TEST BANK for Employment Law for Business, 10th
Edition, by Dawn D. Bennett-Alexander & Laura P.
Hartman
CHAPTER 1-16| VERIFIED Q&As
ALL ANSWERS ARE AT THE END OF EACH CHAPTER
TB
Ac
er
Page 1 of 425
, Chapter 01: The Regulation of Employment
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Agency law, based on the traditional law called master and servant, governs employment
relationships.
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority, the principal
may be liable for any resulting loss to a third party.
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of
this relationship, Great Northern is responsible for withholding and paying Myra's employment taxes,
TB
including federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise
tax.
⊚
Ac
true
⊚ false
er
4) Employers are not liable for most torts committed by an independent contractor within the scope
of the working relationship.
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the
government.
⊚ true
⊚ false
Page 2 of 425
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a
part-time office assistant, Fresh Ideas asked the firm to replace her with someone from a different
race. The replaced office assistant cannot proceed with a discrimination claim under Title VII of the
Civil Rights Act since she (the part-time office assistant) was never an employee of Fresh Ideas.
⊚ true
⊚ false
MULTIPLE CHOICE
Choose the one alternative that best completes the statement or answers the question.
7) If an employee has a car accident while driving a company car from one company office to
another, the employer may be liable to the owner of the other vehicle under which legal theory?
A) Vicarious liability
B) Joint liability
C) Strict liability
TB
D) Negligence
Ac
8) Which federal law protects employees from unfair labor practices of employers?
A) Occupational Safety and Health Act
er
B) National Labor Relations Act
C) Fair Labor Standards Act
D) Labor Management Relations Act
9) A willful misclassification of workers by an employer may result in harsh sanctions, including
imprisonment and a fine of up to $10,000, under which federal law?
A) Federal Unemployment Compensation Act (FUTA)
B) Fair Labor Standards Act (FLSA)
C) National Labor Relations Act (NLRA)
D) Federal Insurance Contributions Act (FICA)
Page 3 of 425
, 10) Which of the following is currently considered to be the leading test to determine employee
status?
A) Common-law agency test
B) IRS 20-factor analysis
C) Economics realities test
D) Degree of control test
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an
employer under the Act?
A) 15 employees
B) 20 employees
C) 50 employees
D) No minimum requirement
TB
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with
the federal government in excess of how much annually?
Ac
A) $1,000
er
B) $5,000
C) $10,000
D) No minimum dollar amount
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new
office complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that
she will not accept any bids from a Russian contractor. She then rejected a bid made by a Russian
contractor without any legitimate reason. If the Russian contractor brings a lawsuit against CMS for
discrimination, what is the likely result?
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social
Security Act.
B) Roberta's refusal to hire Russian contractors will be found to be a violation of the Consumer
Protection Act.
C) Roberta's refusal to hire Russian contractors will not be considered an offense because
employers in the United States are free to discriminate against employees based on their race or
national origin.
Page 4 of 425
Edition, by Dawn D. Bennett-Alexander & Laura P.
Hartman
CHAPTER 1-16| VERIFIED Q&As
ALL ANSWERS ARE AT THE END OF EACH CHAPTER
TB
Ac
er
Page 1 of 425
, Chapter 01: The Regulation of Employment
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Agency law, based on the traditional law called master and servant, governs employment
relationships.
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority, the principal
may be liable for any resulting loss to a third party.
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because of
this relationship, Great Northern is responsible for withholding and paying Myra's employment taxes,
TB
including federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise
tax.
⊚
Ac
true
⊚ false
er
4) Employers are not liable for most torts committed by an independent contractor within the scope
of the working relationship.
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers, and the
government.
⊚ true
⊚ false
Page 2 of 425
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent over a
part-time office assistant, Fresh Ideas asked the firm to replace her with someone from a different
race. The replaced office assistant cannot proceed with a discrimination claim under Title VII of the
Civil Rights Act since she (the part-time office assistant) was never an employee of Fresh Ideas.
⊚ true
⊚ false
MULTIPLE CHOICE
Choose the one alternative that best completes the statement or answers the question.
7) If an employee has a car accident while driving a company car from one company office to
another, the employer may be liable to the owner of the other vehicle under which legal theory?
A) Vicarious liability
B) Joint liability
C) Strict liability
TB
D) Negligence
Ac
8) Which federal law protects employees from unfair labor practices of employers?
A) Occupational Safety and Health Act
er
B) National Labor Relations Act
C) Fair Labor Standards Act
D) Labor Management Relations Act
9) A willful misclassification of workers by an employer may result in harsh sanctions, including
imprisonment and a fine of up to $10,000, under which federal law?
A) Federal Unemployment Compensation Act (FUTA)
B) Fair Labor Standards Act (FLSA)
C) National Labor Relations Act (NLRA)
D) Federal Insurance Contributions Act (FICA)
Page 3 of 425
, 10) Which of the following is currently considered to be the leading test to determine employee
status?
A) Common-law agency test
B) IRS 20-factor analysis
C) Economics realities test
D) Degree of control test
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as an
employer under the Act?
A) 15 employees
B) 20 employees
C) 50 employees
D) No minimum requirement
TB
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts with
the federal government in excess of how much annually?
Ac
A) $1,000
er
B) $5,000
C) $10,000
D) No minimum dollar amount
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of its new
office complex. Roberta, the head of facilities management at CMS, told her secretary, LeAnne, that
she will not accept any bids from a Russian contractor. She then rejected a bid made by a Russian
contractor without any legitimate reason. If the Russian contractor brings a lawsuit against CMS for
discrimination, what is the likely result?
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the Social
Security Act.
B) Roberta's refusal to hire Russian contractors will be found to be a violation of the Consumer
Protection Act.
C) Roberta's refusal to hire Russian contractors will not be considered an offense because
employers in the United States are free to discriminate against employees based on their race or
national origin.
Page 4 of 425
