Problem:
Assume that prior to acquisition by Super Mega Retailers, Inc., Mega Grocers, Inc. had offered for sale products which it bought from a vendor that had a product name and label and package design that was very similar to a national brand product.
Assume also, that a supervisor at one of the Mega Grocers, Inc. stores had been sexually harassing a female employee but that this had not been made known to any other party in management at Mega Grocers, Inc., or to Super Mega Retailers, Inc. before the acquisition by which Mega Grocers, Inc. was acquired.
Please discuss the liability that may exist for Mega Grocers, Inc. with respect to each of the possible claims referenced above and identify the extent to which and the basis on which Super Mega Retailers, Inc. may succeed to that liability.