ACCT 324- Exam #3

Prima facie is Latin for:

"At first view"

Courts often refer to an employee's substantial departure as a(n):

"Frolic of his own"

Violators of the Omnibus Crime Control and Safe Streets Act of 1968 may be subject to fines of up to: $______

$10,000

An employer who has repeatedly violated the ADA may be subject to fines of up to:

$100,000

If an employer receives federal financial assistance or has federal contracts worth over $______, the employer must develop an antidrug policy for employees.

$25,000

In cases based on discrimination other than race, punitive damages are capped at:

$50,000 for firms with 100 or fewer employees

If an employer fails to comply with COBRA, what penalties are available?

$500,000 or 10% of the annual cost of the group plan, whichever is less

On July 24, 2009, the federal minimum wage increased from $6.55 to:

$7.25

Penalties for OSHA violations may range from $0 to ______ per violation, depending on the likelihood that the violation would lead to serious injury to an employee.

$70,000

To exercise rights under the FMLA when the leave is unforeseeable, the employee must give notice as soon as practicable, defined as within ______ after the need becomes known.

1 or 2 days

During the post-World War II period, approximately what fraction of United States workers were organized into labor unions?

1/3

An S corporation cannot have more than ______ shareholders.

100

Employers with how many employees are required under OSHA to keep records of workplace injuries?

11 or more

How many employees must a company have in order to have Title VII apply to them?

15 or more

How many states have adopted the latest version of the Uniform Limited Liability Company Act (ULLCA)?

17

How long do the benefits of COBRA last for the employee?

18 months (or 29 months if disabled)

In what year did the United States Congress pass the Immigration Reform and Control Act?

1986

In what year did the Family and Medical Leave Act (FMLA) go into effect?

1993

Under the executive exemption to the ADEA, an individual may be mandatorily retired after age 65 if they have been employed as a bona fide executive for at least ______ years immediately before retirement.

2

The ADEA applies to employers having ______ or more employees.

20

For how long should a company operate with at least 15 employees for Title VII of the Civil Rights Act to apply to them?

20 consecutive weeks within one year

Currently, ______ states plus the District of Columbia protect a smoker's right to smoke outside the workplace.

30

An employee injured on the job must notify the employer of the injury and file a claim with the state workers' compensation board, usually within ______ days.

30 to 60

The Fair Labor Standards Act (FLSA) mandates that employees who work more than ______ hours in a week be paid no less than one and one-half times their regular wage for all the hours they work beyond these hours during a given week.

40

When the Equal Pay Act (EPA) of 1963 was passed, the average wages of women were less than ______ percent of those of men.

60

Which of the following are valid defenses to the Equal Pay Act?

A bona fide seniority system A pay system based on quality or quantity of output A bona fide merit system

Regarding immigration worksite enforcement, as of 2012, Immigration Customs and Enforcement developed which of the following?

A comprehensive worksite enforcement strategy

What type of principal is known by the third party when an agreement is made with an agent?

A disclosed principal

What type of power of attorney is meant to continue beyond the principal's incapacitation?

A durable power of attorney

Providing safe working conditions is:

A duty of the principal to the agent

What type of power of attorney allows the agent to conduct all business for the principal?

A general power of attorney

Which of the following is required for agency by estoppel?

A reasonable belief by the third party that an agency relationship existed

The duty of performance requires the agent to act with the same skill, care, and professionalism as: ______ would provide.

A reasonable person in the same situation

If a principal fails to fulfill his or her duties to the agent, that provides the basis for:

A tort or contract action against the principal

According to the Copyright Act of 1976, an employer can order an employee to complete work at the request of the employer. This product is known as:

A work-for-hire

Which of the following is correct regarding the partnership agreement?

A written partnership agreement is not required to form a partnership.

What federal law makes it illegal to discriminate against workers age 40 or older?

ADEA

The workers' compensation system employs what form of procedure for justice?

Administrative adjudication

If an agent has misrepresented himself or herself to a third party, which of the following options are available to the third party?

Affirm the contract and sue the principal to recover the damages. Cancel the contract with the principal and be compensated for money lost.

A(n) ______ is defined as the fiduciary relationship that results from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control, and consent by the other so to act.

Agency

Which of the following is a recognized form of agency authority?

Agency by agreement

If a person represents himself as an agent for an individual and that individual accepts the act of the person representing himself as the agent, this relationship is known as an:

Agency by ratification

Which of the following is not a recognized form of agency authority?

Agency by revocation

A person who has the duty to act primarily for the benefit of another person is known as a(n)

Agent

Which of the following is not a type of business relationship to which agency laws are relevant?

Agent-incidental beneficiary

Employees are ______ of the employer.

Agents

If the Internal Revenue Service (IRS) determines that an independent contractor is really an employee, the employer will be liable for:

All applicable taxes, such as Social Security and unemployment taxes

What type of agency relationship does not allow the principal to terminate it?

An agency coupled with an interest

Which of the following results in termination of an agency by acts of the parties?

An agency coupled with an interest

An employer can, from their statements or through their employment handbook, create what form of employment relationship?

An implied employment contract

What type of principal exists when a third party is unaware that the agent is acting on behalf of the principal?

An undisclosed principal

Employers are in the strongest legal position when they have a clear policy preventing:

Any reasonable expectation of employee privacy

If a workers' compensation claim is denied, most states provide an agency _______ process.

Appeal

Which of the following is not an advantage of operating a business as a sole proprietorship?

Articles of organization promote managerial efficiency

In the case of childbirth, an employee intending to take FMLA leave must notify the employer:

At least 30 days prior to the birth

An agency by agreement that gives an agent the authority to sign legal documents on behalf of the principal is known as a power of:

Attorney

Regarding remedies for violations of EPA, plaintiffs may recover back pay in the amount of the difference between what they make and what is paid to members of the opposite sex, plus:

Attorney fees

The difference between the amount of money a plaintiff earned since a discriminatory act and the amount of money she would have earned had the discriminatory act never occurred is called:

Back Pay

The doctrine of respondeat superior applies to which of the following relationship(s)?

Both the principal-agent relationship and the employer-employee relationship

An agent who exceeds his or her authority when the principal is disclosed or partially disclosed is liable for: _____.

Breach of implied warranty

Which state's constitution grants an explicit right to privacy that applies to the actions of private businesses?

California

Bert was Myra's real estate agent. Bert purchased a piece of property for Myra, but when it came time to turn over the property, Bert retained the property. In this scenario, Myra:

Can put a constructive trust on the property

If an agent has misrepresented herself to a third party, the injured third party can either ______ the contract with the principal and be compensated for any money lost, or ______ the contract and sue the principal to recover damages.

Cancel; affirm

Identify the factors that will help the Equal Employment Opportunity Commission (EEOC) determine whether a foreign corporation is controlled by an American employer.

Common financial control Strong interrelation of operations

What kind of damages can an employee receive under a Title VII Civil Rights claim?

Compensatory damages Up to two years of back pay Punitive damages

A principal must authorize the power of attorney while he or she is:

Competent

Which of the following describes the EEOC's attempt to negotiate a settlement between disputing parties in a discrimination case?

Conciliation

An agency relationship can be formed through the implied ______ of the parties.

Conduct

Because of their fiduciary relationship, the agent has a responsibility to act in the interest of the principal including avoiding:

Conflicts of interest and protecting the principal's confidentiality

Under the Fair Labor Standards Act (FLSA), the United States ______ increases the minimum wage for employees to compensate for increases in cost of living.

Congress

Agency relationships are:

Consensual

If the agent illegally benefits from the agency relationship, the principal may enact a(n) ______ trust on the goods, profits, or property in question.

Constructive

Identify the main remedies a principal has for an agent's breach of fiduciary duties in a principal-agent agency relationship.

Constructive trust Avoidance Indemnification

In a Title VII employment discrimination case, what are the valid forms of testing allowed under the merit defense?

Content validity Criterion-related validity Construct validity

Unless they have the authority to do so by the principal, independent contractors are not allowed to enter into:

Contracts for the principal

Cooperatives may be incorporated or unincorporated.

Cooperatives may be incorporated or unincorporated. Unincorporated cooperatives are treated like partnerships, meaning members share joint liability for the cooperative's actions. Members of incorporated cooperatives, on the other hand, enjoy limited liability just as do the shareholders of a corporation.

The joint stock company is a mix of ______ and ______.

Corporation; partnership

In an agency by estoppel, the important factor is whether the principal acts to:

Create the impression that the agent has the authority to act on behalf of the principal

If a contract exists and the principal agrees to certain conditions but fails to perform them, the agent may seek court assistance in forcing the principal to:

Perform the contract as specified

In a sole proprietorship, profits are taxed as:

Personal Income

Which of the following is a disadvantage of operating a business as a sole proprietorship?

Personal liability for business debts

If a principal or agent becomes insane, the agency relationship is ordinarily finished. Some states have modified this law so that the agency contract still exists unless the affected person:

Has been adjudicated insane

An agency coupled with an interest is also called:

Power given as security

In an agency relationship, the person who hires the agent is known as the:

Principal

The principal has vicarious liability in a principal-agent relationship because the:

Principal negligently hired the agent

When an employer hires an employee to enter into contracts on its behalf, this is known as a(n) _____ relationship.

Principal-agent

Which of the following types of employers have almost unfettered discretion to drug-test their employees?

Private

Which of the following is the purpose of Title VII of the Civil Rights Act (CRA) of 1964?

Protecting employees against discrimination based on race, color, religion, sex, or national origin

Which of the following is not an element required to establish that an individual has a disability for the purposes of the ADA?

Has filed a workers' compensation claim regarding a physical or mental impairment that substantially limits one or more major life activities

Powers of attorney are often given for:

Health care and business purposes

To conduct business more effectively around the world, businesses will hire agents from the host country to: ______.

Help guide the business with respect to local laws and customs

Most state workers' compensation laws cover what kind of monetary damages?

Hospital bills Medical bills Rehabilitation expenses

The two distinct forms of sexual harassment are quid pro quo and:

Hostile work environment

Regarding OSHA violations, how can criminal penalties be imposed against an employer?

If a willful violation results in the death of a worker

An agency relationship that is formed through the conduct of the parties is known as an agency by ______ authority.

Implied

The least common exception to at-will employment, permitted in eleven states, is the ______ exception.

Implied covenant of good faith and fair dealing

Agency through ______ authority cannot conflict with any ______ authority that has been given.

Implied; Express

Which of the following is false regarding the BFOQ defense to an age discrimination claim?

In deference to employer judgment and discretion, courts generally do not scrutinize any attempt to demonstrate that age is a BFOQ.

Which of the following is an accurate statement regarding the legal identity of a partnership?

In most cases, a partnership is not considered a legal entity separate from its owners.

The right to recover damages is referred to as the right of:

Indemnification

A principal has the duty of reimbursement and:

Indemnification of the agent

The Restatement of Agency defines a person who contracts with another to do something for him, but is not controlled by him nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking, as a(n):

Independent contractor

Which of the following are correct statements regarding a durable power of attorney?

It can be enacted preemptively by the principal. It becomes active only after a principal becomes incapacitated in any matter.

Which of the following is false regarding a joint venture?

It creates an ongoing, full business.

Which of the following is correct regarding a principal's liability for an agent's misrepresentation to a third party?

It depends on whether the principal authorized the agent's misrepresentation.

Which of the following is correct regarding a special power of attorney?

It grants the agent express authority over specifically outlined acts.

Which of the following is correct regarding an S corporation?

It is a corporation under federal tax law but is taxed like a partnership as long as it follows certain regulations.

Which of the following is false regarding the power of attorney?

It is a general form of implied or apparent authority.

Which of the following is correct regarding agency law?

It is primarily state law and can vary from state to state.

Which of the following is correct regarding a durable power of attorney?

It specifies that the agent's authority is intended to continue beyond the principal's incapacitation.

A(n) ______ company is a partnership agreement in which company members hold transferable shares, while all the goods of the company are held in the names of the partners.

Joint Stock

The ______ is a relationship between two or more persons or corporations that is created for a specific business undertaking.

Joint Venture

A(n) ______ company is a partnership agreement in which company members hold transferable shares, while all the goods of the company are held in the names of the partners.

Joint stock

In a principal-agent relationship, the duty of loyalty requires that the agent:

Keep confidential any information about the principal

The ______ requires certain financial disclosures by unions and establishes civil and criminal penalties for financial abuses by union officials.

Landrum-Griffin Act of 1959

Identify the ways in which the agency relationship can be terminated by the acts of the parties involved.

Lapse in time Revocation of authority Fulfillment of purpose

At a minimum, employer privacy policies should cover which of the following issues?

Lie detector policies Workplace dating policies Drug testing policies Employer surveillance policies

A(n) ______ partnership is an agreement between at least one general partner and at least one limited partner.

Limited

The ______ liability company is an unincorporated form of business organization that combines the most advantageous features of partnerships and corporations.

Limited

The ______ combines the tax advantages and management flexibility of a partnership with the limited liability of a corporation.

Limited liability company

Which of the following is not an advantage of operating a business as a partnership?

Limited liability of partners

In a ______, all the partners assume liability for one partner's professional malpractice, but only to the extent of the partnership's assets.

Limited liability partnership

Courts suggest that the most important duty that an agent owes to a principal is the duty of:

Loyalty

In a _____, the franchisor provides the franchisee with the formula or necessary ingredient to manufacture a product.

Manufacturing arrangement

Bargaining collectively in good faith means that the parties must:

Meet at reasonable times and confer in good faith

When an agent is given the power of attorney, the agreement:

Must be in writing

If an agent has no authority to act on behalf of a principal but still enters into a contract with a third party, the principal is: ______.

Not bound to the contract unless the principal ratifies the agreement

An agent who acts within the scope of his or her authority on behalf of a disclosed principal is:

Not liable for the acts of the principal

The principal's duty ______ means to assist the agent in the performance of his or her duties.

Of cooperation

Under the ______, employers may ban an employee's personal calls and monitor for compliance, as long as they discontinue listening to any conversation once they determine it is personal.

Omnibus Crime Control and Safe Streets Act of 1968

The major disadvantage of partnerships is that:

Partners are personally liable for the firm's debts

A limited liability company (LLC) combines the tax advantages and management flexibility of a(n) ______ with the limited liability of a(n) ______.

Partnership; corporation

In a disparate-impact discrimination case, once the defendant establishes that its practice or policy is a business necessity, the plaintiff can still recover by doing which of the following?

Proving that the necessity was a mere pretext for discrimination

Whistle-blowing is a protected activity under the ______ policy exception to the employment-at-will doctrine.

Public

Constructive notice occurs by:

Publishing a notice in a circulating newspaper in the area where the agency agreement existed

Regarding Title VII discrimination cases, what type of damages are generally capped?

Punitive

A successful plaintiff in an ADA case might receive which of the following remedies?

Punitive damages Back pay Reinstatement

A bona fide occupational _____ is necessary discrimination for the performance of a particular job.

Qualification

An agency by ratification is made when a third party reasonably believes that the "agent" is acting on behalf of the principal and that the principal accepts the acts of the agent. Additionally, the principal must know all the material facts regarding the contract and the principal must:

Ratify the entirety of the agent's act

Regarding an apparent agency, if the principal attempts to deny that an agency relationship existed, the third party must demonstrate that he or she:

Reasonably believed, on the basis of the principal's conduct, that the agency relationship existed

Under FMLA, the plaintiff can recover all but which of the following?

Reimbursable expenses

What is a negative aspect of the workers' compensation system for the employee?

The employee could gain a far larger monetary award suing in court than through the workers' compensation system.

The key question regarding the Electronic Communications Privacy Act (ECPA) is whether:

The employee had a reasonable expectation of privacy

Which of the following is not an element for the creation of an implied contract through statements an employer makes in an employment handbook?

The employee is a wage employee, not a salaried employee.

Identify the conditions in which the benefits of the Consolidated Omnibus Budget Reconciliation Act (COBRA) do not arise:

The employee is fired for gross misconduct. The employer decides to eliminate benefits for all current employees.

Which of the following is the first step in proving disparate-treatment discrimination in employment under Title VII?

The employee must demonstrate a prima facie case of discrimination.

What are the steps in proving a Title VII disparate treatment lawsuit?

The employee must demonstrate a prima facie case of discrimination. The defendant must articulate a legitimate, nondiscriminatory business reason for the discrimination. The employee must show that the reason given by the employer is a mere pretext.

If an employee is unable to return to work following a 12-week FMLA leave, what is the employer required to do with the employee's position?

The employer, after the 12-week FMLA leave period, is no longer required to hold open the position for the employee.

Principals are the legal owners of anything an agent may come to possess through:

The employment or agency relationship

Identify the court requirements for the extra duties given to members of one sex in order to legitimize pay inequities.

The extra duties are substantial, as opposed to inconsequential. The extra duties are available on a nondiscriminatory basis.

Which of the following is false regarding the franchise agreement?

The franchisor can establish the price at which the franchisee sells the goods.

Which of the following is an advantage of a franchise for the franchisor?

The franchisor takes a low risk in starting the franchise.

What exception to the employment-at-will doctrine makes an assumption that every employment contract contains an implicit understanding that the parties will deal with each other fairly?

The implied covenant of good faith and fair dealing

What defense to a Title VII discrimination action indicates that employment decisions were at least partially made based on test scores designed not to be discriminatory?

The merit defense

What factors determine if a corporation will be subject to American employment laws?

The nationality of shareholders The location and nationality of management The location of the principal place of business

Regarding a Title VII action filed with the Equal Employment Opportunity Commission (EEOC), which of the following are stated in the charge?

The nature of the discriminatory act The name(s) of the defendant(s) The name of the charging party

Which of the following is correct regarding disparate-impact discrimination cases?

The plaintiff must establish that a rule disproportionately limits employment chances for a protected class.

To prove a hostile-environment sexual harassment claim, the plaintiff must demonstrate which of the following?

The plaintiff suffered intentional, unwanted discrimination because of their sex. The harassment was severe or pervasive. The defendant's management knew or should have known about the harassment and did nothing to stop it.

If an agent is acting within the scope of his or her authority on behalf of a disclosed principal, who will be liable for the actions of the agent?

The principal

The principal is always liable in tort to someone who relied on the agent's misrepresentation if:

The principal authorized the agent to engage in an act and the agent misrepresented himself or herself intentionally or unintentionally

When an agent breaches an agency contract or his fiduciary duties, which of the following remedies may the principal may use to nullify at her discretion any contract the agent negotiated?

The right of avoidance

Which of the following is the document issued by the EEOC that gives an employee the right to bring a case against an employer in federal court?

The right-to-sue letter

FUTA is a federal law instituting a system to provide for unemployment compensation. Who manages the unemployment system itself?

The states

Which specialized form of business organization is an investment group that comes together for the explicit purpose of financing a specific large project?

The syndicate

In certain situations, the agent is the only party liable for the contract even when the agent acts within his or her authority on behalf of an undisclosed principal. Identify these situations.

The third party enters into a contract with the agent such that the agent's performance is required and the third party may reject the performance of the principal. The contract expressly excludes the principal from the contract.

Which of the following is correct regarding the tort liability of a principal.

The tort liability of a principal can be established either directly or indirectly.

Generally, an employer is liable for which of the following?

The torts of its employees

Which of the following is correct regarding a business trust?

The trustees and beneficiaries of a business trust enjoy limited liability.

To establish employer liability, the third party must show that:

The wrongful act occurred within the scope of the employment

"Labor's Bill of Rights," contain in the Landrum-Griffin Act, protects employees from:

Their own unions

Which of the following is incorrect regarding the employer-employee relationship?

There is no legal distinction between the employer-employee relationship and the employer-independent contractor relationship.

Which of the following is correct regarding agency relationships?

They can be formed by formal written contracts.

Which of the following is correct if a principal and an agent decide they do not wish to continue in the agency relationship?

They can cancel the agreement and terminate the relationship.

Which of the following is correct if an employer has some control over the operations of a contractor?

This control does not always mean that the contractor is an employee.

Which of the following is correct regarding the operation of a limited liability company (LLC)?

To obtain limited liability, a member does not have to relinquish his or her right to participate in management.

Suppose an agent negotiates a contract on behalf of a principal. The contract is breached through the agent's negligence, and the principal is then sued by the third party. The principal can sue the agent:

To recover the amount assessed to the third party

If an agent has misrepresented himself or herself to a third party, how many legal options are available to the third party?

Two

If a third party does not know that an agent is acting on behalf of a principal, the principal is a(n) ______ principal.

Undisclosed

The Federal Unemployment Tax Act (FUTA), passed in 1935, created a state system to provide _____ ______ to qualified employees who lose their jobs.

Unemployment Compensation

If the third party is aware of the principal's existence but not his or her identity, the principal is classified as a(n) ______.

Unidentified principal

The ______ governs voluntary associations between two or more people who co-own a business for profit in most states in the absence of an express agreement.

Uniform Partnership Act

Agency law is especially important for:

United States firms doing business globally

What is the legal theory that a principal is liable for the actions of an agent who is working for him or her?

Vicarious liability

If a principal is disclosed, an agent who exceeds her authority cannot be sued for breach of contract because he or she: ______.

Was never an intended party to the contract

The law typically assumes that a principal is aware of all of the information that:

Was revealed to the agent

Which of the following is not a recognized element of a prima facie case of age discrimination involving termination of employment?

Were subject to one or more other types of discrimination other than age discrimination

When may a principal use the right of avoidance to nullify, at his or her discretion, any contract the agent negotiated?

When the agent breaches his or her fiduciary duties

In which of the following cases is the agent most likely to be personally liable to the third party?

When the agent exceeds his or her authority to act on behalf of the principal

The law holds a principal directly responsible for his or her own tortious conduct:

When the principal directs the agent to commit a tort, thereby authorizing the agent's unlawful behavior

Which of the following is not typically addressed in a franchise agreement?

Whether the agreement constitutes a general partnership or a limited partnership

Which of the following is correct regarding an agent's rights and remedies against a principal?

While agency relationships are intended to benefit the principal, agents are not without rights and remedies.

The principal has the duty to indemnify or reimburse the agent for any losses the agent incurs:

While working within the scope of authority on the principal's behalf

What are some activities that are protected activities under the public policy exception to the employment-at-will doctrine?

Whistle-blowing activities Serving on jury duty Performing military service

Agency agreements usually do not need to be in writing unless the agent:

Will enter into a contract that the statute of frauds requires to be in writing

Under ______ laws, an employee is guaranteed the right to recover for injuries that occurred on the job without having to sue his or her employer.

Workers Compensation

Gabriel sent Arthur on a trip to San Diego to purchase some antique furniture that Gabriel planned to resell. Arthur paid for his own airline ticket, lodging, and meals. Is Gabriel required to reimburse Arthur for his trip expenses?

Yes, because Arthur is Gabriel's agent and as such, he is entitled to reimbursement.

In the same way the principal is responsible for the negligent acts of the employee under the doctrine of ______, the principal may also be liable for any intentional torts of the employee.

Respondeat superior

FMLA requires an employer to ______ when the employee returns from their leave

Restore the employee to their position or a substantially similar position

Which of the following was officially covered by Title VII after the United States Supreme Court decided the Oncale v. Sundowner Offshore Services, Inc. case?

Same-sex sexual harassment

A(n) _______ _______ occurs when employees have a labor dispute with their employer and boycott another company to force it to cease doing business with the employer.

Secondary Boycott

Which of the following refers to a system that is based on preference given to employees determined by length of service and is used as a defense to Title VII discrimination?

Seniority

Which of the following events are covered by the FMLA?

Serious illness of a spouse, parent or child The birth of a child The adoption of a child

The bona fide occupational qualification (BFOQ) defense potentially applies to which of the following types of discrimination?

Sex National origin Religion

Which of the following are requirements of bargaining collectively in good faith?

Sign a written agreement if one is reached Do not engage in a lockout during the 60-day notice period regarding the termination or modification of an existing contract Do not strike during the 60-day notice period regarding the termination or modification of an existing contract Meet at reasonable times and confer in good faith

_________ picketing prevents deliveries or services to the employer.

Signal

The most frequently cited advantage of the limited liability company (LLC) is that for tax purposes, the Internal Revenue Service generally treats the LLC like a ______ or a(n) ______.

Sole proprietorship; partnership

Which of the following is correct regarding state employment law?

State law can give employees more protection than federal laws.

A corporation must be created according to:

State law only

Which of the following is not a recognized component of an agency relationship?

Subrogation

A third party who believes that an agent is acting with actual or apparent authority may do which of the following?

Sue the principal for any breach of contract

The ______ Act was designed to curtail the powers of trade unions that had been empowered by the Wagner Act.

Taft-Hartley

If an unusual change in circumstances leads the agent to believe that the principal's instructions do not apply, the agency relationship:

Terminates

Which of the following is the most common cause of Age Discrimination in Employment Act (ADEA) cases?

Termination

What federal legislative act requires a minimum wage be paid to employees in covered industries?

The Fair Labor Standards Act (FLSA)

Workers first achieved the right to join unions during:

The Great Depression

Which federal agency is particularly interested in determining whether workers are employees or independent contractors?

The IRS

Who will supervise an election in a workplace to determine if workers can lawfully organize under the National Labor Relations Act (NLRA)?

The NLRB

Which of the following protects the rights of employees to act together to address conditions at work, with or without a union, including work-related conversations posted on social media, such as Facebook and Twitter?

The National Labor Relations Act (NLRA)

Which of the following is a recognized source for the definition of agency?

The Restatement of Agency

What federal law created the National Labor Relations Board?

The Wagner Act

Suppose that a United States principal has an agent in China authorized to conduct business dealings on the principal's behalf. If the U.S. goes to war with China, what effect will this have on the agency agreement?

The agency agreement will terminate.

A principal owes specific duties to:

The agent

If an agent makes a substantial departure from the course of employer's business and a legal incident occurs, who will be liable?

The agent

Who is liable to a third party if an agent exceeds his or her authority to act on behalf of the principal?

The agent

With an undisclosed principal, who is liable to a third party?

The agent

If an agent renounces the agency relationship, which of the following is correct?

The agent can be liable for breach of contract if the agency agreement stated a specific amount of time that the relationship is to exist.

Which of the following is correct if the purpose of an agency relationship has been fulfilled?

The agent no longer has the authority to act on the principal's behalf.

Which of the following is not a specialized form of business organization?

The amalgamated venture

Which of the following is a specialized form of business organization?

The business trust

Which specialized form of business organization is governed by a group of trustees who operate the organization for the beneficiaries?

The business trust

Which of the following specialized forms of business organizations is defined as an organization formed by individuals who pool resources to gain a market advantage?

The cooperative

Under the premises rule, if an individual is injured on company property while he or she is leaving from work, which of the following is true?

The court will generally find that the individual was on the job at the time of injury.

Tom hired Taylor to rake his leaves. When Taylor finished, Tom thanked him and shook his hand. Since nothing was said between the two parties about payment, agency theory indicates that Tom owes Taylor:

The customary fee for Taylor's work

Which of the following is not a remedy or right available to an agent?

Demand for rehabilitation

What are the remedies available under the FMLA?

Denied compensation Lost benefits Unpaid salary or wages

A seniority system that is based on length of service is considered bona fide if it: ______.

Did not have its origin in discrimination Follows industry practices Applies equally to all persons

What is the term for unintentional discrimination where an employer's actions have caused a large number of employees in a protected class to be harmed?

Disparate impact

What are the ways to prove discrimination under Title VII of the Civil Rights Act?

Disparate impact Disparate treatment

Which of the following is not a disadvantage of operating a business as a sole proprietorship?

Double taxation of profits

A principal's obligation to pay an agent for his or her services is called the _______ ________ ___________:

Duty of Compensation

What federal law bans the interception of personal email by an employer in the workplace?

ECPA

The first step in a discrimination lawsuit is to file a complaint with the:

EEOC

Under the ADA, the plaintiff may file a charge with the appropriate state agency or with the ______ within ______ of the discriminatory act.

EEOC; 180 days

What federal law protects employees' established pension plans?

ERISA

Which of the following is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans?

ERISA

Which of the following is correct regarding a limited liability partnership (LLP)?

Each partner in an LLP is responsible for his or her own negligence and the negligence of those that he or she supervises.

Under the employment-at-will doctrine, an employment relationship can be terminated by ______, for any reason and at any time.

Either the employer or the employee

Under the ______, employees' privacy rights were extended to electronic forms of communication including email and cellular phones.

Electronic Communications Privacy Act of 1986

If the EEOC decides to not prosecute a discrimination case, it can issue a right-to-sue letter that:

Gives the employee the right to file a private action

To terminate a franchise, a franchisor must have: ______.

Good cause Documented the warnings given to the franchisee for violations of the franchise agreement

Indemnification involves the employer seeking remuneration from the: _____ for damages the employer has paid. Multiple choice question.

Employee

Which of the following are agents of an employer?

Employees

Which of the following are types of business agency relationships?

Employer-independent contractor Employer-employee Principal-agent

Generally, the accident leading to the injury being paid under the workers' compensation system must have taken place during the time and within the employees' scope of: ______.

Employment

The defenses to a(n) ______ Act claim include having a bona fide seniority system, a pay system based on quality or quantity of output, and a bona fide merit system.

Equal Pay

To prove a disparate impact case, an employee must:

Establish the actions of the employer which affect employment opportunities of a protected class

Suppose a principal falsely leads a third party to believe a person is his or her agent. The principal has created an agency by ______.

Estoppel

A principal who ratifies an agent's tortious act, knowing that the agent acted illegally, is liable:

Even if the principal does not condone the agent's conduct

For purposes of jurisdiction, an limited liability company (LLC) is considered a citizen of: ______.

Every state in which its members reside

Employers must pay into the workers' compensation fund:

Every year

A power of attorney is a specific form of ______ authority.

Express

When parties form an agency relationship through a written or an oral agreement, this is known as an ______ agency.

Expressed

An agency by agreement is also known as an:

Expressed agency

What type of law provides the "minimum" level of protection for all workers in the United States?

Federal law

A(n) ______ is a person who has a duty to act primarily for another person's benefit.

Fiduciary

A principal always has the right of ______, so agents may not use the agency relationship to obtain goods or property for themselves if the principal desired to obtain the same goods or property.

First refusal

A defendant can avoid liability in a disparate impact discrimination case by claiming that the discrimination was: ______.

For a business necessity

Which of the following is a disadvantage of a corporation?

Formalities are required in establishing and maintaining the corporate form of business.

A ______ can become liable for franchise obligations if it exerts too much control over the business operations of the franchise.

Franchisor

An agent who feels she is not being properly compensated, especially when working for commission, may demand an accounting and may withhold:

Further performance of her duties until the principal supplies appropriate accounting data

A(n) ______ agent is one who is not paid for his or her services.

Gratuitous