In the case Parker vs. Reema Consulting Services, the legal issue was whether a false rumor that a female employee slept with her male boss to obtain promotion can ever give rise to her employer's liability under Title VII for discrimination "because of sex." In this case, plaintiff was terminated after she complained of a hostile work environment stemming from the rumor. The Fourth Circuit held that the allegations of the employee's complaint, where the employer was charged with participating in the circulation of the rumor and acting on it by sanctioning the employee, did implicate such liability. Accordingly, the court reversed the district court's dismissal of plaintiff's claims alleging discrimination and retaliation for complaining about such a workplace condition. However, the court affirmed the dismissal of the third claim because the employee failed to exhaust it before the Equal Employment Opportunity Commission.

The assignment is to answer these questions in regards to the case above:

1. Why does the appeals court find that there is sufficient evidence for the plaintiff to show that the treatment she received was based on her sex? Why is the employers argument that it was based on the plaintiffs purported conduct and not on her sex unavailing?
2. Why does the appeals court conclude that the treatment the plaintiff received was sufficiently severe or pervasive to constitute a legally actionable hostile environment?
3. What mistakes did the employer make in handling this situation? What should it have done instead? Include what HR could have done differently in particular