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Q . 4 . a . Assume that with reasonable efforts to mitigate, the terminated employees could find comparable work within one year of termination.

Q.4.a.Assume that with reasonable efforts to mitigate, the terminated employees could
find comparable work within one year of termination. What is a reasonable estimate of the employees economic losses due to the termination? (The value should be expressed as a present value, reflecting the time value of future payments.)
b.Assume that the jury believes the plaintiffs claim that the workers will be unemployed for an average of twenty years each. What is a reasonable estimate of the employees economic losses due to the termination? (The value should be expressed as a present value, reflecting the time value of future payments.)
Local Cushion Production (LCP) was a small business that manufactured bleacher seat pads that sports
fans or picnickers could use to make wooden outdoor seating (or even convenient rocks) a bit warmer
and more comfortable. The primary markets for LCPs product were college bookstores (to be sold to
students and alumni) and specialty advertising firms (for use as corporate give-a-ways). The firm was
organized in the second half of 2016 and began selling products in 2017.
LCP had a policy of providing an annual cost of living increase for its assembly workers to maintain a
constant annual cost of $24,500 per worker (1984 dollars). The production process requires one worker
for every sixteen tons manufactured. As of January 2020, up to ten of the assembly workers were
provided by a local Sheltered Workshop facility (a facility that provided and supervised disabled workers
for product assembly and piecework). This facility also rented the necessary manufacturing space to
LCP. Coast-to-Coast Prime Manufacturing (CPM), a local manufacturing conglomerate with some excess
capacity, provided the remaining workers and production space when more than ten disabled workers
were required. Coast-to-Coast Prime Manufacturing was also paid $24,500(inflation-adjusted) apiece for
its workers plus an additional fee for the rental of equipment and space.
In addition to manufacturing labor, LCP employed a clerical worker and a general manager but no sales
staff. Through December 2020, sales were generated primarily by manufacturers representatives who
received a standard 5% of sales as their commission.
In January 2020, Coast-to-Coast Prime Manufacturing purchased LCP. CPMs management team
immediately began supplementing sales efforts by adding the LCP products to their own manufacturer's
representatives lines. Otherwise, they operated LCP without significant changes. The Coast-to-Coast
Prime Manufacturing managers soon found that while sales were growing, profits were shrinking. The
management responded for the second half of 2020 by increasing the commission to their manufacturers
representatives from 5% to 6%. The sales force responded quickly, and sales boomed.
By July 2021, CPMs board of directors expressed some concern to management. Even though sales
were up, the deal was not proving to be profitable. At the end of July 2021, the board of directors was
informed that CPMs management team had decided to reduce LCPs production staff by letting go of
those employees provided by the Sheltered Work Facility.
It is now autumn 2022. CPM has been sued by a noted civil rights attorney claiming that closing down
the Sheltered Work Facility manufacturing operation was a wrongful termination of the workers in the
Sheltered Work Facility. Her court filings say that there was no valid business reason for selecting the
disabled workers for layoff rather than the nondisabled workers; in part, the court filings claim that the
layoff was wrongful because there was no economic justification for dismissing these workers who had
been at least as productive, and profitable, as their non-disabled counterparts for so many years. The
attorney claimed that this was obvious discrimination against the disabled and because of the
discrimination, her ten clients will be unemployed for an average of 20 years each.
The attorney is asking the court for a verdict of $19,600,000 as an appropriate award to her ten clients if
she prevails in her action. She estimated this figure by computing 20 years x 10 clients x $24,500=
$4,900,000, doubling it to account for her fees, then doubling that to account for future inflation.

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