By December 1940, the Guild had a contract with MGM, home of Hanna-Barbera and the Tom & Jerry cartoons. MGM artists, especially the inkers, painters, in-betweeners, and assistants who occupied the lowest rungs of the production process, received raises, but Walt refused to negotiate with the Guild.

True

Explanation:

It is true that Walt Disney refused to negotiate with the Guild in 1940. This was a successful year for Disney, and it was the year the company had its first public offering. It was also not long after the company bought its new Walt Disney Studios, in which the company is headquartered to this day. 1940 was also the year that saw the release of two new movies: Pinocchio and Fantasia.