Making Legal Decisions as a Manager
You are the vice-president in charge of personnel and marketing at a large manufacturing company. In-house detectives inform you that Gates, an employee, was seen stealing valuable computer equipment. Gates adamantly denies the theft and becomes upset when accused. There is no direct evidence against Gates, but you believe the detectives and fire him. The detectives suggest that you post notices around the company, informing all employees what happened to Gates and why. This will discourage others from stealing. Should you post the notices? Discuss the legal implications of posting notices.
While you think that over, a phone call from another company’s personnel officer asks for a recommendation for Gates. What should you say to the other officer? Discuss any legal issues that may arise from discussing Gates with a prospective employer.
After thinking for a while, you check your email. The Director of Marketing would like to launch a commercial about the new Rewards Campaign for their most popular soft drink. Watch the commercial below, then discuss whether this constitutes false advertising. List the elements of false advertising within your answer. Would you recommend airing the commercial? Explain.
http://www.youtube.com/watch?v=U_n5SNrMaL8
Sample Solution
Gates' Theft and Posting Notices:
Posting Notices - Not Recommended:
Posting notices about Gates' termination can have several drawbacks:
- Privacy Rights: Employees have privacy rights regarding disciplinary actions. Publicly disclosing the reason for termination could be a privacy violation.
- Defamation Risk: If Gates is innocent, publicly accusing him of theft could be considered defamation.
- Lowers Morale: Such notices can create a negative work environment, causing fear and distrust among employees.
Full Answer Section
Alternative Solutions:- Internal Memo:Consider sending an internal memo to department heads emphasizing the importance of company property security.
- Security Review:Implement increased security measures to deter future theft.
- Dates of Employment:You can confirm Gates' employment dates and title.
- Eligibility for Rehire:Companies often use a verification code system. If your company uses one, share that code.
- Avoid Accusations:Do not mention the theft accusation. This could be considered defamation if he's innocent.
- Wrongful Termination Lawsuits:Gates might sue for wrongful termination if you disclose unproven theft accusations.
- Defamation Lawsuits:Discussing the accusation could lead to a defamation lawsuit if it's untrue.
- Misleading Claims:Does the commercial make claims about the soft drink (e.g., health benefits) that are not supported by evidence?
- Omission of Important Information:Does the commercial fail to mention limitations or side effects of the Rewards Campaign?
- Deceptive Visuals:Do the visuals in the commercial misrepresent the product or its effects (e.g., exaggerated portion sizes)?
- Targeting Vulnerable Populations:Does the commercial target children in a misleading way?