MGMT 217: EXAM 3

The Electronic Fund Transfer Act concerns liability limits for stolen ATM cards. Which statement is correct about maximum consumer liability:

$50 if the financial institution is notified within 2 days

A collective bargaining agreement ends and the union and management continue to bargain for a new contract while the workers go on strike. Management hires new workers to replace the union workers on strike. By law, when the strike ends:

-all union workers must be returned to their previous positions -all replacement workers must be dismissed unless the union agrees to accept them the -replacement workers must become union members and be paid union wages -the new collective bargaining agreement must provide higher wages than the previous contract and the new wage level will apply to all workers ** E. none of the above are true **

The Family and Medical Leave Act gives employees the right to take:

12 weeks of unpaid leave per year for health and family-related reasons

For the NLRB to oversee a representation election, at least what percent of employees must request an election?

30%

You want to open a Playboy Club in DeKalb. You place an advertisement in the newspaper seeking only women as Bunnies. A man with great legs and a winning smile applies for the job but you reject him because of his sex. He sues. Your best defense would be;

Bona fide occupational qualification

The city of Iowa City requires a college degree to qualify for being a city bus driver. Statistics show that 28% of the blacks and 85% of the whites in the metropolitan area and surrounding county have college degrees. John, a black male without a college degree, applies for the job but is rejected because of the diploma requirement. He sues. On the basis of just the facts given, which is the most likely result?

Discrimination because of disparate impact

A principal's duties toward an agent do not include;

Duty of obedience

An agent's duties do not include;

Duty to reimburse

If an investigation of a discrimination charge is not settled by the EEOC working with the employer and complaining employee, to carry the case further, the:

EEOC issues a "right-to-sue" letter giving the employee the right to sue the employer in court

In the absence of a contrary agreement, a general partner's share of the partnership profits is determined by:

Each general partner shares equally in the profits

T/F: Under the requirement of good-faith bargaining, both parties are required to come to an agreement despite their differences.

F

Which of the following sanctions (punishments) cannot be imposed by an administrative agency after an adequate hearing?

Jail time

In a formal adjudicatory hearing, which of the following due process requirements is not required or permitted?

Jury trial

Which of the following are afforded limited liability for the debts and torts of a business?

Limited partners

Which of the following is always required when an administrative agency makes legislative/substantive rules?

Notice and comment

The Environmental Protection Agency (EPA) wants to establish a list of air pollutants and make rules defining their permissible levels. These rules would be characterized as;

Substantive/legislative rules

T/F: A contract between a principal and an agent establishing an agency relationship need not be in writing nor need it b.e supported by consideration.

T

T/F: Death of either the principal or the agent terminates the agency by operation of law.

T

T/F: If not otherwise agreed, either a principal or an agent may terminate an agency relationship at-will.

T

T/F: If the court "pierces the corporate veil" shareholder(s) have unlimited personal liability for corporate debts.

T

T/F: In a few situations, such as modeling clothing, an employer may discriminate on the basis of race as a bona fide occupational qualification.

T

T/F: Limited liability companies are taxed like partnerships, but have the liability rules of a corporation.

T

A consumer buys living room furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest:

There is no violation here

Unless otherwise stated by contract, the law of partnership presumes which of the following NOT to be true?

a) each partner has an equal voice in partnership management. b) a majority vote controls ordinary business decisions c) only managing partners are fully responsible for debts of the partnership d) regardless of the amount invested in the partnership, each partner has an equal vote ** e) all of the above are true **

A limited liability company:

a) is taxed like a partnership b) has the liability of a corporation c) is taxed like a corporation ** d) a and b **

Which of the following is NOT a procedural requirement for judicial review of an agency's action?

a. Jurisdiction b. Standing c. Ripeness d. Exhaustion ** e. all of the above are procedural requirements **

Mandatory subjects which Congress requires unions and management to bargain in good faith concerning include:

a. Wages b. Hours c. Seniority d. Promotion rules ** e. All of the above **

A partnership can begin with:

a. an implied agreement that can be inferred from the conduct of the parties doing business b. a written agreement c. an oral agreement d. b and c ** e. a, b and c **

The Federal Trade Commission regulates:

a. deceptive business practices b. false advertising claims c. unfair business practices d. a and b ** e. a,b and c **

Which of the following is not a function of the Food and Drug Administration?

a. inspections of food and drug producing establishments b. drug evaluation studies c. food addictive studies d. classifying unsafe foods ** e. all of the above **

Disparate treatment (under Title VII) refers to:

a. intentional discrimination b. unintentional discrimination c. illegally motivated employment decision ** d. a and c **

If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information?

a. the name and address of the federal agency regulating compliance by the creditor b. the basic provisions of the Equal Credit Opportunity Act c. either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons d. a and c ** e. a, b and c **

Which of the following is not part of the FTC policy statement for determining if a practice is deceptive?

a. there is a misrepresentation or omission of information in a communication to consumers b. the deception is likely to mislead a reasonable consumer c. the deception is material—likely to mislead the consumer to his or her detriment d. there is proximate cause between the deception and the losses suffered by consumers who ire misled ** e. all of the above are a part of the deception standard **

Which of the following is not a right guaranteed to workers by the National Labor Relations Act?

a. to form and join labor unions b. to collectively bargain c. to engage in strikes d. to engage in picketing ** e. all of the above are rights guaranteed **

The Food and Drug Administration does not have which of the following powers:

a. to restrict false advertising of drugs b. to inspect plants where drugs are manufactured c. to set the levels of additives that may be used in food to seize drugs that are already approved to be on the market ** e. all of the above are FDA powers **

The Truth-in-Lending Act applies to which of the following transactions?

a. your friend loans you $4,000 b. you purchase and get a $45,500 loan for a new Lexus c. your company, Shoes, Incorporated, borrows $10,000 to buy more inventory d. b and c ** e. none of the above **

The average cost of developing a new drug and clearing all FDA regulations to get the drug market are:

about $500 million and are paid by the drug companies

This ad was seen in a publication: "Wanted: Assistant to the President. Great job opportunity for bright, young, hard working person to work with President of a major private university." This ad is most likely to violate:

age discrimination laws since "young" is probably not over the age of 40

A place of employment where all employees are represented by a union and most employees are union members, but non-union workers must pay fees to the union, is called:

an agency shop

Create a corporation:

articles of incorporation and an application must first be filed with the federal government

Which of the following is NOT prohibited employer conduct by the NLRA?

beating of union organizers

Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except:

change in financial condition of a partner

Which of the following was NOT outlawed by the Taft-Hartley Act?

company unions

The Fair Debt Collection Practices Act applies to:

debt collection agencies

In Whirlpool v. Marshall, employees refused to perform work on a screen suspended twenty feet over the floor of a manufacturing plant. The employees were punished by their employer. The Supreme Court ruled that under OSHA:

employees may refuse to obey orders that pose an immanent risk of death or serious injury

Surveys show that people may prefer to deal with members of their own race. A company assigns white salespersons to white customers, and Hispanic salespersons to Hispanic clients. This makes revenues to all the salespersons higher than if the sales-persons were assigned randomly. Assignments based on race are:

ilegal segregation under Title VII

The workers at a meat packing plant are on strike. They picket the banks in town to put pressure on the meat packing plant to come to a settlement. The pickets at the banks are:

illegal secondary boycotts

The business organization that has at least one general partner and other investors who have limited liability is a:

limited partnership

Which of the following is not a feature of the Fair Credit Billing Act:

maximum liability for unauthorized charges is $100 if the creditor is notified

To not violate Title VII's prohibition of discrimination based on religion, an employer may have to make changes in the way her business is organized to meet religious requirements of employees. Employers are required to incur:

no more than minimal expenses to accommodate an employee's religious requirements

Comparing regulation of drugs to other countries, the U.S. is:

one of the strictest nations and has great impact on the world market

A_______is an association of two or more persons to carry on a business as co-owners for profit.

partnership

A promise of a reward, such as promotion or pay raise, for providing sexual favors being demanded is called:

quid pro quo harassment

Which of the following would NOT be likely to be a violation of the Americans with Disabilities Act, because it goes beyond the scope of the legislation?

refusing to hire job applicants because they have a history of drug abuse

The "Mail Order Rule" slates that if a company:

sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advertised

Suppose a debt collector has been calling and sending notices of a debt you owe. If you wish to end further notification from the debt collector, you must:

send the debt collector a letter requesting they stop contact