say, “Same-sex marriages are wrong. The Bible states that
marriage should be between a man and a woman.” Eve Ann
posted Bible verses in the breakroom and at the bottom of her e-
mails. Adam reported Eve’s behavior to Human Resources, but
Eve’s behavior only escalated after the report. Adam quit two
months after filing the report.

5. One of the employees who worked for Adam, Cybil Wrights,
reported Adam’s treatment to the EEOC. Cybil was an at-will
employee who had been with Walexron five years. In response
to the EEOC report, Eve Ann Jellical terminated Cybil.
Respond to the following questions using course material and
credible outside research to support your findings. Please
submit findings in an 8- to 12-page paper using APA format.
Will Manuel Perez prevail in invalidating the arbitration clause?
Why or why not? Discuss the legal considerations the court will
entertain in reaching its decision.Identify the ethical concerns
regarding Walexrons approach to the arbitration process and
recommend actions Walexron could take to remedy the ethical
concerns.
Is Walexron responsible for the actions of Dee Struction? Why
or why not?
Can Walexron hold Lou Scannon responsible for
misappropriation of a trade secret?
Is the confidentiality provision within Scannon’s employment
contract valid?
Identify possible claims Kwong Lee might bring against
Walexron and the employee who printed the receipt. Which
party is most likely to win? Why?
Can Walexron seek to recover from Alf Abett individually on
the judgment for the Goin Postal partnership? Why or why not?
Using the Business Judgment Rule, did the board of directors
fulfill its duty of care to shareholders in suing Alf Abett
individually for the Goin Postal judgment? Why or why not?
Can Adam Upp sue Walexron for employment discrimination?
Can Adam argue constructive discharge in this instance? Can
Walexron fire Cybil? Why or why not?
As the new Director of Compliance, you have reviewed each of
the issues presented and the Vice President of Legal requested
that you identify any ethical and legal concerns and provide

6. recommendations on how to avoid both legal and ethical issues
in the future. Be specific and detailed, and be sure to base
recommendations on relevant legal and ethical principles.