John Li has worked as manager of a video store for six years. Since the 7-Eleven next door began renting movies for 97 cents per night, Li's business has fallen off drastically. Accordingly, the owner of the video store told Li that, because the business had fallen on such hard times, he would take over managing and Li would have to assume the counter duties. The present counter clerk would be laid off. The owner also told Li that his wages would be reduced by 15%. When Li came to work the next day, he told the owner that he wouldn't accept the job working at the counter. The owner became angry and said, "If you don't like it, then you can leave! I don't have to put up with your insubordination for one minute!" Li left and then sued the owner for unlawful dismissal. The owner argued that he had "just cause": economic slowdown and disobedience. Based on the above facts, identify the true statement.
◦ The owner could fire Li without notice or pay in lieu of notice because Li refused his order to take over the counter.
◦ The owner was justified in firing Li without notice or pay in lieu of notice because of economic slowdown.
◦ If Li were wrongfully dismissed, he does not have to mitigate his losses by looking for a new job until the case has been resolved.
◦ Li would win the unlawful dismissal action because the owner "dismissed" him by unilaterally changing Li's job without Li's consent and insisting that Li do it.
◦ The owner cannot dismiss without cause even if he gives proper notice or pay in lieu thereof.
John Richardson
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