Study Guide for Employment Law for Business 10th Edition by Dawn Bennett-Alexander & Laura Hartman | Business Law Review Questions & Answers | Exam Prep 2025/2026

Test Bank for:
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Employment Law For Business 10th Edition By
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Dawn D. Bennett-Alexander & Laura Pincus
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Hartman – Complete Questions & Answers Study
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Guide b

,Answers are atthe End ofEach Chapter Chapter 01:
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Studentname: b




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
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relationships.
b




⊚ true


⊚ false

2) In an employment-agency relationship, if an agent acts beyond his or her authority, the
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principal may be liable for any resulting loss to a third party.
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⊚ true


⊚ false

3) Myra provides accounting services as an independent contractor for Great Northern.
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Because of this relationship, Great Northern is responsible for withholding and paying Myra's
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employment taxes, including federal unemployment compensation (FUTA), Social Security
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(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
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scope of the working relationship.
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⊚ true


⊚ false

5) Thereis a single commonly accepted definition of "employee" used by courts, employers, and
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the government.
b b

, ⊚ true


⊚ false

6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent
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over a part-time office assistant, Fresh Ideas asked the firm to replace her with someone from a
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different race. The replaced office assistant cannot proceed with a discrimination claim under Title
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VII of the Civil Rights Act since she (the part-time office assistant) was never an employee of
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Fresh Ideas.
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⊚ true


⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
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answers the question.
b b b




7) If an employee has a car accident while driving a company car from one company office to
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another, the employer may be liable to the owner of the other vehicle under which legal theory?
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A) Vicarious liability b




B) Joint liability b




C) Strict liability b




D) Negligence



8) Which federal law protects employees from unfair labor practices of employers?
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A) Occupational Safety and Health Act b b b b




B) National Labor Relations Act b b b




C) Fair Labor Standards Act b b b




D) Labor Management Relations Act b b b




9) A willful misclassification of workers by an employer may result in harsh sanctions,
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including 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) b b b b




D) Federal Insurance Contributions Act (FICA)
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10) Which of the following is currently considered to be the leading test to determine
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employee status?
b b




A) Common-law agency test b b




B) IRS 20-factor analysis
b b




C) Economics realities test b b




D) Degree of control test b b b




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?
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A) 15 employees
b




B) 20 employees
b




C) 50 employees
b




D) No minimum requirement
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12) The Rehabilitation Act of 1973 applies togovernment contractors that maintain contracts
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with the 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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