This paper surveys foundational concepts in business and employment law across four areas. It begins by distinguishing general partnerships from limited partnerships, explaining their structures, liabilities, and tax treatment. It then outlines three theories of employment discrimination — disparate treatment, disparate impact, and failure to make reasonable accommodation — with illustrative examples. The paper proceeds to examine seven recognized defenses employers may raise against discrimination claims. Finally, it addresses sexual harassment in the workplace, covering its legal definition, verbal, visual, and physical forms, and practical steps for prevention and reporting. The paper draws on legal reference sources to present these concepts in accessible terms.
A partnership is a business with more than one owner that has not applied to become a corporation or a limited liability company (Laurence, 2012). The two general types are the general partnership and the limited partnership.
The general partnership is the more common form. Each partner has a hand in the business's operation, and it is also the simplest and least expensive business structure to create and maintain. Both partners share all liability for the debts and obligations of the business, including court judgments. Either partner may be bound by a contract or deal entered into by the other. Partners pay taxes that "pass through" the business to their respective individual income tax returns. Creating a general partnership does not require filing formal papers; two persons who agree to form one may simply register the business upon payment of a minimum fee. Although no written partnership agreement is required, partners may choose to document a business name and key details such as each partner's rights, responsibilities, and share of profits. A general partnership ends if one partner decides to leave; the remaining partner must settle outstanding obligations and debts and then divide any remaining profits and assets (Laurence, 2012).
A limited partnership includes additional partners with varying business liabilities (Bachmann, 2012). Each partner's responsibilities and involvement in the business differ, and each partner's financial obligation is limited to the amount of their investment. One advantage of this structure is that more partners can greatly increase available capital. Some individuals may join as limited partners while the general partners retain control of daily operations. However, tax complications or clashes between general and limited partners can reduce overall business effectiveness (Bachmann, 2012).
The primary theories of employment discrimination are the theory of disparate treatment and the theory of disparate impact (Laurent, 2012). A third theory addresses the failure to make reasonable accommodation.
The disparate treatment theory applies when a particular applicant in a protected group is deliberately treated less favorably than others in a similar situation outside the group. An older applicant who is turned down in favor of a younger one solely because of age illustrates this theory. The complainant must provide direct evidence of intentional discrimination, such as an unjustified stereotypical belief that a younger applicant will perform better. Mixed-motive evidence may also be presented, such as an impermissible factor like race or sex (Laurent, 2012).
The disparate impact theory applies to employment policies and practices that have an adverse effect on members of protected minority groups (Laurent, 2012). Examples include requirements for a high school diploma or height and weight restrictions. This theory focuses more on outcomes than on employer intent and relies heavily on statistical evidence. The complainant must demonstrate the adverse impact of a particular selection device or employment practice; once demonstrated, the burden of proof shifts to the employer to show that the requirement is job-related. Even if the requirement is job-related and necessary for the business, the complainant may still identify an available alternative that produces less disparate impact (Laurent, 2012).
The reasonable accommodation theory holds an employer liable for treating applicants or employees differently because of characteristics associated with their protected group (Laurent, 2012). Examples include the characteristics of members of religious or disability groups. The Americans with Disabilities Act obliges employers to hire qualified individuals with disabilities unless doing so would impose an undue hardship on the firm (Laurent, 2012).
"Seven legal defenses employers may assert"
"Definition, types, prevention, and reporting steps"
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