CAE END OF COURSE ANSWERS AND QUESTIONS
SET A+
✔✔Title VII - ✔✔*Title VII of the Civil Rights Act*
Prohibits employers from discriminating against employees on the basis of sex, race,
color, national origin, and religion.
Applies to companies with 15 or more employees.
ASAE Guide says 1-14 FTEs
✔✔FLSA - ✔✔*Fair Labor Standards Act*
Establishes minimum wage, overtime pay, record keeping, and youth employment
standards.
*1-14 FTEs (All)*
✔✔EPPA - ✔✔*Employee Polygraph Protection Act*
Private employers may not require or request any employee or job applicant to take a lie
detector test, or discharge, discipline, or discriminate against anybody for refusing to
take a test or for exercising other rights under the act.
*1-14 FTEs (All)*
✔✔USERRA - ✔✔*Uniformed Services Employment and Reemployment Rights Act*
Clarifies and strengthens the Veterans' Reemployment Rights (VRR) Statute.
Protects civilian job rights and benefits for veterans and members of Reserve
components.
*1-14 FTEs (All)*
✔✔Employment: Race Discrimination - ✔✔Title VII of the Civil Rights Act of 1964
prohibits discrimination based on race or color.
✔✔Employment: Sex Discrimination - ✔✔Title VII prohibits this.
✔✔Employment: Pregnancy Discrimination - ✔✔Title VII states that pregnant
employees must be treated the same way as other employees and when she becomes
unable to work, the pregnancy is treated like a disability.
, ✔✔Employment: Harrassment - ✔✔Title VII prohibits this. The Equal Employment
Opportunity Commission (EEOC) defines sexual harassment and it may not be used as
a condition for employment, a consequence of employment or an offensive job
interference.
✔✔Form 990 - ✔✔Form 990 is an annual reporting return that certain federally tax-
exempt organizations must file with the IRS. It provides information on the filing
organization's mission, programs, and finances.
✔✔Records Retention - ✔✔Permanently retain:
Articles of incorporation
IRS Tax-exemption determination letter
Minute books
Bank statements
✔✔Fiduciary Duty - ✔✔Directors of non-profits are subject to the duties of care, loyalty
and obedience.
Care - Exhibit honesty and good faith (Stern Case).
Loyalty - Put the org in front of personal gain.
Obedience is unique to charities and ensures the org follows its purpose.
✔✔Fiduciary Duties: Form 990 - ✔✔1. Avoid conflicts of interest
2. Maintain confidentiality of private information.
3. Refrain from using information for own for-profit business.
✔✔Personal Liability of Officers and Directors - ✔✔Tests for liability are bad faith or
fraud.
Be honest and use reasonable digression to avoid personal liability.
✔✔Hydrolevel Case - ✔✔American Society of Mechanical Engineers v. Hydrolevel
Corporation, 456 U.S. 556 (1982), is a United States Supreme Court case where a non-
profit association, for the first time, was held liable for treble damages under the
Sherman Antitrust Act due to antitrust violations.
In this case, the U.S. Supreme Court held an association liable when its agents
appeared to be acting under the authority of the association. Such action is called
apparent authority. The court determined that a non-profit association is liable when it
fails to prevent antitrust violation through the misuse of the association's reputation by
its agents (including lower level staff and unpaid volunteers).
✔✔Contract - ✔✔A voluntary understanding between two people or firms that creates a
binding relationship between them.
There must be an offer, acceptance and consideration.
SET A+
✔✔Title VII - ✔✔*Title VII of the Civil Rights Act*
Prohibits employers from discriminating against employees on the basis of sex, race,
color, national origin, and religion.
Applies to companies with 15 or more employees.
ASAE Guide says 1-14 FTEs
✔✔FLSA - ✔✔*Fair Labor Standards Act*
Establishes minimum wage, overtime pay, record keeping, and youth employment
standards.
*1-14 FTEs (All)*
✔✔EPPA - ✔✔*Employee Polygraph Protection Act*
Private employers may not require or request any employee or job applicant to take a lie
detector test, or discharge, discipline, or discriminate against anybody for refusing to
take a test or for exercising other rights under the act.
*1-14 FTEs (All)*
✔✔USERRA - ✔✔*Uniformed Services Employment and Reemployment Rights Act*
Clarifies and strengthens the Veterans' Reemployment Rights (VRR) Statute.
Protects civilian job rights and benefits for veterans and members of Reserve
components.
*1-14 FTEs (All)*
✔✔Employment: Race Discrimination - ✔✔Title VII of the Civil Rights Act of 1964
prohibits discrimination based on race or color.
✔✔Employment: Sex Discrimination - ✔✔Title VII prohibits this.
✔✔Employment: Pregnancy Discrimination - ✔✔Title VII states that pregnant
employees must be treated the same way as other employees and when she becomes
unable to work, the pregnancy is treated like a disability.
, ✔✔Employment: Harrassment - ✔✔Title VII prohibits this. The Equal Employment
Opportunity Commission (EEOC) defines sexual harassment and it may not be used as
a condition for employment, a consequence of employment or an offensive job
interference.
✔✔Form 990 - ✔✔Form 990 is an annual reporting return that certain federally tax-
exempt organizations must file with the IRS. It provides information on the filing
organization's mission, programs, and finances.
✔✔Records Retention - ✔✔Permanently retain:
Articles of incorporation
IRS Tax-exemption determination letter
Minute books
Bank statements
✔✔Fiduciary Duty - ✔✔Directors of non-profits are subject to the duties of care, loyalty
and obedience.
Care - Exhibit honesty and good faith (Stern Case).
Loyalty - Put the org in front of personal gain.
Obedience is unique to charities and ensures the org follows its purpose.
✔✔Fiduciary Duties: Form 990 - ✔✔1. Avoid conflicts of interest
2. Maintain confidentiality of private information.
3. Refrain from using information for own for-profit business.
✔✔Personal Liability of Officers and Directors - ✔✔Tests for liability are bad faith or
fraud.
Be honest and use reasonable digression to avoid personal liability.
✔✔Hydrolevel Case - ✔✔American Society of Mechanical Engineers v. Hydrolevel
Corporation, 456 U.S. 556 (1982), is a United States Supreme Court case where a non-
profit association, for the first time, was held liable for treble damages under the
Sherman Antitrust Act due to antitrust violations.
In this case, the U.S. Supreme Court held an association liable when its agents
appeared to be acting under the authority of the association. Such action is called
apparent authority. The court determined that a non-profit association is liable when it
fails to prevent antitrust violation through the misuse of the association's reputation by
its agents (including lower level staff and unpaid volunteers).
✔✔Contract - ✔✔A voluntary understanding between two people or firms that creates a
binding relationship between them.
There must be an offer, acceptance and consideration.