Business Law Test 4 P1

James was a thirty-eight-year-old man in good health. One of his hands shook slightly for no apparent reason. The doctors could not find a medical cause for it. James's employer worried about the potential for early-onset Parkinson's disease or another neurological disorder, so he fired James. Under the ADA: a. James can bring a claim as being "regarded" as having a disability. b. James is not disabled and so cannot bring a claim. c. James must wait to get a diagnosis before he can bring a claim. d. James must show some record of the disability to bring a claim.

a. James can bring a claim as being "regarded" as having a disability.

The Americans with Disabilities Act applies to workplaces with at least a.fifteen workers. b.five workers. c.one worker. d.ten workers.

a.fifteen workers.

Min applies for a job as a receptionist at an accounting firm. If she is denied a job because she is of Asian origin, she may be a victim of: a. primary-treatment discrimination. b. disparate-treatment discrimination. c. direct-treatment discrimination. d. disparate-impact discrimination.

b. disparate-treatment discrimination.

In a well-established market, ComBuilt produces the nation's best-selling bookkeeping software. The program is far superior to all other similar programs. ComBuilt requires all its distributors and retailers to sell the program at a specified price. This is: a. allowed by antitrust laws because it is a superior product. b. known as a price maintenance agreement and may violate Section 1 of the Sherman Act under the rule of reason test. c. exempt from antitrust laws because it does not constitute an interference with competition. d. known as a price maintenance agreement and is a per se violation of Section 1 of the Sherman Act

b. known as a price maintenance agreement and may violate Section 1 of the Sherman Act under the rule of reason test.

Antirust legislation is based on society's desire to a.increase prices. b.consolidate market power. c.encourage restraints of trade. d.foster competition.

d.foster competition.

Four grocery stores account for 80 percent of the retail food sales in Metro City. Two of the stores want to merge. In determining whether the merger violates the Clayton Act, the most crucial factor is a.the market value of the firms' shares in the stock market. b.the comparative value of each store in a market for their sale. c.the total value of the market in relation to the stock for sale in the stores. d.the market shares of the firms in their market

d.the market shares of the firms in their market

Melanie and Beau both work in comparable jobs at Technology Impact, Inc. Melanie is paid 15 percent less than Beau. Which of the following is not a legitimate defense to this pay inequality? a. The company pays Melanie less, because she has a husband who is a highly successful businessperson. b. The company has a seniority system, and Beau has been with the company longer than Melanie. c. The company has a merit system in place, and Beau has performed better at his job than Melanie has at hers. d. The company pays according to production, and Beau produces more.

a. The company pays Melanie less, because she has a husband who is a highly successful businessperson.

Taco Heaven, Burrito Joint, and Fast Fajitas are competitors in the Boston area. They have a secret agreement not to purchase any beef from Northwest Beef Growers' Cooperative. Their agreement is: a. a group boycott. b. price discrimination. c. a tying arrangement. d. a horizontal market division.

a. a group boycott.

Big Corp. and Giant Corp. both compete in the tire manufacturing industry. The two companies want to merge. A merger between these two companies would be called: a. a horizontal merger. b. a consolidation merger. c. an attempted monopolization merger. d. a vertical merger

a. a horizontal merger.

Kibble Bites and Chow Hound, two makers of dog food, agree that Kibble Bites will sell its lamb and rice dog food in New Jersey but not in Delaware, and Chow Hound will sell its lamb and rice dog food in Delaware but not in New Jersey. Their agreement is a: a. horizontal market division. b. vertical agreement. c. refusal to deal. d. resale price maintenance agreement.

a. horizontal market division.

DynaCorp is in the computer software market. The company's actions demonstrate an intent to monopolize the market. Under Section 2 of the Sherman Act, a firm's intent to monopolize a market a. is an element of the violation and must be proved by the party pursuing the claim. b. may be demonstrated by a showing of the superiority of its product. c. is irrelevant; domination of the market itself proves a violation of the act. d. may be used to rebut the presumption that it monopolized a market.

a. is an element of the violation and must be proved by the party pursuing the claim.

Julio lives in an area with a high percentage of Hispanic workers. Many of these workers are legal immigrants who have relatively little college training. If, when Julio applies for his job, he is given an examination designed for a college graduate, and if he and most Hispanic applicants fail to pass the test, the employer: a. might be engaged in disparate-impact discrimination. b. might be engaged in disparate-harm discrimination. c. might have violated the Americans with Disabilities Act (ADA). d. has almost certainly done nothing wrong.

a. might be engaged in disparate-impact discrimination.

Carl tells Jenny that he will give her a raise if she agrees to have a romantic relationship with him. In legal terms, this is known as: a. quid pro quo harassment. b. settled harassment. c. hostile-environment harassment. d. invidious harassment.

a. quid pro quo harassment.

Wally is blind and would like to work for Dairy Times writing articles on the dairy industry. Wally uses voice-recognition software that allows him to dictate articles to his computer. His computer is specially designed for visually impaired individuals. Dairy Times interviews Wally but offers the job to a sighted person instead. Dairy Times may have violated: a. the ADA. b. 42 U.S.C. Section 1981. c. the NRA. d. the ADEA.

a. the ADA.

Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of a.gender. b.all of the choices. c.education. d.experience.

a.gender.

Gil and Hera are employees of IT Solutions Inc. Under the Equal Pay Act, IT Solutions can legitimately pay different wages to male and female employees on the basis of a.merit. b.gender. c.marital status. d.similar work at the same facility.

a.merit.

Northern Manufacturers is prosecuted for antitrust violations by the Department of Justice, which wins its case. The judge agrees to impose criminal sanctions against Northern for the injuries it caused its competitor, Mini Lake, Inc. Mini Lake: a. is eligible to sue only for money damages, because the Department of Justice prevailed in the criminal action. b. may recover treble damages and attorneys' fees. c. may also sue for punitive damages. d. has no additional recourse against Northern, because the criminal trial was successful.

b. may recover treble damages and attorneys' fees.

Bee Well is one of three suppliers of portable toilets located near the border between Oregon and California. All three companies operate in both states. Bee Well charges different prices to different customers depending on the distance to the locale and the number of units rented. This is: a. a violation of Section 1 of the Sherman Act, because charging different rates is a per se violation. b. not a violation of the Clayton Act, because Bee Well can justify charging the different rates. c. a violation of the Clayton Act, because charging different rates is a per se violation. d. not a violation of Section 1 of the Sherman Act, because Bee Well can justify charging the different rates.

b. not a violation of the Clayton Act, because Bee Well can justify charging the different rates.

Platte River Meat Packing Company maintains a three percent share of the beef-packing industry in the United States. Last year, it launched an unsuccessful effort to harm its competitors and garner monopoly share of the beef-packing industry. Platte River's efforts are: a. not actionable, because antitrust laws do not punish unsuccessful attempts to monopolize—only those that succeed. b. not actionable, because Platte River lacked sufficient market power to ensure a dangerous probability of success and consequent serious threat of monopolization. c. actionable, because Platte River possessed intent to harm its competitors, regardless of whether its efforts were successful. d. actionable as a per se attempt to monopolize the beef-packing industry

b. not actionable, because Platte River lacked sufficient market power to ensure a dangerous probability of success and consequent serious threat of monopolization.

Kay runs a business with a target customer population of twenty- to forty-five-year-olds. Because she wants her employees to be "in tune" with the younger crowd, she requires all of her front staff to quit or retire from her company at the age of fifty. This: a. violates Title VII of the Civil Rights Act b. violates the Age Discrimination in Employment Act. c. is not a violation of any federal laws. d. violates the Americans with Disabilities Act, because it appears she is trying to avoid paying insurance for those who are most likely to become disabled.

b. violates the Age Discrimination in Employment Act.

Bib replaces Chloe in her job at Data Sales Corporation. To succeed with an age-discrimination claim against Data, Chloe will have to show that a.the employer's qualifications for the job are too high. b.Chloe is qualified for the job. c.Bib is not qualified for the job. d.no one could do the job as well as Chloe could.

b.Chloe is qualified for the job.

Ivy is blind. Jerold has cancer. Kim has cerebral palsy. Considered to have a disability under the Americans with Disabilities Act is a.none of the choices. b.Ivy, Jerold, and Kim. c.only Ivy. d.only Ivy and Kim.

b.Ivy, Jerold, and Kim.

Ranch Supplies Company believes that its chief competitor Stock & Equipment Inc. engages in anticompetitive behavior in an attempt to drive Ranch Supplies out of the market. Under the Clayton Act, Ranch Supplies can sue Stock & Equipment for a violation of a.none of the choices. b.any of the federal antirust laws. c.the Clayton Act only. d.the Sherman Act only.

b.any of the federal antirust laws.

When applying the rule of reason to an activity that allegedly violates the antitrust laws, a court will not consider a.the potential effect of the agreement on competition. b.whether the agreement is a per se violation. c.the purpose of the agreement. d.the parties' market ability to implement the agreement.

b.whether the agreement is a per se violation.

Omega Sewing Machines is a nationally known manufacturer, having started in business almost 50 years ago. Omega and Betty's Sewing Store agree that Betty will be the only dealer in her state that will sell Omega machines. This type of agreement is most likely: a. prohibited by Section 1 of the Sherman Act as a per se violation. b. not allowed under the rule of reason because Betty has not demonstrated need for the restriction. c. allowed under the rule of reason. d. an attempted monopolization.

c. allowed under the rule of reason.

Rhonda is not hired for her dream position and believes that she is the victim of gender discrimination. She is angry and wants to file a lawsuit immediately in the closest courthouse she can find. Rhonda: a. must first file a complaint with the Employment Nondiscrimination Office (ENO). b. can file a suit, but it must be in federal court and not the nearest court she can find. c. must first file a complaint with the EEOC. d. can file a suit in any court she chooses.

c. must first file a complaint with the EEOC.

Kurt is 52 years old and, until recently, worked for a company covered by the Age Discrimination in Employment Act (ADEA) of 1967. He wants to bring a claim of age discrimination against his employer, because he was replaced by a younger, lower-paid worker. To make out a prima facie case of age discrimination, Kurt does not have to establish that he: a. was discharged in a way that creates an inference of discrimination. b. is a member of the protected age group. c. was replaced by someone who was below the age of 40. d. was qualified for the job he lost.

c. was replaced by someone who was below the age of 40.

Cady files an employment discrimination suit against Durable Goods Corporation under the Civil Rights Act. If Cady shows that Durable Goods acted with malice or reckless indifference, she may recover a.an unlimited amount of compensatory and punitive damages. b.compensatory, but not punitive damages. c.a limited amount of compensatory and punitive damages. d.punitive, but not compensatory, damages.

c.a limited amount of compensatory and punitive damages.

Power Inc. and QualGas Corporation refine and sell natural gas. To limit the supply on the market and thereby raise prices, Power and QualGas agree to buy "excess" supplies from dealers and "dispose" of it. This is a.a deal that neither restrains trade or harms competition. b.not within the scope of the Sherman Act. c.a per se violation of the Sherman Act. d.subject to analysis under the rule of reason.

c.a per se violation of the Sherman Act.

Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo Inc., where she is an employee. As a result, the employer demotes her. Beth can file a.a constructive discharge claim. b.a disparate-impact discrimination claim. c.a retaliation claim. d.none of the choices

c.a retaliation claim.

Giso applies for a job with Hobby Company. The employer does not hire him because of his ethnicity, or national origin. This is a.not discrimination. b.a constructive discharge. c.disparate-treatment discrimination. d.disparate-impact discrimination.

c.disparate-treatment discrimination.

Under a contract, Oil Shale Corporation forbids Petro Inc., a wholesale buyer of Oil Shale's products, to purchase products from the seller's competitors. This is prohibited a.under any circumstances. b.if its purpose is to create a monopoly. c.if its effect is to substantially lessen competition. d.if its effect is to stabilize the relevant market.

c.if its effect is to substantially lessen competition.

Every agreement concerned with trade, and every regulation of trade, restrains. The test of legality under the antitrust laws, according to the rule of reason, is whether the restraint a.is blatantly, inherently anticompetitive. b.has a substantial effect on interstate commerce. c.merely regulates and thereby promotes competition. d.suppresses or destroys competition.

c.merely regulates and thereby promotes competition.

With respect to antitrust violations, the Federal Trade Commission does not enforce a.the Clayton Act. b.any of the federal antitrust laws. c.the Sherman Act. d.the Federal Trade Commission Act.

c.the Sherman Act.

Byron runs a business cleaning gutters. Lance, who is in a wheelchair, applies for a job working for Byron as a cleaner. Byron does not hire Lance and is very frank about the reason: Lance's disability. If Lance sues Byron, a. Lance will win, because this is clearly disability discrimination. b. Lance will win, because Byron does not have any possible defenses. c. Byron will win, because Lance is not qualified under the ADA. d. Byron will win, if he can show that being able to climb a ladder is a requirement of the position.

d. Byron will win, if he can show that being able to climb a ladder is a requirement of the position.

Ballard Corporation does business overseas. In France, which is a member of the European Union (EU), Ballard Corporation works with a French competitor to divide the markets within France to maximize sales for both companies. Ballard Corporation may: a. not face charges of violating either the U.S. antitrust laws or the EU antitrust laws, because the U.S. has no jurisdiction over activities overseas, and the EU has no jurisdiction over U.S. companies. b. face charges of violating only the EU antitrust laws, because it is doing business in the EU. c. face charges of violating only the U.S. antitrust laws, because it is a U.S. corporation. d. face charges of violating both U.S. antitrust laws and EU antitrust laws.

d. face charges of violating both U.S. antitrust laws and EU antitrust laws.

Kimmy owns a small scrapbooking store in her community. She sells paper, glue, and other scrapbooking items. She decides one day to lower her prices a little bit, because she wants to boost sales and market share so that she can take a vacation. She currently has a twelve percent market share. Under the Sherman Act, this likely: a. is a violation of Section 1, because she is attempting to reduce competition. b. is a violation of Section 3 of the Clayton Act because she is attempting to exclude competitors. c. is a violation of Section 2, because she is intentionally attempting to drive her competitors out of business. d. is not a violation of U.S. Antitrust laws.

d. is not a violation of U.S. Antitrust laws.

Eastminster Presbyterian Church has an opening for a new head pastor. Mohammed, who is a Muslim, applies for the job. The church declines to hire him and continues to look for other applicants. If Mohammed files a claim of illegal discrimination against the church, the church: a. can contend that the EEOC's "80 percent rule" is irrelevant when there is only one available job. b. can assert that its hiring practices are not intentionally discriminatory. c. can claim that Mohammed did not make out a prima facie case of illegal discrimination. d. may assert a bona fide occupational qualification (BFOQ) defense.

d. may assert a bona fide occupational qualification (BFOQ) defense.

Melissa works as a computer data-entry operator at VeraSign. Melissa informs VeraSign that she was just diagnosed with carpal tunnel syndrome, which causes pain in her wrists, rendering her unable to use a keyboard. Melissa requests as an accommodation that VeraSign hire a data-entry employee to enter the information on her behalf. VeraSign refuses to do so. VeraSign has: a. violated the ADA, because it discriminated against an employee with a disability. b. violated the ADA, because it failed to provide a reasonable accommodation. c. not violated the ADA, because modifying computer technology is not a covered protection. d. not violated the ADA, because the requested accommodation is an undue hardship on the employer.

d. not violated the ADA, because the requested accommodation is an undue hardship on the employer.

Amazing Bread begins selling its bread at a loss by cutting its price by more than one-half in an attempt to gain a considerable market share over its competitors. Once its competitors are out of the picture, Amazing Bread raises the price of its bread by 300 percent. This type of action is known as: a. monopoly. b. restraint of trade. c. price discrimination. d. predatory pricing.

d. predatory pricing.

Organosis is a company in the healthcare industry. The company engages in trade practices that violate antitrust laws. Organosis is subject to criminal prosecution by: a. the Federal Trade Commission under the Clayton Act. b. either the Department of Justice or the Federal Trade Commission under the Sherman Act. c. either the Department of Justice or the Federal Trade Commission under either the Sherman Act or the Clayton Act. d. the Department of Justice under the Sherman Act.

d. the Department of Justice under the Sherman Act.

Norm worked as a sales person for his firm. When he turned fifty, the office had a party for him. His boss made a lot of jokes about Norm getting too old to keep up with the younger staff. Those comments continued past the party for several months. Norm was fired six months later. When he filed a complaint for age discrimination, the boss defended his actions by saying Norm was fired for not meeting sales quotas. Norm had missed his quota for only one month, and he provided evidence that younger employees who had missed up to three months of the quotas were not terminated. Norm is attempting to show that: a. age was one of the motivating factors for his termination. b. the employer engages in Title VII discrimination. c. he suffered an adverse employment action. d. the employer's defense was a pretext.

d. the employer's defense was a pretext.

Carter University has an admissions policy that requires a certain number of points to be automatically awarded to minority applicants. This type of policy may violate which clause of the U.S. Constitution? a. the establishment clause. b. the advancement clause. c. the access to education clause. d. the equal protection clause.

d. the equal protection clause.

Seth owns and runs a small shoe factory. He finds a source of leather that is perfect for the new styles he has designed. To ensure himself a steady supply of the leather, he wants to buy the leather-processing plant. Seth's proposal is known as a: a. vertical merger and will most likely be illegal, because it places unreasonable restrictions on trade. b. horizontal merger and will most likely be legal, because Seth will have over 80 percent of the market if he goes through with the merger. c. horizontal merger and will most likely be illegal, because it constitutes foreclosure of the market. d. vertical merger and will most likely be legal, because it will not prevent competitors of either the factory or the plant from competing in the market.

d. vertical merger and will most likely be legal, because it will not prevent competitors of either the factory or the plant from competing in the market.

Foreign Steel Exports, a company based in Brazil, colludes with other steel-export companies from around the world to agree on the price of steel sold in the U.S., which causes the price of steel in the U.S. to substantially increase. This type of agreement: a. falls outside of U.S. regulation. b. can only be considered a violation under Brazil's laws. c. must be addressed by an international trade association. d. violates the Sherman Act.

d. violates the Sherman Act.

Rheingold Supply has a seniority system by which employees who have worked the longest are first in line for promotions and last to be laid off. As a result, most of the senior managers at Rheingold Supply are men. If Jane files a claim of illegal discrimination, Rheingold Supply: a. will be in violation of Title VII of the Civil Rights Act. b. will have a legitimate defense, because retaining men in top management positions is a business necessity. c. will have a legitimate defense, because gender is a bona fide occupational qualification for senior management. d. will have a legitimate defense, because Rheingold Supply has a seniority system in place.

d. will have a legitimate defense, because Rheingold Supply has a seniority system in place.

Under the Equal Pay Act, an employer can legitimately pay different wages to male and female employees on the basis of a.a seniority or merit system. b.the primary duties of the jobs. c.any factor other than gender. d.all of the choices.

d.all of the choices.

Cosmétique Inc. makes and sells cosmetics and related products. By selling its goods at prices substantially below the normal cost of production, the firm hopes to drive its competitors from the market. This is a.market power pricing. b.price discrimination. c.price-fixing. d.predatory pricing

d.predatory pricing

Fish Purveyors Corporation and Gill Netters Inc. are the principal suppliers of crustaceans in their market. They agree that Fish Purveyors will sell exclusively to retailers and Gill Netters will sell exclusively to wholesalers. This is most likely a.not within the scope of the Sherman Act. b.a per se violation of antitrust law. c.a situation that neither restrains trade nor harms competition. d.subject to analysis under the rule of reason.

d.subject to analysis under the rule of reason.

To succeed in a suit against a potential employer for discrimination under the Americans with Disabilities Act, a job applicant must show that he or she a.suffers from a disability that causes undue personal hardship. b.has a disability that does not limit any major-life activity. c.is willing to reasonably accommodate the employer's needs. d.was not hired solely because of a disability.

d.was not hired solely because of a disability.