Legal obligations and boundaries


Problem:

Discuss the legal obligations a company and managers may hold in the following situation.

The setting is a company break room. Frank is a corporate sales supervisor known for "flirting" with female sale associates. Mary is a young female sales professional.

Frank- I see you finally landed the chairs r' us account, I bet that took a lot of "persuasion" on your end. I saw that you took Mr. Miller out to lunch five times this week. I bet he enjoyed "dessert".

Mary(puzzled)- Yes, I am very excited about the account. Mr Miller and I spent a great deal of time working out the sales contract.

Frank(walks closer to Mary) - I bet he is. Listen, I have to sign off on your expense report for these lunch meetings. I think it will be a good idea if we discuss this over dinner tonight. I mean...I just want to make sure everything is legitimate for the big bosses, you know. I mean...I wouldn't want you to get in trouble or anything.

Mary(begins to feel apprehensive)- I really think it will be better if I just meet you tomorrow at the office. I have an open hour at 10 am tomorrow, is that all right?

Frank(walks even closer to Mary)- I really think it is in your best interest to meet with my tonight for dinner. You might get in trouble on this expense account, and if you want me to sign off....you are going to have to give me a reason...you know what I mean?

Mary refuses Frank's advances by walking away and immediately contacts human resources.

At this point, describe what happened to Mary. Describe the legal boundaries that Frank's actions crossed and develop a course of action to correct this work environment as you see best. Use your knowledge gained within this scenario. did Frank abuse his position of power, authority, and trust as a supervisor? Additionally, discuss federal laws, agencies, and protections pertinent to this situation.

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Business Law and Ethics: Legal obligations and boundaries
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