) Employment and Labor Law | Guide
Questions & Answers | Grade A | 100% Correct
(Verified Solutions)
Section 1: Legal Foundations & Employment-at-Will (Q1–20)
Q1. Which of the following is the primary source of employment law in the
United States?
A) The Uniform Commercial Code
B) Common law, statutes, and administrative regulations
C) Only federal statutes
D) The United Nations Charter
Answer: B
Q2. The doctrine of "employment at-will" means that:
A) An employee can only be fired for cause
B) An employer can terminate an employee at any time for any reason, as long as
it is not an illegal reason
C) An employee must give two weeks' notice before quitting
D) An employment contract must be renewed annually
Answer: B
Q3. Which of the following is a recognized exception to the employment at-will
doctrine?
A) The employer had a bad day
B) The employee was terminated for refusing to perform an illegal act (public
policy exception)
C) The employee was two minutes late
,D) The employer found a younger worker to replace an older worker
Answer: B
Q4. Under the public policy exception, an employer cannot terminate an
employee for:
A) Wearing casual clothes on a Friday
B) Reporting illegal activity (whistleblowing)
C) Using too much sick leave
D) Arriving late to work repeatedly
Answer: B
Q5. 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
Q6. 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
Q7. 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 (Montana Wrongful Discharge From Employment Act)
,Q8. The doctrine of a court following the precedent of an earlier court is known
as:
A) Judicial review
B) Stare decisis
C) Respondeat superior
D) Primary precedence
Answer: B
Q9. A precedent is defined as:
A) An exception to the rule
B) A controlling rule, example, or guide established by a prior court decision
C) A reason a law is made
D) A group or person exempt from the laws
Answer: B
Q10. Which of the following is NOT a purpose or function of the law?
A) Determine procedures for changing the law
B) Facilitate private arrangements between individuals
C) Settle private and public disputes
D) Prevent desirable, or promote undesirable, behavior
Answer: D (The law promotes desirable behavior and deters undesirable
behavior)
Q11. Under the Supremacy Clause, which law has priority?
A) State law
B) Local ordinance
C) Federal law
D) International treaty
Answer: C
Q12. An employee is fired after reporting safety violations to OSHA. The
employee may have a claim for:
A) Wrongful discharge in violation of public policy
B) Breach of implied contract
C) Defamation
, D) Invasion of privacy
Answer: A
Q13. Which of the following would most likely create an implied contract
modifying at-will status?
A) An employee handbook stating that employees can be terminated only for
cause
B) A job offer letter stating that employment is at-will
C) An oral statement that the employee is doing a good job
D) A policy requiring progressive discipline
Answer: A
Q14. A state that recognizes the "covenant of good faith and fair dealing"
exception may allow an employee to sue for:
A) Termination without a legitimate business reason
B) Discrimination based on race
C) Violation of the Fair Labor Standards Act
D) Failure to pay overtime
Answer: A
Q15. Which of the following is an example of retaliatory discharge?
A) Firing an employee for poor performance
B) Terminating an employee for filing a workers' compensation claim
C) Laying off an employee due to economic downturn
D) Firing an employee for violating a safety rule
Answer: B
Q16. Constructive discharge occurs when:
A) An employee is fired verbally
B) Working conditions are so intolerable that a reasonable person would resign
C) An employee quits for a better job
D) Both parties agree to end employment
Answer: B