Kessler will sometimes obsess over minutiae where it's not even clear he's in the right (and sometimes he's actually wrong).
In my situations, I always make sure that there's a very high chance I'm correct, and I can prove it. My recent incident at Target is a good example of this, as was this tomatoes-on-the-side debacle of 2010.
Basically the common theme in all of these is that the employee is wrong and doesn't know what the fuck he/she is doing, digs their heels in and turns it into a battle of egos (rather than being open to realizing they're incorrect), and then they escalate it to the point where they break a ton of other company rules in the process of trying to one-up me.
Then I report it, and they get in trouble.
I have no sympathy for employees like that. Your job is not a power trip.
This Subway thing wasn't involving employees, instead a rogue franchise owner, but same concept applies. I reported his franchise to Subway, they agreed he was in violation of their agreement, and they compelled him to start allowing customers to get stuff on the side.