Principles of Business Law

Principles of Business Law Individual Written Assignment: ALL questions must be answered  FACTS: You are a new manager for Fun Gadget LLC, a limited liability company located in Albany, New York, that manufactures glowing pens and squared cups. Fun Gadget sells its gadgets in many shops and stores throughout the United States. In recent years the business grew significantly in North Carolina. As with any growth of any business, various legal issues arise and need to be reviewed. As a new manager, you are approached by your boss with a memo, which states: “We have some issues, which we need some quick guidance on. Please review and get back to me regarding the following 3 situations.” Situation 1 Assistant Manager Kevin has been making a lot of unwelcomed comments of a sexual nature to Rachel, the company’s secretary. Not only that but he also leaves around written ‘jokes’ he gets from the internet and these printouts are also of a sexual nature. He leaves these written ‘jokes’ on Rachel’s desk. Rachel complained about this on numerous occasions to the management team. When Kevin finally tried to touch Rachel’s leg, Rachel pulled away and told him firmly to stop. Kevin laughed and told Rachel “Relax” and “Lighten up a little”. Rachel was furious and marched immediately to the general manager’s office and demanded that Kevin is either transferred or she would “sue this company for sexual harassment”. Your boss therefore needs concise answer regarding this on the following questions from you, which you must explain in detail as he is no specialist in this area: 1. Can Rachel sue Kevin for any intentional torts? 2. Can Rachel sue under Title VII of the Civil Rights Act? 3. Can Rachel sue under the 14th Amendment of the U.S. Constitution? Situation 2 Fun Gadget LLC increased their profits as sand dollars became a very popular merchandising item for them, especially in North Carolina. Sand dollars are basically harvested by local fishermen from local waters in North Carolina. This meant that Fun Gadget LLC added 25 new and good paying jobs to the area, increasing the economic activity in North Carolina. At the same time, however, the increase in harvesting sand dollars means that local waters are depleted drastically of them. This results in local environmentalists filing public complaints even though research shows that a complete depletion of sand dollars will only occur in a few years to come. 1. List and describe the Business Ethics theories discussed in class. 2. Select the Business Ethics theory that you most agree with and use that theory to analyze the facts of this situation. Explain why this is the most ethical course of action for Fun Gadget LLC to pursue. Situation 3 In order for Fun Gadget LLC to deliver its gadgets to all its stores in the United States, Fun Gadget LLC is using their own regular staff of delivery truck drivers. However, during the busy season they occasionally hire a small fleet of private delivery men to cope with the extra demand. Clive from Perfect Delivery Service is one of these private delivery businesses Gadget LLC uses from time to time for the past 3 years. Gadget LLC likes working with Clive. He provides his own truck and pays for his gas by himself. Whenever Clive is helping out, he uses a magnet sign showing “Fun Gadget LLC” covering Perfect Delivery Service information. One day, Clive is running late making deliveries for Fun Gadget LLC, and therefore rushing in order to make up time. Not only did he drive 20 miles per hour over the speed limit in the residential neighbourhood, but he also caused an accident trying to beat a red light. He slammed into Heidi’s Ford Mustang. The young woman was badly injured, which resulted in many surgeries and extensive therapy. The memo from your boss asks you to research the following regarding this situation: 1. Is Fun Gadget LLC liable for Clive’s actions? Explain and apply the legal theory that will determine whether or not Fun Gadget LLC is liable for the acts of Clive. 2. Name the tort theory that Heidi can rely on to sue Clive and possibly Fun Gadget LLC. List the elements of this cause of action and apply the facts of this case to these elements, explaining your answer. 3. Assuming Fun Gadget LLC is liable, who at Fun Gadget LLC is liable, and what if any limits can be placed on this liability? Explain your answer.

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