Employment Law for Business, 10th Edition, Dawn Bennett-Alexander
c c c c c c c
c Chapter 1-16 Answers are at the End of Each Chapter
c c c c c c c c c
Chapter 01: c
Student name: c
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
c c c c c c c c c c c c c c c
1) Agency law, based on the traditional law called master and servant, governs employment
c c c c c c c c c c c c
relationships.
c
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority, the
c c c c c c c c c c c c c
principal may be liable for any resulting loss to a third party.
c c c c c c c c c c c c
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern.
c c c c c c c c c c
Because of this relationship, Great Northern is responsible for withholding and paying Myra's
c c c c c c c c c c c c c
employment taxes, including federal unemployment compensation (FUTA), Social Security
c c c c c c c c c
(FICA) and FICA excise tax.
c c c c c
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within
c c c c c c c c c c c c
the scope of the working relationship.
c c c c c c
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers,
c c c c c c c c c c c c
and the government.
c c c
, ⊚ true
⊚ false
6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm
c c c c c c c c c c c c
sent over a part-time office assistant, Fresh Ideas asked the firm to replace her with someone
c c c c c c c c c c c c c c c c
from a different race. The replaced office assistant cannot proceed with a discrimination claim
c c c c c c c c c c c c c c
under Title VII of the Civil Rights Act since she (the part-time office assistant) was never an
c c c c c c c c c c c c c c c c c
employee of Fresh Ideas.
c c c c
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
c c c c c c c c c c c c
answers the question.
c c c
7) If an employee has a car accident while driving a company car from one company office
c c c c c c c c c c c c c c c
to another, the employer may be liable to the owner of the other vehicle under which legal
c c c c c c c c c c c c c c c c c
theory?
c
A) Vicarious liability c
B) Joint liability c
C) Strict liability c
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
c c c c c c c c c c
A) Occupational Safety and Health Act c c c c
B) National Labor Relations Act c c c
C) Fair Labor Standards Actc c c
D) Labor Management Relations Act c c c
9) A willful misclassification of workers by an employer may result in harsh sanctions,
c c c c c c c c c c c c
including imprisonment and a fine of up to $10,000, under which federal law?
c c c c c c c c c c c c c
, A) Federal Unemployment Compensation Act (FUTA)
c c c c
B) Fair Labor Standards Act (FLSA)
c c c c
C) National Labor Relations Act (NLRA) c c c c
D) Federal Insurance Contributions Act (FICA)
c c c c
10) Which of the following is currently considered to be the leading test to determine
c c c c c c c c c c c c c
employee status?
c c
A) Common-law agency test c c
B) IRS 20-factor analysis
c c
C) Economics realities test c c
D) Degree of control test c c c
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify
c c c c c c c c c c c c c c c
as an employer under the Act?
c c c c c c
A) 15 employees
c
B) 20 employees
c
C) 50 employees
c
D) No minimum requirement
c c
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts
c c c c c c c c c c c
with the federal government in excess of how much annually?
c c c c c c c c c c
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
c c c
, 13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of
c c c c c c c c c c c c c
its new office complex. Roberta, the head of facilities management at CMS, told her secretary,
c c c c c c c c c c c c c c c
LeAnne, that she will not accept any bids from a Russian contractor. She then rejected a bid
c c c c c c c c c c c c c c c c c
made by a Russian contractor without any legitimate reason. If the Russian contractor brings a
c c c c c c c c c c c c c c c
lawsuit against CMS for discrimination, what is the likely result?
c c c c c c c c c c
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the c c c c c c c c c c c c c c
Social Security Act.
c c c
B) Roberta's refusal to hire Russian contractors will be found to be a violation of the c c c c c c c c c c c c c c
Consumer Protection Act.
c c c
C) Roberta's refusal to hire Russian contractors will not be considered an offense c c c c c c c c c c c
because employers in the United States are free to discriminate against employees based on their
c c c c c c c c c c c c c c c
race or national origin.
c c c c
D) Roberta's refusal to hire Russian contractors will not be considered a violation of c c c c c c c c c c c c
Title VII of the Civil Rights Act because that law does not cover discrimination against
c c c c c c c c c c c c c c c
independent contractors.
c c
14) Riley is a freelance handyman hired by Bob’s Burgers whenever small repairs are needed
c c c c c c c c c c c c c
in the store. Riley is paid per project and usually works at Bob’s Burgers one day a month.
c c c c c c c c c c c c c c c c c c
Which of the following is likely true of this scenario?
c c c c c c c c c c
A) Bob’s burgers will need to withhold a certain percentage of Riley's wages for federalc c c c c c c c c c c c c
income tax purposes.
c c c
B) Riley cannot be held liable for any torts committed by him within the scope of the
c c c c c c c c c c c c c c c
working relationship.
c c
C) Riley can make a claim for medical or retirement benefits from Bob’s Burgers as he
c c c c c c c c c c c c c c
is an employee.
c c c
D) Riley cannot make a claim for medical or retirement benefits from Bob’s Burgers as
c c c c c c c c c c c c c
he is an independent contractor.
c c c c c
15) Employment law based on agency principles imposes a duty on an employee to act as c c c c c c c c c c c c c c
authorized. If the employee exceeds his or her authority, the employer is:
c c c c c c c c c c c c