Inappropriate Behavior .docx

Inappropriate Behavior
12
Assignment 1: LASA 2: Legal and Ethical Leadership and
Management
Susan Pates
Argosy University Online
Businesses Law and Coporate Ethics BUS212 A01
Faculty: Jonathan McGovern
What civil rights laws may prohibit Marwan’s conduct with his
fellow co-worker? Do those laws apply to his conduct toward
the park guest?
The civil rights laws’ covering this case comes under Title VII
of the Civil Rights Act, 1964 (Cooper, 2010). This legislation
safeguards the employees against discrimination at workplace
on the basis of caste, color, creed, gender, origin (Cooper,
2010). The law applies to all employers whether national, state
or local. Any company having fifteen or more employees has to
adhere to this law. As per this law, a commission called Equal
Employment Opportunities Commission has been set up, to
protect people against discrimination and impose this as well as
other applicable laws. Discrimination at place of work has
always been in existence since long. The U.S. Authorities
initiated this law after hearing several cases of harassment. The
law safeguards both the employees as well as the applicants
applying for job. The law states that no employer can take
recruitment decision solely on the basis of the caste, color,
creed, gender, or origin of the applicant. He cannot favor
anyone on the basis of these factors while selecting or
promoting. Also the employer cannot assign any task to the
employee on the basis of these factors. The employer has no

right to determine the remuneration of an employee on the basis
of these factors. He cannot terminate the services of any worker
on the basis of these factors. Also the employer is not supposed
to show favoritism for paying perquisites, plan of sequestration,
leave on account of disability. The most important consideration
in this law is that employer cannot harass the employee on the
basis of any of these factors i.e. caste, color, creed, gender and
origin. It is unlawful to frontier, isolate or categorize employees
or the prospective candidates in any manner that can hamper
their employment opportunities.
The civil right laws are applicable to the park guests. He has
passed lewd remarks and gestures at some of his employees
especially the females that it would be right to consider his
behavior against the civil rights law- Title VII of the Civil
Rights Act, 1964. He has been described by the colleagues as a
discriminator towards the opposite sex. He has misconduct his
actions and behavior and has also harassed them to stop
working. Mr. Marwan has committed sexual harassment of the
female employees in two ways. Firstly he made inappropriate
body contact with them and secondly he even threatened them to
go on a date else he would get them fired. So both these
encounters are of the harassment under sexual nature and are
governed by the Title VII of the Civil Rights Act, 1964. The
unjust treatment given to female employees is punishable under
the Act. The conduct is not only dishonorable but also immoral
(Clark, 1991).
Did Marwan commit sexual harassment? If so, what type?
Explain your answers and the terms you use. Sexual harassment
occurs in the place of work when the employer passes remarks
verbally or non-verbally or makes a physical advance that is
intolerable to the employee. If the employer’s behavior results
in situation due to which the employee’s job is at risk or creates
mental stress which adversely affects the performance at work
or develops a non friendly working environment then it leads to
sexual harassment. These sufferers can be any person who is

affected by such unlawful behavior. The civil right laws
safeguard the employees against such intolerable and unethical
behavior of employers. Mr. Marwan has indulged in such
unethical behavior. The national and state laws forbid any
employer to undertake such activity. They also clearly mention
that an employer cannot strike back in opposition to any worker
who charges him under this law. Mr. Marwan has committed
sexual harassment of the female employees in two ways. Firstly
he made inappropriate body contact with them by touching her
breasts and other body parts and secondly he even threatened
them to go on a date else he would get them fired. Both these
instances come under the ambit of this law of sexual
harassment. The civil rights law forbids the employer to
discriminate on the basis of sex. The sexual harassment clause
is covered under this sex factor. There are two types of sexual
advances. One, when the employer asks the employee to return
sexual favors in condition to the employment. These favors
could be verbal, non-verbal or physical. They could be of
explicit or implicit in nature. This type of sexual harassment is
called Quid Pro Quo sexual harassment under the law. The
second type of sexual harassment is creating a non friendly and
non working environment for the employee i.e. creating a
hostile environment for work. In this the working atmosphere
of the employee is made unfriendly by passing remarks of
sexual nature and disturbing the mindset of the employee. This
type of environment affects the performance of the employee at
workplace.
What is the legal nature of Marwan's employment?Legally, Mr.
Marwan is not employed with the company. He has no
employment contract with the organization. An employee is said
to be employed only when he has an employment contract. The
law can offer protection under labor law only if the employment
contract is put in place. This is applicable even for those
circumstances where there is no written employment contract
between the employer and employee. There can be oral
employment contracts also. The employment contract is the

basis of the bond between the employer and employee. It is
because of this contract that an employer employee relationship
is created. All the labor laws will only be applicable if there is
an employer employee relationship i.e. there is an oral or
written employment contract.
As per the Act, the meaning of the employee is a person who is
employed by the employer. Exceptions to the definition are
those persons who has been voted for the office of the federal,
state or local by educated and recognized constituency or any
person who is selected by the above mentioned officer for his
own team or any appointed person for making policies and
agreements or any instant consultant chosen for exercising the
legal rights at the office. This exemption does not cover
individuals who are preachers of the civil laws of the service
agreements of the State, federal, any government authority or
any political division. In cases of employment in other
geographical territory, the term covers only US citizens.
Though Mr. Marwan has no legal employment contract with the
Studio Five but he can be said as the employee of the company
because he has been working there since a long period of time.
It would be wise to apply legal labor laws on him as well.
What actions and steps should Studio Five take against
Marwan? Explain what actions you considered and why you
either recommend them or reject them.
The employer Studio Five Theme Park has full right to take
action against Mr. Marwan. The allegation of the female
employee has to be proved after which the employer can take
appropriate action against him for his misconduct. A general
punishment could be that the employer can deduct certain
perquisites available to the employee. Also there is a
probability that the employer can deduct allowances from the
remuneration of the employee. The employer can also sue the
employee for paying damages caused to him and his company

and also the pay the legal fees involved. As per the civil rights
law, the range of the damages varies between $50,000 to $
300,000 as per the terms and conditions. The company can sue
the employee for hurting the reputation of the company. Also
the most important action would be to terminate the services of
the employee. This action is seen important in cases of sexual
harassment to safeguard the image of the employer and the
company in public and also forbid other employees to indulge in
such activities. A stricter course of action becomes an example
for everybody. As per the Act, the employee is liable to claim
punitive damages from the employer. The legal remedy
available to the employees against the discrimination of the
employer will not only get compensatory damages but also the
punitive damages. Punitive damages are designed for those
circumstances where the guilty is severely punished. Unlike the
compensatory damages where the designation as well as the
remuneration of the plaintiff is brought back to the original
position i.e. before the crime was committed, punitive damages
do not offer such window. They are simple rules to punish the
offender. Usually under compensatory damages the employees
who have discriminated levy reimbursement of legal fees or
payment of full remuneration, getting back the desired
designation, etc. but this is not so with the punitive damages.
The main aim of the punitive damages is to penalize the guilty
for his misbehavior. These are especially levied in cases of
sexual harassment. For claiming the punitive damages, the
victim need not prove in the court of law unlawful behavior.
Discuss Marwan’s allegation that he is being discriminated
against based on his disability and what response Studio Five
may have to that allegation. What would each of them have to
prove in court.
It will be unjust to say that Mr. Marwan is discriminated against
his physical disability. The senior position that Mr. Marwan
assumes in the company has not come just like this. It must
have taken a long period of time to establish such position. This

indicates that physical disability did not play a big role in
progressing him towards the senior position in the company. For
proving the case in the court of law, it is necessary to prove that
the instance happens rather than taking plea under the physical
disability clause. The employer Studio Five terminated the
services of the employee, Marwan. This was a right course of
action. As per the case law it is clear that Mr. Marwan is a man
of unethical behavior. He has been constantly involved in such
kind of activities. When the employees brought the case in front
of the employer, Studio five it was aptly clear that the company
was already aware of such instances happening before. When
Marwan finally crossed his limits beyond the boundary it
became clear that the company felt right to terminate his
services. Had the employer not terminated the services, the
employee with whom such act was done, would have lost faith
in the ideology of the company. So the action of the company is
truly justified. The given situation is very dicey as the cases of
sexual harassment are difficult to prove in the court of law
unless there is a third party who had witnesses the incidence.
However the act clearly says that any act of discrimination or
misconduct has to be proved in the court of law notwithstanding
any doubts against it. Mr. Marwan can take a plea that his
termination was done immediately without conducting any
investigation. So because he was terminated immediately
following a complaint, without giving him a reasonable time to
justify himself, led him to believe that he was removed from the
services because of his physical disability. Also there is a flip
side to the story. The Act provides that the complainant should
ensure that the orders of the Equal Employment Opportunity
Commission prior to filing the case. He is in a position where
he cannot prove his point and claim after a rational suspicion
will surely can negative points for him. The female employee
will have to prove that act of sexual harassment has been done
on her. This will be hard to prove if there were no witnesses at
the site of event. However keeping in mind the past behavior of
the offender, Mr. Marwan there is little room of doubt that such

an incidence did not occur. The female employee has a strong
case as the reputation of the offender Mr. Marwan is not good
with the other employees as well.
If the female employees sues Studio Five Theme Park, what
defenses can Studio Five use? Are they liable for Marwan's
conduct even if they were unaware of and did not approve of
Marwan's actions? Explain your answers and the terms you use.
If the female employee sues the company, Studio Five Theme
Park, then the company can always put forward a defense that it
was unaware of the situation. They can also prove in the court
of law that Mr. Marwan is a man of high standards and has been
with the company for a long period of time. Keeping in mind his
physical disability it becomes difficult to trust the allegations.
They can obviously go against the female employee and favor
Mr. Marwan as he has been in service since a long period of
time. Mr. Marwan is the employee of the studio. So it is their
personal liability take due course of action against an employee
who indulges in misbehavior. The company becomes easily
liable for the actions of the employee even if they are unaware
of it. Every company becomes liable for the actions of its
employees. When the employee is hired, whatever actions he
does at the place of work becomes the responsibility of the
company in which he is working. So ideally it is the liability of
the company to protect the female employee against the ghastly
actions of the other employee, Mr. Marwan. It is truly justified
that the company did not approve of the misconduct of the
fellow employee because it was unreasonable to do so. It would
have been unethical if the company would have favored Mr.
Marwan.
If Marwan was a member of a union that had a collective
bargaining agreement with Studio Five, would that change any
of your previous answers?
Yes the answer would have changed in such a case when the
union has the power to protect the employees because Marwan
was a man of high knowledge and dominance of level in the
company. He was in such a strong position that if nay female

employee also made allegations against him then it would have
been very difficult to prove it and terminate him. Collective
bargaining is a process in which there are formal negotiations
between the employers and the selected representatives which
were selected among the workers. When there was collective
bargaining the Union and the management made various kinds
of discussions to determine wages, benefits and other working
conditions (Silva , 1996). Agreements have reached the
bargaining table which is written legally in the binding contract
or other collective bargaining agreement. Every member of the
company has the right to have a collective bargaining treatment.
The goal is to provide a process in which the workers have the
equal power with the management in order so as to influence the
working conditions. The right to bargain together was found in
the National Labor Relations Act (NLRA) passed by Congress
in 1935. This act says that the individual workers have the
power to obtain what they want but together with the Union
they have the right and the power to obtain. When the efforts
are united together than mutual gains are seen. A union deserves
the best to improve the conditions where they work as union
power is a member power. If the members are actively
organizing than the agendas are there for improvements and
participate in bargaining process.
What types of company policies, procedures, and actions should
businesses employ to avoid harassment of their employees?
An employer has the responsibility to maintain the work place
that is free of any kind of sexual harrassment. This is a very
big legal obligation and very important also. If there is any
kind of sexual harrasment in the work place than there will be
poor employee morale, low productivity and the company will
have a bad name.
STRATEGIES FOR PREVENTION:
It’s necessary to take certain steps which are necessary for
sexual harassment:

· Sexual harassment policy: - a sexual harassment policy should
include terms that will not tolerate sexual harassment, state
which will discipline or fire any wrong doers, set out a clear
procedure for making sexual harassment complaints , state that
will in order tell fully detailed reports regarding sexual
harassment.
· Training employees:- its necessary that companies once every
year conduct training sessions for the employees which teaches
the employees what a wrong deed sexual harassment is ,
explaining that employees have a right to work place which is
free from sexual harassment and other procedures.
· Train supervisors and mangers: - conducting training sessions
for supervisors and managers that are needed to separate
employees .
· Keeping an eye on the work place
· Asking the employees if they are facing any problems in the
workplace. Making sure nothing is interpreted as sexual
harassment has been seen or heard. Taking appropriate actions
in case of sexual harassment when its expected or suspected.
References
Cooper, S. (2010, October 27).Title vii, civil rights act of 1964.
Retrieved from http://www.princeton.edu/
Clark, Charles. "Sexual Harassment: Men and Women in
Workplace Power Struggles." Washington, DC: Congressional
Quarterly, Inc., 1991.

Silva , S. (1996).Collective bargaining negotiations. Retrieved
from http://www.ilo.org/
Which of the following is an advantage of corporations relative
to partnerships and sole proprietorships?
Reduced legal liability for investors.
Most common form of organization.
Harder to transfer ownership.
Lower taxes.
The group of users of accounting information charged with
achieving the goals of the business is its
auditors.
managers.
investors.
creditors.
Which of the following financial statements is concerned with
the company at a point in time?

Retained Earnings statement.
Statement of cash flows.
Balance sheet.
Income statement.
An income statement
summarizes the changes in retained earnings for a specific
period of time.
presents the revenues and expenses for a specific period of time.
reports the assets, liabilities, and stockholders’ equity at a
specific date.
reports the changes in assets, liabilities, and stockholders’
equity over a period of time.
The most important information needed to determine if
companies can pay their current obligations is the
relationship between current assets and current liabilities.
projected net income for next year.

relationship between short-term and long-term liabilities.
net income for this year.
A liquidity ratio measures the
ability of a company to survive over a long period of time.
percentage of total financing provided by creditors.
short-term ability of a company to pay its maturing obligations
and to meet unexpected needs for cash.
income or operating success of a company over a period of time.
The convention of consistency refers to consistent use of
accounting principles
among firms.

throughout the accounting periods.
within industries.
among accounting periods.
Horizontal analysis is also known as
trend analysis.
vertical analysis.
common size analysis.
linear analysis.
Horizontal analysis is a technique for evaluating a series of
financial statement data over a period of time
to determine which items are in error.
to determine the amount and/or percentage increase or decrease
that has taken place.
that has been arranged from the highest number to the lowest
number.

that has been arranged from the lowest number to the highest
number.
Vertical analysis is a technique that expresses each item in a
financial statement
in dollars and cents.
as a percent of the item in the previous year.
as a percent of a base amount.
starting with the highest value down to the lowest value.
Process costing is used when
the production process is continuous.
production is aimed at filling a specific customer order.
dissimilar products are involved.
costs are to be assigned to specific jobs.
An important feature of a job order cost system is that each job
must be completed before a new job is accepted.

must be similar to previous jobs completed.
has its own distinguishing characteristics.
consists of one unit of output.
In a process cost system, product costs are summarized:
when the products are sold.
after each unit is produced.
on production cost reports.
on job cost sheets.
An activity that has a direct cause-effect relationship with the
resources consumed is a(n)
overhead rate.
cost pool.
product activity.

cost driver.
Activity-based costing
accumulates overhead in one cost pool, then assigns the
overhead to products and services by means of a cost driver.
assigns activity cost pools to products and services, then
allocates overhead back to the activity cost pools.
allocates overhead directly to products and services based on
activity levels.
allocates overhead to multiple activity cost pools, and it then
assigns the activity cost pools to products and services by
means of cost drivers.
A cost which remains constant per unit at various levels of
activity is a
manufacturing cost.
variable cost.
fixed cost.
mixed cost.
The break-even point is where

total sales equal total fixed costs.
contribution margin equals total fixed costs.
total variable costs equal total fixed costs.
total sales equal total variable costs.
Fixed costs are $600,000 and the contribution margin per unit is
$150. What is the break-even point?
4,000 units
1,500 units
$1,500,000
$4,000,000
When a company assigns the costs of direct materials, direct
labor, and both variable and fixed manufacturing overhead to
products, that company is using
product costing.
absorption costing.
variable costing.

operations costing.
If a division manager's compensation is based upon the
division's net income, the manager may decide to meet the net
income targets by increasing production when using
variable costing, in order to decrease net income.
variable costing, in order to increase net income.
absorption costing, in order to decrease net income.
absorption costing, in order to increase net income.
An unrealistic budget is more likely to result when it
has been developed in a bottom up fashion.
has been developed in a top down fashion.
has been developed by all levels of management.
is developed with performance appraisal usages in mind.
A major element in budgetary control is
the preparation of long-term plans.

the comparison of actual results with planned objectives.
the valuation of inventories.
approval of the budget by the stockholders.
The purpose of the sales budget report is to
control selling expenses.
determine whether sales goals are being met.
determine whether income objectives are being met.
control sales commissions.
The accumulation of accounting data on the basis of the
individual manager who has the authority to make day-to-day
decisions about activities in an area is called
master budgeting.
responsibility accounting.
static reporting.
flexible accounting.

Variance reports are
(a) external financial reports.
(b) SEC financial reports.
(c) internal reports for management.
(d) all of these.
Internal reports that review the actual impact of decisions are
prepared by
factory workers.
department heads.
the controller.
management accountants.
The process of evaluating financial data that change under
alternative courses of action is called
incremental analysis.
cost-benefit analysis.

double entry analysis.
contribution margin analysis.
Seasons Manufacturing manufactures a product with a unit
variable cost of $100 and a unit sales price of $176. Fixed
manufacturing costs were $480,000 when 10,000 units were
produced and sold. The company has a one-time opportunity to
sell an additional 1,000 units at $140 each in a foreign market
which would not affect its present sales. If the company has
sufficient capacity to produce the additional units, acceptance
of the special order would affect net income as follows:
Income would decrease by $8,000.
Income would increase by $8,000.
Carter, Inc. can make 100 units of a necessary component part
with the following costs:
Direct Materials
$120,000
Direct Labor
20,000
Variable Overhead
60,000
Fixed Overhead
40,000

If Carter can purchase the component externally for $220,000
and only $10,000 of the fixed costs can be avoided, what is the
correct make-or-buy decision?
Make and save $10,000
Buy and save $30,000
Make and save $30,000
Buy and save $10,000
A company has a process that results in 15,000 pounds of
Product A that can be sold for $16 per pound. An alternative
would be to process Product A further at a cost of $200,000 and
then sell it for $28 per pound. Should management sell Product
A now or should Product A be processed further and then sold?
What is the effect of the action?
Sell now, the company will be better off by $200,000.
Process further, the company will be better off by $180,000.
Process further, the company will be better off by $20,000.
Sell now, the company will be better off by $20,000.

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