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Davis Hosiery Mills Has Each New Employee Sign a Form

Question 4

Multiple Choice

Davis Hosiery Mills has each new employee sign a form acknowledging receipt of the company's handbook. The handbook states that employees will be terminated for good cause only. It also contains a disclaimer, in small print, which informs the employee that the employment relationship is "at will." An employee of Davis Hosiery sues for wrongful termination.


A) The employee cannot sue because termination for good cause is not generally recognized as a limitation to employment-at-will, even when placed in an employee handbook.
B) Davis Hosiery will win the case because the employee signed a form acknowledging that the employment relationship at Davis Hosiery is "at will."
C) Depending on the statutes or court decisions in the state where Davis Hosiery is located, the employee can proceed with the lawsuit because the disclaimer was neither prominent nor conspicuous.
D) The employee cannot sue if she lost her copy of the handbook.

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