EXAM QUESTIONS WITH CORRECT ANSWERS
"The Tax Reform Act (1986) - CORRECT ANSWER restricted the federal income tax exemption of
interest for municipal bonds to public purpose bonds, which are bonds issued to finance projects that
benefit citizens in general rather than particular private interests"n
"The Taxpayer Relief Act (1997) - CORRECT ANSWER Created a new savings programs called Roth IRAs
and Education IRAs. Many individuals were able to achieve a better tax position through these tools."n
"The Trademark Act (1946) - CORRECT ANSWER Created federal protection for trademarks and service
marks."n
"The Clayton Act (1914) - CORRECT ANSWER prohibits mergers and acquisitions that would less
competition, a single person cannot be a director of two or more competing corporations, and restricts
use of injunctions against labor, and legalized peaceful strikes, picketing, and boycotts."n
"The Consumer Credit Protection Act (1968) - CORRECT ANSWER Limits the amount of wages that can
be garnished or withheld in any one week and prohibits employee dismissal because of garnishments."n
"The Copeland "Anti-Kickback" Act (1934) - CORRECT ANSWER Precludes a federal contractor or
subcontractor from inducing an employee to give up any part of their wages to the employers for the
benefit of having a job."n
"The Copyright Act (1976) - CORRECT ANSWER Protection of "original works" for authors so others
may not print, duplicate, distribute, or sell their work."n
"The Copyright Terms Extension (1998) - CORRECT ANSWER Further extended copyright protection to
the duration of the author's life plus 70 years for general copyrights and to 95 years for works made for
hire and works copyrighted before 1978."n
"The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) (2001) - CORRECT ANSWER Adjust
pension vesting schedules, increasing retirement plan limits, permitting pretax catch-up contributions by
participants older than 50."n
"Progressive Discipline Policy - CORRECT ANSWER Severe penalties for repeated offenses, typically
beginning with counseling or verbal warning. Used for warning off unionization and ensure uniformity
and consistency."n
"Purpose of HRIS - CORRECT ANSWER provides data management and accurate and timely
information for decision-making. Streamlines HR operational, managerial and executive support
processes"n
"Job Analysis and ADA - CORRECT ANSWER used to define the essential elements of the job including
physical demands, handicapped individuals be given "reasonable accommodation" in the workplace."n
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,"Job Analysis and FLSA - CORRECT ANSWER includes 1.5 pay rate for 40+ hours, exemption for outside
sales reps."n
"Job Analysis and Affirmative Action - CORRECT ANSWER Federal Contractors how to handle
affirmative action. Recordkeeping requirement, internet applicant, removing physical/mental job
requirements from analysis."n
"Hiring Management Systems (HMS) - CORRECT ANSWER Refers to more extensive ATS and syncing
with HRIS system."n
"The Electronic Communications Privacy Act (ECPA) (1986) - CORRECT ANSWER Provides rules for
access, use, disclosure, interpretation, and privacy protections of electronic communications, and they
provide the possibility of both civil and criminal penalties for violations. Ex: monitoring employee emails,
messages, recording calls, and cameras in the workplace. The employer needs to give proper notice."n
"Employee Polygraph Protection Act (1988) - CORRECT ANSWER Federal law that prohibits the use or
suggestion of lie detector tests in most employment situations"n
"The Employee Retirement Income Security Act (ERISA) (1974) - CORRECT ANSWER sets minimum
standards for most voluntarily established retirement and health plans in private industry to provide
protection for individuals in these plans."n
"The Equal Pay Act (1963) - CORRECT ANSWER An amendment to the Fair Labor Standards Act, this act
requires equal pay for men and women doing equal work."n
"The FAA Modernization and Reform Act (2012) - CORRECT ANSWER Includes measures that amend
the Railway Labor Act to change union certification election processes in the railroad and airline
industries and impose greater oversight of the regulatory activities of the National Mediation Board.
Requires a Government Accountability Office (GAO) review and audit of NMB operations every 2
years."n
"The Fair and Accurate Credit Transactions Act (FACT) (2003) - CORRECT ANSWER Amendments to the
Fair Credit Reporting Act to provide financial privacy of employees and job applicants. Requirements in
third part investigations of employee misconduct charges."n
"The Fair Credit Reporting Act (FCRA) (1970) - CORRECT ANSWER This law protects consumers against
inaccurate credit reporting and requires lenders and creditors to correct errors. It permits consumer
credit reporting agencies to issue credit reports to users only for specified purposes and only under
certain circumstances, requires creditors to inform the consumer if credit has been denied because of
information on the consumer's credit report (and also gives consumers the right to the source of such
information), and provides the consumer with mechanisms by which to request a copy of his or her
credit report and to challenge information contained therein."n
"The Fair Labor Standards Act (FLSA) (1938) - CORRECT ANSWER This federal law covers employers
engaged in interstate commerce, regulates child labor, maximum hours, and minimum wages. The law,
among other things, specifically prohibits children under the age of 14 from most types of work, making
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, exceptions for, e.g., lawn care, newspaper delivery, and entertainment, and restricts the employment of
children between the ages of 15-18 in various ways. It also requires employers to pay employees who
agree to work more than 40 hours per week no less than one and a half (1½) times their regular pay for
all hours over 40."n
"FLSA: Record Keeping - CORRECT ANSWER • Personal information
• Hour & day work week begins
• Total hours worked per work day & per work week
• Regular hourly pay rate for any week involving overtime
• Total overtime pay for work week
• Deductions from or addition to wages
• Total wages paid each pay period
• Date of payment and pay period covered"n
"Child Labor Provisions - CORRECT ANSWER Limits hours of work for minors under 16 and lists
hazardous occupations too dangerous for them"n
"Foreign Corrupt Practices Act (FCPA) (1997) - CORRECT ANSWER Prohibits American companies from
making corrupt payments to foreign officials for the purpose of obtaining or keeping business."n
"The Health Insurance Portability and Accountability Act (HIPAA) (1996) - CORRECT ANSWER Ensures
that individuals who leave/lose their jobs can obtain health coverage even if they or someone in their
family has a serious illness, injury, or pregnant. It allows people to change jobs without loss of
coverage."n
"The Immigration and Nationality Act (INA) (1952) - CORRECT ANSWER Fundamental body of US
immigration law. Provisions apply to all employers. Addresses employment eligibility and employment
verification; defines the conditions for the temporary and permanent employment of aliens in the US"n
"Immigration Reform and Control Act of 1986 - CORRECT ANSWER Federal law requiring employers to
verify and maintain records on applicants' legal rights to work in the United States"n
"The IRS Intermediate Sanctions (2002) - CORRECT ANSWER Provides guidelines regarding the
determination of reasonable compensation for executives of nonprofit organizations; allows the IRS to
impose penalties when it determines that top officials have received excessive compensation from their
organizations"n
"The Labor Management Relations Act (LMRA) - CORRECT ANSWER Act that provides balance of
power between union and management by designating certain union activities as unfair labor practices;
also known as Taft-Hartley Act."n
"The Labor Management Reporting and Disclosure Act - CORRECT ANSWER A federal law enacted in
1959 that established a system of reporting and checks intended to uncover and prevent fraud and
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