Instructions:

1. Consider the questions following each case and provide short answers. The assignment is to be completed individually. Please do not discuss your answers with your colleagues.
2. Your discussion should be limited to one page per case and all answers should be typed.
3. If you are relying on any cases, provide proper case citations.

Case 2: RCR Catering and Pubs

Terry Schimp, 25, worked as a bartender for RCR Catering and Pubs. Although he was occasionally tardy, sometimes missed a staff meeting and was short on his cash a few times, he was considered a productive employee. At the end of a private function that RCR was catering, one of Schimp's supervisors noticed an open water bottle on his bar. He took a drink and discovered that it was vodka, not water. Suspecting that Schimp had stolen the vodka, the supervisor immediately fired Schimp. He was escorted off the premises in front of about 50 other staff members, and he was banned for six months from returning to the hotel premises where RCR's offices were located. Schimp was extremely upset, but within a month he was able to get a new job with the same hourly rate of pay, only without tips. He sued for wrongful dismissal. At trial he was awarded $30,000 in damages. On appeal, the

damages were reduced to $10,000, of which approximately $7,000 was compensation for the humiliation and degradation he suffered.

Questions:

1. Aside from the damage award, what costs did RCR incur as a result of this situation? (5 marks)
2. How should RCR have acted differently? (5 marks)