When it comes to a dealership's legal liability for
employment-related problems, the basis of the liability generally
falls into two categories – actions the dealership took and
those it failed to take. When it comes to big dollar jury awards
and settlements, a dealership's failure to take immediate and
appropriate action generally is a more significant factor than the
inappropriate conduct itself.
The law recognizes that an employer cannot control the actions
of its employees 24/7. By the same token, the law (and juries)
understand that employers can control their responses when they
know, or should know, about a problem. There is little sympathy for
an employer that was aware of, but still allowed, a
"rogue" employee to harm others. In many cases, the
failure to act is viewed as the employer's acceptance of the
bad conduct and a disregard for employee safety and well-being.
