Richard Is Starting a New Security Service

question 26

Multiple Choice

Richard is starting a new security service.He tells his attorney,Kiera,that while he plans to prohibit all acts of discrimination and harassment,he cannot be all places at all times.Richard asks Kiera if there is anything he can do to limit his liability.What should she tell him?

• A) She should tell him that he has nothing to worry about because as long as he has a rule prohibiting harassment, he cannot be held liable for acts of supervisors.
• B) She should tell him that there is nothing he can do because under the law, he is automatically liable for any acts of harassment committed by supervisors.
• C) She should tell him that he should have a policy provided to all employees offering to correct any offensive conduct, and that an unreasonable failure by an employee to take advantage of corrective opportunities offered through the policy would help him avoid liability.
• D) She should tell him that he should take advantage of a loophole in Title VII that allows business owners to opt out of the harassment provisions of Title VII.

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Definitions:

Profitable Output

The level of production at which a business or economic activity yields the maximum profit.

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services to consumers in exchange for money.

Total Profit

The overall financial gain made by a business after subtracting all costs from the total revenue generated from its operations.

AVC

Average Variable Cost; the total variable cost divided by the quantity of output produced.