Frito Lay experienced a 20% drop in its sales. Even though the ...

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Question 1

Intel Corporation, a major manufacturer of microchips, saw the demand for its product drop by 25%. Even though the demand for its product decreased, Intel did not cut the wages of its nonunionized workers. This is an example of

◦ employment-at-will.
◦ an implicit or social contract not to cut wages.
◦ an explicit contract not to cut wages.
◦ a relative-wage contract.

Question 2

Frito Lay experienced a 20% drop in its sales. Even though the demand for its product decreased, Frito Lay did not cut the wages of its nonunionized workers. This is an example of

◦ an explicit contract not to cut wages.
◦ employment-at-will.
◦ poor management.
◦ an implicit or social contract not to cut wages.

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