CHAPTER 12 – AGENCY, EMPLOYMENT, AND EQUAL OPPORTUNITY LAW A. Chapter Introduction Chapter 12 introduces the subject of agency law, including the formation of the agency relationship, contractual and tort liability of a principal for the agent’s acts, and independent contractors. The chapter also discusses employment law and equal opportunity law, including workers’ compensation, civil rights statutes, age discrimination law, and the Americans with Disabilities Act. After completion of this chapter, students should be able to: B. Define an agency. Identify and define a principal-independent contractor relationship. Describe how express, implied, and apparent agencies are created. Describe the principal’s and agent’s liability on third-party contracts. Identify and describe the principal’s liability for the tortious conduct of an agent. Explain how state workers’ compensation programs work and describe the benefits available. Describe the protections afforded by the Occupational Safety and Health Act. Describe the scope of coverage of Title VII of the Civil Rights of 1964. Describe the protections afforded by the Americans with Disabilities Act. Describe labor union law, including collective bargaining. Instructional Ideas 1. Explain the significance of agency law and why it is necessary for the conducting of business that principals have agents. 2. Distinguish between the following relationships: employer-employee, principal-agent, and principal-independent contractor. 3. Discuss the scope of employment doctrine, explaining why it is that employers (or principals) are liable for the torts of their employees (or agents) committed within the scope of employment. Have the students think of examples of employee misconduct that would not result in the employer being liable. Then, have the students alter the facts of those examples so that the employer would be liable. 4. Explain what a power of attorney is, using examples provided in the text or on Findlaw.com, to show the types of authority a principal can give his or her attorney-in-fact. 5. Discuss the contract liability of principals to third parties. Distinguish between fully disclosed, partially disclosed, and undisclosed agencies. You might want to discuss, as an example, how the Walt Disney Co. used straw men as agents to purchase farm land in the Orlando area in order for Walt Disney World to be built. C. 6. Explain what an independent contractor is and why that status is different from that of an employee. Discuss the exceptions to the general rule that a principal is not liable for the torts of the independent contractor. 7. Explain the purposes and some of the content of the Occupational Safety and Health Act. Ask the students whether they know of those who have been impacted by OSHA (e.g., have they worked in an unsafe work environment?). 8. Discuss the significance of Title VII of the Civil Rights Act of 1964, and explain some of the basic aspects of its scope. 9. Explain what sexual harassment is and how employers can limit their liability for such misconduct. Ask the students for their thoughts on whether the sexual harassment laws go far enough to protecting employees or whether they have gone too far in creating a politically correct, sterile work place. 10. Explain how workers’ compensation laws work. Pull your jurisdiction’s workers’ compensation statutes and key cases, and show your students what workers’ compensation covers and doesn’t cover. Video Recommendation(s) The life and disappearance of Jimmy Hoffa is adequately displayed in Hoffa, starring Jack Nicholson as the union organizer and Teamster boss. Weeks v. Baker and Mackenzie: The Price of Harassment is a Court TV documentary that excellently portrays a suit by a legal secretary against her employer, the world’s largest law firm, for alleged sexual harassment she received by her boss, one of the firm’s partners. The documentary shows clips from the trial and interviews of some of the key participants and is thoughtful and provocative. Although a risky choice, Disclosure might be the type of provocative choice for a chapter that could be considered a sleeper by some students. Theatrical treatments of sexual harassment are controversial enough, but throw in that the man (Michael Douglas) accused of harassment believes he was the victim and not the harasser, and that the real harasser is the woman (Demi Moore), who is not only his boss but a former lover, and you have quite a barn burner. D. Chapter Outline I. The Nature of Agency A. Definition: A fiduciary relationship that results from the manifestation of consent by one person to act on behalf of another person with that person’s consent. B. Parties: 1. Principal: party who employs another person to act on his or her behalf. 2. Agent: party who agrees to act on behalf of another person. II. Kinds of Employment Relationships A. Employer-Employee: An employer hires an employee to perform some form of physical service. An employee is not an agent unless the principal authorizes him or her to enter into contracts on the principal’s behalf. B. Principal-agent relationship: An employer hires an employee and authorizes the employee to enter into contracts on the employer’s behalf. C. Principal-independent contractor relationship: Principal employs a person who is not an employee of the principal. The independent contractor has authority only to enter into contracts authorized by the principal. III. Formation of the Agency Relationship A. Express Agency: Principal and agent expressly agree in words to enter into an agency agreement. The agency contract may be oral or written unless the Statute of Frauds requires it to be in writing. B. Implied Agency: An agency is implied (inferred) from the conduct of the parties. C. Apparent Agency: Arises when a principal creates an appearance of an agency that in actuality does not exist. Also called agency by estoppel or ostensible agency. D. Agency by Ratification: Occurs when a person misrepresents him- or herself as another’s agent when he or she is not and the purported principal ratifies (accepts) the unauthorized act. IV. Contract Liability to Third Parties A. Fully Disclosed Agency: The third party entering into the contract knows that the agent is acting for a principal and knows the identity of the principal. The principal is liable on the contract; the agent is not liable on the contract. B. Partially Disclosed Agency: The third party knows that the agent is acting for a principal but does not know the identity of the principal. Both the principal and the agent are liable on the contract. C. Undisclosed Agency: The third party does not know that the agent is acting for a principal. Both the principal and the agent are liable on the contract. V. Tort Liability to Third Parties A. Misrepresentation: Principals are liable for intentional and innocent misrepresentation made by an agent acting within the scope of his or her employment. B. Negligence: Principals are liable for the negligent conduct of agents acting within the scope of their employment. Special negligence doctrines include: 1. Frolic and detour: Principals are generally relieved of liability if the agent’s negligent act occurred on a substantial frolic and detour from the scope of employment. 2. “Coming and going” rule: Principals are not liable if the agent’s tortious conduct occurred while on the way to or from work. 3. Dual-purpose mission: If the agent is acting on his or her own behalf and on behalf of the principal, the principal is generally liable for the agent’s tortious conduct. C. Intentional Torts: States apply one of the following rules: 1. Motivation test: The principal is liable if the agent’s intentional tort was committed to promote the principal’s business. 2. Work-related test: The principal is liable if the agent’s intentional tort was committed within a work-related time or space. Agents are personally liable for their own tortious conduct. V. Independent Contractor A. Liability for Independent Contractor’s Torts: Generally, principals are not liable for the tortious conduct of independent contractors. Exceptions to the rule are for: 1. Nondelegable duties 2. Special risks 3. Negligence in selecting an independent contractor Independent contractors are personally liable for their own torts. VI. Termination of an Agency and Employment Contract A. Termination by Acts of the Parties: The following acts of the parties terminate agency contracts: 1. Mutual agreement. 2. Lapse of time. 3. Purpose achieved. 4. Occurrence of a specified event. B. Wrongful Termination of an Agency Contract: If an agency is for an agreed-upon term or purpose, the unilateral termination of the agency contract by either the principal or the agent constitutes the wrongful termination of the agency. The breaching party is liable to the other party for damages caused by the breach. VII. Workers’ Compensation A. Workers’ Compensation Acts: State statutes that create an administrative procedure for workers to receive payments for jobrelated injuries. 1. Worker’s compensation insurance: Most states require employers to carry private or government-sponsored workers’ compensation insurance. Some states permit employers to selfinsure. B. Employment-Related Injury: To be compensable under workers’ compensation, the claimant must prove that the injury arose out of and in the course of his or her employment. C. Exclusive Remedy: Workers’ compensation is an exclusive remedy. Thus, workers cannot sue their employers to recover damages for jobrelated injuries. VIII. Occupational Safety and Health Act A. Occupational Safety and Health Act: Federal statute that requires employers to provide safe working conditions. 1. Occupational Safety and Health Administration (OSHA). Federal administrative agency that administers and enforces the Occupational Safety and Health Act. B. Specific and General Standards: 1. Specific duty standards. Safety standards for specific equipment (e.g., lathe) or industry (e.g., mining). 2. General duty standards. Impose a general duty on employers to provide safe working conditions. IX. Title VII of the Civil Rights Act of 1964 A. Description: Federal statute that prohibits job discrimination based on the (1) race, (2) color, (3) religion, (4) sex, or (5) national origin of the job applicant. B. Scope of Coverage of Title VII 1. Employment decisions subject to Title VII. Decisions regarding hiring; promotion; demotion; payment of salaries, wages, and fringe benefits; job training and apprenticeships; work rules; or any other “term, condition, or privilege of employment.” C. Protected Classes: Employment discrimination based on the following protected classes is forbidden by Title VII: 1. Race: Broad class based on common physical characteristics 2. Color: Skin color 3. National origin: A person’s national heritage 4. Sex: Male or female 5. Religion: Discrimination solely because of a person’s religious beliefs or practices. An employer has a duty to reasonably accommodate an employee’s religious beliefs if it does not cause an undue hardship on the employer. D. Sexual Harassment: Lewd remarks, touching, intimidation, posting pinups, and other verbal or physical conduct of a sexual nature that occurs on the job. Sexual harassment that creates a hostile work environment violates Title VII [Meritor Savings Bank v. Vinson, 477 U.S. 57 (1986)]. X. Age Discrimination in Employment Act (ADEA) A. Description: Federal statute that prohibits employment discrimination against applicants and employees who are 40 years of age and older. XI. Americans with Disabilities Act (ADA) A. Description: Federal law that imposes obligations on employers and providers of public transportation, telecommunications, and public accommodations to accommodate individuals with disabilities. B. Title I of ADA: Federal law that prohibits employment discrimination against qualified individuals with disabilities. Requires employers to make reasonable accommodations to accommodate employees with disabilities that do not cause undue hardship to the employer. XII. Labor Union Law A. Organizing a Union: 1. Section 7 of the National Labor Relations Act (NLRA) gives employees the right to join together and form a union. 2. Appropriate bargaining union is the group of employees that a union is seeking to represent. B. Collective Bargaining: Process whereby the union and employer negotiate the terms and conditions of employment for the covered employee union members. 1. The collective bargaining agreement is the contract resulting from collective bargaining. C. Strikes: A strike is a cessation of work by union members in order to obtain economic benefits, to correct an unfair labor practice, or to preserve their work. The NLRA gives union employees the right to strike. D. Picketing: Striking employees and union organizers walking around the employer’s premises, usually carrying signs, notifying the public of their grievance against the employer. 1. Illegal picketing. Picketing is illegal if it is accompanied by violence or obstructs customers, nonstriking workers, or suppliers from entering the employer’s premises. 2. Secondary boycott. Picketing conducted at a third party’s premises. Product picketing against the products of the struck employer is lawful. It is illegal if it is directed against the neutral employer. E. Critical Legal Thinking Questions 1. Define an agency. What purpose does an agency serve? The Restatement (Second) of Agency defines agency as a fiduciary relationship “which results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.” Agency serves the purpose of one person (the principal) getting another (the agent) to transact business with on behalf of the principal. 2. Define an independent contractor. What factors does a court look at in determining whether an independent contractor status exists? An independent contractor is an outsider—someone who is not an employee—hired to perform certain tasks on the hiring party’s behalf. Examples of independent contractors include doctors, lawyers, real estate brokers, and plumbers. The factors used to determine whether one is an independent contractor include the method of paying the one doing the task and the level of control exerted over the day-to-day activities of the one doing the task. 3. Explain the tort liability of a principal and agent. Explain the tort liability of a principal and an independent contractor. The principal and the agent are each personally liable for their own tortious conduct, while the principal is liable for the tortious conduct of an agent who is acting within the scope of his or her authority. Generally, a principal is not liable for the torts of its independent contractors because independent contractors are personally liable for their own torts. But, there are exceptions, including when there are nondelegable duties, special risks, or negligence in the selection of an independent contractor. 4. Describe workers’ compensation laws. What are the public purposes for this law? Workers’ compensations laws create an administrative procedure for workers to receive compensation for employment-related injuries, and the benefits are paid according to preset limits established by statute or regulation. In exchange for workers’ compensation, employees may not sue their employers for negligence (since fault isn’t an issue). Workers’ compensation laws were enacted in response to the unfairness resulting from many injured and dead employees being uncompensated in the legal system. 5. Describe occupational safety laws. What are the public purposes for this law? OSHA created OSHA (the agency, not the statute) to administer work place safety laws. OSHA has created thousands of regulations to enforce the safety standards established by the act, which include Specific Duty Standards and General Duty Standards. OSHA is empowered to inspect work places for hazards and safety violations, and can issue a written citation for violations. 6. What are the protected classes under Title VII of the Civil Rights Act of 1964? The protected classes under Title VII are race, color, religion, sex, or national origin. 7. Describe the protections afforded by the Family and Medical Leave Act. Why did Congress pass this act? The FMLA guarantees unpaid time off from work for medical emergencies. Covered employers are required to provide up to 12 weeks of unpaid leave during any 12-month period due to occurrence of certain family related events, such as birth or adoption. Why did Congress pass this act? Perhaps it is on a slow march to socialism. F. 8. Define sexual harassment. Give some examples of sexual harassment. Sexual harassment includes refusing to hire or promote someone unless he or she has sex with the manager or supervisor, as well as lewd remarks, touching, intimidation, posting pinups, and other verbal or physical conduct of a sexual nature. An example of sexual harassment would be if a governor asks a state employee for sexual favors in return for a promotion or pay raise. 9. Describe the protections afforded by the Americans with Disabilities Act (ADA). The ADA imposes obligations on employers and providers of public transportation, telecommunications, and public accommodations to accommodate individuals with disabilities. Title I of the ADA prohibits employment discrimination against qualified individuals with disabilities in regard to job application procedures, hiring, compensation, training, promotion, and termination. It requires employers to make reasonable accommodations to individuals with disabilities that do not cause undue hardship to employers. 10. What functions are served by federal labor union laws? Section 7 of the NLRA gives employees the right to join together and form a union. Once a union has been elected, the employer and the union discuss the terms of employment of union members through collective bargaining. Employers and unions are required to negotiate in good faith. The NLRA gives union management the right to recommend that the union call a strike if a collective bargaining agreement cannot be reached. The right to picket is implied from the NLRA and is lawful, unless it is accompanied by violence, obstructs customers from entering the employer’s place of business, prevents nonstriking employees from entering the employer’s premises, or prevents pickups and deliveries at the employer’s place of business. An employer may seek an injunction against unlawful picketing. Cases for Discussion Edgewater Motels, Inc. v. Gatzke and Walgreen Co., 277 N.W.2d 11 (Minn. 1979), concerned the question of whether Walgreen was vicariously liable for the fire damage to the Edgewater Motel that Walgreen’s employee, Gatzke, caused by the lit cigarette he left near a waste basket in his hotel room. Gatzke was staying at the Edgewater because he, as Walgreen district manager, was in Duluth supervising the opening of a new store. Having worked 17 hours that day and spending time in a bar drinking with other Walgreen’s employees, Gatzke went back to his room to fill out his expense account— and smoke. The Minnesota Supreme Court ruled that Walgreen was vicariously liable for Gatzke’s negligence because it concluded that his smoking in his hotel room was within the “scope of employment.” The court concluded that there was ample evidence from which a jury could reasonably find that Gatzke resumed his employment activities after he returned from the bar to his motel room and filled out his expense account. QUESTIONS 1. Should smoking cigarettes be held to be within an employee’s “scope of employment”? Why or why not? This is an opinion question designed to promote class discussion. Here is a more interesting question: if smoking is within the scope of Gatzke’s employment and he contracts lung cancer, can he sue his employer for negligently causing his injury, or can he apply for workers’ compensation? One supposes the court concluded as it did because the smoking accompanied the completion of the expense account. 2. Do employers owe a duty to police the personal habits of their employers? To some extent, they do owe such a duty, but this question is more of an opinion question on how much policing should be done. It might not have been the smoking that caused the fire so much as the drinking that led to the careless smoking. Should Walgreen refuse to hire anyone who smokes or drinks? 3. Because of the dangers of smoking, would employers be justified in hiring only nonsmokers as employees? This was discussed above, but it is certainly an interesting opinion question. Smith v. Workers’ Compensation Appeals Board, 236 Cal.Rptr. 248 (1987), concerned whether the death of a temporary teacher at a school outing was covered by workers’ compensation. Smith was a temporary math teacher and sports coach whose employment contract made his annual evaluation based upon his teaching and “sponsorship or the supervision of out-of-classroom student activities.” The school’s math club held a picnic at a reservoir and invited Smith, who attended with his family. A student brought a windsurfer and Smith tried using it, but he fell and died shortly thereafter. His wife sought workers’ compensation benefits, to which the school objected and the workers’ compensation judge and appeals board denied. The California Court of Appeals reversed, concluding that Smith was engaged in employment-related activities when the accident occurred. Smith’s status as a temporary teacher was clearly dependent upon his participation in school-related activities, and the math club picnic was clearly such an activity. The injury was causally related to his employment, since his attendance at the picnic was an implied requirement of Smith’s employment. QUESTIONS 1. Should workers’ compensation benefits be awarded only for accidents that occur at the job site? Why or why not? This is an opinion question focusing on how far from the job site an employee still remains an employee for workers’ compensation purposes. 2. Did the employer act ethically in objecting to the payment of benefits in this case? Although this is another opinion question, one could make the argument that it was cold-hearted of the school to object to benefits to this man’s family when the school made his attendance at such activities an implied requirement for rehiring him. 3. How costly is workers’ compensation for business? Do you think that many fraudulent workers’ compensation claims are filed? Workers’ compensation payments are extremely expensive for businesses, but perhaps less than having to settle or defend employees’ claims in the absence of a workers’ compensation scheme. Fraudulent claims are filed quite frequently. National Association for the Advancement of Colored People, Newark Branch v. Town of Harrison, New Jersey, 907 F.2d 1408 (3rd Cir. 1990), concerned whether Harrison’s ordinance requiring town employees to be Harrison residents violated the Civil Rights Act. Harrison enacted this ordinance after New Jersey passed a statute authorizing such a law. Prior to that, Harrison followed such an informal policy. The NAACP sued Harrison, claiming that the ordinance violated the Civil Rights Act because it illegally discriminated against blacks after several NAACP members who lived near, but not in, Harrison were denied employment because of failing the residency requirement. The federal district court concluded that the Harrison residency requirement violated the Civil Rights Act by effectively excluding blacks from municipality employment The evidence showed that O.2 percent of Harrison’s population was black, while none of its town employees were black. However, the nearby areas such as the city of Newark and the counties of Essex, Bergen, and Union have black populations as high as 60%. Private employers in Harrison had a black hiring rate of 22%. So, although the residency requirement was facially neutral, it has had a disproportionate impact upon blacks. 1. Would the same residency requirement rule cause disparate impact discrimination if it were adopted by New York City or Los Angeles? Such a residency requirement would likely not cause disparate impact in those cities since they have such racially diverse populations. 2. Did the town of Harrison act ethically when it adopted the residency requirement? There are no facts in the case to indicate that Harrison adopted this requirement for racially discriminatory reasons. If Harrison prevented blacks from moving to the town, then the residency requirement would be facially unethical. 3. Could a private business impose a residency requirement on its employees? Private businesses wouldn’t be prevented from having a residency requirement, but they would—with certain small business exceptions—be subject to the federal employment discrimination laws. Harris v. Forklift Systems, Inc., 134 S.Ct. 367 (1993), concerned whether federal law requires that a person suffer severe psychological injury in order to bring an action against an employer for creating an abusive work environment that is sexually harassing. Ms. Harris was subjected to repeated abusive conduct committed by her boss, Hardy, at Forklift Systems. The abuse ranged from insensitive to insulting remarks and innuendo directed at her in front of other employees and customers because of her sex. After putting up with the abuse for two years, she quit and sued Forklift, claiming that Hardy’s conduct created an abusive work environment for her because of her sex. Both the district court and circuit court of appeals denied her claim because of the lack of severe psychological injury, but the U.S. Supreme Court reversed, concluding that Title VII wasn’t limited to conduct that would seriously affect a reasonable person’s psychological well-being. So long as the environment would reasonably be perceived, and is perceived, as hostile or abusive, there is no need for it also to be psychologically injurious. QUESTIONS 1. Should an employer be held liable for sexual harassment committed by one of its employees? The principal’s liability for the employee’s tortious conduct committed within the scope of employment, combined with federal law that prohibits sexual harassment, makes the answer self-evident. However, employers aren’t liable for every act of sexual harassment committed by one of their employees. 2. What penalty should be assessed against Hardy for his conduct? Although damages can be assessed against Hardy for his tortious conduct, here’s hoping that someone in the class suggests castration. 3. How can businesses eliminate sexual harassment on the job? Although businesses can’t eliminate all sexual harassment, by having policies in place, engaging in diligent hiring screenings, and responding to initial inappropriate acts, businesses can limit both on-the-job harassment and their exposure to liability for it. 12.1 Grinder v. Bryans Road Building & Supply Co., Inc., 432 A.2d 453 (Md.App. 1981), concerned a sole proprietorship who did business as Grinder Construction. Mr. Grinder owned the business and purchased materials from Bryans Road Building & Supply on credit and later paid the invoices. Bryans was unaware that Grinder eventually incorporated his business and owned 52% of the stock. After Bryans sued Grinder personally for failing to pay his bills, Grinder claimed the debts were the company’s debts, and Bryans then amended its complaint to include the company. ISSUE: Who is liable to Bryans? Both are liable. The court concluded that Bryans had contracted with the agent (Grinder) for an undisclosed principal (Grinder Construction, Inc.), and could proceed against both, but the court ruled that Bryans was limited to one satisfaction. 12.2 Largey v. Radiotelephone, Inc., 136 C.A.3d 660 (Cal.App. 1982), concerned Kranhold, an employee of Intrastate Radiotelephone, who negligently struck Largey while Kranhold was driving to Intrastate’s main office. The accident occurred at the intersection where Intrastate’s main office was located. Kranhold was a consultant to Intrastate, who worked in and out of Intrastate’s offices, and had no set hours. Largey sued Intrastate for Kranhold’s negligence. ISSUE: Is Intrastate liable? Yes. Although the coming and going rule would generally bar liability against Intrastate here, the court concluded that an exception applied: namely, that if it is an implied or express condition of his employment that the employee use his vehicle in attending to his duties, then the employer will be vicariously liable for any accident incurred while the employee is driving to or from work. Since Kranhold was not a traditional employee, worked in the field and at the offices, and was required to provide his own transportation, the jury could have found that the comings and goings rule didn’t apply here. 12.3 Huddleston v. Roger Dean Chevrolet, Inc., 845 F.2d 900 (11th Cir. 1988), concerned Shirley Huddleston’s ascension as the first female sales rep at Roger Dean Chevrolet. Shortly thereafter, she was subjected to disgusting comments and actions committed by male sales reps, many of which happened in front of customers. Huddleston complained about this to RDC’s general manager. ISSUE: Was Title VII violated? Yes. Although the Circuit Court of Appeals concluded that Huddleston was not constructively discharged due to this conduct, it did conclude that Huddleston did establish that there was a hostile work environment, and she may be entitled to nominal damages and attorney’s fees. 12.4 Dothard, Director, Department of Public Safety of Alabama v. Rawlinson, 433 U.S. 321 (1977), concerned Dianne Rawlinson, who brought a class action against the Director of Alabama’s Department of Public Safety because she was denied a position as a correctional counselor. She was denied this position because she didn’t meet the minimum height (5'2") or weight (120 lbs) requirements. Under another regulation, she didn’t qualify for “contact positions” in maximum-security prisons that had correctional counselors. ISSUE: Does either the height-weight requirement or the contact position rule constitute a bona fide occupational qualification that justifies the sexual discrimination in this case? Does society owe a duty of social responsibility to protect women from dangerous job positions? Or is this “romantic paternalism”? The U.S. Supreme Court first concluded that the height and weight requirements violated the Civil Rights Act of 1964, but it also concluded that not hiring women as correctional counselors in contact positions in all-male penitentiaries is a bona fide occupational qualification reasonably necessary to the normal operation of that particular job. G. Case for Briefing 1. Case Name Robinson v. Jacksonville Shipyards, Inc., 760 F.Supp. 1486 (1991) 2. Key Facts A. Lois Robinson (Robinson) worked as a welder for Jacksonville Shipyards (JSI) from 1977 to 1988. B. Robinson was one of the few female welders at JSI, and her job assignments required her to work at different JSI shipyards. C. During her employment at JSI, pictures of nude and partially nude women appeared throughout JSI in the forms of magazines, plaques, photographs on walls, and calendars on walls. D. E. F. G. Management condoned those displays and often had their own similar pictures. Additionally, Robinson was subjected to other forms of harassing behavior committed by male coworkers and supervisors. These included the placing of nude pictures on or around her work space, with the men laughing at Robinson when she became upset by a picture of a fully exposed women placed on the toolbox where Robinson returned her tools. Robinson was also subjected to sexual comments directed at her by JSI employees, including comments such as, “The more you lick it, the harder it gets,” “I’d like to have some of that,” and “Black women taste like sardines.” JSI instituted a sexual harassment policy in April 1987, during the lawsuit Robinson filed against JSI. The policy had some general statements that made it a violation for JSI employees to sexually harass other employees. The policy also provided a skeletal mechanism for employees who believe they’ve been harassed to report the incidents and to have the incidents investigated. The policy statement also announced that sanctions would result from harassing conduct. The policy did next to nothing to improve working conditions at JSI, in part because management and employees lacked training about what constituted a violation of the policy statement. 3. Issue Does a blanket-policy statement prohibiting sexual harassment in the workplace, and mandating sanctions for sexual harassment qualify as an adequate response to sexual harassment complaints? 4. Holding The district court concluded that the policies and procedures at JSI were inadequate. It ordered JSI to cease and desist from the maintenance of a female-directed hostile work environment and to remedy the work environment through a much more specific sexual harassment policy. 5. Court’s Reasoning A. The present policy of JSI didn’t adequately deal with the sexual harassment at JSI, which created a hostile work environment for females. B. The present policy’s inadequacy was evidenced by the fact that it had little or no impact on the sexually hostile work environment. C. The court also found it significant that employees and management didn’t know, nor were trained in the scope of, what types of conduct would constitute sexual harassment. D. Although Robinson’s employment, pay, or promotions were not conditioned on a quid pro quo sexual relationship with supervisors, she was subject to a hostile work environment because of the intimidating and offensive conduct.