This article offers a teaching case based on the 2013 controversy surrounding comments made in a deposition by Paula Deen during a lawsuit filed against her by a former employee. Deen's admission of using racially derogatory terms, on top of a variety of other allegations in the case, stunned and outraged many of her fans and the public in general. The controversy cost Deen dearly, both financially and in terms of her reputation, even though the racial discrimination claims in the lawsuit against her were ultimately dismissed. Thus, this case is a crucial reminder of both the necessity and the insufficiency of legal compliance when it comes to successful business ownership and management. The case can also be used as a framework for an entire legal environment course because of the wide variety of legal issues on which it touches. Alternatively, the case could be used as a basis for a class discussion to take place during only one class period or online in a business law or ethics course.