Law, Business, and Society 9th Edition by Tony McAdams

Exercise 32

Guz, a longtime Bechtel employee, was dismissed during what Bechtel said was a business slump. Bechtel's personnel policy included a provision saying employees "may be terminated at the option of Bechtel." Guz sued for wrongful dismissal claiming, among other things, that Bechtel breached an implied contract to be terminated only for good cause, and that Bechtel breached the implied covenant of good faith and fair dealing. A lower court concluded that Guz's promotions, raises, favorable performance reviews, together with Bechtel's progressive discipline policy and Bechtel officials' statements of company practices supported Guz's position. Bechtel appealed. Decide. Explain. See Guz v. Bechtel National Inc., 8 P.3d 1089 (Cal. S.Ct. 2000).