Question

Where there is substantial continuity in a unionized firm's operation after transfer of ownership occurs, the purchaser of the business would be classified as a new employer for the purpose of determining the employer's legal duty to bargain.

a. true
b. false

Answer 1

True, In a unionized firm, the purchaser of the business would be classified as a new employer for the purpose of determining the employer's legal duty to bargain if there is substantial continuity in the firm's operation after a transfer of ownership occurs.

Step-by-step explanation:

In a unionized firm, when there is substantial continuity in the firm's operation after a transfer of ownership occurs, the purchaser of the business would be classified as a new employer for the purpose of determining the employer's legal duty to bargain. This means that the new owner would have to fulfill the legal obligations related to bargaining with the union representing the employees.

For example, let's say a unionized company is sold to a new owner. If the new owner continues to operate the business in a similar manner, including employing the same unionized workforce, there is substantial continuity in the firm's operation. In this case, the new owner would be classified as a new employer and would have the legal duty to bargain with the union.