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Legal & Ethical Implications of Threats

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Threats against hotel have been received, threatening bombings and additional violence unless DWI stops allowing persons believed to be Arab-Americans or others of Middle Eastern descent to stay at or visit hotel property

Read the landmark cases of Heart of Atlanta Hotel v. U.S. (http://caselaw.lp.findlaw.com/scripts/getcase.pl?navby=case&court=US&vol=379&page=241)and Katzenbach v. McClung(http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=379&invol=294), which upheld the Civil Rights Act of 1964, as being a constitutional exercise of Congressional power under the Commerce Clause of the U.S. Constitution. The leisure group of DWI owns and operates several hotels and casinos, one of which is "The Queen of The Nile" casino, on the Mississippi River waterfront in New Orleans. This Egyptian themed hotel and casino is quite popular with Arab-Americans and visitors who are citizens of nations in the Middle East and Northern Africa.

Recent events in the Middle East have led to an increase in anti-Arab sentiment, and several fringe groups have actually resorted to violence against persons who appear or are believed to be of Middle Eastern decent and damage to properties they own or frequent. In recent weeks, DWI and the hotel have received threats against the property and its guests via mail, phone, and e-mail. In response, DWI has circulated a memo to employees advising them of the threats and has increased security patrols on the premises. Last night, one or more snipers shot at arriving and departing guests who appeared to be of Middle Eastern descent; two guests and one employee were injured and there was damage to several doors and windows near the hotel entrance.

Additional threats against the hotel have been received, threatening bombings and additional violence unless DWI stops allowing persons believed to be Arab-Americans or others of Middle Eastern descent to stay at or visit the hotel property; several employees have claimed to be sick and have failed to appear at work this morning; Arab-American groups and others are threatening a boycott of DWI products and services worldwide if the company acquiesces to the blackmail.

Discuss the legal and ethical considerations raised by this situation and make a recommendation to the Board as to what actions DWI should take.

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Solution Summary

Based on the case of DWI, this solution discusses the legal and ethical considerations raised by this situation and makes recommendation to the Board as to what actions DWI should take.

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Please see response file attached. Interesting scenario indeed. I hope this helps and take care.

RESPONSE:

Legal Issues:

A. Racial Discrimination (i.e., Arab-American): Section 201 (a) of Title II commands that all persons shall be entitled to the full and equal enjoyment of the goods and services of any place of public accommodation without discrimination or segregation on the ground of race, color, religion, or national origin; and 201 (b) defines establishments as places of public accommodation if their operations affect commerce or segregation by them is supported by state action. Sections 201 (b) (2) and (c) place any "restaurant . . . principally engaged in selling food for consumption on the premises" under the Act "if . . . it serves or offers to serve interstate travelers or a substantial portion of the food which it serves . . . has moved in commerce."

Chief Justice John Marshall in Gibbons v. Ogden, Wheat. 1 (1824), in these words: "To what commerce does this power extend? The constitution informs us, to commerce `with foreign nations, and among the several States, and with the Indian tribes.' "It has, we believe, been universally admitted, that these words comprehend every species of commercial intercourse . . . No sort of ...

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