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Intra-Business Relationship

Rudolph has a chain store operation in country X. Rudolph decides to expand his business operations into the United States. To cover the cost of expansion, Rudolph decides to "franchise" the operation into the United States Carl, a resident of country X, enters into a franchise agreement with Rudolph to open a franchise in the United States. The franchise agreement requires that Carl make a substantial investment of funds to open the franchise in the United States. Furthermore, the franchise agreement requires that Carl's franchise employ only US residents as employees and that the franchise funds be used to purchase land and construction of a building in the United States

Rudolph realizes that Carl does not have the business acumen to run the franchise in the United States. Randolph sends Robert, a resident of country X, to manage and direct the franchise on a temporary basis until Carl is competent to run the franchise in the United States. To make sure the franchise complies with US accounting laws, Robert contracts with Flo (who has a small accounting firm) in the United States. However, Robert requires that Flo work for the franchise exclusively and full time, that Flo maintain an office on the premises of the franchise and Robert constantly reviews the records and documents of Flo to make sure they are accurate. Since Flo spends a lot of time at the franchise, Robert is always asking Flo out for a date and is always making "sexual comments" about her. What is the immigration status of Carl? What is the immigration status of Robert? What is the legal status of Flo? Can Flo maintain a "sexual harassment" action against Robert.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92176665

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