Please read below and answer the questions,

Fast forward 6 months. Hurricane season is well underway. The whirlwind that is the growth of Fin's Up Imported Coffee is raging. Super Club sales alone account for about 5,000 bags per month and almost a million dollars a year in revenues. "We need people" says Nate. "I'm exhausted, and while the money's great, I need a break." "Ditto on this end" responds Nikki. "But if we're gonna hire someone, I want it to be someone who can do more than just fill bags of beans." "What're you thinking?" asks Nate. Nikki thinks for a moment and says "How about a professional? A business person. Someone with some real training who can do all of this stuff and still sell some coffee if needed." Nate chimes in "I know I'd like to handle things on the supply end down in Costa Rica. All this business stuff up here gives me a headache." "Well, I'd like to be able to just run the retail side in the main coffee shop, and not deal with all the warehouse and bulk sales stuff" says Nikki.

The word is out, and Fin's Up Imported Coffee is looking for a professional Manager. They have decided to hire someone who can handle all of the tasks that they don't want to do. They want a candidate who can run bulk sales, the warehouse, transportation, supply chain and all of the issues associated with compliance and regulation. They decided that the minimum educational requirement must be a business degree from a university. Before too long, Nikki and Nate are interviewing candidates. After meeting a good number of prospective employees, they both agreed that Debra Davis was the perfect fit. A recent graduate of the Cameron School of Business, Debra also had education and experience in the U.S. Army in logistics and supply. They hired her at a salary of $75,000 per year.

Within a month of hiring Debra, they realized that she was a great fit. Nate felt comfortable enough to hop a plane and hit the surf in Costa Rica. Nikki was able to cut back and spend her time at the retail shop pouring coffee and blending smoothies. Both Nate and Nikki couldn't be happier. She gave Finley a much needed attitude adjustment by putting a cup of coffee in his hand. Debra was growing the bulk sales side as well. Within 6 months, she was selling as fast as Nate could ship beans.

One day, Debra receives a call from a buyer for a restaurant chain. He asks to meet to discuss supplying the chain of restaurants with exclusive gourmet coffee. Debra agrees to take the meeting. Within an hour after the start time of the meeting, Debra enters the retail shop where Nikki is working, and she looks upset. "What's wrong?" asks Nikki. "I think I did a bad thing." says Debra. "I doubt that" says Nikki "what'd you do, punch somebody?" "Well ..." responds Debra. Nikki's face changes from amusement to concern. "What happened?" she asks. "He put his hands on me" says Debra. "I wasn't even thinking. I just reacted. It was like I learned in the Army. The next thing you know, he's holding his hand saying I broke his finger and that he was going to sue me, the business, and you personally! He even mentioned you by name even though I never told him who you were!" Nikki's face turned from concern to anger. "Let me guess, Randy Oldood?" asks

Nikki. "That's him, how did you know?" asks Debra.

Nate's flight was especially rough. Turbulence aside, all he could think of was landing at the airport and paying Randy a visit. Nikki talked him down from that ledge, but now they had work to do. She faxed him a copy of the demand letter from Oldood's attorney asking for one million dollars in payment. And once again, they were off to see the lawyers.

Instructions:

Nate, Nikki and now Debra have come in to see what can be done. The attorneys have asked you to prepare a memorandum outlining the legal liability of the parties involved. Keep in mind that we do not know the exact circumstances of the incident, and that Randy Oldood is asserting that he simply placed his hand on Debra's shoulder to greet her. Who may be liable in this instance? And if they are liable, to what extent?