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Code of Ethics: Controlling Business Risks
  Case Study 1: Third-Party Sexual HarassmentYou Be the Judge

Facts: The property manager for XYZ Apartments made remarks to tenants about the sex life of another tenant in the same building. On two occasions, a female tenant told the property manager and two male tenants that she didn't approve of their comments, but they continued their behavior in the presence of female tenants. Is XYZ liable for the actions of the property manager? Is it liable for the tenants' actions?

What do you think?

Findings: Because the property manager is an employee of XYZ, the owners of the apartment building would probably be held liable for his actions. XYZ might also be liable for the hostile environment created by the behavior of the tenants because the property manager was complicit in their behavior and took no action to correct it. In the case of Gnerri v. Massachusetts Commission Against Discrimination, a landlord was made to pay damages to a female tenant for making offensive sexual comments to her.

Adapted from Sexual Harassment Awareness and Prevention, Facilitator’s Guide, NATIONAL ASSOCIATION OF REALTORS, 1996

Workplace Privacy—An Emerging Issue >