B Law 2nd Exam (corrections only)
162) Under the Consumer Leasing Act and its controlling regulation, Regulation ________, anyone leasing goods must disclose up front and in writing all the material terms and conditions of the lease. A) B B) L C) M D) 10.2 E) 2(a)
C) M
160) Which of the following is a form of cease-and-desist order the Federal Trade Commission (FTC) issues that applies not only to the product that was the subject of the action, but to other products produced by the same firm as well? A) A multiple-product order B) Ad substantiation C) Corrective advertising D) A universal cease-and-desist order E) A company-wide cease-and-desist order
A) A multiple-product order
115) Which of the following is the requirement that advertisers have a reasonable basis for claims made in their advertisements? A) Ad substantiation B) Ad verification C) Puffing D) Ad subrogation E) Ad vilification
A) Ad substantiation
*5) Which of the following is false regarding a nonprofit corporation? A) It may not earn profits. B) It does not have shareholders. C) One of its objectives is to not earn profit. D) It does not issue stock. E) Examples of this form of business organization include churches and charitable organizations.
A) It may not earn profits.
*76) Which of the following is false regarding the Federal Unemployment Tax Act (FUTA)? A) It provides a federal system to provide unemployment compensation to qualified employees who lose their jobs. B) Employers must pay taxes to the states which, in turn, deposit the money into the federal government's Unemployment Insurance Fund. C) Each state has an account from which it can access the money in the federal fund. D) States have different minimum standards for qualifying for unemployment compensation. E) Almost all states require that an applicant for unemployment compensation did not voluntarily quit his or her former job.
A) It provides a federal system to provide unemployment compensation to qualified employees who lose their jobs.
*97) Dog and Formals. Paul owns a dog grooming business and needs patient people to work there...Which of the following is true regarding Paul's test for patience? A) Paul is entitled to test so long as the test is not designed, intended, or used to discriminate, and its construct validity references measure a psychological trait needed to perform the job. B) Paul is entitled to test so long as the test is not designed, intended, or used to discriminate, and its credited validity references measure a psychological trait needed to perform the job. C) Paul is prohibited from performing job testing for psychological traits although he would be allowed to test for other types of skills involving construct validity, such as word processing, so long as it could be shown that the skill was necessary for the job at issue.
A) Paul is entitled to test so long as the test is not designed, intended, or used to discriminate, and its construct validity references measure a psychological trait needed to perform the job.
61) Which of the following damages are allowed under Title VII of the Civil Rights Act of 1964? A) Punitive damages B) Conciliatory damages C) Nominal damages D) Incarceration E) Up to ten years of back pay
A) Punitive damages
66) Which of the following can be used as a defense to a bona fide occupational qualification? A) Sex B) Race C) Color D) Race or color
A) Sex ?
100) Which of the following was passed to curtail union power? A) Taft-Hartley Act B) Wagner Act C) Fair Labor Standards Act D) National Labor Relations Act E) Regan Act
A) Taft-Hartley Act
124) The Federal Trade Commission's (FTC's) Cooling-Off Rule gives consumers ________ to cancel purchases they make from salespeople who come to their homes. A) three (3) days B) one (1) day C) 36 hours D) six (6) months E) one (1) year
A) three (3) days
*41) Shaky Bicycles. Rhonda, an incorporator who filed the articles of incorporation for ABC Corporation, a corporation set up to sell bicycles, listed the correct town and street but incorrectly put the wrong street number in the document....Which of the following would a court likely rule regarding the status of ABC Corporation as a corporation? A) That the business was a de jure corporation. B) That the business was a de facto corporation. C) That the business was a corporation by estoppel. D) That the business was a veiled corporation. E) That the business was not a corporation at all.
A) That the business was a de jure corporation.
103) Which of the following was the result on appeal in Crawford v. LVNV Funding. LLC., the case in the textbook involving whether the Fair Debt Collection Practices Act disallows the attempt to collect a debt when the claim is time-barred? A) The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act allows the attempt to collect a debt when the claim in time-barred using the "least-sophisticated consumer" standard. B) The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act allows the attempt to collect a debt when the claim is time-barred using the "reasonable consumer" standard. C) The Eleventh Circuit Court of Appeals dismissed the appeal due to the appeal having not been timely filed.
A) The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act allows the attempt to collect a debt when the claim in time-barred using the "least-sophisticated consumer" standard.
55) Which of the following was the result in Roe v. Teletech Customer Care Management, the case in the textbook in which the employee sued after being terminated for testing positive for marijuana she was taking for a medical condition? A) The appellate court affirmed the lower court's decision to grant summary judgment, holding that Washington state's Medical Use of Marijuana Act (MUMA) does not prohibit an employer from discharging an employee for medical marijuana use. B) The appellate court rejected the lower court's decision to grant summary judgment, holding that MUMA is an invasion of an employee's right to privacy. C) The appellate court ruled that MUMA is extended to cover workplace safety concerns, thus holding that the lower court was in error in granting the motion for summary judgment.
A) The appellate court affirmed the lower court's decision to grant summary judgment, holding that Washington state's Medical Use of Marijuana Act (MUMA) does not prohibit an employer from discharging an employee for medical marijuana use.
*104) Which of the following was the ruling by the Ninth Circuit in United States vs. Kaplan the case in the textbook involving whether a physician can be charged under the Food, Drug, and Cosmetic Act (FDCA) when the doctor reused needles that he argued where not 'held for sale' but instead were 'held for use.' A) The court found that Kaplan knowingly endangered public health in his practices and that the FDCA does apply. B) The court found that Kaplan did not knowingly endanger public health in his practices and that the FDCA does not apply. C) The court held that the Food and Drug Administration has jurisdiction over all products but medical products and thus the physician could not be charged. D) The court held that a physician can only be held civilly liable for negligence and malpractice under the FDCA not criminal charges.
A) The court found that Kaplan knowingly endangered public health in his practices and that the FDCA does apply.
59) Which of the following is the first step in a three-step process of proving disparate-treatment discrimination in employment under Title VII of the Civil Rights Act of 1964? A) The employee-plaintiff must demonstrate a prima facie case of discrimination. B) The employer-defendant must articulate a legitimate, nondiscriminatory business reason for the action. C) The employer-defendant must articulate a legitimate, discriminatory business reason for the action. D) The employer-defendant must demonstrate a prima facie case of non-discrimination. E) The employee-plaintiff must show that the reason given by the employer-defendant is a mere pretext.
A) The employee-plaintiff must demonstrate a prima facie case of discrimination.
*153) Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each...Under the Truth in Lending Act what type of information should Kathy have received from ABC Bank? A) The total amount financed; and the number, amount, and due dates of payments B) The total amount financed; the number, amount, and due dates of payments; and the bank policy in the event of a delinquency C) The total amount financed; the number, amount, and due dates of payments; and the bank's policy regarding selling loans to other financial institutions D) The total amount financed; the number, amount, and due dates of payments; the bank policy in the event of a delinquency; and the bank's policy regarding selling loans to other financial institutions E) Only the information she received
A) The total amount financed; and the number, amount, and due dates of payments
116) According to the Federal Trade Commission (FTC), a company should not refer to its product as "Made in the USA" unless ________. A) all, or virtually all, of the product's components and labor are of United States (U.S.) origin B) 100 percent of the product's components and labor are of North American origin C) at least 75 percent of the product's components and labor are of U.S. origin D) at least 50 percent of the product's components and labor are of U.S. origin E) at least 55 percent of the product's components and labor are from Canada, Mexico, or the U.S.
A) all, or virtually all, of the product's components and labor are of United States (U.S.) origin
*118) If the Federal Trade Commission (FTC) requires a company to run advertisements explicitly stating that the formerly advertised claims made by the company were untrue, this is known as ________. A) corrective advertising B) bait-and-switch notification C) cease and desist D) an advertising correction order E) remedial marketing
A) corrective advertising
129) The Truth in Lending Act only applies to ________. A) loans made to a natural person, not to a legal entity B) loans made to a legal entity, not to a natural person C) commercial loans D) business start-up loans E) payday loans
A) loans made to a natural person, not to a legal entity
80) Employers are required to provide a(n) ________ to employees under the Employee Retirement Income Security Act (ERISA) containing information as to how their benefit plan operates, the benefits under the plan, how to apply for such benefits, and other information. A) summary plan description B) benefits declaration statement C) ERISA benefits guide D) prospectus E) benefits offering
A) summary plan description
154) Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each... Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind but also his sales of all other vehicles? A) A multiple cease-and-desist order B) A multiple-product order C) A combined order D) A superlative order E) An exceptional order
B) A multiple-product order
*9) Which of the following terms refers to a corporation that has not substantially met the requirements of the state incorporation statute, but courts nevertheless recognize it as a corporation for most purposes to avoid unfairness to third parties who believed it was properly incorporated? A) De jure corporation B) De facto corporation C) Corporation by estoppel D) Corporation with reservation E) Implied corporation
B) De facto corporation
63) In which of the following types of cases does a plaintiff attempt to prove that while an employer's policy or practice appears to apply to everyone equally, its actual effect is that it disproportionately limits employment opportunities for a protected class? A) Disparate treatment B) Disparate impact C) Disparate equity D) Differential equity E) Deleterious treatment
B) Disparate impact
14) How are directors chosen during incorporation? A) Either the incorporators appoint them or the corporate articles name them B) Either the incorporators appoint them or by a majority vote of the shareholders C) Only by the incorporators appointing them D) Only by the corporate articles naming them E) Only by the president appointing them
B) Either the incorporators appoint them or by a majority vote of the shareholders
101) Employers should keep in mind that background screening companies that use social media sites are subject to the provisions of the ________ Act, under which the applicants must give permission for pre-employment investigations. A) Privacy in Working B) Fair Credit Reporting C) National Defamation D) Fairness in Social Media E) Employment Security
B) Fair Credit Reporting
*62) While employed by a company, operating another business that competes with your employer might violate your duty of: A) Due care B) Loyalty C) Compensation D) Disclosure E) Commitment
B) Loyalty
48) Kite Sales. Wendy is president of ABC Kites, a business that manufactures kites. Her company's kites are sold to large toy stores... In which of the following objectionable activities, if any, was Wendy involved in selling and marketing the kites? A) She was not involved in any objectionable activities. B) She was involved in objectionable self-dealing. C) She was involved in an objectionable admission against interest. D) She was involved in an objectionable stipulation advancing personal interest. E) She was involved in objectionable criminal embezzlement.
B) She was involved in objectionable self-dealing.
143) Which of the following was the first federal legislation regulating food and drugs? A) The Applied Food, Drug, and Cosmetic Act B) The Pure Food and Drugs Act C) The Food and Drug Safety Act D) The Consumer Product Safety Act E) The Unadulterated Food and Drug Act
B) The Pure Food and Drugs Act
60) Under Title VII of the Civil Rights Act of 1964, which of the following occurs procedurally after an employee-plaintiff establishes a prima facie case in an action alleging disparate-treatment discrimination in employment in the form of an illegal discharge? A) The plaintiff wins by default judgment or by summary judgment. B) The burden of proof shifts to the employer-defendant to articulate a legitimate, nondiscriminatory business reason for the discharge. C) The burden of proof shifts to the employer-defendant to establish beyond reasonable doubt that the alleged discrimination did not occur. D) The burden of proof remains with the employee-plaintiff to prove discrimination beyond reasonable doubt, the standard of proof in a disparate-treatment case. E) The burden of proof remains with the employee-plaintiff to establish damages to a reasonable degree of evidentiary certainty.
B) The burden of proof shifts to the employer-defendant to articulate a legitimate, nondiscriminatory business reason for the discharge.
107) A statute or administrative rule serving to protect consumer interests is a ________ law. A) commercial B) consumer C) collateral D) confidence E) protection
B) consumer
18) A quorum is: A) the maximum number of officers a corporation can have B) the minimum number of directors that must be present at each meeting of the board of directors C) the maximum number of directors that can be present at each meeting of the board of directors D) the maximum number of shareholders a corporation can have E) the minimum number of shareholders a corporation can have
B) the minimum number of directors that must be present at each meeting of the board of directors
125) According to the Postal Reorganization Act of 1970, any unsolicited merchandise sent by mail is free to be used at the recipient's discretion, ________. A) unless the merchandise has a value of over $500 B) with no obligation owed by the recipient to the sender C) but she must pay the shipping expenses D) unless the merchandise has a value of over $1,000 E) unless the Inspector General of the United States Postal Service (U.S.P.S.) requires the merchandise to be returned
B) with no obligation owed by the recipient to the sender
54)Which of the following was the result in Kumar v. Gate Gourmet, Incorporated the case in the textbook... A) That both the disparate treatment and religious accommodation doctrines bar facially neutral employment policies that have disproportionate adverse effects on a protected class B) That both the disparate impact and religious accommodation doctrines bar facially neutral employment policies that have disproportionate adverse effects on a protected class C) That the disparate impact doctrine, not the religious accommodation doctrine, bars facially neutral employment policies that have disproportionate adverse effects on a protected class D) That the religious accommodation doctrine, not the disparate impact doctrine, bars facially neutral employment policies that have disproportionate adverse effects on a protected class
B)That both the disparate impact and religious accommodation doctrines bar facially neutral employment policies that have disproportionate adverse effects on a protected class
142) By federal law, major credit reporting agencies are required to provide consumers with a free copy of their credit report every ________. A) 36 months B) 24 months C) 12 months D) 6 months E) 30 days
C) 12 months
15) How is the number of corporate directors determined? A) In the discretion of the president of the corporation B) By a vote of the stockholders in compliance with state law C) According to the corporate articles or bylaws, in compliance with state law D) According to the number of shares issued E) According to the amount of profit projected by the incorporators for the first fiscal year of the corporation's existence
C) According to the corporate articles or bylaws, in compliance with state law
149)Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth...She has since left the country and cannot be located. Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission? A) A state circuit court judge B) A federal district court judge C) An administrative law judge D) A panel of commissioners of the Federal Trade Commission E) The full commission of the Federal Trade Commission
C) An administrative law judge
*133) What type of credit permits consumers repeated transactions and then assesses a finance charge on any unpaid balances? A) Accelerated credit B) A closed-end credit line C) An open-end credit line D) Pre-approved credit E) Lending of last resort
C) An open-end credit line
119) Which of the following is true regarding the Telephone Consumer Protection Act of 1991? A) It allows telephone solicitation using an automatic telephone dialing system. B) It allows telephone solicitation using a prerecorded voice. C) It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission. D) Only the Federal Communications Commission (FCC) can take action to enforce the act. E) If a telemarketer willfully violates the act, the court can decide to double the amount owed to the consumer.
C) It makes it illegal to transmit advertisements via fax unless the recipient agrees to the fax transmission.
21) Self-dealing occurs when directors or officers violate their duty of: A) due care B) prudence C) reasonableness D) diligence E) loyalty
E) loyalty
146) The ________ conducts investigations into the safety of motor vehicles. A) American Automobile Association (AAA) B) United States Department of Motor Vehicles (DMV) C) National Highway Traffic Safety Administration (NHTSA) D) Motorized Vehicle Safety Administration (MVSA) E) Transportation Security Administration (TSA)
C) National Highway Traffic Safety Administration (NHTSA)
161) Which of the following amended the 1975 Mail-Order Rule to extend protections to consumer who purchase goods over computers or fax machines? A) The Digital Millennium Consumer Act of 1998 B) The Home-Solicited Sales Protection Act of 2002 C) The Mail or Telephone Order Merchandise Rule of 1993 D) The Virtual Consumer Protection Act of 2004 E) The Retailing Modernization Act of 1996
C) The Mail or Telephone Order Merchandise Rule of 1993
122) Which of the following is not true regarding government regulation of tobacco industry advertising? A) The federal government regulates cigarette advertising. B) The federal government regulates smokeless tobacco advertising. C) The tobacco industry's advertising is regulated through one act: the Public Health Cigarette Smoking Act of 1970. D) The tobacco industry's advertising is regulated through two acts: the Public Health Cigarette Smoking Act of 1970 and the Smokeless Tobacco Health Education Act of 1986.
C) The tobacco industry's advertising is regulated through one act: the Public Health Cigarette Smoking Act of 1970.
126) Which of the following is true regarding consumer protection laws against used-car fraud? A) They are known as "prune" laws due to the consumer's distaste in purchasing a defective, non-performing vehicle. B) They are known as caveat emptor laws. C) They vary widely from state to state. D) Known as its "three strikes" law, Minnesota presumes that three (3) unsuccessful efforts to repair a used car demonstrates non-repairability. E) They are codified in a comprehensive federal law known as the Restatement (Second) of Consumer Protection.
C) They vary widely from state to state.
158) The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple... Which of the following is true regarding Fred's practice of requiring a complete package purchase from him if the consumer desires any funeral services? A) This practice is legal under federal law. B) This practice is legal under federal law, so long as Fred informs customers of his requirement prior to entering into any sales talk and negotiation. C) This practice is prohibited by federal law. D) This practice is prohibited by federal law unless Fred gives a 10 percent discount compared to the average price of funeral services in his state. E) This practice is prohibited by federal law unless Fred gives a 20 percent discount compared to the average price of funeral services in his state.
C) This practice is prohibited by federal law.
*150) Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth...She has since left the country and cannot be located. If a company violates a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts, which of the following is the fine that the Federal Trade Commission may impose? A) Up to $3,000 per violation B) Up to $5,000 per violation C) Up to $10,000 per violation D) Up to $50,000 per violation E) Up to $100,000 per violation
C) Up to $10,000 per violation
70) The Equal Employment Opportunity Commission (EEOC) has completed its investigation regarding Jeremiah's discrimination case against his employer. If the EEOC decides not to sue his employer, it will issue Jeremiah a ________. A) summary judgment B) declaratory judgment C) right-to-sue letter D) interlocutory appeal E) judgment on the pleadings
C) right-to-sue letter
20) The Securities and Exchange Commission (SEC) has established that any shareholder who owns more than ________ worth of stock in the corporation can submit proposals to be included in proxy materials. A) $4,000 B) $3,000 C) $2,000 D) $1,000 E) $500
D) $1,000
26) Which of the following is true regarding stock certificates? A) Each certificate includes the corporation's name. B) Each certificate includes the number of shares represented by the certificate. C) A shareholder's ownership in the corporation does not depend on her possession of the physical stock certificate. D) Each certificate includes the corporation's name and the number of shares represented by the certificate, but a shareholder's ownership in the corporation does not depend on her possession of the physical stock certificate. E) Each certificate includes the corporation's name and the number of shares represented by the certificate, and a shareholder's ownership in the corporation depends on her possession of the physical stock certificate.
D) Each certificate includes the corporation's name and the number of shares represented by the certificate, but a shareholder's ownership in the corporation does not depend on her possession of the physical stock certificate.
121) For how long does a "Do Not Call" phone number registration last according to Federal Trade Commission (FTC) regulation? A) Six (6) months B) One (1) year C) Three (3) years D) Five (5) years E) For as long as the consumer has the phone number registered in her name
D) Five (5) years
68) Which of the following is false regarding caps on punitive damages in Title VII cases based on discrimination other than race? A) Punitive damages are capped at $300,000 for employers of more than 500 employees. B) Punitive damages are capped at $100,000 for employers of between 101 and 200 employees. C) Punitive damages are capped at $50,000 for employers with 100 or fewer employees. D) Punitive damages are capped at $300,000 for employers of more than 500 employees, $50,000 for employers of between 100 and 200 employees, and $25,000 for employers of between 25 and 50 employees.
D) Punitive damages are capped at $300,000 for employers of more than 500 employees, $50,000 for employers of between 100 and 200 employees, and $25,000 for employers of between 25 and 50 employees.
56) Which of the following classes was given protection by U. S. Supreme Court case Bostock v. Clayton County, Georgia? A) National origin B) Religion C) Sex D) Sexual Orientation E) Color
D) Sexual Orientation
52) Machine Malfunction. Bruno, the president of a corporation operating workout facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body."...Which of the following is true regarding the liability of Frances, if any, for purchasing the stock at below its fair market value? A) If the board wanted to offer it to her, they had that right, and there is no consequence to Frances because she proceeded with the complaints of the shareholders. B) She is liable for double the stated corporate value of the stock in addition to any price she already paid. C) She is liable for the stated corporate value of the stock in addition to any price she already paid. D) She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares.
D) She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares.
27) Which of the following may be redeemed for a certain number of shares at a specified price within a given time period? A) Preemptive shares B) Share allowances C) Allocated shares D) Stock warrants E) Margin calls
D) Stock warrants
123) Which of the following is a federal law referenced in the textbook that regulates product labeling? A) The Polyester Products Labeling Act B) The Feather Products Labeling Act C) The Inflammable Fabrics Act D) The Nutrition Labeling and Education Act E) The Conspicuous and Comprehensive Product Labeling Act
D) The Nutrition Labeling and Education Act
128) Which of the following is/are federal law(s) regulating the credit industry? A) The Truth in Lending Act B) The Fair Credit Reporting Act C) The Fair Debt Collection Practices Act D) The Truth in Lending Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act E) The Truth in Lending Act and the Fair Credit Reporting Act, but not the Fair Debt Collection Practices Act
D) The Truth in Lending Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act
*53) One voting process required in most states, called ________ voting, ensures that minority shareholders have a voice in electing the board of directors. A) non-cumulative B) minority C) proportional D) cumulative E) at-large
D) cumulative
130) In order for the Truth in Lending Act to apply, the loan must be for $25,000 or less unless the ________. A) borrower is married B) borrower can prove he has been employed for the last three (3) consecutive years C) borrower has a cosigner D) loan is secured by a mortgage on real estate E) borrower agrees to wage garnishment if she defaults on the loan
D) loan is secured by a mortgage on real estate
132) The Truth in Lending Act regulates ________. A) open-end credit B) closed-end credit C) credit card applications and solicitations D) open-end credit, closed-end credit, and credit card applications and solicitations E) open-end credit and closed-end credit, but not credit card applications and solicitations
D) open-end credit, closed-end credit, and credit card applications and solicitations
113) Sales puffing is: A) fraud B) deceptive advertising C) bait-and-switch advertising D) the use of generalities and clear exaggerations E) a partial truth
D) the use of generalities and clear exaggerations
120) The Federal Trade Commission (FTC) considers ________ an abusive action by a telemarketer. A) using profane or obscene language toward a customer B) calling a person who has previously requested to be removed from the seller's calling list C) calling a residence before 8 a.m. D) using profane or obscene language toward a customer, calling a person who has previously requested to be removed from the seller's calling list, and calling a residence before 8 a.m. E) using profane or obscene language toward a customer and calling a person who has previously requested to be removed from seller's calling list, but not calling a residence before 8 a.m.
D) using profane or obscene language toward a customer, calling a person who has previously requested to be removed from the seller's calling list, and calling a residence before 8 a.m.
98) Dog and Formals. Paul owns a dog grooming business and needs patient people to work there...Which of the following is true regarding Penny's lawsuit against Paul in federal court? A) Her lawsuit was improperly filed because she did not first file with the federal Equal Employment Opportunity Commission (EEOC) and she lacked a right to sue letter. B) Her lawsuit was improperly filed because she did not first insist on mediation. C) Her lawsuit was improperly filed because she did not first insist on arbitration. D) Her lawsuit was properly filed because her state had no state office representing the Equal Opportunity Commission. E) Her lawsuit was properly filed regardless of whether her state had a state office representing the Equal Opportunity Commission.
D)Her lawsuit was properly filed because her state had no state office representing the Equal Opportunity Commission.
87) Civil penalties for employers who fail to comply with the laws regarding the hiring of foreign workers begin with a minimum of ________ per authorized worker for the first offense and range up to ________ or more per unauthorized worker for employers who engage in a "pattern and practice" of hiring undocumented workers. A) $3,000; $10,000 B) $2,000; $7,500 C) $1,275; $7,500 D) $875; $5,000 E) $375; $3,000
E) $375; $3,000
*23) Which of the following is false regarding the liability of directors and officers for criminal behavior? A) Directors and officers can be held personally responsible for their own crimes. B) Directors and officers can be held personally responsible for the crimes of other employees within the organization when they have failed to adequately supervise the employee's behavior. D) Directors and officers who use insider information to trade their corporation's stock for a profit can be held liable for breaching their fiduciary duty. E) According to the responsible person doctrine, a court may not find a corporate officer criminally liable for the illegal conduct of an employee unless the officer profited personally from the illegal activity.
E) According to the responsible person doctrine, a court may not find a corporate officer criminally liable for the illegal conduct of an employee unless the officer profited personally from the illegal activity.
82) Which of the following is correct regarding whether an employer may use social media in making hiring decisions? A) An employer is prohibited by federal law from using social media in making hiring decisions. B) An employer is prohibited by state law in twenty-one (21) states from using social media in making hiring decisions. C) An employer is prohibited by state law in seventeen (17) states from using social media in making hiring decisions. D) An employer may unconditionally and without reservation use social media in making hiring decisions. E) An employer may use social media in making hiring decisions if it is done carefully.
E) An employer may use social media in making hiring decisions if it is done carefully.
*69) Which of the following is true regarding an award of attorney fees under Title VII? A) Attorney fees are always awarded to the prevailing party in Title VII cases. B) Attorney fees are never awarded to the prevailing party in Title VII cases. D) Attorney fees are not awarded to prevailing plaintiffs, but if it is determined that a plaintiff's action was frivolous, unreasonable, or without foundation, the courts may award attorney's fees to the prevailing defendant. E) Attorney fees may be awarded to a successful plaintiff in a Title VII case and are typically denied only when special circumstances would render the award unjust, and if it is determined that a plaintiff's action was frivolous, unreasonable, or without foundation, the courts may award attorney's fees to the prevailing defendant.
E) Attorney fees may be awarded to a successful plaintiff in a Title VII case and are typically denied only when special circumstances would render the award unjust, and if it is determined that a plaintiff's action was frivolous, unreasonable, or without foundation, the courts may award attorney's fees to the prevailing defendant.
96)Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting...Which of the following is true regarding Bolivar's listening to the personal phone calls of Phyllis? A) Bolivar can listen to the phone calls for as long as he wants, so long as he is Phyllis' supervisor. B) Bolivar can listen to the phone calls for as long as he wants, but only if he is a sole proprietor and owns the phones himself. C) Bolivar can listen to the phone calls for as long as he wants, but only if he has a policy prohibiting the making of personal calls. D) Bolivar can listen to the phone calls for as long as he wants, but only if he notifies employees first that he is going to do so. E) Bolivar is prohibited from listening to the phone calls for as long as he wants, and only limited exceptions exist for the monitoring of calls.
E) Bolivar is prohibited from listening to the phone calls for as long as he wants, and only limited exceptions exist for the monitoring of calls.
57) Through which of the following theories can an employee-plaintiff prove discrimination under Title VII of the Civil Rights Act of 1964? A) Disparate treatment B) Disparate impact C) Disparate equity D) Disparate treatment, disparate impact, and disparate equity E) Disparate treatment and disparate impact, but not disparate equity
E) Disparate treatment and disparate impact, but not disparate equity
*81) Which of the following is false under federal law regarding employer monitoring of employee telephone calls? A) Employers cannot listen to the private telephone conversations of employees. B) Employers cannot disclose the content of private telephone conversations of employees. C) Employers may ban personal calls during working time. D) To check for compliance, employers may monitor calls so long as they discontinue listening to any conversation once they determine it is personal. E) Employers must give employees access to a telephone and the ability to make personal phone calls at some point during the workday, and these personal calls may not be monitored.
E) Employers must give employees access to a telephone and the ability to make personal phone calls at some point during the workday, and these personal calls may not be monitored.
138) The Equal Credit Opportunity Act (ECOA) makes it illegal for creditors to deny credit to individuals based on all but which of the following characteristics? A) Race B) National Origin C) Sex D) Age E) Employment
E) Employment
93) Surprise Arrival. Gracie was surprised and pleased to find she was pregnant....What will be the likely result if Groucho defends on the basis that customers will object to Gracie's condition? B) Groucho will only prevail on the defense of a bona fide occupational qualification if he can prove that he has an established history of barring pregnant servers and that he did not single out Gracie. D) Groucho will not prevail on the defense of a bona fide occupational qualification because such a defense is available only in cases involving religion or national origin discrimination. E) Groucho will lose on the defense of a bona fide occupational qualification because he will not be able to establish that only non-pregnant employees can perform as servers.
E) Groucho will lose on the defense of a bona fide occupational qualification because he will not be able to establish that only non-pregnant employees can perform as servers.
135) Monica was on a trip abroad when her credit card was stolen. She immediately notified her credit card company before any unauthorized charges were made; nevertheless, $500 was still mistakenly allowed to be charged. What is Monica's liability? A) $500 B) $500, plus associated administrative costs C) $250 D) $250, plus associated administrative costs E) Nothing
E) Nothing
136) Paul's next-door neighbor Sheridan stole an unsolicited credit card from Paul's mailbox that was sent to Paul with his name on it. Sheridan charged $5,000 on the card. What is Paul's liability? A) $5,000 B) $5,000, plus a reasonable fee to deactivate the card C) $2,500 D) $2,500, plus a reasonable fee to deactivate the card E) Nothing
E) Nothing
159) For how long does a commissioner on the Federal Trade Commission (FTC) serve? A) Life B) One (1) year C) Three (3) years D) Five (5) years E) Seven (7) years
E) Seven (7) years
83) Which of the following is correct regarding the extent to which the National Labor Relations Act (NLRA) protects the rights of employees to act together to address conditions at work? B) The NLRA protects the rights of union employees to act together to address conditions at work, but this protection does not extend to work-related conversations conducted on social media. C) The NLRA protects the rights of employees to act together to address conditions at work, with or without a union, but this protection does not extend to work-related conversations conducted on social media. E) The NLRA protects the rights of employees to act together to address conditions at work, with or without a union, and this protection extends to certain work-related conversations conducted on social media.
E) The NLRA protects the rights of employees to act together to address conditions at work, with or without a union, and this protection extends to certain work-related conversations conducted on social media.
*127)Which of the following is not a requirement of the Federal Trade Commission's (FTC's) 1984 Used Motor Vehicle Registration Rule? A) A dealer must attach a buyer's guide label to any used car he or she is attempting to sell. B) The buyer's guide label must state that the car is being sold as is. C) The buyer's guide label must warn the customer that the seller is not guaranteeing anything at all about the performance of the car. D) The buyer's guide label must include a suggestion for the buyer to obtain an inspection of the used car before any decision to purchase. E) The buyer's guide label must include notice of a 30-day or 3,000-mile (whichever comes first) warranty on the car.
E) The buyer's guide label must include notice of a 30-day or 3,000-mile (whichever comes first) warranty on the car.
*94) Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting...Assuming Phyllis quits, which of the following rights does she have under federal law to retain benefits so long as the benefits are provided to employees who are still working? A) None B) The right to retain the medical benefits indefinitely, if she pays for them along with the allowable administrative fee C) The right to retain the benefits for at least twelve (12) months, with the cost assumed by the employer D) The right to retain the benefits for at least eighteen (18) months, with the cost assumed by the employer E) The right to retain the benefits for at least eighteen (18) months, if she pays for the benefits along with the allowable administrative fee
E) The right to retain the benefits for at least eighteen (18) months, if she pays for the benefits along with the allowable administrative fee
105) Which of the following is true regarding the legal protection of consumer interests? A) Consumer laws are in the form of statutes, not administrative rules. B) Consumer laws are in the form of administrative rules, not statutes. C) State laws protect consumers from the unfair trade practices of sellers, while federal laws protect consumers from unsafe products. D) State laws protect consumers from unsafe products, while federal laws protect consumers from the unfair trade practices of sellers. E) Various state and federal consumer laws protect consumers from the unfair trade practices of sellers, as well as from unsafe products.
E) Various state and federal consumer laws protect consumers from the unfair trade practices of sellers, as well as from unsafe products.
78) When is an employer not required to offer an employee the option to continue medical benefits under the Consolidated Omnibus Reconciliation Act (COBRA)? A) When the employee is fired for gross misconduct B) When the employer decides to eliminate benefits for all current employees C) When the employee quits without notice D) When the employee is fired for gross misconduct, the employer decides to eliminate benefits for all current employees, or the employee quits without notice E) When the employee is fired for gross misconduct or the employer decides to eliminate benefits for all current employees, but not when the employee quits without notice
E) When the employee is fired for gross misconduct or the employer decides to eliminate benefits for all current employees, but not when the employee quits without notice
131) In order for a loan to come within the scope of the Truth in Lending Act, the credit or loan must ________. A) be subject to a finance charge B) have repayments of more than four (4) installments C) have an interest rate of over five (5) percent D) be subject to a finance charge, have repayments of more than four (4) installments, and have an interest rate of over five (5) percent E) be subject to a finance charge or have repayments of more than four (4) installments, but need not have an interest rate of over five (5) percent
E) be subject to a finance charge or have repayments of more than four (4) installments, but need not have an interest rate of over five (5) percent
*109)Interpretations of consumer laws created by the FTC to encourage businesses to stop unlawful behavior are: A) consent decrees B) consent orders C) industry guidelines D) commercial standards E) cease and desist orders
E) cease and desist orders
86) Employers are required to retain I-9 forms for a period of at least ________ from the date of hire or ________ after the employee is no longer employed, whichever is longer. A) 90 days; 30 days B) 180 days; 60 days C) one year; 30 days D) two years; 180 days E) three years; one year
E) three years; one year
