Vilante corp., a television manufacturing firm, observes that its profits are declining because of slow sales. therefore, it begins to promote the product to its consumers and dealers to maintain its market share. to distinguish its products from its competitors, it redesigns its television models stylistically. it also increases the product warranty from one year to three years. in this scenario, vilante's products are in the stage of the product life cycle.

Horton automatics and the industrial division of the communications workers of america, the union that represented horton’s workers, negotiated a collective bargaining agreement. if an employee’s discharge for a workplace-rule violation was submitted to arbitration, the agreement limited the arbitrator to determining whether the rule was reasonable and whether the employee had violated it. when horton discharged employee ruben de la garza, the union appealed to arbitration. the arbitrator found that de la garza had violated a reasonable safety rule, but “was not totally convinced” that horton should have treated the violation more seriously than other rule violations. the arbitrator ordered de la garza reinstated. can a court set aside this order