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