PRE-ASSESSMENT: HR COMPLIANCE
AND EMPLOYEE RELATIONS D432
WITH CORRECT SOLUTIONS
Which description is a characteristic of a corporation? - ANSWER-Ease of transferring
ownership
Which description is characteristic of a sole proprietorship? - ANSWER-Ease of
dissolution
.
Which act prohibits unfair or deceptive acts affecting commerce? - ANSWER-The
Federal Trade Commission Act
A public company is preparing to file its annual report containing audited financial
statements. These statements will be reviewed by a certified public accountant (CPA)
not affiliated with the company to provide an objective opinion. Which form should the
company use for this report? - ANSWER-Form 10-K
A U.S. company operating in Country I has detected instances of child labor in one of
their manufacturing facilities abroad. What is the reason for this occurrence? -
ANSWER-Local governments are sometimes unwilling or unable to enforce laws and
regulations.
Multiple customers are accusing a company of making false claims about their
nutritional supplements. The Federal Trade Commission (FTC) investigates and
concludes that no scientific evidence supports the company's claims about the product.
The FTC sends the company a consent order. What is the objective of the consent
order? - ANSWER-To get the company to comply voluntarily
How does the Bureau of Consumer Protection help protect consumers against unfair
trade practices? - ANSWER-By enforcing consumer protection laws
A store offers its customers a "buy one, get one free" offer as part of a Black Friday
promotion for a new line of cell phones. Customers were not informed that they had to
buy a phone plan at a 100% inflated price to be eligible for the offer.Which unfair trade
practice did the store adopt? - ANSWER-Misleading price information
A consumer approached a shop to purchase edible oil and enquire about its ingredients
before making a final purchase. A seller did not disclose the ingredients of an edible
product before accepting payment for it.Which unfair trade practice did the seller adopt?
- ANSWER-Failing to disclose pertinent information
, What is used to measure the sustainability of an organization's social responsibility
efforts? - ANSWER-Triple Bottom Line model
A company includes green business practices in its code of conduct. What is a direct
benefit that the company will have due to this practice? - ANSWER-Positive benevolent
halo effect
An employee at a company arrives consistently late. The employee's manager checks
the company policy about tardiness. The policy states that employees who arrive late
may be subject to disciplinary action, up to and including termination. The manager also
remembers hearing another employee being verbally warned about a similar
situation.What should be the first action by the manager? - ANSWER-Consult with HR.
One of a company's items has been in production for six months but is still sold stating
"new." Which unfair practice is the company engaged in, according to the Federal Trade
Commission Act? - ANSWER-Misrepresenting a product
The company did not earn enough profits to provide a salary raise to its employees in
the year 2014. In 2015, the CEO of the company took a pay cut to raise employee
salaries. This led the employees to stay and work hard to achieve the organizational
goals. What effect did the company likely experience after the change? - ANSWER-
Revenue and profits increased.
An employee of a manufacturing company is married to a member of the military. Their
spouse is seriously injured and requires round-the-clock care at home. The employee
requests a leave of 20 weeks. What is a likely outcome considering the Family and
Medical Leave Act (FMLA)? - ANSWER-The employer must accept the request since
this is for a family member of a veteran.
A federal warehouse pays their employees $7.25 per hour for a 45-hour work week. The
state mandates a minimum wage rate of $8 per hour. What valid reason is there for the
hourly wage rate to be below state mandates? - ANSWER-The employer is required to
follow the federal minimum wage rate and not the state minimum wage rate.
The human resource manager at a private company seeks to offer various benefits to its
employees. However, an employee is terminated and faces problem in continuing its
health insurance. Under which act the employee can safeguard its health insurance
even after termination? - ANSWER-Consolidated Omnibus Budget Reconciliation Act of
1986 (COBRA)
A bank files charges against one of the cashiers for using a clients' money for personal
purposes. However, the employee maintains that they did not commit this act and
demands proof. Which fundamental right is the employee exercising in this case? -
ANSWER-Due process clause
AND EMPLOYEE RELATIONS D432
WITH CORRECT SOLUTIONS
Which description is a characteristic of a corporation? - ANSWER-Ease of transferring
ownership
Which description is characteristic of a sole proprietorship? - ANSWER-Ease of
dissolution
.
Which act prohibits unfair or deceptive acts affecting commerce? - ANSWER-The
Federal Trade Commission Act
A public company is preparing to file its annual report containing audited financial
statements. These statements will be reviewed by a certified public accountant (CPA)
not affiliated with the company to provide an objective opinion. Which form should the
company use for this report? - ANSWER-Form 10-K
A U.S. company operating in Country I has detected instances of child labor in one of
their manufacturing facilities abroad. What is the reason for this occurrence? -
ANSWER-Local governments are sometimes unwilling or unable to enforce laws and
regulations.
Multiple customers are accusing a company of making false claims about their
nutritional supplements. The Federal Trade Commission (FTC) investigates and
concludes that no scientific evidence supports the company's claims about the product.
The FTC sends the company a consent order. What is the objective of the consent
order? - ANSWER-To get the company to comply voluntarily
How does the Bureau of Consumer Protection help protect consumers against unfair
trade practices? - ANSWER-By enforcing consumer protection laws
A store offers its customers a "buy one, get one free" offer as part of a Black Friday
promotion for a new line of cell phones. Customers were not informed that they had to
buy a phone plan at a 100% inflated price to be eligible for the offer.Which unfair trade
practice did the store adopt? - ANSWER-Misleading price information
A consumer approached a shop to purchase edible oil and enquire about its ingredients
before making a final purchase. A seller did not disclose the ingredients of an edible
product before accepting payment for it.Which unfair trade practice did the seller adopt?
- ANSWER-Failing to disclose pertinent information
, What is used to measure the sustainability of an organization's social responsibility
efforts? - ANSWER-Triple Bottom Line model
A company includes green business practices in its code of conduct. What is a direct
benefit that the company will have due to this practice? - ANSWER-Positive benevolent
halo effect
An employee at a company arrives consistently late. The employee's manager checks
the company policy about tardiness. The policy states that employees who arrive late
may be subject to disciplinary action, up to and including termination. The manager also
remembers hearing another employee being verbally warned about a similar
situation.What should be the first action by the manager? - ANSWER-Consult with HR.
One of a company's items has been in production for six months but is still sold stating
"new." Which unfair practice is the company engaged in, according to the Federal Trade
Commission Act? - ANSWER-Misrepresenting a product
The company did not earn enough profits to provide a salary raise to its employees in
the year 2014. In 2015, the CEO of the company took a pay cut to raise employee
salaries. This led the employees to stay and work hard to achieve the organizational
goals. What effect did the company likely experience after the change? - ANSWER-
Revenue and profits increased.
An employee of a manufacturing company is married to a member of the military. Their
spouse is seriously injured and requires round-the-clock care at home. The employee
requests a leave of 20 weeks. What is a likely outcome considering the Family and
Medical Leave Act (FMLA)? - ANSWER-The employer must accept the request since
this is for a family member of a veteran.
A federal warehouse pays their employees $7.25 per hour for a 45-hour work week. The
state mandates a minimum wage rate of $8 per hour. What valid reason is there for the
hourly wage rate to be below state mandates? - ANSWER-The employer is required to
follow the federal minimum wage rate and not the state minimum wage rate.
The human resource manager at a private company seeks to offer various benefits to its
employees. However, an employee is terminated and faces problem in continuing its
health insurance. Under which act the employee can safeguard its health insurance
even after termination? - ANSWER-Consolidated Omnibus Budget Reconciliation Act of
1986 (COBRA)
A bank files charges against one of the cashiers for using a clients' money for personal
purposes. However, the employee maintains that they did not commit this act and
demands proof. Which fundamental right is the employee exercising in this case? -
ANSWER-Due process clause
