The recent reversal of administrative bungling in the Westhues case by independent adjudicator Peter Mercer has a number of important implications for all faculty members at the University of Waterloo. Over the last several years, the current administration has repeatedly resorted to a novel legal theory, under which arbitrary and unjust discipline imposed against faculty becomes justified through supposed inherent powers of "line management". Using this rationale, top administrators such as the President and Provost have bypassed existing University policies to impose their own flawed judgments. When informed of the ethical and legal obligation to follow applicable policies, their responses have consistently been arrogant and inadequate. Mercer's decision categorically rejects this abuse of power. In overturning the discipline imposed on Westhues, Mercer notes "There is in fact no policy at the University of Waterloo on discipline, save under Policy 53 dealing with dismissal of a tenured faculty member" and "Certainly there is no express or implied grant of authority to the Provost to improve such sanctions pursuant to Policy 33." The inadequacy of Waterloo's policies dealing with grievance disciplinary, and ethical issues has long been known to those on the Academic Freedom & Tenure Committee (AF & T) of the Faculty Association (FAUW), and those at CAUT. Indeed, in 1996, an independent CAUT fact-finding committee concluded that UW policies needed significant revision to ensure fair treatment for all parties. Instead of accepting these reasonable conclusions, and working to revise the policies, President Downey (CAUT Bulletin, November 1996) blustered, "No one who bothers to consider the facts of this case will mistake the [CAUT] AF&T Report for an impartial review. The disregard for fairness and natural justice in a body so free with advice to others on these matters is distressing but increasingly unsurprising." In his ad hominem attack, Downey failed to provide any rational basis to reject the CAUT report's conclusions. If there is anything to be grateful for, it is that President Downey will soon make way for another UW President -- hopefully someone with a genuine commitment to policy reform. Mercer's report also raises serious questions about the moral authority of the current Provost. During his tenure, Provost Kalbfleisch has exhibited an appalling lack of sensitivity on issues dealing with free inquiry: from his heavy-handed censorship of computer newsgroups and library newspapers to his unjustified attempt to discipline Westhues. I seriously question whether, in light of Mercer's decision, Provost Kalbfleisch continues to maintain the confidence of the university community. I call upon the Provost to either issue a public apology to Westhues or resign his position as the chief academic officer of the University of Waterloo. The final lesson is that, until current policies have been revised, no UW professor is safe. Any student may bring forth frivolous charges of racism without fear of penalty. If past experience is any guide, the Ethics Committee cannot be depended upon to distinguish valid charges from preposterous ones. And the current Provost cannot be depended upon to follow the terms of University policy and refrain from instituting arbitrary penalties of his own invention. In such a poisoned environment, how can free inquiry prosper? Jeffrey Shallit Computer Science