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Scenario, If one of your employees makes racial and controversial key chains and decides them to sell them at work. Can he get in trouble?

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If one of your employees makes racial and controversial key chains and decides them to sell them at work. Can he get in trouble? Management has been made aware of the issue and is bothered. They want all the key chains that were sold to be collected; although the key chains were paid with the employees own money. Can the company do this ?

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