CHAPTER 1
OVERVIEW OF EMPLOYMENT LAW
MULTIPLE CHOICE QUESTIONS
1. William, aged 59, has been employed by your firm for more than 26 years, and has
continually received above-average evaluations. Just before his 27 th anniversary with
the firm, you are ordered by your superior, the HR Manager, to tell him that his
employment with the firm is terminated immediately. Given the facts, as presented, the
issues most likely to be raised are:
a. legal
b. ethical
c. medical
d. contract
e. none of these
Answer: B
2. Under U.S. employment laws, employees have the right to:
a. not be fired, as long as they do a good job and the employer’s financial
condition does not require that employment levels be cut
b. be treated fairly in all aspects of the workplace, including receiving fair
compensation
c. have health insurance and other basic benefits, provided that they are full-
time employees
d. all of the above
e. none of the above
Answer: E
,3. In order to determine which employment laws apply to a certain employer, the
employer should consider which of the following factors?
a. the number of employees that work for the company
b. whether the employer sells goods or services to the federal government
c. the state(s) in which the employer operates
d. all of the above
e. none of the above
Answer: D
4. Regarding the historical development of employment law in the U.S., which of the
following statements is true?
a. Most federal employment laws were passed in the first half of the 19 th century
in response to growing industrialization
b. The earliest employment laws focused on wages and hours
c. Most employment laws were passed with little conflict, since the need for
these laws was evident to employers, employees and legislators.
d. The importance of employment at will has increased over time.
e. None of the above.
Answer: E
5. Which of the following is generally true regarding the process of enforcing employment
laws?
a. courts and government agencies hear cases only after employees come
forward with complaints about violations of the law
b. employees are very likely to seize the opportunity to sue their employers,
because all of the cost of employment litigation is borne by the employer
c. once a claim is brought, a company’s attorneys deal with it, and managers have
little involvement in the case
, d. all of the above
e. none of the above
Answer: A
6. In Nino v The Jewelry Exchange, plaintiff bank employee sued alleging discrimination,
and his employer sought to dismiss the suit, stating that the employee had signed a
mandatory arbitration agreement, so that the suit should go to arbitration. The
employee responded that the mandatory arbitration agreement he had signed was
unconscionable, and therefore, unenforceable. Among other things, the employee
alleged that the arbitration agreement was unconscionable because gave him only 5
days to make a demand for arbitration. The court ruled:
a. for the Plaintiff employee, because the agreement was both procedurally and
substantively unconscionable.
b. for the Plaintiff employee, because the arbitration agreement was
procedurally unconscionable.
c. for the Defendant employer, because none of the provisions of the arbitration
agreement was unconscionable.
d. for the Defendant employer because the unconscionable parts of the
arbitration agreement could be stricken, and the arbitration could proceed.
Answer: A
7. Under the “payroll method” approved by the U.S. Supreme Court:
a. employers whose payrolls exceed $500,000 annually are covered by Title VII
b. employers are covered by Title VII if they had at least 20 employees on the
payroll at the time of the alleged discrimination
c. employers are covered by Title VII if they had at least 15 employees working
and being paid for each working day during at least 20 weeks in the same or
the preceding year
d. employees are counted for each full week between when they are hired and
when they leave employment, regardless of the number of days or hours
worked.
e. none of the above
, Answer: D
8. Which of the following statements is true of arbitration?
a. historically, arbitration has been used to resolve disputes over contractual
rights
b. arbitrators’ decisions are usually advisory and not considered final
c. arbitrators have less control over the outcomes of disputes than do mediators.
d. arbitration is always more costly and time-consuming than litigation
e. none of these
Answer: A
9. Regarding the interrelationship of federal and state employment laws:
a. state laws must be identical to federal law or the state law is void
b. states may pass laws which reduce employee rights, but may not enact laws
that expand employee protections granted in federal laws
c. states may pass laws which expand employee rights, but may not enact laws
that reduce employee protections granted in federal laws
d. employment law is exclusively a federal domain, so states may not enact laws
when federal law already exists
Answer: C
10. In Wal-Mart Stores v Dukes, Plaintiffs, all female employees, sued alleging discrimination
in pay and promotions based on gender, and sought to represent a class of about 1 ½
million female employees, past and present. The case was certified as a class action, and
Wal-Mart appealed, alleging that the certification did not comply with the Federal Rules
of Civil Procedure in that the claimants had not suffered the same injury, and the claims
did not have questions of law and fact in common. The court ruled:
a. for the Plaintiff employees, because they had all suffered the same injury – a
violation of Title VII
b. for the Plaintiff employees, because Wal-Mart was guilty of a pattern or
practice of discrimination based on its corporate culture
OVERVIEW OF EMPLOYMENT LAW
MULTIPLE CHOICE QUESTIONS
1. William, aged 59, has been employed by your firm for more than 26 years, and has
continually received above-average evaluations. Just before his 27 th anniversary with
the firm, you are ordered by your superior, the HR Manager, to tell him that his
employment with the firm is terminated immediately. Given the facts, as presented, the
issues most likely to be raised are:
a. legal
b. ethical
c. medical
d. contract
e. none of these
Answer: B
2. Under U.S. employment laws, employees have the right to:
a. not be fired, as long as they do a good job and the employer’s financial
condition does not require that employment levels be cut
b. be treated fairly in all aspects of the workplace, including receiving fair
compensation
c. have health insurance and other basic benefits, provided that they are full-
time employees
d. all of the above
e. none of the above
Answer: E
,3. In order to determine which employment laws apply to a certain employer, the
employer should consider which of the following factors?
a. the number of employees that work for the company
b. whether the employer sells goods or services to the federal government
c. the state(s) in which the employer operates
d. all of the above
e. none of the above
Answer: D
4. Regarding the historical development of employment law in the U.S., which of the
following statements is true?
a. Most federal employment laws were passed in the first half of the 19 th century
in response to growing industrialization
b. The earliest employment laws focused on wages and hours
c. Most employment laws were passed with little conflict, since the need for
these laws was evident to employers, employees and legislators.
d. The importance of employment at will has increased over time.
e. None of the above.
Answer: E
5. Which of the following is generally true regarding the process of enforcing employment
laws?
a. courts and government agencies hear cases only after employees come
forward with complaints about violations of the law
b. employees are very likely to seize the opportunity to sue their employers,
because all of the cost of employment litigation is borne by the employer
c. once a claim is brought, a company’s attorneys deal with it, and managers have
little involvement in the case
, d. all of the above
e. none of the above
Answer: A
6. In Nino v The Jewelry Exchange, plaintiff bank employee sued alleging discrimination,
and his employer sought to dismiss the suit, stating that the employee had signed a
mandatory arbitration agreement, so that the suit should go to arbitration. The
employee responded that the mandatory arbitration agreement he had signed was
unconscionable, and therefore, unenforceable. Among other things, the employee
alleged that the arbitration agreement was unconscionable because gave him only 5
days to make a demand for arbitration. The court ruled:
a. for the Plaintiff employee, because the agreement was both procedurally and
substantively unconscionable.
b. for the Plaintiff employee, because the arbitration agreement was
procedurally unconscionable.
c. for the Defendant employer, because none of the provisions of the arbitration
agreement was unconscionable.
d. for the Defendant employer because the unconscionable parts of the
arbitration agreement could be stricken, and the arbitration could proceed.
Answer: A
7. Under the “payroll method” approved by the U.S. Supreme Court:
a. employers whose payrolls exceed $500,000 annually are covered by Title VII
b. employers are covered by Title VII if they had at least 20 employees on the
payroll at the time of the alleged discrimination
c. employers are covered by Title VII if they had at least 15 employees working
and being paid for each working day during at least 20 weeks in the same or
the preceding year
d. employees are counted for each full week between when they are hired and
when they leave employment, regardless of the number of days or hours
worked.
e. none of the above
, Answer: D
8. Which of the following statements is true of arbitration?
a. historically, arbitration has been used to resolve disputes over contractual
rights
b. arbitrators’ decisions are usually advisory and not considered final
c. arbitrators have less control over the outcomes of disputes than do mediators.
d. arbitration is always more costly and time-consuming than litigation
e. none of these
Answer: A
9. Regarding the interrelationship of federal and state employment laws:
a. state laws must be identical to federal law or the state law is void
b. states may pass laws which reduce employee rights, but may not enact laws
that expand employee protections granted in federal laws
c. states may pass laws which expand employee rights, but may not enact laws
that reduce employee protections granted in federal laws
d. employment law is exclusively a federal domain, so states may not enact laws
when federal law already exists
Answer: C
10. In Wal-Mart Stores v Dukes, Plaintiffs, all female employees, sued alleging discrimination
in pay and promotions based on gender, and sought to represent a class of about 1 ½
million female employees, past and present. The case was certified as a class action, and
Wal-Mart appealed, alleging that the certification did not comply with the Federal Rules
of Civil Procedure in that the claimants had not suffered the same injury, and the claims
did not have questions of law and fact in common. The court ruled:
a. for the Plaintiff employees, because they had all suffered the same injury – a
violation of Title VII
b. for the Plaintiff employees, because Wal-Mart was guilty of a pattern or
practice of discrimination based on its corporate culture
