WGU D352 EMPLOYMENT AND LABOR
LAW 2026!! Comprehensive Objective
Assessment (80 Questions)
Q1: An employee in an at-will jurisdiction is fired after reporting safety violations to
OSHA. Which exception to employment-at-will most likely applies?
A. Implied contract exception
B. Public policy exception [CORRECT]
C. Covenant of good faith and fair dealing exception
D. Promissory estoppel exception
Correct Answer: B
Rationale: Correct because the public policy exception prohibits termination for
refusing to violate law or exercising statutory rights, including whistleblowing under
OSHA.
Q2: An employer terminates an employee who refuses to falsify financial records to
avoid tax liability. The employee sues for wrongful termination. Which legal theory
provides the strongest basis for recovery?
A. Implied contract based on employee handbook language
B. Public policy exception to employment-at-will [CORRECT]
C. Breach of express written contract
D. Covenant of good faith and fair dealing
Correct Answer: B
Rationale: Correct because the public policy exception protects employees
terminated for refusing to engage in illegal conduct, and tax fraud constitutes a clear
violation of public policy.
Q3: An employee handbook states: "Employees will only be terminated for just cause
after progressive discipline." The employee is fired without warning for a minor
infraction. Which exception to at-will employment applies?
A. Public policy exception
,B. Implied contract exception [CORRECT]
C. Covenant of good faith and fair dealing
D. Promissory estoppel
Correct Answer: B
Rationale: Correct because employer policies, handbooks, and oral assurances can
create implied contracts modifying at-will status, requiring just cause for
termination.
Q4: Under the covenant of good faith and fair dealing exception recognized in some
jurisdictions, an employer who terminates an employee to avoid paying earned
commissions would likely be found:
A. Acting within at-will rights
B. In violation of public policy
C. In breach of the implied covenant of good faith and fair dealing [CORRECT]
D. Guilty of constructive discharge
Correct Answer: C
Rationale: Correct because the covenant of good faith and fair dealing prohibits
termination motivated by bad faith, malice, or intent to deprive employee of earned
benefits or compensation.
Q5: A sales representative is fired immediately after closing a $2 million deal,
specifically to avoid paying the 10% commission. In a state recognizing the covenant
of good faith exception, the termination is:
A. Lawful under employment-at-will
B. A violation of the implied covenant of good faith and fair dealing [CORRECT]
C. Protected by the public policy exception
D. Subject to promissory estoppel only
Correct Answer: B
Rationale: Correct because terminating an employee to avoid paying earned
commissions violates the implied covenant of good faith and fair dealing, as the
motive is to deprive the employee of bargained-for benefits.
, Q6: An employee receives a job offer letter stating "We look forward to a long and
mutually beneficial employment relationship." After three months, the employee is
terminated without cause. Which statement is most accurate?
A. The offer letter creates an implied contract for long-term employment
B. The language is too vague to create an implied contract and at-will status remains
[CORRECT]
C. The employer violated the covenant of good faith
D. The employee has a promissory estoppel claim
Correct Answer: B
Rationale: Correct because vague aspirational language in offer letters generally
does not create enforceable implied contracts; courts require specific promises of
continued employment or termination-for-cause provisions.
Q7: An employee is fired for serving on a jury. The employer claims the absence
caused operational hardship. Under the public policy exception, this termination is:
A. Lawful because jury duty disrupts business operations
B. Unlawful because jury service is a public obligation protected by public policy
[CORRECT]
C. Protected by the covenant of good faith
D. Subject to implied contract analysis
Correct Answer: B
Rationale: Correct because public policy exceptions protect employees exercising
statutory rights or fulfilling civic obligations, including jury duty, which is
fundamental to the justice system.
Q8: An employer includes a clear and conspicuous disclaimer in its employee
handbook stating: "This handbook does not create any contractual rights and
employment remains at-will." The effect of this disclaimer is most likely to:
A. Have no legal effect
B. Prevent an implied contract claim based on handbook provisions [CORRECT]
C. Violate public policy
D. Create a covenant of good faith obligation
LAW 2026!! Comprehensive Objective
Assessment (80 Questions)
Q1: An employee in an at-will jurisdiction is fired after reporting safety violations to
OSHA. Which exception to employment-at-will most likely applies?
A. Implied contract exception
B. Public policy exception [CORRECT]
C. Covenant of good faith and fair dealing exception
D. Promissory estoppel exception
Correct Answer: B
Rationale: Correct because the public policy exception prohibits termination for
refusing to violate law or exercising statutory rights, including whistleblowing under
OSHA.
Q2: An employer terminates an employee who refuses to falsify financial records to
avoid tax liability. The employee sues for wrongful termination. Which legal theory
provides the strongest basis for recovery?
A. Implied contract based on employee handbook language
B. Public policy exception to employment-at-will [CORRECT]
C. Breach of express written contract
D. Covenant of good faith and fair dealing
Correct Answer: B
Rationale: Correct because the public policy exception protects employees
terminated for refusing to engage in illegal conduct, and tax fraud constitutes a clear
violation of public policy.
Q3: An employee handbook states: "Employees will only be terminated for just cause
after progressive discipline." The employee is fired without warning for a minor
infraction. Which exception to at-will employment applies?
A. Public policy exception
,B. Implied contract exception [CORRECT]
C. Covenant of good faith and fair dealing
D. Promissory estoppel
Correct Answer: B
Rationale: Correct because employer policies, handbooks, and oral assurances can
create implied contracts modifying at-will status, requiring just cause for
termination.
Q4: Under the covenant of good faith and fair dealing exception recognized in some
jurisdictions, an employer who terminates an employee to avoid paying earned
commissions would likely be found:
A. Acting within at-will rights
B. In violation of public policy
C. In breach of the implied covenant of good faith and fair dealing [CORRECT]
D. Guilty of constructive discharge
Correct Answer: C
Rationale: Correct because the covenant of good faith and fair dealing prohibits
termination motivated by bad faith, malice, or intent to deprive employee of earned
benefits or compensation.
Q5: A sales representative is fired immediately after closing a $2 million deal,
specifically to avoid paying the 10% commission. In a state recognizing the covenant
of good faith exception, the termination is:
A. Lawful under employment-at-will
B. A violation of the implied covenant of good faith and fair dealing [CORRECT]
C. Protected by the public policy exception
D. Subject to promissory estoppel only
Correct Answer: B
Rationale: Correct because terminating an employee to avoid paying earned
commissions violates the implied covenant of good faith and fair dealing, as the
motive is to deprive the employee of bargained-for benefits.
, Q6: An employee receives a job offer letter stating "We look forward to a long and
mutually beneficial employment relationship." After three months, the employee is
terminated without cause. Which statement is most accurate?
A. The offer letter creates an implied contract for long-term employment
B. The language is too vague to create an implied contract and at-will status remains
[CORRECT]
C. The employer violated the covenant of good faith
D. The employee has a promissory estoppel claim
Correct Answer: B
Rationale: Correct because vague aspirational language in offer letters generally
does not create enforceable implied contracts; courts require specific promises of
continued employment or termination-for-cause provisions.
Q7: An employee is fired for serving on a jury. The employer claims the absence
caused operational hardship. Under the public policy exception, this termination is:
A. Lawful because jury duty disrupts business operations
B. Unlawful because jury service is a public obligation protected by public policy
[CORRECT]
C. Protected by the covenant of good faith
D. Subject to implied contract analysis
Correct Answer: B
Rationale: Correct because public policy exceptions protect employees exercising
statutory rights or fulfilling civic obligations, including jury duty, which is
fundamental to the justice system.
Q8: An employer includes a clear and conspicuous disclaimer in its employee
handbook stating: "This handbook does not create any contractual rights and
employment remains at-will." The effect of this disclaimer is most likely to:
A. Have no legal effect
B. Prevent an implied contract claim based on handbook provisions [CORRECT]
C. Violate public policy
D. Create a covenant of good faith obligation
