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) once the new policy was announced, the employees had to be given a chance to make counter-offers or there would be no 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 court held that continued employment was sufficient consideration for the new dispute resolution policy, making it an enforceable contract.

In Caley V