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