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Chapter 18

William Sharp was the sole shareholder and manager of Chickasaw Club, Inc., an S corporation that operated a popular nightclub of the same name in Columbus, Georgia. Sharp maintained a corporate checking account but paid the club's employees, suppliers, and entertainers in cash out of the club's proceeds. Sharp owned the property on which the club was located. He rented it to the club but made mortgage payments out of the club's proceeds and often paid other personal expenses with Chickasaw corporate funds.At 12:45a.m. on July31, eighteen-year-old AubreyLynn Pursley, whowas already intoxicated,entered the ChickasawClub. A cityordinance prohibited individualsunder the age of twenty-onefrom entering nightclubs,but Chickasaw employeesdid not checkPursley's identification toverify her age.Pursley drank morealcohol at Chickasaw and was visibly intoxicated when she left the club at 3:00 a.m. with a beer in her hand. Shortly afterward, Pursley lost control of her car, struck a tree, and was killed. Joseph Dancause, Pursley's stepfather, filed a tort lawsuit in a Georgia state court against Chickasaw Club, Inc., and William Sharp, seeking damages. Using the information presented in the chapter, answer the following questions.

1.Under what theory might the court in this case make an exception to the limited liability of shareholders and hold Sharp personally liable for the damages? What factors would be relevant to the court's decision?

Chapter 19

Lynne Meyer, on her way to a business meeting and in a hurry, stopped at a Buy-Mart store for a new car charger for her smartphone. There was a long line at one of the checkout counters, but a cashier, Valerie Watts, opened another counter and beganloading the cashdrawer. Meyer toldWatts that shewas in ahurry and askedWatts to workfaster. Instead, Watts slowed her pace. At this point, Meyer hit Watts. It is not clear whether Meyer hit Watts intention-ally or, in an attempt to retrieve the car charger, hit her inadvertently. In response, Watts grabbed Meyer by the hair and hit her repeatedly in the back of the head, while Meyer screamed for help. Management personnel separated the two women and questioned them about the incident. Watts was immediately fired for violating the store's no-fighting policy. Meyer subsequently sued Buy-Mart, alleging that the store was liable for the tort (assault and battery) committed by its employee. Using the information presented in the chapter, answer the following questions.

1.Under what doctrine discussed in this chapter might Buy-Mart be held liable for the tort committed by Watts?

Chapter 20

Rick Saldona worked as a traveling salesperson for Aimer Winery. Sales constituted 90 percent of Saldona's work time. Saldona worked an average of fifty hours per week but received no overtime pay. Saldona had worked for Aimer for ten years when his new supervisor, Caesar Braxton, claimed that he had been inflating his reported sales calls and required him to submit to a polygraph test. Saldona reported Braxton to the U.S. Department of Labor, which prohibited Aimer from requiring Saldona to take a polygraph test for this purpose.Shortly after that, Saldona's wife, Venita, fell from a ladder and sustained a head injury while employed as a full-time agricultural harvester. Saldona presented Aimer's human resources department with a letter from his wife's phy-sician indicating that she would need daily care for several months, and Saldona took leave for three months. Aimer had sixty-three employees at that time. When Saldona returned to Aimer, he was informed that his position had been eliminated because his sales territory had been combined with an adjacent territory. Using the information presented in the chapter, answer the following questions.

1.Would Saldona have been legally entitled to receive overtime pay at a higher rate? Why or why not?

Chapter 21

Michelle Lyle, an African American woman, was hired by Warner Brothers Television Productions to be a scriptwriters' assistant for the writers of Friends, a popular television series. One of her essential job duties was to type detailed notes for the scriptwriters during brainstorming sessions in which they discussed jokes, dialogue, and story lines. The writers thencombed through Lyle'snotes after themeetings for scriptmaterial. During thesemeetings, the threemale scriptwriters told lewd and vulgar jokes and made sexually explicit comments and gestures. They often talked about their personal sexual experiences and fantasies, and some of these conversations were then used in episodes of Friends. During the meetings, Lyle never complained that she found the writers' conduct offensive. After four months, Lyle was fired because she could not type fast enough to keep up with the writers' conversations during the meetings. She filed a suit against Warner Brothers, alleging sexual harassment and claiming that her termination was based on racial discrimination. Using the information presented in the chapter, answer the following questions.

1.Would Lyle'sclaim of racialdiscrimination be forintentional(disparate-treatment) or unintentional(disparate-impact) discrimination? Explain.