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National Foods, Inc., sells franchises to its fastfood restaurants, known as Chicky-D’s. Under...
More:National Foods, Inc., sells franchises to its fastfood restaurants, known as Chicky-D’s. Under the franchise agreement, franchisees agree to hire and train employees strictly according to Chicky-D’s standards. Chicky-D’s regional supervisors are required to approve all job candidates before they are hired and all general policies affecting those employees. Chicky-D’s reserves the right to terminate a franchise for violating the franchisor’s rules. In practice, however, Chicky-D’s regional supervisors routinely approve new employees and individual franchisees’ policies. After several incidents of racist comments and conduct by Tim,a recently hired assistant manager at a Chicky-D’s, Sharon, a counterperson at the restaurant,resigns.Sharon files a suit in a federal district court against National. National files a motion for summary judgment, arguing that it is not liable for harassment by franchise employees. Will the court grant National’s motion? Why or why not?

 







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