Instructions: What legal standards, claims, defenses and potential liabilities are implicated by the facts set forth above? 5 pages maximum!
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Couch Potato, Inc. manufactures sofas and chairs using a proprietary product made from potatoes that over time molds to the shape of the person sitting on the furniture. The company’s commercials include a statement by an orthopedic surgeon from Boise, Idaho, who swears it is “the most comfortable seating you’ll ever own.” Based on that endorsement, the company calls its products “doctor-approved” in its magazine ads and touts the importance of back relaxation on overall health. The company also holds itself out as a “model employer” and “family friendly” based on its paid parenthood leave program, on-site daycare and free parenting classes.
Sandra Martinez is hired as shift supervisor at Couch Potato, Inc.’s plant in Pearland, Texas. Martinez performs her job well, and after six months the President of the company, Ben Climber, offers her a promotion to Assistant Plant Manager in the company’s Laredo, Texas plant. The job includes pay increase and greater potential bonus. Climber thinks the position will be a good fit for her because she is Mexican, speaks Spanish and “can relate to the workers there.” Like Martinez, more than half of the workers at the plant are originally from Mexico. During a meeting with Climber, Martinez talks to Climber and expresses concerns about relocating with her husband and small children, and will be brought back to work in Pearland at the end of her assignment in Laredo. Martinez accepts the offer during their meeting. She subsequently moves to Laredo and begins serving as Assistant Plant Manager.
Couch Potato is the only company in the world making furniture using potato by-products, and it wants to keep it that way. Climber figures that if he can just keep his formula a secret and keep production costs low for a few more years, potential competitors will stay away. Climber approaches Couch Potato’s largest supplier, Spuds, Inc. and negotiates a deal whereby Spuds will supply all of the potatoes Couch Potato needs. Not wanting to lose the Couch Potato account, which is substantial, Spuds agrees to sell potatoes to Couch Potato at a substantial discount off of the price it charges its other customers. They execute a written, three year contract for the sale and purchase of potatoes. The fixed price per pound of potatoes is so low that fluctuations in the potato market cause Spuds to lose money on the deal in some months during the term of the agreement.
Six months after Martinez moves to Laredo, she reports to Human Resources that she thinks many of the workers in the Laredo plant are illegal aliens and that the company is illegally discriminating against American citizens by favoring Mexican workers. Climber subsequently decides Martinez is “not the right person for the job” and transfers...