Employment Law Exam 1 – Study Guide, Practice Questions & Legal Review 2026
Agency Law, based on the traditional law called master and servant, governs employment
relationships. (This evolved into the law of agency- one person works on behalf of another) -
ANS ✔✔TRUE
In an employment-agency relationship, if an agent acts beyond his or her authority, the principal
may be liable for any resulting loss to a third party. (while the agent remain liable to the
principle for the same amount) - ANS ✔✔TRUE
Employers are not responsible for paying Independent Contractors: Social Security (FICA), FICA
excise tax, federal unemployment, or with holding a certain percentage of the employee's
wages for federal tax, state or local taxes
-independent contracts cannot make a claim for medical or retirement benefits - ANS ✔✔TRUE
Employers are not liable for most torts committed by an independent contractor within the
scope of the working relationship because - ANS ✔✔Title VII of the Civil Rights Act of 1964
applies to employers and prohibits them from discriminating against employees. It does not,
however, cover discrimination against independent contractors
The courts, employers, and the government are unable to agree on one definition of
"employee" and "employer," so it varies, depending on the situation and the law being used. In
addition, some statutes do not give effective guidance. - ANS ✔✔TRUE
If an independent contractor gets in a car wreck on the way to work while on the phone with
the work's boss, does the company paying the independent contractor have any liability? - ANS
✔✔No liability, because employee is not full time
As used by the Equal Employment Opportunity Commission (EEOC), the term contingent worker
includes a(n): - ANS ✔✔Independent contractor
,-contingent worker: one whose job with an employer is temporary, sporadic, or differs in any
way from the norm of full time employment. As used by the EEOC the term contingent worker
includes those who are hired by an employer through a staffing firm, as well as temporary,
seasonal, and part- time workers, and those considered to be independent contractors rather
than employees.
The provisions of Title VII of the Civil Rights Act of 1964: - ANS ✔✔prohibits discrimination in
employment based on specific protected class.
-It applies generally to all firms or their agents engaged in an industry affecting commerce that
employ 15 or more employees for each working day in the current or preceding calendar year.
Hannah was fired by Friendly Catering Company (FCC) without a valid reason. The company's
employee handbook stated that employees would only be terminated for a good cause.
Hannah's position was later filled by her former supervisor's niece. In this scenario, Hannah
cannot file a wrongful discharge lawsuit against FCC because she is an at-will employee: TRUE
OR FALSE - ANS ✔✔FALSE
She can file wrongful discrimination.
the termination may still be considered wrongful and the employer may be liable for "wrongful
discharge", "wrongful termination" or "unjust dismissal"
In a disparate treatment case, the plaintiff must be able to demonstrate that the employer had
an "evil" intent to discriminate: TRUE OR FALSE - ANS ✔✔FALSE- disparate treatment is
considered intentional discrimination. The employee does not need need to prove that the
employer physically said that race, gender and so on was the reason for the decision. the
employee must simply be able to show that the difference in treatment occurred and had no
sustainable justification, leaving a prohibited category as the only remaining conclusion.
Roberta refuses to take her turn in her employer's mandatory overtime schedule, citing family
commitments. Roberta's employer could discharge her for failing to meet job requirements
without too much concern that a court might question its decision based on public policy
reasons: TRUE or FALSE - ANS ✔✔TRUE
, -courts try to be sensitive to family obligations, being there for one's family is not a sufficient
public policy interest and a refusal to work overtime in consideration of those obligations was
deemed a legal basis for termination. The termination of an at-will employee for meeting family
obligations did not violate a public policy or any legally recognized right or duty of the
employee.
Marc, an african - american, is a chemical engineer with a graduate degree from a reputable
university. He applied for the position of an industrial chemist at Verono Company. Althrough he
was qualified for the job and performed well in the job interview, he was not offered the
position. Marc saw the job advertised again in the newspaper two weeks after he was rejected.
Can mark offer evidence to satisfy the elements of a prima facie case of disparate treatment :
TRUE OR FALSE - ANS ✔✔TRUE
Ex. the employee quit following rumors the employer would be relocating within the state. the
employee may have a cause of action pursuant to the whistle-blower protection statutes.
Is this example generally considered a valid exception to employment at will? - ANS ✔✔NO
Jonas was employed by Barker Apparel as a sewing machine repairman in one of the
company's manufacturing plants. He, along with 500 other employees, was informed that the
plant had been permanently shut down through a written notice on the manufacturing unit's
gate
when he arrived at work one day. In the context of Worker Adjustment and Retraining
Notification (WARN) Act, what happens next? - ANS ✔✔Jonas can recover pay and benefits for
the next 60 days.
-Before termination, WARN requires that employers with over 100 employees must give 60
days' advance notice of a plant closing or mass layoff to affected employees. If an employer
does not comply with the requirements of the WARN Act notices, employees can recover pay
and benefits for the period for which notice was not given, maximum of 60 days.
Agency Law, based on the traditional law called master and servant, governs employment
relationships. (This evolved into the law of agency- one person works on behalf of another) -
ANS ✔✔TRUE
In an employment-agency relationship, if an agent acts beyond his or her authority, the principal
may be liable for any resulting loss to a third party. (while the agent remain liable to the
principle for the same amount) - ANS ✔✔TRUE
Employers are not responsible for paying Independent Contractors: Social Security (FICA), FICA
excise tax, federal unemployment, or with holding a certain percentage of the employee's
wages for federal tax, state or local taxes
-independent contracts cannot make a claim for medical or retirement benefits - ANS ✔✔TRUE
Employers are not liable for most torts committed by an independent contractor within the
scope of the working relationship because - ANS ✔✔Title VII of the Civil Rights Act of 1964
applies to employers and prohibits them from discriminating against employees. It does not,
however, cover discrimination against independent contractors
The courts, employers, and the government are unable to agree on one definition of
"employee" and "employer," so it varies, depending on the situation and the law being used. In
addition, some statutes do not give effective guidance. - ANS ✔✔TRUE
If an independent contractor gets in a car wreck on the way to work while on the phone with
the work's boss, does the company paying the independent contractor have any liability? - ANS
✔✔No liability, because employee is not full time
As used by the Equal Employment Opportunity Commission (EEOC), the term contingent worker
includes a(n): - ANS ✔✔Independent contractor
,-contingent worker: one whose job with an employer is temporary, sporadic, or differs in any
way from the norm of full time employment. As used by the EEOC the term contingent worker
includes those who are hired by an employer through a staffing firm, as well as temporary,
seasonal, and part- time workers, and those considered to be independent contractors rather
than employees.
The provisions of Title VII of the Civil Rights Act of 1964: - ANS ✔✔prohibits discrimination in
employment based on specific protected class.
-It applies generally to all firms or their agents engaged in an industry affecting commerce that
employ 15 or more employees for each working day in the current or preceding calendar year.
Hannah was fired by Friendly Catering Company (FCC) without a valid reason. The company's
employee handbook stated that employees would only be terminated for a good cause.
Hannah's position was later filled by her former supervisor's niece. In this scenario, Hannah
cannot file a wrongful discharge lawsuit against FCC because she is an at-will employee: TRUE
OR FALSE - ANS ✔✔FALSE
She can file wrongful discrimination.
the termination may still be considered wrongful and the employer may be liable for "wrongful
discharge", "wrongful termination" or "unjust dismissal"
In a disparate treatment case, the plaintiff must be able to demonstrate that the employer had
an "evil" intent to discriminate: TRUE OR FALSE - ANS ✔✔FALSE- disparate treatment is
considered intentional discrimination. The employee does not need need to prove that the
employer physically said that race, gender and so on was the reason for the decision. the
employee must simply be able to show that the difference in treatment occurred and had no
sustainable justification, leaving a prohibited category as the only remaining conclusion.
Roberta refuses to take her turn in her employer's mandatory overtime schedule, citing family
commitments. Roberta's employer could discharge her for failing to meet job requirements
without too much concern that a court might question its decision based on public policy
reasons: TRUE or FALSE - ANS ✔✔TRUE
, -courts try to be sensitive to family obligations, being there for one's family is not a sufficient
public policy interest and a refusal to work overtime in consideration of those obligations was
deemed a legal basis for termination. The termination of an at-will employee for meeting family
obligations did not violate a public policy or any legally recognized right or duty of the
employee.
Marc, an african - american, is a chemical engineer with a graduate degree from a reputable
university. He applied for the position of an industrial chemist at Verono Company. Althrough he
was qualified for the job and performed well in the job interview, he was not offered the
position. Marc saw the job advertised again in the newspaper two weeks after he was rejected.
Can mark offer evidence to satisfy the elements of a prima facie case of disparate treatment :
TRUE OR FALSE - ANS ✔✔TRUE
Ex. the employee quit following rumors the employer would be relocating within the state. the
employee may have a cause of action pursuant to the whistle-blower protection statutes.
Is this example generally considered a valid exception to employment at will? - ANS ✔✔NO
Jonas was employed by Barker Apparel as a sewing machine repairman in one of the
company's manufacturing plants. He, along with 500 other employees, was informed that the
plant had been permanently shut down through a written notice on the manufacturing unit's
gate
when he arrived at work one day. In the context of Worker Adjustment and Retraining
Notification (WARN) Act, what happens next? - ANS ✔✔Jonas can recover pay and benefits for
the next 60 days.
-Before termination, WARN requires that employers with over 100 employees must give 60
days' advance notice of a plant closing or mass layoff to affected employees. If an employer
does not comply with the requirements of the WARN Act notices, employees can recover pay
and benefits for the period for which notice was not given, maximum of 60 days.
