Page | 1
st st
, Chapter 01 st
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
st st st st st st st st st st st st st st st
1) Agency law, based on the traditional law called master and servant, governs employment relationships.
st st st st st st st st st st st st st
⊚ true
⊚ false
2) In an employment-
st st
agency relationship, if an agent acts beyond his or her authority, the principal may be liable for any resultin
st st st st st st st st st st st st st st st st st st
g loss to a third party.
st st st st st
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of this rel
st st st st st st st st st st st st st st
ationship, Great Northern is responsible for withholding and paying Myra's employment taxes, includin
st st st st st st st st st st st st
g federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
st st st st st st st st st st st
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the scope of the wo
st st st st st st st st st st st st st st st st st
rking relationship.
st
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the go
st st st st st st st st st st st st st st st
vernment.
⊚ true
⊚ false
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,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a part-
st st st st st st st st st st st st st st st st
time office assistant, Fresh Ideas asked the firm to replace her with someone from a different race. The repl
st st st st st st st st st st st st st st st st st st st
aced office assistant cannot proceed with a discrimination claim under Title VII of the Civil Rights Act sinc
st st st st st st st st st st st st st st st st st
e she (the part-time office assistant) was never an employee of Fresh Ideas.
st st st st st st st st st st st st
⊚ true
⊚ false
MULTIPLE CHOICE st
Choose the one alternative that best completes the statement or answers the question.
st st st st st st st st st st st st
7) If an employee has a car accident while driving a company car from one company office to another, the em
st st st st st st st st st st st st st st st st st st st
ployer may be liable to the owner of the other vehicle under which legal theory?
st st st st st st st st st st st st st st
A) Vicarious liability st
B) Joint liability st
C) Strict liability st
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
st st st st st st st st st st
A) Occupational Safety and Health Act st st st st
B) National Labor Relations Act st st st
C) Fair Labor Standards Act
st st st
D) Labor Management Relations Act st st st
9) A willful misclassification of workers by an employer may result in harsh sanctions, including im
st st st st st st st st st st st st st st
prisonment and a fine of up to $10,000, under which federal law?
st st st st st st st st st st st
A) Federal Unemployment Compensation Act (FUTA) st st st st
B) Fair Labor Standards Act (FLSA)
st st st st
C) National Labor Relations Act (NLRA) st st st st
Page | 3 st st
, D) Federal Insurance Contributions Act (FICA) st st st st
10) Which of the following is currently considered to be the leading test to determine employee status?
st st st st st st st st st st st st st st st
A) Common-law agency test st st
B) IRS 20-factor analysis st st
C) Economics realities test st st
D) Degree of control test st st st
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an em
st st st st st st st st st st st st st st st st st st
ployer under the Act?
st st st
A) 15 employees st
B) 20 employees st
C) 50 employees st
D) No minimum requirement
st st
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with the fe
st st st st st st st st st st st st st st
deral government in excess of how much annually?
st st st st st st st
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
st st st
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new office
st st st st st st st st st st st st st st st st
complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that she will not
st st st st st st st st st st st st st st st st st st
accept any bids from a Russian contractor. She then rejected a bid made by a Russian contractor without an
st st st st st st st st st st st st st st st st st st
y legitimate reason. If the Russian contractor brings a lawsuit against CMS for discrimination, what is the li
st st st st st st st st st st st st st st st st st
kely result?
st
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social Security Ac
st st st st st st st st st st st st st st st st st
t.
Page | 4 st st
st st
, Chapter 01 st
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
st st st st st st st st st st st st st st st
1) Agency law, based on the traditional law called master and servant, governs employment relationships.
st st st st st st st st st st st st st
⊚ true
⊚ false
2) In an employment-
st st
agency relationship, if an agent acts beyond his or her authority, the principal may be liable for any resultin
st st st st st st st st st st st st st st st st st st
g loss to a third party.
st st st st st
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of this rel
st st st st st st st st st st st st st st
ationship, Great Northern is responsible for withholding and paying Myra's employment taxes, includin
st st st st st st st st st st st st
g federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
st st st st st st st st st st st
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the scope of the wo
st st st st st st st st st st st st st st st st st
rking relationship.
st
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the go
st st st st st st st st st st st st st st st
vernment.
⊚ true
⊚ false
Page | 2 st st
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a part-
st st st st st st st st st st st st st st st st
time office assistant, Fresh Ideas asked the firm to replace her with someone from a different race. The repl
st st st st st st st st st st st st st st st st st st st
aced office assistant cannot proceed with a discrimination claim under Title VII of the Civil Rights Act sinc
st st st st st st st st st st st st st st st st st
e she (the part-time office assistant) was never an employee of Fresh Ideas.
st st st st st st st st st st st st
⊚ true
⊚ false
MULTIPLE CHOICE st
Choose the one alternative that best completes the statement or answers the question.
st st st st st st st st st st st st
7) If an employee has a car accident while driving a company car from one company office to another, the em
st st st st st st st st st st st st st st st st st st st
ployer may be liable to the owner of the other vehicle under which legal theory?
st st st st st st st st st st st st st st
A) Vicarious liability st
B) Joint liability st
C) Strict liability st
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
st st st st st st st st st st
A) Occupational Safety and Health Act st st st st
B) National Labor Relations Act st st st
C) Fair Labor Standards Act
st st st
D) Labor Management Relations Act st st st
9) A willful misclassification of workers by an employer may result in harsh sanctions, including im
st st st st st st st st st st st st st st
prisonment and a fine of up to $10,000, under which federal law?
st st st st st st st st st st st
A) Federal Unemployment Compensation Act (FUTA) st st st st
B) Fair Labor Standards Act (FLSA)
st st st st
C) National Labor Relations Act (NLRA) st st st st
Page | 3 st st
, D) Federal Insurance Contributions Act (FICA) st st st st
10) Which of the following is currently considered to be the leading test to determine employee status?
st st st st st st st st st st st st st st st
A) Common-law agency test st st
B) IRS 20-factor analysis st st
C) Economics realities test st st
D) Degree of control test st st st
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an em
st st st st st st st st st st st st st st st st st st
ployer under the Act?
st st st
A) 15 employees st
B) 20 employees st
C) 50 employees st
D) No minimum requirement
st st
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with the fe
st st st st st st st st st st st st st st
deral government in excess of how much annually?
st st st st st st st
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
st st st
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new office
st st st st st st st st st st st st st st st st
complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that she will not
st st st st st st st st st st st st st st st st st st
accept any bids from a Russian contractor. She then rejected a bid made by a Russian contractor without an
st st st st st st st st st st st st st st st st st st
y legitimate reason. If the Russian contractor brings a lawsuit against CMS for discrimination, what is the li
st st st st st st st st st st st st st st st st st
kely result?
st
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social Security Ac
st st st st st st st st st st st st st st st st st
t.
Page | 4 st st
