The Goal Book Report

This essay has a total of 485 words and 3 pages.

The Goal

Final Exam
Legal Environment of Business
2003

Question 6: Pizza Hut case: Is either franchisor or franchisee liable for sexual
harassment? If so, what type of sexual harassment occurred? Please fully explain your
answer.


In this case, the franchisee is liable for the hostile work environment sexual harassment
type. However, the franchisor should not be held liable unless it can be proven that it
has central control over the day-to-day employment decisions of the subsidiary. I will
assume that the franchisee is independently owned and the franchisor has no control over
its labor relations and no control over it financial. In cases such as this, a critical
component in determining liability is which entity made the employment decision of the
person making the claim.


Factors that are considered in determining the existence of an illegal hostile work
environment include: the conduct's frequency, the conduct's severity, any physical threat
or humiliation (as opposed to merely offensive remarks), and the conduct's unreasonable
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