BLaw 341 - Exam 1 (Kaplan) Questions and Answers
Equal Employment Opportunity Commission v. Abercrombie & Fitch
1. Samantha Elauf sued Abercrombie & Fitch for not hiring her because she wore a hijab
2. Elauf was the "plaintiff"
3. Abercrombie was the "defendant"
4. Elauf won
-A&F violated Tit...
\Equal Employment Opportunity Commission v. Abercrombie & Fitch - answer 1.
Samantha Elauf sued Abercrombie & Fitch for not hiring her because she wore a hijab
2. Elauf was the "plaintiff"
3. Abercrombie was the "defendant"
4. Elauf won
-A&F violated Title VII of the Civil Rights Act of 1964
-Employers cannot discriminate based on sex, race, or religion
-Employers must "reasonably accomodate" seriously held religious beliefs in the
workplace unless it creates an "undue burden"
Plaintiff - answer the side who is suing; the one who initiates the lawsuit
Defendant - answer One who is sued
Disparate Treatment - answer A clear policy of discrimination (ex. no muslims)
Disparate Impact - answer A neutral policy that by itself is not discriminatory (ex. no
caps policy) but in practice has a discrimanatory effect
Cloutier v. Costco - answer 1. Cloutier sued Costco for firing her based on her
religion
-member of the Church of Body Modification and had an eyebrow piercing which was
against the store's dress code
2. Plaintiff - Cloutier
3. Costco - Defendant
4. Costco won
-Since Costco offered alternatives and ways to reasonably accommodate - band-aid
over piercing, work in another department - and she said no
-She caused an "undue burden/hardship" on Costco's public image
Placing more value on legal capabilities - answer 1. More regulations, more lawsuits,
more severe penalties, increased globalization
-Globalization ex: reduce cost by moving overseas and reaching new markets - need to
have more extensive law divisions to understand laws in other countries
2. Successful companies use the law as strategy to create competitive advantage, have
a higher stock valuation, and make more money
a. 2000 - 24% of companies had lawyer-directors
b. 2009 - 43% of companies had lawyer-directors
Avoidance Strategy - answer Managers perception of the law: costly and barrier to
business
Mgrs level of legal knowledge: lacks real knowledge, just wants to know the loopholes;
lacks basic legal knowledge and awareness
Role of legal counsel: only utilized in emergency (fire department)
Avoid Regulations
EX: Enron - No one was managing the legal structure within the global company. Very
decentralized
Falsified reports made them look more profitable. Defaulted on loans, investors lost their
money
Compliance Strategy - answer Mgrs Perception of the law: Law is viewed as
necessary constraint on managerial action. Only concern - "How do I not break the law"
Mgrs level of legal knowledge: possess basic knowledge and the awareness of the rules
of the game
Role of legal counsel: acts as police officer - oversight role necessary to police
managerial conduct
EX: UPS - strategic noncompliance. They just pay millions of dollars in parking fines
from NYC every year just so they can deliver their goods. Are aware of the law and
know the consequences
Prevention Strategy - answer Mgrs perception: law can be used to prevent business-
related risk
Mgrs level of legal knowledge: possess good level of functional, specific legal
knowledge sufficient to coordinate a business issue preemption strategy with attorneys
Role of legal counsel: work with managers to identify specific future business risk that
can be addressed with the law
EX: Xerox - use patent fencing, meaning they are the only ones who can profit from that
invention for 20 years. It becomes public record so everyone can see it. They make a
more sophisticated technology than what they go to market with and patent
Value strategy - answer Mgrs Perception: law is used to create value
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