Deck 1: The Regulation of the Employment Relationship

Question 1

Mr.Johnson,a white male,testified for the plaintiffs in a racial discrimination lawsuit brought by a Black female employee against his employer,Security Bank.He had been advised by his manager not to get involved.Shortly thereafter,Mr.Johnson was fired.

A)Mr.Johnson has no case for retaliatory discharge because he is not a member of the protected class.
B)Mr.Johnson has no case for retaliatory discharge because merely testifying on behalf of someone else is insufficient involvement in a discrimination lawsuit to get protection against retaliatory discharge under Title VII of the Civil Rights Act.
C)Mr.Johnson has no case for retaliatory discharge because he is an employment-at-will employee.
D)Mr.Johnson may have a case because Title VII of the Civil Rights Act protects an employee who participates in any manner in an investigation,proceeding or hearing on a colleague's complaint of discrimination.

Answer 1

D

Question 2

Davis Hosiery Mills has each new employee sign a form acknowledging receipt of the company's handbook.The handbook states that employees will be terminated for good cause only.It also contains a disclaimer,in small print,which informs the employee that the employment relationship is "at will." An employee of Davis Hosiery sues for wrongful termination.

A)The employee cannot sue because termination for good cause is not generally recognized as a limitation to employment-at-will,even when placed in an employee handbook.
B)Davis Hosiery will win the case because the employee signed a form acknowledging that the employment relationship at Davis Hosiery is "at will."
C)Depending on the statutes or court decisions in the state where Davis Hosiery is located,the employee can proceed with the lawsuit because the disclaimer was neither prominent nor conspicuous.
D)The employee cannot sue if she lost her copy of the handbook.

Answer 2

C

Question 3

Cortney was employed at Brunson County Elementary School as a cook.Her supervisor routinely took extra food and other supplies home.Cortney was fired after she reported the theft to the police and local newspaper.

A)Cortney does not have a cause of action for wrongful discharge.
B)Cortney may have a cause of action pursuant to the "whistle-blowers" exception to the employment-at-will doctrine.
C)Cortney is an employee-at-will and can be terminated at any time for any reason.
D)None of the choices are correct.

Answer 3

B

Question 4

ABC,Inc.solicited bids from various independent contractors to landscape the grounds of its new office complex.Drew,head of facilities management told Patty,his secretary,that he would not accept any bids from Hispanic contractors.Drew explained that he would authorize hiring only American contractors to work on the grounds.A Hispanic contractor brings a lawsuit against ABC for discrimination.

A)Drew's refusal to hire Hispanic companies is a violation of the Independent Contractors Act of 2006.
B)Drew 's refusal to hire Hispanic companies is a violation of Title VII of the Civil Rights Act.
C)The Hispanic contractor cannot prevail in a discrimination case because John's conversation with his secretary is confidential and cannot be used as evidence.
D)Drew's refusal to hire Hispanic companies is not a violation of Title VII of the Civil Rights Act because that law does not cover discrimination against independent contractors.

Question 5

The employment-at-will doctrine means that

A)An actor must agree to follow the instructions by the play's director in order to be cast in a play by William Shakespeare.
B)Highly paid skilled workers in the building trades can pass their jobs on to a relative when they die.
C)An employer can terminate an employee for any reason as long as the reason is not a violation of public policy or against the law.
D)Government employees lose their constitutional rights when on the job.

Question 6

Regulations governing the employer-employee relationship are based on agency law and failure of an employee/agent to act according to the employer's instructions could result in liability for the employer.

Question 7

Mr.Jones was employed by Barker Sock Company as a sewing machine repairman in Plant #5.He,along with the other 700 employees,was informed that the plant had been permanently closed by a written notice on the door when he arrived at work.

A)Mr.Jones' only recourse is to file for unemployment benefits.
B)Mr.Jones has no recourse because he was an employee-at-will.
C)Mr.Jones may be eligible to receive his salary and benefits for the next 60 days.
D)None of the choices are correct.

Question 8

Hannah Bing was hired by Friendly Catering Company.The employee handbook stated that employees would only be terminated for good cause.Hannah was fired and replaced by her supervisor's niece.Hannah cannot file a wrongful discharge lawsuit against Friendly Catering Company because she is an employee-at-will.

Question 9

A signed agreement between a company and a worker that specifically states that no employee-employer relationship exists will be controlling in the event of a legal dispute over whether the worker is covered by the National Labor Relations Act.

Question 10

Under the economic realities test,courts consider whether the worker is economically dependent on a particular enterprise or works for himself or herself.

Question 11

Colton Manufacturing shut down 3 manufacturing facilities without prior notice to its 3000 employees.Colton has graciously offered to provide outsourcing assistance to its displaced employees and informed them of their right to continue to receive health insurance coverage through COBRA for eighteen months.Colton has no further liability to its former employees.

Question 12

Ms.Lee was employed as a secretary at Burton Trucking.She was fired from her job when she refused to perjure herself at a trial where her employer was the defendant.She filed a wrongful discharge lawsuit against her former employer.Ms.Lee will

A)prevail if the state where the lawsuit was filed recognizes a public policy exception to the employment-at-will doctrine.
B)prevail only if she proves she was telling the truth.
C)will lose because the employment-at-will doctrine completely insulates the employer from liability.
D)will lose because her testimony provided the basis for a defamation lawsuit by her former employer.

Question 13

Marco provides accounting services to the Consolidated Bank as an independent contractor.Marco must pay his own Social Security (FICA),FICA excise,and federal unemployment compensation (FUTA),taxes.However,Consolidated is responsible for federal and state income tax withholdings.

Question 14

Promissory Estoppel is an exception to the employment-at-will doctrine if the employee can show that he/she relied on the employer's promise to her detriment.

Question 15

The Wonder City Restaurant uses a staffing firm to obtain temporary workers.After the staffing firm sent over a temporary hostess,Wonder asked the firm to replace her with someone of another race.If the hostess who was replaced proceeds with a Title VII claim,Wonder cannot be liable because the temporary hostess was never its' employee.

Question 16

Misclassification of employees as independent contractors can result in liability under the Fair Labor Standards Act of 1938.

Question 17

Major Tire Company's plant in Charleston,South Carolina was destroyed when Hurricane Hazel hit the coast.The company officially closed the facility after reviewing the damage and terminated all 500 workers.The company did not give the employees 60 days notice,and it is liable under the WARN Act.

Question 18

Which factor is not part of the economic realities test used by the courts to determine whether a worker is an employee or an independent contractor?

A)the degree of control exerted by the alleged employer over the worker.
B)how integral the work is to the alleged employer's business.
C)the degree of skill required by the worker.
D)whether the alleged employer withholds payroll taxes or provides worker's compensation

Question 19

Juan Wayne works for three months as temporary laborer at Barry's Landscaping Company.He gives his employer written notice of his service when he leaves the company to enlist in the U.S.Army Special Forces.After serving for three years in the Army,including a tour in Iraq,he comes back to the company and asks for his old job.Under the Uniformed Services Employment and Reemployment Rights Act

A)Barry's is obligated to rehire Juan because he gave advance written notice before he went on active duty and he was gone less than five years.
B)Barry's is not obligated to rehire Juan because they have found more qualified employees to do his old job.
C)Barry's is not obligated to rehire Juan because he was a temporary employee before he enlisted in the Army.
D)Instead of restoring Juan to his old job,Barry's is obligated to give him a promotion because he served his country in a dangerous assignment in Iraq.

Question 20

The amount of compensatory damages that can be awarded in Title VII cases are capped based on the size of the employer.However,there is no cap on the amount of attorney fees that can be awarded to the successful party.

Question 21

Title VII of the Civil Rights Act

A)applies to all employers
B)applies to all employers engaged in commerce with 15 or more employees for each working day for 20 or more weeks in the current or preceding year.
C)applies to Indian tribes and government-owned corporations
D)none of the choices are correct.

Question 22

For the last 6 years,Mega Big Box Stores has utilized programmers at its headquarters to maintain its online retail operation.As the size of the online business grew,Mega changed the status of the programmers who maintain the website from employees to contractors.For the past 3 years all new programmers brought on board have signed documents classifying them as independent contractors.Some of the programmers brought a court case regarding their status and got a verdict that they were misclassified.

A)The Internal Revue Service (IRS)can hold Mega liable for its share of Social Security (FICA),and federal unemployment compensation (FUTA)taxes that it did not withhold from the programmers' compensation.
B)The IRS can subject Mega to an additional penalty equal to 20 percent of the FICA that should have been withheld,plus.1.5 percent of the wages received by the employees.
C)Mega may be found liable for accrued but unpaid benefits under the Employee Retirement Income Security Act of 1974 (ERISA).
D)All of the above

Question 23

Benita works as a nursing assistant in a retirement home run by Cottonwood Care Centers,a national operator of facilities providing care for the elderly.Benita works 53 hours a week.After looking at her payroll stubs for the past 6 months,she concludes that she has not received sufficient overtime pay.She complains to her supervisor but the company takes no action.

A)Benita can bring a complaint to the National Labor Relations Board under the Fair Labor Standards Act of 1938 (FLSA)
B)Benita can bring a complaint to the U.S.Department of Labor,under the Fair Labor Standards Act of 1938 (FLSA).
C)Benita can bring a complaint to the U.S.Department of Labor,under the Employee Retirement Income Security Act of 1974 (ERISA)
D)Benita can bring a complaint to the U.S.Department of Labor,under Executive Order 11246.

Question 24

Alana Brown was employed by the Quality Protection Security Company as a security officer at a local military base.While off duty,she participated in a rally protesting U.S.participation in the Iraq war.Chief of Security Felix Bratfurter saw Officer Brown on the evening television news.The next day,Chief Bratfurter fired Officer Brown.

A)Officer Brown has no recourse because the protections of employee constitutional rights only apply when the employer is a government agency and she was employed by a private company.
B)Officer Brown has a cause of action for wrongful discharge because she cannot be fired for exercising her constitutional right to free speech.
C)Officer Brown has a cause of action for breach of contract.
D)None of the choices are correct.

Question 25

After graduating from college with a bachelor's degree in business administration,Emily,sent an email,with a resume attached,to the Encyclopedic Marketing Company.In the email she expressed an interest in being considered for an entry level position in Encyclopedic's management training program.When she found out that Encyclopedic had hired two of her classmates who were not of her race,Emily filed a complaint of discrimination under Title VII of the Civil Rights Act.

A)Emily has a good case against Encyclopedic because her email told them that she was interested in a management trainee position and they didn't even consider her.
B)If Emily really wants to be a management trainee she should go back to school and get an MBA.
C)Emily will not prevail on her complaint because sending an e-mail inquiry about a job does not qualify the sender as an applicant.
D)Emily would have had a case against Encyclopedic if she had submitted her resume via an online job board.

Question 26

Alonzo works as a foreman for the All Season Paving Company.Alonzo is working on a big project for which the company will receive a sizable incentive payment based on how many days ahead of schedule it completes the work.Alonzo normally receives a share of any incentive payment for a project on which he worked.When the project is 6 weeks ahead of schedule and 2 days before it is completed,Alonzo is laid off as part of a company downsizing.He does not receive a share of the incentive payment which is made after he was laid off.

A)Alonzo may have a claim against All Season for a breach of the covenant of good faith and fair dealing.
B)Alonzo has no right to the incentive payment because it was made after he was laid off.
C)Alonzo may have a claim against All Season for breach of a past practice.
D)Alonzo will be entitled to his share of the incentive payment when he is recalled from lay off.

Question 27

Which of the following is not covered by the EEOC's definition of contingent worker?

A)an employee hired through a staffing firm.
B)a temporary,seasonal,or part-time worker.
C)an applicant.
D)an independent contractor.

Question 28

The First Family Painting Company employs 2 supervisors,7 painters,4 helpers,1 scheduler,1 carpenter,and 1 office manager.The company's owner wants to know whether her employees are covered by the Americans with Disabilities Act,Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967.

A)All three laws apply to the employees because the company has at least 15 employees.
B)None of the laws apply to the employees because supervisors don't count as employees for the purpose of applying these laws.
C)The employees are covered by Title VII of the Civil Rights Act of 1964 only.
D)The employees are covered by Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act.

Question 29

Sarah was employed at Carlson Printing Company as the Sales Manager.After a year on the job,Paul became her new supervisor.Paul was constantly yelling at Sarah and telling her she was stupid.Sarah was so nervous when Paul was around that she started to stutter.After working with Paul for 6 months,Sarah sought treatment from a psychiatrist for depression.Shortly thereafter,Sarah quit her job and filed a wrongful discharge lawsuit against Carlson Printing Company.

A)Sarah is an employee-at-will and has no right to her job.
B)Sarah has valid claim for constructive discharge.
C)Carlson Printing Company is not liable for wrongful discharge because Sarah quit her job,she was not fired.
D)Carlson Printing Company is not liable for wrongful discharge because Paul was not acting within the scope of his authority.

Question 30

Alexis,an employee of a defense contractor discloses waste,fraud and abuse of authority in carrying out the work under the contract by his supervisor at his company and by the government official who interacts with the supervisor.After making the disclosure,Alexis is fired.

A)Alexis is protected by the Federal Whistleblower Statute,which prohibits retaliatory action specifically against defense contractor employees.
B)Alexis is protected by Whistleblowers Protection Act of the Civil Service Reform Act of 1978 which prohibits retaliation against a whistle-blower who reports government fraud,waste,and abuse.
C)Alexis is considered a whistle-blower under by the Sarbanes-Oxley Act which protects employees of publicly traded companies who disclose corporate misbehavior.
D)None of the above.

Question 31

Harrison was hired by SportsTV to broadcast the local high school sports games.During the interview,Harrison was told that the company had plans to expand its coverage of team sports to college and professional sports.He was told that he would be getting in on the ground floor and would have an opportunity to move up with the company as it grew.Harrison was given a timeline for expansion that covered the next ten years.Armed with this knowledge,Harrison accepted the job and moved to Greensboro,North Carolina from Atlanta,Georgia.After 18 months,the management at SportsTV fired Harrison and replaced him with a local athlete with more name recognition.

A)Harrison has cause of action for breach of contract.
B)Harrison has a cause of action for breach of implied contract.
C)Harrison has no recourse because he is an employee-at-will.
D)Harrison has no recourse because he did not have a written contract.

Question 32

The Americans with Disabilities Act

A)applies to all employers with 15 or more workers,excluding state and local government employers,employment agencies and labor unions.
B)applies to all employers with 15 or more workers,including state and local government employers,employment agencies and labor unions
C)applies to fully owned U.S.corporations,Indian tribes and bona fide private membership clubs
D)B and C only

Question 33

In determining whether a worker was an employee or an independent subcontractor for a manufacturing plant,which of the following factors is most likely to indicate that the worker is an independent subcontractor?

A)The manufacturer's premises and equipment were used to perform the work.
B)The performance of the work could or did shift as a unit from one manufacturer to another.
C)The worker performed a discrete line-job that was integral to the manufacturer's process of production.
D)The manufacturer or its agents closely supervised the work.

Question 34

The law firm of Shirk,Work & Fish hired a staffing firm to place a temporary receptionist in their office.The receptionist was on the payroll of the staffing firm.The law firm's office manager trained the receptionist to handle phone calls and visitors in accordance with the firm's policies,gave him deadlines for work assignments and decided when the receptionist could take breaks and go to lunch.After working Shirk for 13 months,the receptionist made an allegation of race discrimination because he applied for a paralegal job that the staffing firm filled at the law firm and the office manager did not select him.

A)The receptionist cannot bring a case against the law firm because he is an employee of the staffing firm.
B)The law firm and the staffing firm may be considered joint employers of the receptionist for purpose of the discrimination claim because it controls when,where and how he performs his job,the length time the receptionist worked at the law firm and their combined roles in filling the paralegal position.
C)The receptionist cannot bring a case against the staffing firm because it only pays him,has no other control over his work and it did not make the selection for the paralegal job.
D)The receptionist cannot bring a case against the law firm because he is a temporary employee

Question 35

Natalie resigned from her position as floor supervisor at Martin's Department Store.The store manager told the other employees that she had been fired for coming to work drunk.He also communicated that information to someone calling to verify Ms.Weston's previous employment with Martin's Department Store.

A)Ms.Weston has no recourse against her former employer because the store manager is a known liar.
B)Ms.Weston is an at-will employee and therefore has no cause of action against Martin's Department Store.
C)Ms.Weston may have a cause of action against Martin's Department Store for defamation.
D)None of the choices are correct.

Question 36

Employment law based on agency principles imposes a duty on the employee to act as authorized.If the employee exceed his/her authority,the employer

A)is not liable for any loss or damage that results from the employee's unauthorized conduct
B)is liable for damages or losses incurred by third parties and the employer has no recourse against the employee.
C)is liable for damages or losses incurred by third parties and the employer is entitled to be reimbursed by the employee.
D)None of the choices are correct.

Question 37

Harrison works in a cubicle at a window next to Karen Ravenwood's cubicle at Tabernacle Insurers.One day,Harrison overhears Karen's supervisor make a comment that she'd be more successful if she spent as much time on shaping her list of prospective customers as she does on shaping her body.Karen files a complaint of sex/gender discrimination with the EEOC and Harrison is called to testify during the investigation.The EEOC decides not to pursue the matter.A month and a half after the investigation is closed,Tabernacle management moves Harrison from his cubicle to a cubicle on a vacant floor.All other aspects of his job remain the same.Harrison files a complaint of retaliation.

A)Harrison cannot pursue a case of retaliation because the relocation of his work area between cubicles did not materially affect the terms,conditions,or privileges of his employment at Tabernacle.
B)Harrison cannot prove a case of retaliation because the investigation uncovered no wrongdoing.
C)Harrison cannot prove a case of retaliation because he is not in the same protected group as Karen.
D)Harrison can prove a case of retaliation.

Question 38

Cara works in the packaging and shipping department of the John Quincy Adams Mint & Collectibles Company.For the past few weeks,some special commemorative coin sets have been disappearing.The company used metal detectors and searched employee lockers and belongings in the plant but no contraband was found.Now,in an effort to catch the wrong-doers,the company stops the car of each packing and shipping department employee,including Cara as the leave the plant parking lot.The search of Cara's car did not turn up any coins but she was terminated because the search revealed that her car's glove compartment contained some sex toys that she had put in a John Quincy Adams Mint & Collectibles Company gift box.

A)Cara has no recourse because she should have been more careful about storing her personal belongings in her car.
B)Cara should be reinstated to her job because she was not terminated for just cause.
C)Cara may have an action against the Mint for wrongful invasion of privacy.
D)Cara may have a cause of action against the Mint for violating her constitutional right against an unwarranted search and seizure.

Question 39

Benjamin,a 55 year old white male,is employed as a Black Jack Dealer at the Paramount Casino on the HYPERLINK "http://www.accessgenealogy.com/native/tribes/algonquian/manahoachist.htm#Manahoac" Mannahoak Indian tribe reservation.He applied for a promotion to Table Games Supervisor but the job went to a 26 year old oriental female.Ben filed a complaint with the EEOC alleging discrimination based on race,sex and age.

A)Ben cannot bring a complaint of race,sex or age discrimination because Indian tribes are exempt from coverage under Title VII of the Civil Rights Act and the Age Discrimination in Employment Act.
B)Ben can bring a complaint of race and sex discrimination,but not age discrimination because Indian tribes are not exempt from coverage under Title VII of the Civil Rights Act but they are exempt from the Age Discrimination in Employment Act.
C)Ben can bring a complaint of age discrimination,but not race and sex discrimination,because Indian tribes are not exempt from coverage under the Age Discrimination in Employment Act but are exempt from coverage under Title VII of the Civil Rights Act.
D)Ben should have brought a claim under the Americans with Disabilities Act because there is no exemption for Indian tribes under the ADA.

Question 40

A retaliatory discharge claim under Title VII requires

A)that the employee have either participated in the statutory complaint process or opposed some form of discrimination
B)an adverse action taken with regard to the employee's employment status.
C)a causal connection between the adverse employment action and the employee's participation in the statutory process.
D)All of the choices are correct.

Question 41

List the four criteria that must satisfied by an employer to classify a worker as an independent contractor.

Question 42

An individual who is protected by the Uniformed Services Employment and Reemployment Rights Act,and who is not a federal employee,may seek enforcement by

A)Filing a complaint with the Veterans Employment and Training Service (VETS)of the U.S.Department of Labor.
B)Seek representation from the U.S.Department of Justice if the matter is not resolved by VETS.
C)Bypass the VETS process and go directly to court.
D)All of the choices are correct.

Question 43

What are the requirements imposed on employers by the Worker Adjustment and Retraining Notification (WARN)Act? List and discuss the exceptions to this Act.

Question 44

An employer operating a private membership club must comply with which one of the following laws,even though the business does not serve the general public.

A)Title VII of the Civil Rights Act of 1964.
B)The Americans with Disabilities Act.
C)The Age Discrimination in Employment Act.
D)The Pregnancy Discrimination Act.

Question 45

Explain the public policy exception to the doctrine of employment at-will,including stating what the ex-employee must demonstrate to prevail and give at least three examples of the public policy exception that have been recognized by some of the states.

Question 46

Describe how the freedom to contract is important to a free market and explain why Congress has passed laws to regulate the employment relationship.

Question 47

Clarence works as an independent contractor for the law firm of Kafka,Rivera and Grisham.

A)Clarence will be responsible for making payments for his Social Security (FICA),estimated federal income tax payments,estimated state income tax payments and Medicare.
B)Clarence will be responsible for making payments for his FICA and Medicare and the law firm will be responsible for withholding payroll deductions for his federal and state income taxes.
C)Clarence will be responsible for making payments for his Social Security (FICA)and Medicare,but the law firm will be responsible for making estimated federal income tax payments,estimated state income tax payments for him.
D)Clarence will be responsible for making payments for his Social Security (FICA),withholding payroll deductions for his federal and state income taxes and Medicare.

Question 48

Carla Thomas,a nonsmoker,often encouraged her co-workers to quit smoking.Her new manager,Paul,a smoker,was annoyed by what he considered her constant nagging.He moved her desk from a separate room with a window to a cubicle surrounded by smokers,who smoked all day.Paul refused Carla's request to create a no smoking area in the office and he refused her request to be moved back to the separate room.After 4 weeks of breathing second hand smoke,Carla quit.

A)Carla has no recourse against her employer because she is an employee-at-will.
B)Carla can file a lawsuit based on discrimination because non-smokers are a protected class.
C)Carla may have a cause of action for constructive discharge.
D)None of the choices are correct.

Question 49

Why is it important to classify workers correctly as either employees or independent contractors?

Question 50

Wilhemina works as an auditor for the Pleasant Valley City Tax Department.She is asked to review the city's policies on collecting delinquent taxes.Willie makes recommendations to improve the timeliness of collecting overdue taxes by city employees and for the use of debt collectors.Her recommendations for the use of city employees are implemented but her suggestions regarding debt collectors are rejected.Willie writes a letter to the editor which is published in the Pleasant Valley Times newspaper.In the letter she criticizes the Tax Department's failure to follow all her suggestions.Willie is demoted to accounting assistant and files suit alleging a violation of her First Amendment right to free speech.

A)Willie will be restored to her job as auditor because writing to the newspaper is protected by the First Amendment.
B)Willie is not protected by the First Amendment because the matter on which she commented was strictly within her job responsibilities.
C)Willie is not be protected by the First Amendment because writing to the newspaper is not within her job description.
D)Willie would have been protected if she had alleged a violation of the Whistleblowers Protection Act of 1978.