Business Law Chapter 30

During the hiring interview, Supervisor Staci told Henry that as long as he did his job as requested, he would have a job until he retired. Courts have been willing to enforce such an oral promise, even if the company's top management did not approve the statement.

True

Firing an employee for her refusal to violate the law would raise a claim of wrongful discharge

True

If a whistleblower successfully brings suit against a company that defrauds the government, the whistleblower can receive 30 percent of the damages awarded to the government

True

If an employee is an employee at will, the traditional rule was the employer could fire the employee for a good reason, a bad reason, or no reason at all.

True

Prior to the Industrial Revolution, the primary law of employment was that, absent an agreement otherwise, a worker was hired for a year at a time.

True

Since 1900, the number of workplace injuries and deaths has decreased, partly due to the OSHA, even though the size of the workforce has increased fivefold

True

Some courts have held that employee handbooks create binding contract terms

True

Under the Equal Pay Act of 1963 an employee may not paid at a lesser rate than employees of the opposite sex for tasks requiring equal skill, effort, and responsibility under similar working conditions.

True

Whistleblowers are employees who disclose illegal behavior on the part of their employers.

True

Wrongful discharge prohibits an employers from firing a worker for a bad reason.

True

Laura intends to file a Title VII lawsuit against her employer. Which of the following is true? a. Laura is required to first submit her claim to the Equal Employment Opportunity Commission. b. Laura must first submit her claim to a state civil rights commission before she may proceed with her lawsuit. c. If the EEOC determines Laura has no case against her employer, she may not file a lawsuit. d. Laura may initiate a lawsuit or file with the EEOC as she so elects.

a. Laura is required to submit her claim to the Equal Employment Opportunity Commission.

The National Relations Labor Act of 1935 is also known as the: a. Wagner Act. b. Taft-Hartley Act. c. Robinson-Patman Act. d. Freedom to Work Act.

a. Wagner Act

Does the Family and Medical Leave Act apply to professionals like CPAs? a. Yes, if they work for a company with at least 50 workers. b. Yes, but only if they are paid on an hourly basis. c. No. d. No, unless the employer specifically provides coverage.

a. Yes, if they work for a company with at least 50 workers.

Under the federal legislation known as OSHA: a. employers must keep records of all workplace injuries. b. employers must keep records of positive results of workplace drug tests. c. employees must keep their work area free from recognized hazards. d. employers may monitor workers' e-mail messages if the monitoring is done in the ordinary course of business and the employer provides the e-mail system.

a. employers must keep records of all workplace injuries.

Orson was fired from his job behind the ticket counter at the airport. He was loudly told to put his personal belongings into a plastic bag and was led out by security guards in front of his co-workers and customers. His supervisor told him not to return. Orson's employers faces potential liability for: a. intentional infliction of emotional distress. b. whistleblowing. c. defamation. d. violation of the FLSA.

a. intentional infliction of emotional distress

Jessica was a former employee of Mark. When potential employers called Mark for reference about Jessica, he stated she was not a very good worker and had been fired for excessive absences. He said he believed Jessica was on drugs. but he did not know for sure. Jessica learned what Mark was saying and sued for him. In most states: a. it was legal for Mark to say what he said if it was true and Mark was not motivated by ill will. b. it was legal for Mark to say what he said, since courts have consistently ruled that former employers are immune from lawsuits for giving references. c. it was not proper for Mark to say what he said, since courts have consistently ruled that former employers should not give references over the telephone or in writing without the former employee's written authorization. d. though it was proper for Mark to talk about Jessica's work-related history, he acted improperly when he said he thought she was on drugs.

a. it was legal for Mark to say what he said if it was true and Mark was not motivated by ill will.

The Fair Labor Standards Act: a. wage provisions do not apply to professional or managerial employees. b. limits the number of hours an employer can require a person to work in any given week. c. does not apply to children. d. preempts any state wage regulation.

a. wage provisions do not apply to professional or managerial employees.

Sharon had a heart attack while she was under stress at work. Can she collect workers' compensation for the time she had to be away from work as she recovered? a. Yes, since the heart attack occurred while she was at work. b. Yes, if she can prove that the heart attack was caused by a fellow employee. c. No, since she probably would have had the heart attack whether she had been at work or not that particular day. d. No, since a heart attack is not considered a job-related injury.

a. yes, since the heart attack occurred while she was at work.

Which of the following statements is correct? a. It is much easier for the government, as an employer, to test an employee for drugs or alcohol than it is for a private employer. b. Generally speaking, in most states, it is easier for a private employer than the government to test an employee for drugs or alcohol. c. Neither may test for drugs or alcohol. d. Both may test for drugs or alcohol without restriction.

b. Generally speaking, in most states, it is easier for a private employer than the government to test an employee for drugs or alcohol

Abbott provided evidence of fraudulent financial reporting about his employer, a publicly traded company, to federal securities investigators. Abbott receives whistleblower protection under: a. the U.S. Constitution. b. The Sarbanes-Oxley Act. c. The Civil Service Reform Act. d. None of the above.

b. The Sarbanes-Oxley Act

Roxanne was fired from her job when her employer instituted a new policy that prohibited employees from smoking cigarettes. This requirement applied to off-duty time was well as job-related time. Roxanne claimed that she could not quit smoking and that she was wrongfully fired since she did not smoke in the workplace -- only when she was outside the building and during off-duty time. a. The company has wrongfully fired Roxanne and is liable to her for damages. b. The company would be liable to Roxanne only if there is a state statute prohibiting employers from passing such job-related requirements. c. The company is not liable to Roxanne since the nonsmoking requirement is reasonable given the high cost of treating smoking-related illness. d. The company is not liable to Roxanne since the United States Supreme Court has expressly ruled such a company policy does not violate the worker's right to privacy.

b. The company would be liable to Roxanne only if there is a state statute prohibiting employers from passing such job-related requirements

Which of the following would probably not be required of employers to reasonably accommodate for religious beliefs? a. Flexible scheduling. b. Closing the business on Sundays. c. Reassigning employees within the company. d. Allowing employees to switch work schedules.

b. closing the business on Sundays

The Family and Medical Leave Act applies to: a. companies with 15 or more full-time workers. b. companies with 50 or more employees. c. companies with 100 or more employees. d. any company engaged in interstate commerce.

b. companies with 50 or more employees

The Teresa Harris v. Forklift Systems, Inc. case held: a. for there to be sexual harassment, the conduct must affect an employee's psychological well-being. b. conduct need not affect an employee's psychological well-being to constitute sexual harassment. c. Title VII does not apply to sexual harassment cases. d. Title VII does not apply to same-sex harassment.

b. conduct need not affect an employee's psychological well-being to constitute sexual harassment

Wrongful discharge claims are generally based upon all EXCEPT: a. public policy. b. criminal law. c. contract. d. tort law.

b. criminal law

Maxine lost her job as an electrical engineer with a large company which had provided health insurance benefits for Maxine and her family. She now: a. must try to find insurance on her own or try to find another job with health insurance benefits. b. is protected under COBRA, which allows her continued health insurance coverage for 18 months as long as she pays the cost. c. is protected under COBRA, which requires her employer to continue her health insurance coverage for six months under whatever copayment arrangements she had while she was employed. d. has some protection under the NLRA, which requires her employer to pay for continued health insurance for three months following her termination if she did not leave the company voluntarily.

b. is protected under COBRA, which allows her continued health insurance coverage for 18 months as long as she pays the cost.

When may an employer require an employee to submit to a lie detector test? a. When the employee has been hired for less than 90 days b. When the test is part of an on-going investigation into crimes that have occurred. c. When the employer has reason to believe the employee is using illegal drugs on the job. d. When all employees are being questioned using a lie detector.

b. when the test is part of an on-going investigation into crimes that have occurred.

Mark refused employment at a Christian Bookstore because he was not a "born-again Christian." If Mark brings a Title VII action against the bookstore, its best defense would be: a. they did not discriminate against a protected category. b. Title VII doesn't apply to private businesses. c. being a "born-again Christian" is a bona fide occupational qualification. d. they could not reasonably accommodate Mark.

c. being a "born-again Christian" is a bona fide occupational qualification

Maude was denied employment with Trucks R Us as a warehouse worker because she didn't meet the weight requirement of 160 pounds. Trucks argued the weight requirement was reasonable because warehouse workers often have to life things weighing up to 100 pounds. If she sues Trucks, she will probably: a. lose, as the weight requirement seems like a reasonable occupational requirement. b. lose, as the 160-pound requirement doesn't discriminate. c. win, as the weight requirement is discriminatory and doesn't appear necessary for the requirement of lifting 100 pounds. d. win, as the employer specifically cannot have a weight requirement.

c. win, as the weight requirement is discriminatory and doesn't appear necessary for the requirement of lifting 100 pounds

Which of the following may be a legitimate, nondiscriminatory criterion for selection of an employee? a. Age. b. Race. c. Color. d. Educational level.

d. Educational level

Jim was a mechanic. One day when he attempted to weld a car's gasoline tank, it exploded and he was hurt. He filed to collect workers' compensation. His employer resisted on grounds that Jim had been negligent and had also violated the express regulations of the company when he attempted to weld a gasoline tank. Which statement is correct? a. Jim cannot recover if it is shown that his negligent conduct caused the explosion. b. Jim cannot recover if it is shown that he violated the express regulations of his employer. c. Workers' compensation doesn't apply in situations like this. d. Jim can recover even if he was negligent and violated the employer's rules.

d. Jim can recover even if he was negligent and violated the employer's rules

Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed that, since Megan was an at-will employee, she had no legal right to claim the company was liable for damages. Is the employer right? a. Yes. An at-will employee does not have a legal right to claim wrongful discharge of employment. b. Yes. As an employee, Megan owes a duty of loyalty to her employer. If the company was found to have acted illegally by falsifying the reports, it (not Megan) would be liable. c. No. Even though Megan was an at-will employee, such employees may not be fired without just cause. d. No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act.

d. No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act.

How many weeks is David allowed to take off under the Family and Medical leave Act in this situation? a. Six weeks. b. 12 weeks. c. 24 weeks. d. None.

d. None

ADA reasonable accommodations may include: a. modification of equipment. b. ramps for accessibility. c. flexible work schedules. d. All of the above.

d. all of the above

Currently in Americans with Disabilities Act litigation, employers win: a. rarely. b. about 20% of the time. c. about 50% of the time. d. more than 90% of the time.

d. more than 90% of the time

As a general rule, employers have a legal obligation to disclose information about former employees to potential future employers.

False

Heather applied for a promotion, but her manager promoted a co-worker because the manager knew Heather was seven months pregnant. The manager did not want to promote someone who would probably be taking time off of work for childbirth and child care. The manager has acted legally and reasonably to protect her company's interests.

False

It is currently legal for a private employer to use lie detector tests as part of its usual hiring process

False

The Employee Retirement Income Security Act (ERISA) requires employers to establish pension plans for employees

False

Under the Family and Medical Leave Act, an employee can take up to 12 weeks of paid leave each year for certain personal and family illness situations.

False