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Imagine losing your unemployment benefits because you refused to work as a prostitute?

You heard me right. In Germany (search), where prostitution is legal, a 25-year old unemployed woman was sent to a brothel by the local unemployment office (search). When the woman turned down the offer, she was told by the job center that she might lose her unemployment benefits.

How could this happen? A German lawyer who specializes in these cases explains: “The new regulations say that working in the sex industry is not immoral any more, and so jobs cannot be turned down without a risk to [unemployment] benefits.”

Fair and balanced, a madam from a local brothel in Berlin defends her right to use job centers to find prostitutes, saying: "Why shouldn't I look for employees through the job center when I pay my taxes just like anybody else?"

Now, some folks think prostitution should be legalized here in the States. Maybe so. But if it is, what happened in Germany is just one of the bizarre legal situations we’re likely to get tangled up in.

And that’s the Asman Observer.

Watch David Asman on "FOX News Live" weekdays at noon ET.