Page | 1
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, Chapter 01 br
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 result
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ing 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 r
br br br br br br br br br br br br br br
elationship, Great Northern is responsible for withholding and paying Myra's employment taxes, includ
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ing federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
br br br br br br br br br br br
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the scope of the
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working relationship. br
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the g
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overnment.
⊚ true
⊚ false
Page | 2 br br
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a part-
br br br br br br br br br br br br br br br br
time office assistant, Fresh Ideas asked the firm to replace her with someone from a different race. The re
br br br br br br br br br br br br br br br br br br br
placed office assistant cannot proceed with a discrimination claim under Title VII of the Civil Rights Act
br br br br br br br br br br br br br br br br br
since she (the part-time office assistant) was never an employee of Fresh Ideas.
br br br br br br br br br br br br
⊚ true
⊚ false
MULTIPLE CHOICE br
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
br br br br br br br br br br br br br br br br br br br
mployer may be liable to the owner of the other vehicle under which legal theory?
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A) Vicarious liability br
B) Joint liability br
C) Strict liability br
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
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A) Occupational Safety and Health Act br br br br
B) National Labor Relations Act br br br
C) Fair Labor Standards Act
br br br
D) Labor Management Relations Act br br br
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)
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B) Fair Labor Standards Act (FLSA)
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C) National Labor Relations Act (NLRA) br br br br
Page | 3 br br
, D) Federal Insurance Contributions Act (FICA)br br br br
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 br br
B) IRS 20-factor analysis
br br
C) Economics realities test br br
D) Degree of control test br br br
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an e
br br br br br br br br br br br br br br br br br br
mployer under the Act? br br br
A) 15 employees
br
B) 20 employees
br
C) 50 employees
br
D) No minimum requirement
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12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with the f
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ederal government in excess of how much annually?
br br br br br br br
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 offi
br br br br br br br br br br br br br br br br
ce complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that she will
br br br br br br br br br br br br br br br br br
not accept any bids from a Russian contractor. She then rejected a bid made by a Russian contractor with
br br br br br br br br br br br br br br br br br br
out any legitimate reason. If the Russian contractor brings a lawsuit against CMS for discrimination, what
br br br br br br br br br br br br br br br br
is the likely result?
br br br
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social Security
br br br br br br br br br br br br br br br br br
Act.
Page | 4 br br
br br
, Chapter 01 br
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
br br br br br br br br br br br br br br br
1) Agency law, based on the traditional law called master and servant, governs employment relationships.
br br br br br br br br br br br br br
⊚ true
⊚ false
2) In an employment-
br br
agency relationship, if an agent acts beyond his or her authority, the principal may be liable for any result
br br br br br br br br br br br br br br br br br br
ing loss to a third party.
br br br br br
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of this r
br br br br br br br br br br br br br br
elationship, Great Northern is responsible for withholding and paying Myra's employment taxes, includ
br br br br br br br br br br br br
ing federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax.
br br br br br br br br br br br
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the scope of the
br br br br br br br br br br br br br br br br br
working relationship. br
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the g
br br br br br br br br br br br br br br br
overnment.
⊚ true
⊚ false
Page | 2 br br
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a part-
br br br br br br br br br br br br br br br br
time office assistant, Fresh Ideas asked the firm to replace her with someone from a different race. The re
br br br br br br br br br br br br br br br br br br br
placed office assistant cannot proceed with a discrimination claim under Title VII of the Civil Rights Act
br br br br br br br br br br br br br br br br br
since she (the part-time office assistant) was never an employee of Fresh Ideas.
br br br br br br br br br br br br
⊚ true
⊚ false
MULTIPLE CHOICE br
Choose the one alternative that best completes the statement or answers the question.
br br br br br br br br br br br br
7) If an employee has a car accident while driving a company car from one company office to another, the e
br br br br br br br br br br br br br br br br br br br
mployer may be liable to the owner of the other vehicle under which legal theory?
br br br br br br br br br br br br br br
A) Vicarious liability br
B) Joint liability br
C) Strict liability br
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
br br br br br br br br br br
A) Occupational Safety and Health Act br br br br
B) National Labor Relations Act br br br
C) Fair Labor Standards Act
br br br
D) Labor Management Relations Act br br br
9) A willful misclassification of workers by an employer may result in harsh sanctions, including i
br br br br br br br br br br br br br br
mprisonment and a fine of up to $10,000, under which federal law?
br br br br br br br br br br br
A) Federal Unemployment Compensation Act (FUTA)
br br br br
B) Fair Labor Standards Act (FLSA)
br br br br
C) National Labor Relations Act (NLRA) br br br br
Page | 3 br br
, D) Federal Insurance Contributions Act (FICA)br br br br
10) Which of the following is currently considered to be the leading test to determine employee status?
br br br br br br br br br br br br br br br
A) Common-law agency test br br
B) IRS 20-factor analysis
br br
C) Economics realities test br br
D) Degree of control test br br br
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an e
br br br br br br br br br br br br br br br br br br
mployer under the Act? br br br
A) 15 employees
br
B) 20 employees
br
C) 50 employees
br
D) No minimum requirement
br br
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with the f
br br br br br br br br br br br br br br
ederal government in excess of how much annually?
br br br br br br br
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
br br br
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new offi
br br br br br br br br br br br br br br br br
ce complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that she will
br br br br br br br br br br br br br br br br br
not accept any bids from a Russian contractor. She then rejected a bid made by a Russian contractor with
br br br br br br br br br br br br br br br br br br
out any legitimate reason. If the Russian contractor brings a lawsuit against CMS for discrimination, what
br br br br br br br br br br br br br br br br
is the likely result?
br br br
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social Security
br br br br br br br br br br br br br br br br br
Act.
Page | 4 br br
