, CHAPTER 01 l
The Regulation of Employment
l l l
Truel/lFalselQuestions
1. (p.l 7)l Regulationslgoverninglthelemployer-
employeelrelationshiplarelbased lonlagencyllaw land lfailurelof lanlemployee/agent ltolact laccordinglt
olthelemployer'slinstructionslcould lresult linlliabilitylforlthelemployer.
TRUE
Difficulty: l1 lEasy
2. (p.l 8)l Misclassificationlof lemployeeslaslindependent lcontractorslcanlresult linlliabilitylunderlthel
FairlLaborlStandardslAct lof l1938.
TRUE
Difficulty: l1 lEasy
3. (p.l 7)l If lanlagent lactslwithout lauthoritylof lthelprincipal,lthelprincipallislnot lliablelforlanylresul
tingllossltolalthird lparty.
FALSE
Difficulty: l1 lEasy
4. (p.l 7)l Therelislonelcommonlylaccepted ldefinitionlof l"employee"lused lbylcourts.
FALSE
Difficulty: l1 lEasy
,5. (p.l 9)l Anlemployerlislvicariouslylliablelforlthelactionslof lanlemployeelcausinglharmltolalthird l
partyloutsidelthelcourselof lemployment.
FALSE
Difficulty: l2 lMedium
6. (p.l 16)l Underltheleconomiclrealitiesltest,lcourtslconsiderlwhetherlthelworkerlisleconomicallyldep
endent lonlalparticularlenterpriselorlworkslforlhimself lorlherself.
TRUE
Difficulty: l1 lEasy
7. (p.l 16)l A lsigned lagreement lbetweenlalcompanyland lalworkerlthat lspecificallylstateslthat lnolempl
oyee-
employerlrelationshiplexistslwilllbelcontrollinglinlthelevent lof lallegalldisputeloverlwhetherlthelwo
rkerlislcovered lbylthelNationallLaborlRelationslAct.
FALSE
Difficulty: l1 lEasy
8. (p.l 8)l MarcolprovideslaccountinglservicesltolthelConsolidatedlBanklaslanlindependent lcon
tractor.lMarcolmust lpaylhislownlSociallSecurityl(FICA),lFICA lexcise,land lfederallunempl
oyment lcompensationl(FUTA),ltaxes.lHowever,lConsolidated lislresponsiblelforlfederallan
d lstatelincomeltaxlwithholdings.
FALSE
Difficulty: l1 lEasy
9. (p.l 11)l Willfullviolationslof lFLSA lsubject lanlemployerltolcriminallliability.
TRUE
Difficulty: l1 lEasy
, 10. (p.l 8,l13)l Iflanlemployerldoeslnot lmakelanylwithholdinglfromlalworker'slpaylforltaxes,lthenlthelI
RSldeemslthelworkerltolbelanlindependent lcontractor.
FALSE
Difficulty: l2 lMedium
11. (p.l20)l ThelWonderlCitylRestaurant luseslalstaffinglfirmltolobtainltemporarylworkers.lAfterlthels
taffinglfirmlsent loverlaltemporarylhostess,lWonderlasked lthelfirmltolreplacelherlwithlsomeonelof l
anotherlrace.lIf lthelhostesslwholwaslreplaced lproceedslwithlalTitlelVIIlclaim,lWonderlcannot lbell
iablelbecauseltheltemporarylhostesslwaslneverlitslemployee.
FALSE
Difficulty: l1 lEasy
12. (p.l 28)l Non-competelagreementslarelgoverned lbylfederalllaw.
FALSE
Difficulty: l2 lMedium
13. (p.l 26)l ThelCivillRightslAct lof l1866lappliesltolemployerslwithl15lorlmorelemployees.
FALSE
Difficulty: l2 lMedium
14. (p.l 27)l ThelRehabilitationlAct lappliesltolfederallcontractorslwithlcontractslwithlthelfederallgov
ernment linlexcesslof l$10,000lannually.
TRUE
Difficulty: l2 lMedium
The Regulation of Employment
l l l
Truel/lFalselQuestions
1. (p.l 7)l Regulationslgoverninglthelemployer-
employeelrelationshiplarelbased lonlagencyllaw land lfailurelof lanlemployee/agent ltolact laccordinglt
olthelemployer'slinstructionslcould lresult linlliabilitylforlthelemployer.
TRUE
Difficulty: l1 lEasy
2. (p.l 8)l Misclassificationlof lemployeeslaslindependent lcontractorslcanlresult linlliabilitylunderlthel
FairlLaborlStandardslAct lof l1938.
TRUE
Difficulty: l1 lEasy
3. (p.l 7)l If lanlagent lactslwithout lauthoritylof lthelprincipal,lthelprincipallislnot lliablelforlanylresul
tingllossltolalthird lparty.
FALSE
Difficulty: l1 lEasy
4. (p.l 7)l Therelislonelcommonlylaccepted ldefinitionlof l"employee"lused lbylcourts.
FALSE
Difficulty: l1 lEasy
,5. (p.l 9)l Anlemployerlislvicariouslylliablelforlthelactionslof lanlemployeelcausinglharmltolalthird l
partyloutsidelthelcourselof lemployment.
FALSE
Difficulty: l2 lMedium
6. (p.l 16)l Underltheleconomiclrealitiesltest,lcourtslconsiderlwhetherlthelworkerlisleconomicallyldep
endent lonlalparticularlenterpriselorlworkslforlhimself lorlherself.
TRUE
Difficulty: l1 lEasy
7. (p.l 16)l A lsigned lagreement lbetweenlalcompanyland lalworkerlthat lspecificallylstateslthat lnolempl
oyee-
employerlrelationshiplexistslwilllbelcontrollinglinlthelevent lof lallegalldisputeloverlwhetherlthelwo
rkerlislcovered lbylthelNationallLaborlRelationslAct.
FALSE
Difficulty: l1 lEasy
8. (p.l 8)l MarcolprovideslaccountinglservicesltolthelConsolidatedlBanklaslanlindependent lcon
tractor.lMarcolmust lpaylhislownlSociallSecurityl(FICA),lFICA lexcise,land lfederallunempl
oyment lcompensationl(FUTA),ltaxes.lHowever,lConsolidated lislresponsiblelforlfederallan
d lstatelincomeltaxlwithholdings.
FALSE
Difficulty: l1 lEasy
9. (p.l 11)l Willfullviolationslof lFLSA lsubject lanlemployerltolcriminallliability.
TRUE
Difficulty: l1 lEasy
, 10. (p.l 8,l13)l Iflanlemployerldoeslnot lmakelanylwithholdinglfromlalworker'slpaylforltaxes,lthenlthelI
RSldeemslthelworkerltolbelanlindependent lcontractor.
FALSE
Difficulty: l2 lMedium
11. (p.l20)l ThelWonderlCitylRestaurant luseslalstaffinglfirmltolobtainltemporarylworkers.lAfterlthels
taffinglfirmlsent loverlaltemporarylhostess,lWonderlasked lthelfirmltolreplacelherlwithlsomeonelof l
anotherlrace.lIf lthelhostesslwholwaslreplaced lproceedslwithlalTitlelVIIlclaim,lWonderlcannot lbell
iablelbecauseltheltemporarylhostesslwaslneverlitslemployee.
FALSE
Difficulty: l1 lEasy
12. (p.l 28)l Non-competelagreementslarelgoverned lbylfederalllaw.
FALSE
Difficulty: l2 lMedium
13. (p.l 26)l ThelCivillRightslAct lof l1866lappliesltolemployerslwithl15lorlmorelemployees.
FALSE
Difficulty: l2 lMedium
14. (p.l 27)l ThelRehabilitationlAct lappliesltolfederallcontractorslwithlcontractslwithlthelfederallgov
ernment linlexcesslof l$10,000lannually.
TRUE
Difficulty: l2 lMedium
