CBAD 344 Unit 4

Where do the funds to pay out workers' compensation claims come from?

Business contributions to a state held fund

Roland and Alfreeda enter into a written agency agreement in which Alfreeda will represent Roland as his agent to obtain acting jobs for Roland. No termination provisions are included in the written agreement. If Roland wishes to terminate his agreement with Alfreeda:

Roland must do so in writing because the agency agreement is in writing.

How would a customer preference for women attendants in the women's restroom or locker room be judged under employment discrimination?

The gender preference could be a BFOQ.

The Civil Rights Act of 1964 applies to:

companies with 15 or more employees.

FMLA applies to:

employers with 50 or more employees.

Which amendments to the U.S. Constitution are the primary source of equal protection provisions in employment law? Choose 2 answers.

the Fourteenth Amendment the Fifth Amendment

What are the best remedies for wrongful termination in the case of someone who found another job three months after being fired? Choose 2 answer choices.

Lost benefits Lost wages.

A state passes a law requiring all police officers to be of a certain height. Some women challenge the law under the Equal Protection Clause because the average height of women is shorter than that of men. What standard would the court use to make a decision?

Intermediate scrutiny.

Brandt Crossing Investments, Inc., was a family-owned property investment organization, investing in undeveloped properties when prices were low and then selling them when prices went up. Among its holdings, Brandt Crossing owned fifty acres of undeveloped land next to another fifty acres of undeveloped land owned by Khloe Hadid. Carter Rios, property manager for Brandt Crossing, approached Hadid and offered to purchase her fifty acres "for Brandt." Hadid sold the property for $50,000. Within one year, Brandt Crossing sold its 100 acres, including the property bought from Hadid, to a developer for $1,000,000. Richard Brandt, a 5% owner of Brandt Crossing Investments and an old high school acquaintance of Hadid, saw her at the mall and told her of the recent sale. Furious that she had lost out on the income and convinced that Rios had misled her, Hadid sued Richard Brandt for the acts of his agent, Rios. Hadid argued that the facts were sufficient to create an agency by estoppel to impose liability on Richard Brandt.

Identifying the Facts and Issues Hadid's theory for holding Richard Brandt personally liable for Rios's actions is that Richard Brandt created a reasonable belief that Rios was Brandt's agent in doing the activity, thus creating agency by estoppel . Hadid believed that Rios was Richard Brandt's agent because Brandt told her about the sale to the mall . The second basis for Hadid's belief that Rios was Richard Brandt's agent was that Rios told Hadid that he was doing the work for "Brandt" . In purchasing the land, Rios was actually acting as an agent for Brandt Crossing Investments Inc For the alleged type of agency to exist, it does not matter what the assumed agent said or did to create the belief in the agency. Whether a court finds that an agency relationship exists depends on whether Hadid's belief that an agency agreement existed was reasonable and created by Richard Brandt . In addition to this reliance, the third party must act to his or her detriment in reliance on the belief of the agency relationship. It is possible that Hadid sold the property because Rios mentioned "Brandt," and she believed that was Richard Brandt. If Hadid did believe that Rios was talking about Richard Brandt, then any indication that an agency relationship between Richard Brandt and Rios existed came from Rios . Because Richard Brandt did not say or do anything prior to the sale of the land, the belief in the agency agreement was not created by him, and Hadid could not have relied on that belief. The court should dismiss the claim against Richard Brandt. What If the Facts Were Different? Assume that Mr. Brandt had seen Ms. Hadid at a party a few weeks before Rios approached her about buying the land. At that party, Brandt and Hadid chatted briefly about her possible interest in selling the land. At that time, Mr. Brandt told her, "I have a man I will send to your place to talk about the sale. He buys land for me as investments." In reality, Rios works for Brandt Crossing Investments, Inc., and not for Richard Brandt personally, but Mr. Brandt was trying to impress Ms. Hadid. Later, Rios does go to Ms. Hadid and buys the property, which quadruples in value over the next few years and is sold to the mall, making a profit for Brandt Crossing Investments, Inc. Hadid sued Mr. Brandt for the actions of his agent in misleading her about the value and contract terms of the sale of the land. Under these facts, Rios is an actual agent for Brandt Crossing Investments, Inc. , and Ms. Hadid met with Mr. Rios believing that he was an agent of Mr. Brandt . Ms. Hadid's belief under these circumstances was based on the language of Mr. Brandt in a conversation occurring before the sale of the property. Assessment question Under these facts, it is likely that a court would hold that Ms. Hadid's belief was reasonable and that it was caused by Mr. Brandt . It is likely that a court would hold that agency by estoppel existed, and a cause of action against Mr. Brandt could be sustained.

What is the key factor in apparent authority?

The principal's actions

If an employee has proven an unfair pay disparity between males and females, what defenses may the employer use? Choose 3 answers.

The pay disparity is based on any factor other than gender. The pay disparity is based on seniority, not gender. The pay disparity is based on merit or output.

Employers are not required to make accommodations for employees:

if that accommodation causes an undue hardship on the business.

Which posters does the Occupational Safety and Health Act (OSHA) require most businesses to display? Choose 3 answers.

the "Family and Medical Leave Act" poster the "Job Safety and Health Protection" poster the "Fair Labor Standards Act" poster

Under the Civil Rights Act of 1964, which of the following are illegal if applied to a member of a protected class? Choose 2 answers.

hostile environment and retaliation disparate treatment and disparate impact

What are the two types of actual authority? Choose 2 answer choices.

Implied authority Express authority

The 1935 act that protects workers' rights to form and join unions for collective bargaining is called the:

National Labor Relations Act (NLRA).

An employer requires a college degree to work in any position in the company. What part of Title VII could apply?

Disparate treatment.

The Equal Protection Clause applies to which parties?

Governmental employers.

An employer reacts to an employee's report of a Title VII violation by cursing and making offensive jokes about that employee and moves the employee to another department. What part of Title VII could apply? Choose 2 answer choices.

Retaliation. Hostile work environment.

What does agency by ratification require? Choose 2 answer choices

The principal affirms the agent's entire act, not just a portion. The principal must have the legal capacity to contract.

The system in which an employer pays her employees an amount based on how well they do their jobs, regardless of gender, is called:

merit

Is a principal liable for the tortious actions of the principal's agent?

-No, only the agent is liable for the agent's torts. x-Yes, but only if the principal authorized the tortious conduct. -Yes, but the agent must reimburse the principal. -No, unless the principal authorized the tortious conduct.

How may an agency relationship be formed? Choose 3 answers.

by express oral agreement between agent and principal implied by the conduct of the principal by express written agreement between agent and principal

Bernard and Hilda have both worked for Home Refinance Inc. for many years. Bernard has been with the company for fifteen years, and Hilda has been with the company for nine years. Both Bernard and Hilda are loan managers for the company, so they perform the exact same duties. Hilda discovers that Bernard's salary is twenty percent higher than hers. She cannot believe that she is paid less for the same job just because she is a woman. If Hilda sues the company over the disparity in pay, Hilda's lawsuit will likely:

fail if Home Refinance can prove the difference in pay is due to Bernard's seniority.

The role of the Equal Employment Opportunity Commission (EEOC) is to: (Choose 3 answers.)

fairly and accurately assess the allegations in a charge of discrimination and make a finding. file a lawsuit to protect the rights of individuals and the interests of the public. investigate charges of discrimination against employers.

Employers must make which of the following to accommodate the religious practices of employees?

A reasonable accommodation

Which of the following is the most important distinction between employee status and independent contractor status?

An independent contractor controls the details of his or her day-to-day work activities.

What categories are protected by the Equal Employment Opportunity Commission (EEOC)? Choose 3 answers.

national origin gender identity genetic information

Marlo is about to be transferred overseas and wants to sell her house. Julianna, who is not a real estate agent, offers to sell the house for Marlo for free. Marlo jumps at the chance to get such a valuable service for free! Because Julianna offered to sell the house for free, Julianna owes Marlo:

no duty to sell the house, but if Julianna does attempt to sell the house, she owes Marlo the duty to use reasonable diligence and skill in performing the task.

Mateo is sixteen years old and just got his first job bagging groceries at Harry's Market, a local grocery store. During the school year, Mateo works limited hours after school and on the weekends. Now that school is out, Harry's Market increases Mateo's hours to six days a week and eight hours a day. Mateo's mother Isabel is concerned about Mateo working such long hours. She knows there is a federal law, the Fair Labor Standards Act (FLSA), that protects children from working long hours and too many days per week. When Isabel raises the issue with Mateo's supervisor, Mateo's supervisor explains to Isabel that:

under the FLSA, children who are sixteen or seventeen years old may work unlimited hours as long as they work in nonhazardous jobs.

Maya is an undocumented alien. She wants to provide her family with a good life in the United States, so she moves to a small town in West Virginia with her two daughters, Anita and Luisa. When school starts, she goes to the local elementary school to register the children. The principal of the school denies her request to enroll the children in school based on a West Virginia statute that authorizes school districts to deny enrollment to undocumented aliens. The principal's action in denying access to an education for the two children based on their status as undocumented aliens:

violates the Equal Protection Clause of the Fourteenth Amendment.

What rules are included in an agent's duty of loyalty? Choose 2 answer choices.

An agent cannot share or use confidential information. An agent cannot secretly deal with the principal.

The National Labor Relations Board (NLRB) has the authority to: (Choose 3 answers.)

file complaints against employers in response to charges of unfair labor practices brought by employees. investigate employees' charges of unfair labor practices. issue a cease-and-desist order.

Onida is an employee at Kale's Manufacturing Company. The company makes bicycle tires, and Onida's job is to inspect the inner tubes before they are inserted into the tires. She recently noticed that the inner tubes are thinner than the safety specifications require. Onida tells her supervisor, Tom, about the problem, and is instructed to ignore it because these thinner tubes save the company money. Onida cannot ignore this problem in good conscience, so she tells Tom that if he is not going to report the problem, she will. Tom then fires Onida. Kale's Manufacturing Company is in an employment-at-will state. If Onida brings a lawsuit for wrongful termination, she will likely:

be successful because she was fired for an unlawful reason.

If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?

negligent hiring

Heather is an artist and has several watercolors she would like to sell. Heather orally asks Rylee to sell the paintings for her and directs Rylee that each painting should be sold for at least $100. Rylee schedules a showing in her art gallery to display Heather's paintings. On the day of the showing, a customer offers to buy one of the paintings for $100, and Rylee accepts. When Heather finds out the price the painting sold for, she tries to get the painting back from the customer. Heather claims that she and Rylee did not have a written agency agreement, and, therefore, an agency relationship did not exist between them. Is Heather correct?

No, most agency agreements do not have to be in writing to be effective.

You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time to do bookkeeping for a computer store. You work during normal business hours at the computer store. Your work there is supervised by the office manager, and you are paid an hourly wage. On Saturday nights, you play guitar at a pub. You bring your own instrument and you decide what music to play. You are paid a set price for this gig. A question arises at both the store and the pub as to whether you are an employee or an independent contractor. This question is important because employers have certain obligations to employees that do not apply to independent contractors. For example, employers are liable for the wrongful acts of employees but generally not for the acts of independent contractors. Likewise, employers must withhold payroll taxes for employees but not for independent contractors. Are you an employee or an independent contractor at the store and at the pub?

You are an employee of the computer store and an independent contractor of the pub.

Fritz applies for a job as a waiter at Mexico Cantina. Three positions are available, but he is not hired for any of them. Fritz inquires about his application and is informed by the restaurant manager that they could not hire him because he is not Hispanic. Fritz is told that Mexico Cantina wants its patrons to experience an authentic Mexican dining event in its restaurant, so Mexico Cantina will only hire female Mexican wait staff, who are then required to dress in traditional Mexican outfits. Fritz sues for employment discrimination, claiming that Mexico Cantina discriminated against him because he is not Hispanic. Mexico Cantina responds to the lawsuit by claiming that being female and Hispanic are bona fide occupational qualifications (BFOQ). Fritz will probably:

win the lawsuit because race is not a bona fide occupational qualification.

What does the ratification of an agency relationship include?

x-There is an agreement between the principal and the agent. -The law creates an agency relationship in the case of an emergency. -A party affirms the contract another person made with a third party. x-The principal led a third party to believe someone was an agent.

Why are seniority systems beneficial? Choose 2 answer choices.

Seniority systems encourage employee loyalty to the employer. Seniority systems are a defense to employment discrimination. As a result, the employer would have fewer related legal issues.

How do agency relationships affect businesses and the business world? Choose 2 answer choices.

Businesses can grow by hiring employees. Workers can specialize and become experts.

A company handbook states that employees will be given warnings for three instances of arriving late for work, after which they will be fired. An employee is fired after being late for the first time. Which of the exceptions to at-will employment could apply?

Contractual agreements.

What is the main provision of the Immigration Act of 1990?

The Immigration Act of 1990 placed caps on the number of visas (entry permits) that can be issued to immigrants each year.

What is required to form an agency relationship?

The agent and principal must agree to enter the relationship.

Is a principal under a duty to compensate an agent who works on the principal's behalf?

Yes, if the contract requires compensation

FMLA requires employers covered by the act to: (Select 2 answers)

allow the qualified employee to continue on the workers' health insurance plan provided by the company. provide up to 12 weeks of unpaid leave in one year for qualified employees.

What are the fiduciary duties of an agent to her principal? Choose 3 answers.

obedience accounting loyalty

In which situation does an agent have the least exposure to liability?

-Fully disclosed principal

Who can terminate an agency relationship?

-Either the agent or the principal may terminate.

The faculty at Hopeland University have always been predominantly white. Concerned that it may be discriminating against potential nonwhite faculty members, Hopeland institutes an affirmative action program that provides that fifty percent of any new faculty positions at the university will be reserved for nonwhite applicants. Clara, who is white, applies for a faculty position at Hopeland. The position is given to a black applicant, even though Clara has more teaching experience and higher educational credentials. When Clara challenges the hiring decision by claiming that the Hopeland University affirmative action program violates the Equal Protection Clause of the Fourteenth Amendment:

she may be successful because the Hopeland University affirmative action program uses quotas.

What are some good reasons to refrain from disclosing an agency or a principal's identity? Choose 2 answer choices.

-When a principal wishes to enter into transactions, but is concerned that if third parties knew his or her identity they would be less likely to enter into the agreement -When a principal wishes to remain anonymous for privacy reasons x-When a principal wishes to avoid exposure to liability x-When a principal does not have adequate resources in case he or she is held liable for damages related to an agency relationship

Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action?

-both the agent and the principal

Which of the following workers are generally NOT eligible for workers' compensation? Select 3 answers.

Domestic workers Agricultural workers Temporary workers

What are three ways that state workers' compensation claims are funded? Choose 3 answers.

Employers pay into a state-run insurance plan, and claims are paid by the insurance. Employers are self-insured and pay claims out of company funds. Employers pay into a privately-run insurance plan, and claims are paid by the insurance.

Bill and Mark have lived together for twenty years, and they finally decide to get married. Three days after their marriage, Bill returns to his job at Hometown Furnishings. When his supervisor finds out that Bill has just gotten married to a man, she immediately fires Bill. Bill is devastated; he has worked for Hometown Furnishings for five years and never had an issue of any kind. The next day, Bill and Mark go to see an attorney to discuss Bill's options. The attorney will likely advise Bill that:

Hometown Furnishings firing him because he is gay violates the Civil Rights Act of 1964.

What are the main provisions of the Immigration Reform and Control Act (IRCA) enacted in 1986? Choose 2 answers.

The IRCA made it illegal to hire, recruit, or refer for a fee someone not authorized to work in the United States. The IRCA provided amnesty to certain groups of immigrants living illegally in the United States at the time.

Which act is violated if an employer refuses to provide health insurance to pregnant females due to the increased cost associated with their pregnancy?

The Pregnancy Discrimination Act

Which of the following scenarios illustrates a business world without agency relationships?

The owner prepares the tax returns.

How does a principal become liable to third parties on contracts?

The principal's agent has the authority to bind the principal in a contract with a third party.

Grover is a sales representative for Avon Products Inc., a company that sells beauty and gift products door-to-door. Ruby, Grover's manager, assigns Grover a certain territory in which to work. The territory that Grover is assigned has historically had one of the highest sales records in the state. Ruby is concerned that Grover is not adequately working the territory, so she allows Regina to also sell in that same territory. Does Grover have any grounds on which to file a lawsuit against Ruby?

Yes, Ruby has violated a principal's duty of cooperation and may be liable to Grover for Grover's lost profits.

Gerald has been a sales representative for Goldsmith's Department Store for the past five years. When Gerald was hired, the general manager told Gerald that he would have a job there as long as he made $3,000 in sales each month. Every month, Gerald has exceeded that level in sales, so he is surprised when his supervisor calls him into the office and fires him. Gerald tells the supervisor about the promise from the general manager not to fire him as long as his sales were $3,000 each month. The supervisor responds by telling Gerald that the law in this state is employment at will, so he can fire him at any time for any reason. If Gerald sues Goldsmith's for wrongful termination, he will likely:

be successful because the general manager orally promised him that he would remain in his job as long as his sales stayed at a specific level, and he has maintained that level.

At the federal level, the primary legislation that protects workers from dangerous conditions on the job is:

the Occupational Safety and Health Act (OSHA).

A worker's status as an employee or independent contractor affects: (Choose 3 answers.)

the business' taxes. the business' liability for the worker's actions. ownership of work created on the job.

Benjamin works for The Cabinet Maker, a large manufacturing plant that makes ready-to-hang cabinets for the kitchen and bath. Benjamin is running a table saw that cuts wood into strips to make a cabinet. As Benjamin loads wood onto the conveyer belt, he slips on the concrete floor and falls into the table saw. Benjamin's face and arms are severely injured by the table saw, and he is rushed to the hospital. Benjamin's injuries are so severe that he is admitted to the hospital for four days. The Cabinet Maker must file a report of Benjamin's work-related injury with the Occupational Safety and Health Administration (OSHA) within:

twenty-four hours.

Rosemary's son Dave is a United States Marine. Dave was recently injured in a covert operation in the Middle East and now needs round-the-clock care. Rosemary works at the Silver Spoon Café, which has 63 employees. Rosemary advises her supervisor that she needs to take time off to care for Dave. Rosemary quickly uses up all her accrued leave time, so she applies for time off under the Family and Medical Leave Act (FMLA). Under the FMLA, Rosemary may take unpaid time off to care for her injured son for up to:

twenty-six weeks.

How much time off does the Family and Medical Leave Act (FMLA) provide?

up to 12 weeks of unpaid time off

When is an agent liable on a contract that the agent entered into in the business of the agent's principal? Choose 3 answers.

when the agent is acting without authority when the principal is undisclosed if the agent entered into the contract in a personal capacity

A sales representative sells products from two competing companies without disclosing to either company. Which agent duty owed to a principal applies to this situation?

Conflict of Interest

Abbie Haneef works as a secretary at BuildingCo, a large construction company that specializes in government contracts. Abbie is in charge of reviewing the invoices that BuildingCo sends to the state of Vermont regarding the construction of a new facility for the state's department of transportation. Abbie discovers that BuildingCo managers have been illegally overcharging the costs of time and materials in their invoices to state officials. Abbie tells her co-worker Zuki Mori about the overcharges during a lunch break and suggests that they should be fixed. Two weeks later, Abbie is abruptly fired by her immediate supervisor. Assuming that her termination was because of her disclosures to Zuki, did BuildingCo legally terminate Abbie?

Identifying the Facts and Issues Employment at will does give employers broad discretion to hire and fire their employees and does not require employers to give an employee sufficient notice before the employee is discharged. The most common exception to the employment at will doctrine is the exception based upon public policy . The public policy exception may apply to an employee discharged for whistleblowing. Assessment question Abbie did speak about illegal activities by her employer. Abbie did not report her findings of illegal overbilling to government authorities, upper-level managers, or the media. Abbie is not a whistleblower under the law because she did not report activity to the necessary individuals or entities. . Assessment question BuildingCo can legally fire Abbie in this case. Assessment question What If the Facts Were Different? Assume now that Abbie reported her findings to the local television news. Abbie has met the legal requirement of a whistleblower because she both reported illegal activity and reported activity to the necessary individuals or entities . Assessment question The fact that Abbie is an employee at will does not impact the legality of the decision. Abbie can seek redress based on grounds of the public policy exception to employment at will and the Whistleblower Protection Act . BuildingCo executives should have reported it to the state and punish the managers who committed wrongdoing when they learned of the overbilling from Abbie.

Amber Nevins was a sales representative at A.B. Keller Worldwide, Inc. (ABKW). The only woman working in her part of the office, sexually offensive language permeated the work environment nearly every day. Sexually explicit radio programming was also played on a daily basis and Nevins was once exposed to a pornographic image of a woman on a co-worker's computer. Nevins told co-workers and her supervisor on several occasions that the language was offensive and made it difficult for her to work, but the environment did not change. Nevins eventually filed a complaint against ABKW alleging that the use of sexually offensive language and commentary created a hostile work environment in violation of Title VII.

Identifying the Facts and Issues Title VII of the Civil Rights Act of 1964 prohibits hostile work environment sexual harassment and discrimination in employment based on: race color religion national origin gender Assessment question When informed of sexual harassment, a supervisor must prevent and promptly correct any sexually harassing behavior . In this case, the supervisor did not take immediate remedial action to stop the harassing conduct. Assessment question The fact that the offensive behavior was not directed specifically at Nevins does not prevent her sexual harassment claim. A court is likely to find that hostile environment sexual harassment did occur at ABKW. Assessment question What If the Facts Were Different? Assume that ABKW had anti-harassment policies and reporting procedures designed to detect and prevent sexual harassment. When ABKW supervisors learned of the sexually offensive language permeating the work environment, the behavior was immediately halted and the individuals responsible for the language were punished. Supervisors also offered to transfer her to another location in the company and not work with the offenders again. Nevins did not report the inappropriate behavior, declined the transfer, and sued ABKW anyway. ABKW would not normally be held liable to Nevins because it did take reasonable care to prevent and promptly correct any sexually harassing behavior and Nevins unreasonably failed to take advantage of preventive or corrective opportunities provided by the employer to avoid harm. Assessment question Nevins is not left without recourse. Her co-workers would still be liable for sexual harassment. ABKW cannot fire Nevins in response to her allegations of sexual harassment in order to maintain workplace civility.

You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning and prescribes medication. You fill the prescription, check into a hotel, and experience several days of agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused your food poisoning. You sue the restaurant. Is the restaurant liable to you or is only the employee liable?

The restaurant is liable.

Isaiah wants to build a new shopping complex. He is afraid that once news gets out about his plans, the price of the land where he wants to build the shopping complex will increase in price. Isaiah, therefore, hires Landon to purchase the parcels of land for him and to keep the fact that Landon is working for Isaiah a secret. Landon enters into a written contract for the sale of the land with Miriam and does not tell Miriam that Landon is an agent for anyone else on the deal. Isaiah refuses to buy the property from Miriam. Is Landon obligated to perform the contract with Miriam?

Yes, he is because there was an undisclosed principal who failed to perform.

You are an experienced server and have worked at many restaurants. An English pub is opening in town and is seeking waiters and waitresses. You are interested in applying, but the job description states, "Seeking people of British nationality only." Even though you are not British, you apply for the job. You are invited to an interview. While there, the restaurant manager thanks you for your interest, but says she will not hire you because you are not British. The manager explains she wants to hire British servers because, in her opinion, they will best portray the theme of the restaurant as an authentic English pub. Has the restaurant violated any anti-discrimination laws?

Yes, the restaurant has discriminated on the basis of national origin.