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Coursework on Business Law

The correct citation of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 is Public Law No.109-8, 119.It became fully effective last October 17, 2005.

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The law implements the new “means test” to determine whether a debtor is eligible for liquidation which is found in chapter 7 or must file under wage-earner repayment plan found in chapter 13.

In order to protect the interests of employees and for reasons of public interest, the law also set supervising random audits and targeted audits to determine whether a liquidation and debtor’s bankruptcy documents are accurate (The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, 2009, p. 1). It is true that businesses sometimes use bankruptcy as a means to address labor issues which includes reformed contract with the union.

The same is true with the case of United Airline Company when it had merger proceedings with US Airways, wherein several union members complained. The labor union is composed of the United Flight Attendants wherein its members fought for about 29 days to bring up the pilot’s contract dispute (AFA Announces United Flight Attendants Elect Militant Leadership, 2008, p. 1). The contract being fought for becomes successful due to the efforts of union members. Mr. Gardner violated the law.

The notice of garnishment on the wages of Clarence Ellis has nothing to do with his job in the company. It was a legal process wherein any person or entity with whom Mr. Ellis was indebted, may take his wages or money in the bank as payment. However, it was not related to the job of Mr. Ellis as laborer and carpenter. Hence, the grounds for firing him such as alcoholism, poor job performance, insubordination, and dishonesty being used by Mr. Gardner are not applicable. Therefore, Mr.

Gardner’s act of firing Mr. Ellis is baseless. References CBS Interactive Inc. 4 April 2008. AFA Announces United Flight Attendants Elect MilitantLeadership. Retrieved July 1, 2009, from http://findarticles. com/p/ articles/mi_m0EIN/is_2008_April_4/ai_n25126630/? tag=content-inner;col. U. S. Trustee Program/Dept. Of Justice. 2009. Bankruptcy Abuse Prevention and Consumer Consumer Protection Act of 2005. Retrieved July 1, 2009, from http://www. usdoj. gov/ust/eo/bapcpa/index. htm.

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