Money Movers, a prestigious investment firm in located New Orleans, an ethnically diverse city with a population that is made up of 70% minorities, is in the middle of its recruiting season. John Moore, the HR manager, recently read a newspaper article stating that Latinos and African Americans sometimes get admitted to Ivy League business institutions with lower than average GMAT scores. Mr. Moore sends a memo to firm interviewers requesting that they ask all Latino and African-American applicants for their GMAT scores. Mr. Moore's memo explains that the new policy is to ensure that the firm maintains its reputation as the number one employer of top-notch investment bankers. The firm requires all candidates be interviewed by the following partners - Franklin Pierce (white male, 55 yrs old, Harvard grad), Claude Pepper (white male, 49 yrs old, Harvard grad), F. Scott Fitzgerald (white male, 62 yrs old, Yale grad) and Adele Huffington (white female, 43 yrs old, Yale grad). The firm also only interviews candidates from Harvard and Yale who have a personal recommendation from an existing employee at the firm.

Pedro Martinez, John Case and Bill Wilkinson are enrolled in the Masters in Business Administration program at Harvard and have interviewed at Money Movers. Mr. Martinez is Cuban American. Mr. Case and Mr. Wilkinson are both white. After their interviews, they meet outside to discuss the interview process.

• Martinez: Hey, did you guys think it was strange that they asked about GMAT scores?
• Case: I wasn't asked about my GMAT scores. Are you serious?
• Wilkinson: I wasn't asked about my scores either. The interviewer asked me how I did in corporate finance but not about my GMAT scores.
• Martinez: That's funny. At last month's Latino Business Students Association meeting I remember a bunch of people said that they were asked their GMAT scores during their interview at Money Movers. I was so worried about my scores that I prepared a two-minute answer to explain my scores. I must have sounded rehearsed and nervous during my interview.

Mr. Case and Mr. Wilkinson are hired for positions at Money Makers. Mr. Martinez is not hired. In fact, all five new hires for this year were white males from Harvard. Martinez sues the company claiming he was not hired because he is Latino.

1. What type of discrimination claim will Martinez assert? (Hint - make sure you specify whether it is disparate impact or treatment and what Title VII category?
   • Disparate impact discrimination, Race/National Origin
2. Do you think Martinez will be successful in his lawsuit against Money Maker's?
   • Yes
3. Explain why he will or will not succeed?
4. Are there any problems with Money Maker's recruitment methods? If so, explain what the problems are.
5. If Martinez wins his lawsuit, can the court require Money Maker to alter its hiring practices so that 1 out of every 2 new hires is a minority for the next several years?
   • Affirmative action plan
6. If your answer to "5" is "yes", then explain why the court can require Money Maker to alter its hiring practices. If your answer is "no", then explain why the court cannot require Money Maker to alter its hiring practices.