Page | 1
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, Chapter 01 zl
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
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1) Agency law, based on the traditional law called master and servant, governs employment relationships.
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⊚ true
⊚ false
2) In an employment-
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agency relationship, if an agent acts beyond his or her authority, the principal may be liable for any resultin
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g loss to a third party.
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⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of this re
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lationship, Great Northern is responsible for withholding and paying Myra's employment taxes, includin
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g federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
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⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the scope of the w
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orking relationship.
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⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the go
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vernment.
⊚ true
⊚ false
Page | 2 zl zl
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a part-
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time office assistant, Fresh Ideas asked the firm to replace her with someone from a different race. The rep
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laced office assistant cannot proceed with a discrimination claim under Title VII of the Civil Rights Act sin
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ce she (the part-time office assistant) was never an employee of Fresh Ideas.
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⊚ true
⊚ false
MULTIPLE CHOICE zl
Choose the one alternative that best completes the statement or answers the question.
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7) If an employee has a car accident while driving a company car from one company office to another, the e
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mployer may be liable to the owner of the other vehicle under which legal theory?
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A) Vicarious liability zl
B) Joint liability zl
C) Strict liability zl
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
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A) Occupational Safety and Health Act zl zl zl zl
B) National Labor Relations Act zl zl zl
C) Fair Labor Standards Act
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D) Labor Management Relations Act zl zl zl
9) A willful misclassification of workers by an employer may result in harsh sanctions, including i
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mprisonment and a fine of up to $10,000, under which federal law?
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A) Federal Unemployment Compensation Act (FUTA) zl zl zl zl
B) Fair Labor Standards Act (FLSA)
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C) National Labor Relations Act (NLRA) zl zl zl zl
Page | 3 zl zl
, D) Federal Insurance Contributions Act (FICA) zl zl zl zl
10) Which of the following is currently considered to be the leading test to determine employee status?
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A) Common-law agency test zl zl
B) IRS 20-factor analysiszl zl
C) Economics realities test zl zl
D) Degree of control test zl zl zl
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an e
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mployer under the Act? zl zl zl
A) 15 employeeszl
B) 20 employeeszl
C) 50 employeeszl
D) No minimum requirement
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12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with the fe
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deral government in excess of how much annually?
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A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
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13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new offic
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e complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that she will no
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t accept any bids from a Russian contractor. She then rejected a bid made by a Russian contractor without a
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ny legitimate reason. If the Russian contractor brings a lawsuit against CMS for discrimination, what is the
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likely result? zl
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social Security A
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ct.
Page | 4 zl zl
zl zl
, Chapter 01 zl
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
1) Agency law, based on the traditional law called master and servant, governs employment relationships.
zl zl zl zl zl zl zl zl zl zl zl zl zl
⊚ true
⊚ false
2) In an employment-
zl zl
agency relationship, if an agent acts beyond his or her authority, the principal may be liable for any resultin
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
g loss to a third party.
zl zl zl zl zl
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of this re
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
lationship, Great Northern is responsible for withholding and paying Myra's employment taxes, includin
zl zl zl zl zl zl zl zl zl zl zl zl
g federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
zl zl zl zl zl zl zl zl zl zl zl
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the scope of the w
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
orking relationship.
zl
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the go
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vernment.
⊚ true
⊚ false
Page | 2 zl zl
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a part-
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
time office assistant, Fresh Ideas asked the firm to replace her with someone from a different race. The rep
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
laced office assistant cannot proceed with a discrimination claim under Title VII of the Civil Rights Act sin
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ce she (the part-time office assistant) was never an employee of Fresh Ideas.
zl zl zl zl zl zl zl zl zl zl zl zl
⊚ true
⊚ false
MULTIPLE CHOICE zl
Choose the one alternative that best completes the statement or answers the question.
zl zl zl zl zl zl zl zl zl zl zl zl
7) If an employee has a car accident while driving a company car from one company office to another, the e
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
mployer may be liable to the owner of the other vehicle under which legal theory?
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
A) Vicarious liability zl
B) Joint liability zl
C) Strict liability zl
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
zl zl zl zl zl zl zl zl zl zl
A) Occupational Safety and Health Act zl zl zl zl
B) National Labor Relations Act zl zl zl
C) Fair Labor Standards Act
zl zl zl
D) Labor Management Relations Act zl zl zl
9) A willful misclassification of workers by an employer may result in harsh sanctions, including i
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
mprisonment and a fine of up to $10,000, under which federal law?
zl zl zl zl zl zl zl zl zl zl zl
A) Federal Unemployment Compensation Act (FUTA) zl zl zl zl
B) Fair Labor Standards Act (FLSA)
zl zl zl zl
C) National Labor Relations Act (NLRA) zl zl zl zl
Page | 3 zl zl
, D) Federal Insurance Contributions Act (FICA) zl zl zl zl
10) Which of the following is currently considered to be the leading test to determine employee status?
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
A) Common-law agency test zl zl
B) IRS 20-factor analysiszl zl
C) Economics realities test zl zl
D) Degree of control test zl zl zl
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an e
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
mployer under the Act? zl zl zl
A) 15 employeeszl
B) 20 employeeszl
C) 50 employeeszl
D) No minimum requirement
zl zl
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with the fe
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
deral government in excess of how much annually?
zl zl zl zl zl zl zl
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
zl zl zl
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new offic
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
e complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that she will no
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
t accept any bids from a Russian contractor. She then rejected a bid made by a Russian contractor without a
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ny legitimate reason. If the Russian contractor brings a lawsuit against CMS for discrimination, what is the
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
likely result? zl
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social Security A
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ct.
Page | 4 zl zl