The Legal Environment of Business: Text and Cases
The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 21, Problem 7BCP
Summary Introduction

Case summary: Person J was an employee of a Pizza company N. The GM of N harassed J sexually and racially. J complained this to the shift leader and assistant manager, but they didn’t report it because they were sub-ordinate to the GM. Then, J complained to the employer who had authority over GM which resulted in the termination of GM within four days. J filed a suit to impose liability on the employer for the conduct of GM.

To find:The best defense available to N.

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Cross Collectibles currently fills mail orders from all over the U.S. and receipts come in to headquarters in Little Rock, Arkansas. The firm's average accounts receivable (A/R) is $3.7 million and is financed by a bank loan with 12.5 percent annual interest. Cross is considering a regional lockbox system to speed up collections which it believes will reduce A/R by 23 percent. The annual cost of the system is $15,000. What is the estimated net annual savings to the firm from implementing the lockbox system?
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