2026) Employment and Labor Law | Guide
Questions & Answers | Grade A | 100% Correct
(Verified Solutions)
Question 1: An employer fires an employee for refusing to lie to a government
inspector about the company's safety practices. This is a violation of which
exception to the employment-at-will doctrine?
A. Implied Contract Exception
B. Covenant of Good Faith and Fair Dealing Exception
C. Public Policy Exception
D. Economic Realities Exception
Rationale: The public policy exception prohibits firing an employee for refusing to
perform an illegal act or for reporting illegal activity.
Question 2: A company implements a written test for all cashier applicants. The
test results show that 80% of white applicants pass, but only 30% of minority
applicants pass, and the test is not proven to predict job performance. This is an
example of:
A. Disparate Impact
B. Disparate Treatment
C. Quid Pro Quo Harassment
D. A Bona Fide Occupational Qualification
Rationale: The policy is facially neutral but has a discriminatory effect on a
protected group and is not job-related.
Question 3: A sales manager tells an employee, "You will get this promotion if you
go on a date with me." This is a classic example of:
,A. Hostile Work Environment
B. Quid Pro Quo Harassment
C. Disparate Impact
D. A violation of the ADEA
Rationale: Quid pro quo harassment explicitly ties a tangible employment
outcome (the promotion) to the acceptance of sexual advances.
Question 4: Which of the following employees would be eligible for leave under
the FMLA?
A. An employee who has just started working for the company 3 months ago.
B. An employee who needs 2 days off for a routine cold.
C. An employee who has worked for the company for 2 years, logged 1,300
hours, and needs time off for inpatient hospital care.
D. An employee who wants a 6-week paid vacation.
Rationale: The employee meets the 12-month and 1,250-hour eligibility
requirements, and inpatient hospital care qualifies as a serious health condition.
1. Under the employment-at-will doctrine, an employer may terminate an
employee:
A) Only for cause
B) At any time for any reason, including a bad reason
C) At any time for any reason that is not prohibited by law
D) Only after giving 30 days' notice
Answer: C
2. Which of the following is a recognized exception to employment-at-will?
A) Economic hardship exception
B) Public policy exception
C) Competitive advantage exception
D) Seniority preference exception
Answer: B
3. An employer fires an employee for serving on a jury. This violates which
exception?
,A) Implied contract
B) Covenant of good faith
C) Public policy
D) No exception — it is legal
Answer: C
4. An employee handbook stating that employees will only be terminated for
"just cause" may create:
A) A public policy exception
B) An implied contract exception
C) A covenant of good faith exception
D) No exception — handbooks are not binding
Answer: B
5. The covenant of good faith and fair dealing exception has been most widely
recognized in:
A) Texas
B) New York
C) California
D) Florida
Answer: C
6. Montana is unique because after a probationary period, employers must have
_____ to terminate.
A) Any reason
B) Just cause
C) Economic necessity
D) Employee consent
Answer: B
7. Under respondeat superior, an employer is liable for an employee's tort if it
was committed:
A) At any time, anywhere
B) Within the scope of employment
C) Only during lunch breaks
, D) After work hours off premises
Answer: B
8. An employee driving a company truck to make a delivery causes an accident.
The employer is likely:
A) Not liable because the employee was driving
B) Liable under respondeat superior
C) Liable only if the employee had a clean driving record
D) Not liable if the employee was speeding
Answer: B
9. The key factor in determining independent contractor status is:
A) The worker's title
B) The employer's control over the means and methods of work
C) The worker's hourly wage
D) The length of time the worker has been engaged
Answer: B
10. Which test is used by the IRS to determine worker classification?
A) Economic realities test
B) 20-factor test
C) Primary benefit test
D) Control test only
Answer: B
11. Under the economic realities test, a worker is an employee if they are:
A) Highly skilled
B) Economically dependent on the employer
C) Paid by the project
D) Working from home
Answer: B
12. Title VII of the Civil Rights Act prohibits discrimination based on:
A) Age and disability only
B) Race, color, religion, sex, national origin