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College of Business and Economics
MAGT 602 Final Exam Ahmed Mehrez
Spring 2018 (30 points)
This test has two case study and four open-ended questions.
You are to answer as instructed
SECTION A: CASE STUDY: (18 points: 9 points on each case)
Read the following cases and answer the questions below.
Case 1: Limits on Credit Checks
It’s hard enough to find a job in this economy, and now some people are facing another hurdle: Potential employers are holding their credit histories against them. Sixty percent of employers recently surveyed by the society for Human resource Management said they run credit checks on at least some job applicants, compared with 42 percent in a somewhat similar survey in 2006.
Employers say such checks give them valuable information about an applicant’s honesty and sense of responsibility. But lawmakers in at least 16 states from South Carolina to Oregon have proposed outlawing most credit checks, saying the practice traps people in debt because their past financial problems prevent them from finding work.
Wisconsin state Rep. Kim Hixon drafted a bill in hit state shortly after hearing from Terry Becker, an auto mechanic who struggled to find work. Becker said it all started with medical bills that piled up when his now 10-year-old son began having seizures as a toddler. In the first year alone, Becker ran up $25,000 in medical dept. Over a four and half months period, he was turned down for at least eight positions for which he had authorized the employer to conduct a credit check, Becker said. He said one potential employer told him, “if your credit is bad, then you’ll steal from me.”
“I was in deep depression. I had lost a business, I was behind on my bills and I was unable to get a job,” he said. Hixon calls what happened to Becker discrimination based on credit history and said his bill would ban it. “if somebody is trying to get a job as a truck driver or a trainer in a gym, what does your credit history have to do with your ability to do that job?” Hixon asked. He said he knows of no research that shows a person with a bad credit history is going to perform poorly.
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