LEGAL ENV OF BUS - CH 14 STUDY
QUESTIONS AND CORRECT
ANSWERS 100% VERIFIED 2026
UPDATE!! | Verified Questions
LEGAL ENV OF BUS - CH 14 | Comprehensive Examination
LEGAL ENV OF BUS - CH 14 STUDY QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED 2026 UPDATE!!
actual exam preparation document with verified questions,
INTRODUCTION
This document is an important and very helpful preparation
resource for LEGAL ENV OF BUS - CH 14 STUDY
QUESTIONS AND CORRECT ANSWERS 100% VERIFIED
2026 UPDATE!!. Every item uses a focused exam stem, four
response options, a keyed response, and a clear rationale,
making it easier to understand the subject, spot distractors, and
build real exam confidence.
Page 1
, Question 1
A software engineer performs services for a tech startup under a contract that
labels her an 'independent contractor.' She works exclusively for the startup,
uses company equipment, follows a detailed daily schedule set by the
company, and is paid a fixed monthly amount. Which legal test is most likely
to classify her as an employee, and what is the primary consequence for the
startup?
A. The common law agency test; the startup must provide workers'
compensation insurance and pay employment taxes.
B. The IRS 20-factor test; the startup may face penalties for
misclassification but no back taxes if the contract is written.
C. The economic realities test; the startup must comply with wage and
hour laws and may be liable for unpaid overtime and benefits.
D. The FLSA 'suffer or permit to work' standard; the startup is exempt
from overtime if the engineer is highly skilled.
Correct Answer: C - The economic realities test; the startup must
comply with wage and hour laws and may be liable for unpaid
overtime and benefits.
RATIONALE
The economic realities test, used under the FLSA, focuses on the
worker's economic dependence on the employer. Given the control
and integration, she is likely an employee, triggering wage and hour
obligations. A and B are incorrect because the common law test and
IRS factors are relevant but not the primary FLSA test; D is wrong
because the FLSA does not exempt highly skilled workers from
overtime.
Page 2
, Question 2
A marketing firm implements a policy requiring all employees to speak only
English in the workplace, including during breaks, because it claims the policy
promotes workplace harmony. A bilingual employee of Hispanic origin is
disciplined for speaking Spanish during lunch. Under Title VII, which legal
standard applies to evaluate the policy?
A. The policy is lawful if it is applied uniformly to all employees,
regardless of national origin.
B. The policy is unlawful unless the employer can show that English-only
during breaks is justified by business necessity.
C. The policy is permissible because language is not a protected
characteristic under Title VII.
D. The policy is valid if the employer can demonstrate that speaking
Spanish during breaks disrupts workflow.
Correct Answer: B - The policy is unlawful unless the employer
can show that English-only during breaks is justified by business
necessity.
RATIONALE
EEOC guidelines and case law (e.g., Garcia v. Spun Steak) hold that
English-only rules during breaks are presumed unlawful unless
justified by business necessity. A uniform policy alone does not
satisfy the standard; C is incorrect because national origin includes
language characteristics; D misstates the necessity standard as mere
disruption.
Page 3
, Question 3
A unionized manufacturer and the union have negotiated a collective
bargaining agreement (CBA) that includes a 'management rights' clause
granting the employer sole discretion to set production quotas. When the
employer unilaterally increases quotas, the union claims a violation of the duty
to bargain in good faith. Which of the following best describes the legal
outcome?
A. The employer must bargain over the quota change because it is a
mandatory subject of bargaining.
B. The employer may unilaterally change quotas because the
management rights clause waives the union's right to bargain over this
issue.
C. The employer violates the NLRA because any change in working
conditions requires union approval.
D. The employer must provide notice and an opportunity to bargain, but
the union cannot compel bargaining if the CBA has a zipper clause.
Correct Answer: B - The employer may unilaterally change
quotas because the management rights clause waives the union's
right to bargain over this issue.
RATIONALE
A clear and unmistakable waiver in the CBA, such as a management
rights clause, can allow unilateral changes on subjects covered. The
NLRB and courts enforce such waivers. A is incorrect because the
clause removes the duty to bargain; C is too broad; D is wrong
because a zipper clause alone does not eliminate the duty to bargain
over mandatory subjects unless there is a clear waiver.
Page 4
QUESTIONS AND CORRECT
ANSWERS 100% VERIFIED 2026
UPDATE!! | Verified Questions
LEGAL ENV OF BUS - CH 14 | Comprehensive Examination
LEGAL ENV OF BUS - CH 14 STUDY QUESTIONS AND
CORRECT ANSWERS 100% VERIFIED 2026 UPDATE!!
actual exam preparation document with verified questions,
INTRODUCTION
This document is an important and very helpful preparation
resource for LEGAL ENV OF BUS - CH 14 STUDY
QUESTIONS AND CORRECT ANSWERS 100% VERIFIED
2026 UPDATE!!. Every item uses a focused exam stem, four
response options, a keyed response, and a clear rationale,
making it easier to understand the subject, spot distractors, and
build real exam confidence.
Page 1
, Question 1
A software engineer performs services for a tech startup under a contract that
labels her an 'independent contractor.' She works exclusively for the startup,
uses company equipment, follows a detailed daily schedule set by the
company, and is paid a fixed monthly amount. Which legal test is most likely
to classify her as an employee, and what is the primary consequence for the
startup?
A. The common law agency test; the startup must provide workers'
compensation insurance and pay employment taxes.
B. The IRS 20-factor test; the startup may face penalties for
misclassification but no back taxes if the contract is written.
C. The economic realities test; the startup must comply with wage and
hour laws and may be liable for unpaid overtime and benefits.
D. The FLSA 'suffer or permit to work' standard; the startup is exempt
from overtime if the engineer is highly skilled.
Correct Answer: C - The economic realities test; the startup must
comply with wage and hour laws and may be liable for unpaid
overtime and benefits.
RATIONALE
The economic realities test, used under the FLSA, focuses on the
worker's economic dependence on the employer. Given the control
and integration, she is likely an employee, triggering wage and hour
obligations. A and B are incorrect because the common law test and
IRS factors are relevant but not the primary FLSA test; D is wrong
because the FLSA does not exempt highly skilled workers from
overtime.
Page 2
, Question 2
A marketing firm implements a policy requiring all employees to speak only
English in the workplace, including during breaks, because it claims the policy
promotes workplace harmony. A bilingual employee of Hispanic origin is
disciplined for speaking Spanish during lunch. Under Title VII, which legal
standard applies to evaluate the policy?
A. The policy is lawful if it is applied uniformly to all employees,
regardless of national origin.
B. The policy is unlawful unless the employer can show that English-only
during breaks is justified by business necessity.
C. The policy is permissible because language is not a protected
characteristic under Title VII.
D. The policy is valid if the employer can demonstrate that speaking
Spanish during breaks disrupts workflow.
Correct Answer: B - The policy is unlawful unless the employer
can show that English-only during breaks is justified by business
necessity.
RATIONALE
EEOC guidelines and case law (e.g., Garcia v. Spun Steak) hold that
English-only rules during breaks are presumed unlawful unless
justified by business necessity. A uniform policy alone does not
satisfy the standard; C is incorrect because national origin includes
language characteristics; D misstates the necessity standard as mere
disruption.
Page 3
, Question 3
A unionized manufacturer and the union have negotiated a collective
bargaining agreement (CBA) that includes a 'management rights' clause
granting the employer sole discretion to set production quotas. When the
employer unilaterally increases quotas, the union claims a violation of the duty
to bargain in good faith. Which of the following best describes the legal
outcome?
A. The employer must bargain over the quota change because it is a
mandatory subject of bargaining.
B. The employer may unilaterally change quotas because the
management rights clause waives the union's right to bargain over this
issue.
C. The employer violates the NLRA because any change in working
conditions requires union approval.
D. The employer must provide notice and an opportunity to bargain, but
the union cannot compel bargaining if the CBA has a zipper clause.
Correct Answer: B - The employer may unilaterally change
quotas because the management rights clause waives the union's
right to bargain over this issue.
RATIONALE
A clear and unmistakable waiver in the CBA, such as a management
rights clause, can allow unilateral changes on subjects covered. The
NLRB and courts enforce such waivers. A is incorrect because the
clause removes the duty to bargain; C is too broad; D is wrong
because a zipper clause alone does not eliminate the duty to bargain
over mandatory subjects unless there is a clear waiver.
Page 4
