Does it make a difference when a job offer is made? For many, the answer may be no, but then, in HRM things are rarely cut and dried. Consider the events that took place in early 2005 at American Airlines.

In their quest to add flight attendants to their organization, company officials began a major recruiting effort. To deal with the numbers they anticipated, American representatives spent considerable time screening applicants through extensive phone interviews. Those who passed this initial screening were invited to Dallas, American’s headquarters, for group and individual interviews. For expediency’s sake and for competitive reasons, successful candidates were then given a conditional job offer—conditioned on passing a drug test, a background investigation, and a medical exam. These individuals were then taken to the company’s on-site medical facility, where they were asked to complete a personal history questionnaire and give a blood sample. Shortly thereafter, the results were available, and three individuals had a questionable blood test result. After discussing the matter with them, American officials learned that the three were HIV positive. Consequently, the company withdrew the conditional offer. As a result, the three applicants sued. 

At issue from American’s perspective was that the three individuals did not fully disclose their medical situation on the questionnaire—thus they lied on their “application.” American held that the conditional job offer was just that—conditional. They hadn’t completed the entire hiring process—such as the background check—and only after all relevant information is in do they actually make a real or permanent job offer. They also cited that employment law requires individuals to be honest in disclosing their medical conditions, which in this case the individuals did not. The first court to look at this matter agreed and dismissed the case in favor of American.....

Questions:
1. Do you believe American Airlines has the right to rescind a conditional job offer? Why?
2. Is the fact that American did not follow their standard hiring process a problem here? Explain.
3. Do you believe American Airlines has the right to not hire someone who is HIV positive? Defend your position.
4. If you were the judge at the trial, given the facts presented above, who would you rule in favor of—American or the three individuals? Why?