BUISNESS OF LAW- CASE ANALYSIS

Samuel Fox worked as a seaman on an Exxon Shipping Co. oil tanker for more that eight years without incident. Then, one day, he boarded a ship for duty while intoxicated. This violated Exxon company policy. The policy allowed Exxon to discharge intoxicated employees as unfit for work. Exxon discharged Fox.

Under a collective bargaining agreement between Exxon and the union representing their employees, the discharge was submitted to arbitration. The arbitrator ordered Exxon to reinstate Fox to his position on an oil tanker. Exxon filed suit against the union, challenging the arbitration award as contrary to public policy.

1. What public policy is Exxon referring to? Explain.

2. Should the court set aside this award? Explain.