CLAW Exam 4
4. Refer to Fact Pattern 21-3. To succeed with a claim against Banquet under the Americans with Disabilities Act, Artur will have to show that
Artur is otherwise qualified for the employment in question.
17. Refer to Fact Pattern 21-3. To successfully defend against Artur's claim, Banquet will have to show that
Banquet cannot make changes to the doors without undue hardship.
36. Credit Loan Company extends credit in the ordinary course of its business. Under the Truth-in-Lending Act, The lender must inform potential borrowers of
Credit Loan's credit terms
Emily, an employee of Farm Supplies, Inc., files a suit against her employer, alleging sexual harassment by her supervisor Gowan. The employer may be liable if it had effective harassment policies and complaint procedures that were followed by
Emily
18. Ellen and Fred work on the loading dock for Grange Storage. Ellen, who has a disability, requests a transfer, which would represent an accommodation for her disability. But when an opening occurs, Grange transfers Fred on the basis of seniority. In Ellen's suit against Grange for discrimination, most likely
Fred's seniority is a good defense.
Refer to Fact Pattern 21-2. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply
Kyla must be forty years of age or younger.
Refer to Fact Pattern 21-2. To succeed with an age-discrimination claim against MVMC, Lomax will have to show that
Lomax is qualified for his job.
5. Cloud Service Corporation wants to hire Dhani, a noncitizen. To hire Dhani, Cloud Service must petition
U.S. Citizenship and Immigration Services.
Lori's List, Inc., an online directory of goods and service providers, wants to hire Mei-Ling, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is
a "person of extraordinary ability."
32. Solar Panels Corporation requires its employees to have a high school diploma, claiming a connection between a high school education and job performance. In a suit against Solar under Title VII of the Civil Rights Act, this is shown to have a discriminatory effect. Solar has
a business necessity defense
Lawncare Company and Mowers, Inc. make yard tools. Both companies use only steel produced in the United States. Lawncare's ad claims, "We use only U.S. steel, while our competitors use inferior foreign steel!" This statement is
a false claim about a competitor's product.
7. Brian, Carol, Dan, and Erica are employees of different-sized employers in different industries covered by the Fair Labor Standards Act. All employees in covered industries must be paid per hour
a minimum wage.
22. Cleaners & Solvents, Inc. (CSI), falsely claims in its ads that its products kill germs "forever." In an action against CSI, the firm is ordered to stop its false advertising. This is
a multiple product order
Workers at Resource Industries, Inc., want to form into a single union. To constitute an appropriate bargaining unit, a group of workers must have
a mutuality of interest.
Cleaning Products Company agrees with its employees' union not to buy any nonunion-produced goods from other firms for use in Cleaning's warehouse and distribution centers. This is
a prohibited secondary boycott.
15. Refer to Fact Pattern 21-1. Craig files a suit against Dispatch under Title VII of the Civil Rights Act, claiming discrimination. To support this claim, Craig must show that he is a member of
a protected class.
Under federal law, the calorie content of the food on a menu must be posted by Great Harvest, LLC, if the firm is
a restaurant chain with twenty or more locations.
41. Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemWorks, Inc., where she is an employee. As a result, the employer demotes her. Beth can file
a retaliation claim
59. Lenny works for Mechanical Engineers, P.A. While working on a Mechanical Engineers project, Lenny is injured. Under state workers' compensation laws, Lenny will be compensated only if his injury was
accidental
34. Pipes & Plumbing Corporation is a private employer involved in an employment discrimination suit under Title VII of the Civil Rights Act. Punitive damages may be recovered only if the employer
acted with malice or reckless indifference
To generate sales, Golden Investments, Inc., uses phone solicitation. Under federal law, in soliciting business, Golden's telemarketers must disclose
all material facts related to a sale.
28. Tax Accounting Service, LLC employs one hundred workers. Under the Health Insurance Portability and Accountability Act, the employer must
all of the choices
In the ordinary course of business, Loan2Buy Corporation offers credit to consumers and reports on the loans to credit agencies. Loan2Buy generally does not correct or update its reported information. This is most likely to result in
an assessment of damages.
Minnie, an employee of Nursing Home, Inc., goes out on strike with other employees. Nursing Home hires replacements for the striking workers. The replacement workers need not be terminated when the strikers return to work if the strike is
an economic strike.
Frank is an employee of Guitar Makers, LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is
an exception based on contract theory.
8. Anna is an employee at Bento Food Mart. Anna is called for jury duty and as a result cannot work her scheduled shift. Bento fires Anna. She successfully sues Bento for reinstatement. With respect to the employment-at-will doctrine, this is
an exception based on public policy.
61. Landscaping Company offers Mike a job, representing that it will be long term. Mike accepts but is laid off shortly thereafter and successfully sues the employer for fraud. With respect to the employment-at-will doctrine, this is
an exception based on tort theory
16. Cheryl, a server for a Dinner Buffet, Inc., restaurant goes out on strike with the other employees. Dinner Buffet hires replacements for the striking workers. After the strike, Cheryl must be given her job back if the strike was
an unfair labor practice strike.
11. Sally works for Timber Products, Inc. The basis for her contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for her loss of income on retirement is her
annual wage base.
Games, Inc., employs four hundred workers. Workers who lose their jobs with Games have a right to continued health-care coverage under the company's group plan unless they
are fired for gross misconduct.
General Healthworkers Union represents the employees of Home Healthcare, Inc. During negotiations over conditions of employment, each side rejects the other's proposal without offering a counterproposal. This indicates
bad faith.
20. Hearth & Home Furniture store advertises bedroom suites at a "Special Low Price of $599." When Ilene tries to buy one of the suites, Jill, the salesperson, tells her that they are all sold and no more are obtainable. Jill adds that Hearth & Home has other bedroom suites available for as low as $2,599. If done systematically, this is
bait-and-switch advertising.
Theo is an employee of US Gas Company. Under federal law, Theo and other employees have the right to
bargain collectively with their employer through their representative.
Archway Architects offers health benefits to its employees. Under the Affordable Care Act, to offset the cost, Archway may
be eligible for tax credits.
47. Ethan, a former employee of Fiber Optics, Inc., is currently unemployed. To collect unemployment compensation, Ethan must
be willing and able to work.
1. After extensive bargaining, Rubber Workers Union and Super-Valu Tire Company cannot agree on terms. The union may
call a strike.
Mattress Company advertises a special sale—all bedding, half price. The ad does not state that the sale price does not include delivery or shipping costs. To avoid claims of deceptive advertising, Mattress should
clearly and conspicuously disclose the shipping cost in its ads.
Hotel Employees Union is engaged in collective bargaining with International Lodging, Inc. The employer would show bad faith by
constantly shifting positions on disputed contract terms.
25. Refer to Fact Pattern 20-1. During the leave, under the Family and Medical Leave Act, the employer must, with respect to the employee's health-care coverage,
continue it.
Ginny takes temporary family leave from her job at Home Sales Company to care for a newborn baby. With respect to the employee's health-care coverage, during the leave, under the Family and Medical Leave Act, the employer must
continue it.
9. Wellness Insurance Company offers health insurance to consumers. Under current federal law, Wellness must not
deny coverage for preexisting conditions.
Nell, a member of a protected class, applies for a job with Origami Paper Corporation, but fails the company's employment test and is not hired. Nell believes that the test has an unintentionally discriminatory effect. If so, this is
disparate-impact discrimination.
19. Mary applies for a job with Northern States Oil Company. Northern States does not hire her because of her ethnicity, or national origin. This is
disparate-treatment discrimination.
Refer to Fact Pattern 20-1. When O'Hara attempts to return to work, the employer refuses to reinstate her. Under the Family and Medical Leave Act, the employee may obtain
double damages, job reinstatement, a promotion, and more.
13. Jorge, Kim, and Lucy apply to work for Meat Packing, Inc. The employer must verify the identity and eligibility to work of
each new hire.
Ginger is an employee of Haz-Mat, Inc. She refuses a transfer to a Haz-Mat department in which several employees suffered serious injuries from exposure to hazardous materials. Under the Occupational Safety and Health Act, Ginger may be
entitled to protection from discharge.
40. Through careless manufacturing practices, Plastics Company makes and sells products that are unsafe to consumers. This may be subject to sanctions under
federal and state law
Metalworkers Union represents the workers of National Fabrication Corporation. The employer refuses to bargain with the union over working hours. This most likely violates
federal labor law.
Quality Packing Company allows on-site, work-hour solicitations for charitable causes. During a union election campaign, the company prohibits similar time and place solicitations by Packagers Union, which is seeking the workers' unionization. This violates
federal labor law.
Resource Corporation and the Service Employees International Union are sued by plaintiffs alleging job discrimination in violation of Title VII of the Civil Rights Act. This law applies to employers and labor unions with at least
fifteen employees or members.
Dock Workers Union believes that Emerging Market Corporation has violated a federal labor law. The appropriate step is for the union to
file a complaint with the National Labor Relations Board.
Trucking Company believes that United Truckers Union has violated a federal labor law. The appropriate step is for the employer to
file a complaint with the National Labor Relations Board.
Excavation & Fill Corporation currently employs three hundred full-time workers. When the employer decides to lay off one-third of the workforce, no advance notice is provided. The employer may be subject to
fines, employee back-pay awards, attorneys' fees, and more.
Urban Loan Company extends credit to consumers. Urban is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on which of the following
gender.
3. Mena, a female, and Neil, a male, are employees of Operational Processes Corporation. Mena regularly e-mails sexually explicit images to Neal via Operational's network. Neil finds this offensive. This is
hostile-environment harassment.
Bev works for Construction Inc. While working on a Construction project, Bev is injured. Under state workers' compensation laws, she can successfully sue her employer to recover for the injury only if it was
intentional
10. Elise and many other consumers complain to the Federal Trade Commission (FTC) that a Faux Diamonds Company ad is deceptive. The FTC's first step is to
investigate
Invest Sales Corporation wants to monitor its employees' electronic communications. Invest's best course of action to avoid liability under laws related to employee monitoring is to notify
its employees.
Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly prohibits Data from subjecting its employees to
lie-detector tests.
After extensive bargaining, the Storage Workers Union and Commercial Warehouse Company cannot agree on terms. The employer may
lock out the union employees.
Service Employees International Union represents the employees of Therapy Rehabilitation Corporation. Potential subjects of collective bargaining between the union and the corporation do not include
management's participation in union meetings.
23. In its ads, Crunchy Inc. makes various claims about its snack products. Crunchy's advertising claims would most likely be deemed deceptive if the claims
mislead a reasonable consumer
55. Phil has a credit card from Quality Credit, Inc. Quality wants to change to the terms. The firm
must give Phil at least forty-five days' notice
Ben works for ChemCoat Corporation. ChemCoat refuses to pay Ben and its other employees for time spent exclusively on union activities. This violates
no federal labor law.
48. During a union election campaign, Truck Service, Inc., prohibits on-site, work-hour solicitations by any party, including United Mechanics Union, which is seeking the workers' unionization. This violates
no federal law
Dian takes out a loan from Equity Bank. When she fails to make the scheduled payments, Equity advises her of further action that it will take. This is a violation of
no federal law.
Food Pickers Union represents the employees of Grower Farms. Food Pickers would like Grower Farms to require its non-union employees to join the union after a specified amount of time on the job. This violates
no federal law.
Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip's parents. This violates
no federal law.
After a union election campaign among the employees of Frozen Foods Company, the Food Employees Union does not obtain a majority vote in the election. This violates
no federal or state law.
Brew Coffee Company sells coffee and related beverages. The company's ad contends that ambitious businesspersons "Drink Us & Rise Up in the World!' " The Federal Trade Commission would consider this ad to be
none of the choices.
Data Sales Company, a private employer, believes that its employees waste work time visiting unrelated online sites. Data notifies its employees that it will install software on tis computers to block access to certain sites. Some employees file a suit, claiming a violation of privacy. The court is most likely to hold that the employer is in violation of
none of the choices.
The unionized workers of Steel Company go on strike. During the strike, it is legal for the strikers to
none of the choices.
Vehicle Assembly Corporation operates a plant near the border between the United States and Mexico. Due to the location, it would be easier for the company to employ noncitizens. In this situation, it is legal for the employer to
none of the choices.
37. Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain
not a subpoena, a warrant, or the employer's consent
2. Marilyn receives an unsolicited credit card in the mail and tosses it on her desk. Without Marilyn's permission, her roommate Nancy uses the card to buy a new laptop for $1,800. Marilyn is
not liable for any amount.
Tom, an employee for Upstate Power Corporation, suffers an injury in an accident. Tom will be compensated under state workers' compensation laws if the injury occurred
on the job.
Small Enterprise LLC is sued by its sole employee Tomas, who alleges job discrimination in violation of the Uniformed Services Employment and Reemployment Act. This law applies to employers with at least
one employee.
69. Hospital Corporation employs seven thousand workers in seven locations. These employees have the right to
organize
6. Sara believes that she was rejected for a position at Trek Travel Agency on the basis of her race. Sara files a suit against Trek under Title VII of the Civil Rights Act. To establish a prima facie case of employment discrimination, Sara must show all of the following except that
other persons of her race hold similar positions with similar employers.
Production Industries, Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Production must do all of the following except
pay employees higher wages for working in more dangerous areas.
Ruth is a supervisor for Subs, a restaurant. Tim is a Subs employee. The owner announces that some employees will be discharged. Ruth tells Tim that for sexual favors, she will give him an excellent performance review and recommend a raise. This is
quid pro quo harassment.
Consumer Finance Corporation (CFC) extends credit to consumers. CFC is subject to the Equal Credit Opportunity Act, which prohibits credit discrimination based on
race
Cutting Edge Inc. makes and sells tools. One of the tools is believed to be hazardous. The firm may be required to
remove the tool from the market.
Mac n' Cheese Company wants to make and market new processed pasta and sauce products. On each product's label, standard nutrition facts are
required.
29. Livia takes temporary family leave from her job at Manufacturers Corporation to care for a new baby. Assuming Livia is not a key employee, on Livia's return from the leave, Manufacturers must
restore Livia to her same position or a comparable position
Spicy Salsa Company complains to the Federal Trade Commission (FTC) about an ad by Tangy Sauces Inc., Spicy's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to
send a formal complaint.
Holly files an employment discrimination suit against Industrial Corporation under Title VII of the Civil Rights Act on a disparate-impact theory. To succeed, the plaintiff must show that as a member of a protected class, she was adversely affected by any of the following except the employer's
seniority system.
Connor and Demi are employees of EcoCrop Corporation. Under the Equal Pay Act, EcoCrop can legitimately pay different wages on the basis of
senority
Jon, a paraplegic, applies for a job as a disk jockey with KLKT, a local radio station. The station's manager says, "You meet all our requirements. But we need someone who can move around the broadcast studio without accommodation." Most likely, Jon could recover from the station under
the Americans with Disabilities Act.
ChemCo, Inc., makes and sells products containing ingredients potentially hazardous to consumers. The government agency that has the authority to order ChemCo to remove a product from the market is
the Consumer Product Safety Commission.
Gina believes that she is a victim of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with Title VII is monitored by
the Equal Employment Opportunity Commission.
Logan's application to Metro Bank for a credit card is denied. Logan can obtain information on his credit history in a credit agency's files under
the Fair Credit Reporting Act.
QT Collection Agency calls Rob several times a day, and sometimes in the middle of the night, about an overdue bill that Standard Credit Company turned over to QT for collection. This is a violation of
the Fair Debt Collection Practices Act.
The credit department of Mega-Mart often calls Nora at work about an overdue bill. Nora's employer objects. This is a violation of
the Fair Debt Collection Practices Act.
Corner Market sells groceries. Delta Food & Drug Store sells groceries and fills prescriptions. The party with the chief responsibility to monitor and enforce laws designed to protect consumers from unsafe food and drugs being sold is
the Food and Drug Administration.
67. Greg signs an installment contract with Home Appliance Store to finance the purchase of new kitchen appliances. This transaction is subject to
the Truth-in-Lending Act
27. Teri borrows $10,000 from USA Bank to remodel a room in her home. This transaction is subject to
the Truth-in-Lending Act.
Bea borrows funds from Credit Union to repair her home and to buy a car. She buys a laptop from Discount Store in a transaction financed by the seller. If these parties are subject to the Truth-in-Lending Act, Regulation Z applies to
the car loan, the home repair loan, and the retail installment sale.
Breadboard, Inc., makes and sells a variety of grain products. Breadboard's product packages must include
the contents' net quantity.
Gina works for FasTite Tool Company. The employer's discharge of Gina outside the terms of an implied employment contract may result in
the employer's liability for breach of contract.
Tim works for University Food Service, Inc. The employer's discharge of Tim outside the terms of an oral employment contract may result in
the employer's liability for breach of contract.
Mai, Nina, and Omar apply to work for Poultry Company. These individuals' identities and eligibility to work must be verified by
the employer.
Interstate Storage & Trucking, Inc., keeps a file of I-9 verifications forms, which are required by the Immigration Reform and Control Act. To monitor compliance with the act, random audits and enforcement actions are conducted by
the federal government
Benny files a suit in a federal district court against the state of California, alleging employment discrimination under the Age Discrimination in Employment Act. The state asks the court to dismiss the suit. The court is most likely to rule that
the state is immune from the suit.
HVAC Services Inc. employs two hundred workers. Workers who lose their jobs with HVAC may have a right to continued health-care coverage under the company's group plan. If so, the premiums for the continued coverage are paid by
the unemployed workers.
43. Food Handlers Union petitions the National Labor Relations Board for an election on organizing a union among the employees of Roasters Coffee Company. For an election to be held, the union must represent
the workers who have a mutuality of interest
44. Refer to Fact Pattern 21-1. To successfully defend itself against Craig's suit, Dispatch must show that
thepractice in question was justified
21. Analytic Projections, Inc., a data analysis firm, wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if
there is no shortage of qualified U.S. workers capable of doing the work
Lucy retires from her job as an office manager for Medical Clinic, P.A. With respect to her pension benefits, federal law provides for
timely and uninterrupted payment of private pension benefits.
The Family and Medical Leave Act requires employers to provide eligible employees with family or medical leave for any of the following reasons except
to go on an extended family vacation.
12. Berry Fields, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in three states. Under federal immigration law, Berry Fields can hire illegal immigrants
under no circumstances
14. Carly applies for a job at Data Applications LLC for which she is qualified, but for which she is rejected. The employer continues to seek applicants and eventually fills the position. To succeed in a suit against Data for discrimination under the Americans with Disabilities Act, Carly must show that she
was not hired solely because of a disability.
70. Mechanical Engineering, Inc., may be liable for the sexual harassment of an employee if it knew or should have known about the harassment, failed to take immediate action, and the harassment was committed by
a company supervisor.
30. Laura is the only female employee in the maintenance department of Motor Vehicle Sales & Service Inc. Her supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is
a constructive discharge on the basis of gender discrimination
24. GMO Research Corporation, a U.S. employer, may hire Hilo, a noncitizen, if Hilo is
a lawful permanent resident of the United States
35. 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 limited amount of compensatory and punitive damages.
52. Rachel, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on
age.
45. Aircraft Corporation employs aircraft mechanics, computer programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except
aircraft mechanics
56. Ivy is an alcoholic who has completed a supervised substance-abuse rehabilitation program. Jerold is morbidly obese. Kim has heart disease. Considered to have a disability under the Americans with Disabilities Act is
all of the choices
63. Lisa brings a successful suit against her employer Metal Mold Corporation for employment discrimination. Lisa may be awarded
back pay, retroactive promotions, and damages.
51. Pro Motor Company makes cars. Federal law requires Pro to attach a label that includes the Environmental Protection Agency's fuel economy estimate for a vehicle to
every new car
57. Clerical Workers Union demands that Data Research Company hire unnecessary workers. This most likely violates
federal labor law.
46. Belle is an employee of College Cafeterias, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than
forty hours in a week
65. Deep Sea Fishing Corporation meets all of the requirements to be subject to the federal employment discrimination laws. These laws restrict the ability of employers to discriminate against workers on the basis of
gender.
38. Oren believes that Power Utility Corporation (PUC) has discriminated against him on the basis of race. He files a suit against PUC under the Civil Rights Act. To establish a prima facie case of employment discrimination, Oren must show that
he is a member of a protected class.
31. Selena is seventeen years old. Under the Fair Labor Standards Act, she cannot work
in a hazardous occupation.
60. Home Products, Inc., in its advertisements, makes false claims about its own products and about the products of its competitors. The firm may be subject to sanctions for the false claims about
its products only.
66. Price-Cut Discount stores may subject its employees to lie-detector tests when investigating
losses attributable to theft.
33. Gil and Hera are employees of IT Business Solutions, Inc. Under the Equal Pay Act, IT Business Solutions can legitimately pay different wages on the basis of
merit
53. An ad for Running Shoes Inc. states that its products are "The Athlete's Choice." Because of this ad, the Federal Trade Commission is most likely to issue
none of the choices
62. Soundbytes Corporation sells phones. Soundbytes's ad states that voice on its phones is "clear as blue sky on a cloudless day." The Federal Trade Commission would consider this claim
none of the choices.
26. Resort Hotel Company replaces Sharon, a forty-five-year-old employee, with Terry. Sharon files a suit against the employer under the Age Discrimination in Employment Act. To establish a prima facie case, she must show, among other things, that she is
qualified for the position
39. Inez files an employment discrimination suit against Jiffy Delivery Service, Inc., under the Civil Rights Act, based on Jiffy's discharge of Inez. Possible relief includes
reinstatement.
64. Roadwork Company employs two hundred workers full-time. If Roadwork plans a mass layoff, it must provide its employees with notice of at least
sixty days.
54. The employees of Beverage Bottling Company designate Cola Cappers Union as their bargaining representative. The employer refuses to bargain with the union over wages and working conditions. This violates
the National Labor Relations Act.
58. During a dispute with Musical Productions Inc., National Stagehands Union asks the National Labor Relations Board (NLRB) for a ruling. The NLRB rules against the employer. The employer may appeal the decision to
the appropriate federal court
50. Shipping, LLC, provides its employees with an e-mail system. The company notifies them that it will monitor their communications over the system. Some employees file a suit against their employer, claiming a violation of privacy. The court is most likely to hold that, with respect to communications over the e-mail system,
the employees did not have a reasonable expectation of privacy
42. Health Insurance, Inc., believes that its employees waste work time talking and texting on their own phones. The employer notifies its employees that it will monitor these communications. Some employees file a suit, claiming a violation of privacy. The court is most likely to hold that, with respect to the employees' own phones,
they have a reasonable expectation of privacy
49. During a union election campaign at Construction Corporation, the employer tells the employees, "If the union wins, you'll all be fired." This is an unfair labor practice
under all circumstances.
68. Salsa Caliente, Inc., employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of
up to twelve weeks.
