Business Finance Homework Help

I need an explanation for this Entrepreneurship question to help me study.

Allison’s boss at the outdoor retail store continually makes sexually suggestive comments to her and often

brushes against her when she is in his office.  Although he has never asked anything of her, she has asked him 

to stop but he continues. She reported his conduct to the owner of the business.  The owner felt that Allison was 

exaggerating the facts and did not investigate or take any action.

a. Is the business Allison works for liable for sexual harassment? Why or why not?

b. What should the owner have done?