Employer Not Liable For Obscene Call By Coworker

The MCAD has dismissed a woman's sexual harassment claim against her employer and a co-worker, who worked at another location. The claim's basis was that the co-worker made obscene calls to the woman at her home. The hearing officer decided that liability for hostile work environment requires more connection to the work setting than was present in the case.

Why This Is Important... The decision makes clear that there has to be a substantial connection between the harassment and the workplace for employer liability.

Take-Out Food Containers Exempt From Sales/Use Tax

A movie theater served food to customers to be eaten in theater seats in containers. The theaters' purchase of the containers was ruled exempt from Massachusetts sales and use taxes. The finding was that the paper cups, boxes, buckets and plastic lids facilitated the sale of food and drink.

Why This Is Important... Businesses that make taxable sales in throw-away containers may be able to exempt purchases of those containers from sales and use tax - a savings of 5%.

Noncompete Income Not Taxable In Massachusetts

The Appellate Tax Board has ruled that where a Florida resident was paid under a noncompete agreement in connection with the sale of six Massachusetts corporations, he could not be required to pay Massachusetts income tax on the payments. The Board ruled that the Florida resident was not engaged in a trade or business in Massachusetts by virtue of the noncompete agreement so as to be subject to the tax.

Why This Is Important... The decision means that in some circumstances deals can be structured to exempt income derived from a business sale from Massachusetts income tax.

Penalty For Violating Lease Exclusive Even Without Fault

Many commercial leases contain an exclusive use provision giving a tenant the exclusive right to carry on some type of business in a mall or center. The tenant is entitled to remedies if the exclusive is violated. Without limitations, a landlord can be liable to the tenant even if he has taken reasonable steps to prevent a violation.

Why This Is Important... A tenant's exclusive can be breached by another tenant's breach of a use restriction. Any lease exclusive should be written with limited remedies.

Internet Domain Name Registration Challenges

Many businesses look to the Internet to increase their sales. Some find that others have already "taken" their name. A new system for resolving Internet name disputes has been proposed. Active Nicolai Law Group clients have received a memorandum which describes this new system. If you want a copy e-mailed to you, just subscribe to our mailing list and we will be happy to send you one.