In Caley v. Gulfstream Aerospace, the employer told the employees that as a condition of continued employment they had to agree to a new dispute resolution policy that would take effect in two weeks. Caley sued, contending the new policy was not backed by consideration, so there was no enforceable contract. The appeals court held that:
A) the employees would have to be given something extra beyond the same employment conditions for there to be consideration for a contract
B) continued employment was consideration; there was a contract
C) there was no contract because the parties never bargained
D) in employment relationships there are no contracts, so consideration is irrelevant
E) none of the other choices

Question

Quizplus · Accepted Answer

The appeals court held that continued employment was a valid form of consideration, so the employees agreeing to the new dispute resolution policy as a condition of continued employment created an enforceable contract.

In Caley V