National Foods, Inc., sells franchises to its fast food restaurants, known as Chicky-Ds. Under the franchise agreement,
Question:
National Foods, Inc., sells franchises to its fast food restaurants, known as Chicky-D’s. Under the franchise agreement, franchisees agree to hire and train employees strictly according to Chicky-D’s standards. Chicky’D’s regional supervisor are required to approve all job candidates before they are hired and all general policies affecting those employees. Chick-D’s reserves the right to terminate a franchise for violating the franchisor’s rules. In practice, however, Chicky-D’s regional supervisors routinely approve new employees and individual franchisees’ policies. After several incidents of racist comments and conduct by Tim, a recently hired assistant manager at a Chicky-D’s, Sharon, a counter person at the restaurant, resigns. Sharon files a suit in a federal district court against National. National files a motion for summary judgment, arguing that it is not liable for harassment by franchise employees. Will the court grant National’s motion? Why or why not?
Business Law Text and Cases
ISBN: 978-0324655223
11th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F