MGMT 217 Practice Questions Exam 3

50. Which of the following is not a procedural requirement for judicial review of an agency's action? a. Jurisdiction b. Standing c. Ripeness d. Exhaustion e. all of the above are procedural requirements

...e. all of the above are procedural requirements

Which of the following is not prohibited employer conduct by the NLRA A. beating of union organizers B. formation of company unions C. refusal to collectively bargain D. submission of labor/management disputes to arbitration E. all of the above are prohibited

A. beating of union organizers

9. In Whirlpool v. Marshall, employees refused to perform work on a screen suspended twenty feet over the floor of a manufacturing plant. The employees were punished by their employer. Supreme Court ruled that under OSHA: A. employees may refuse to obey orders that pose an immanent risk of death or serious injury B. Congress did not intend to give employees the power to refuse to perform legitimate work C. employees who suspect their workplace is hazardous must contact OSHA representatives before refusing to work D. regulations do not cover employees engaged in hazardous work E. state law, rather than the federal OSHA statute, was the correct legal procedure under which to bring this suit

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

20. Surveys show that people may prefer to deal with members of their own race. A company assigns white salespersons to white customers, and Hispanic salespersons to Hispanic clients. This makes revenues to all the salespersons higher than if the sales-persons were assigned randomly. Assignments based on race are: A. llegal segregation under Title VII B. illegal only if the salespersons earn different wages C. legal if a majority of the salespersons of all races have approved the market division D. legal since the effect is to raise gross income E. legal since the interests of the customers is the same as the interests of the firm

A. llegal segregation under Title VII

12. Which of the following would not be likely to be a violation of the Americans with Disabilities Act, because it goes beyond the scope of the legislation? A. using standardized tests that screen out people with disabilities B. refusing to hire job applicants because they have a history of drug abuse C. refusing to hire a job applicant because an assembly line for automobiles cannot accommodate workers in wheelchairs D. not hiring a disabled person because the bathrooms cannot accommodate wheelchairs E. asking job applicants if they have disabilities

A. using standardized tests that screen out people with disabilities

10. The Family and Medical Leave Act gives employees the right to take: A. 12 weeks of paid leave per year for health and family-related reasons B. 12 weeks of unpaid leave per year for health and family-related reasons C. 6 weeks of paid leave per year for health and family-related reasons D. 6 weeks of unpaid leave per year for health and family-related reasons E. 2 weeks paid leave per year for health and family-related reason

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

1. You want to open a Playboy Club in DeKalb. You place an advertisement in the newspaper seeking only women as Bunnies. A man with great legs and a winning smile applies for the job but you reject him because of his sex. He sues. Your best defense would be; A. Business Necessaty B. Bona Fide Occupational Qualification C. Business Opportunity Qualification D. None of the Above

B. Bona Fide Occupational Qualification

The city of Iowa City requires a college degree to qualify for being a city bus driver. Statistics show that 28% of the blacks and 85% of the whites in the metropolitan area and surrounding county have college degrees. John, a black male without a college degree, applies for the job but is rejected because of the diploma requirement. He sues. On the basis of just the facts given, which is the most likely result? A.Discrimination because of disparate treatment B. Discrimination because of disparate impact C. No discrimination even though disparate treatment because the diploma requirement is a bona fide occupational qualification D. "No discrimination even though disparate impact because the diploma requirement is a business necessity E. Title VTI does not allow a discrimination suit for such a fact pattern

B. Discrimination because of disparate impact

11. Which of the following sanctions (punishments) cannot be imposed by an administrative agency after an adequate hearing? A. Forfeiture of property B. Jail time C. Monetary fines D. Suspension of a person's license to conduct business E. All of the above may be imposed by an administrative agency

B. Jail time

18. If an investigation of a discrimination charge is not settled by the EEOC working with the employer and complaining employee, to carry the case further, the: A. employee must file suit against the employer with an administrative law judge of the EEOC B. EEOC investigator must file suit against the employer with an administrative law judge of the EEOC C. EEOC issues a "right-to-sue" letter giving the employee the right to sue the employer in court D. EEOC must file suit in federal court on behalf of the employee E. EEOC must turn the case over to the Department of Justice for possible prosecution

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

13. This ad was seen in a publication: "Wanted: Assistant to the President. Great job opportunity for bright, young, hard working person to work with President of a major private university." This ad is most likely to violate: A. disability law because "bright" may discourage applicants with mental problems B. discrimination law that requires jobs to have clearly stated goals and qualifications, not vague terms C. age discrimination laws since "young" is probably not over the age of 40 D. sex and race discrimination law since women and minorities are presumed not to be hardworking E. nothing; no violations exist in the ad

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

16. To not violate Title VII's prohibition of discrimination based on religion, an employer may have to make changes in the way her business is organized to meet religious requirements of employees. Employers are required to incur: A. any expense required to avoid violating religious requirements of its employees B. up to ten percent of an employee's wage in costs to comply with the employee's beliefs C. no more than minimal expenses to accommodate an employee's religious requirements D. no expense or trouble at all E. none of the above

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

17. A promise of a reward, such as promotion or pay raise, for providing sexual favors being demanded is called: A. hostile environment harassment B. bona fide impact C. quid pro quo harassment D. differential favoritism E. none of the above

C. quid pro quo harassment

21. In a formal adjudicatory hearing, which of the following due process requirements is not required or permitted? A. Cross-examination of opposing witnesses B. Opportunity to present evidence for your own behalf C. Right to have an attorney present to defend you D. Jury trial E. All of the above are required or permitted

D. Jury trial

19. Disparate treatment (under Title VII) refers to: A. intentional discrimination B. unintentional discrimination C. illegally motivated employment decision D. a and c E. b and c

D. a and c

14. Unless otherwise stated by contract, the law of partnership presumes which of the following not to be true? A. each partner has an equal voice in partnership management. B. a majority vote controls ordinary business decisions only managing partners are fully responsible for debts of the partnership C. regardless of the amount invested in the partnership, each partner has an equal vote D. all of the above are true

D. all of the above are true

Which of the following was not outlawed by the Taft-Hartley Act? A. refusal to bargain in good faith B. "feather-bedding" C. union coercion of worker who do not wish to join a union secondary boycotts D. company unions

D. company unions

7. Mandatory subjects which Congress requires unions and management to bargain in good faith concerning include: A. Wages B. Hours C. Seniority D. Promotion rule E. All of the above

E. All of the above

Which of the following is not a right guaranteed to workers by the National Labor Relations Act? A. to form and join labor unions B. to collectively bargain C. to engage in strikes D. to engage in picketing E. all of the above are rights guaranteed

E. all of the above are rights guaranteed

A collective bargaining agreement ends and the union and management continue to bargain for a new contract while the workers go on strike. Management hires new workers to replace the union workers on strike. By law, when the strike ends: A. all union workers must be returned to their previous positions B. all replacement workers must be dismissed unless the union agrees to accept them C. the replacement workers must become union members and be paid union wages D. the new collective bargaining agreement must provide higher wages than the previous contract and the new wage level will apply to all workers E. none of the above are true

E. none of the above are true

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

False

An employer is liable for the torts of an independent contractor he has hired

False

It is necessary to demonstrate the employer's negligence in order to recover for a workplace injury under workman's compensation

False

The Age Discrimination in Employment Act permits the mandatory retirement of most employees at age 75

False

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

True

53. Limited liability companies are taxed like partnerships, but have the liability rules of a corporation

True

54. If the court "pierces the corporate veil" shareholder(s) have unlimited personal liability for corporate debts

True

55. A contract between a principal and an agent establishing an agency relationship need not be in writing nor need it be supported by consideration.

True

56. If not otherwise agreed, either a principal or an agent may terminate an agency relationship at-will.

True

57. Death of either the principal or the agent terminates the agency by operation of law

True

A "right-to-work" law eliminates union shops

True

Agents who commit torts during the course of employment are nonetheless liable for the tort even though they were directed to do the tort by their principal

True

Agents who sign a contract beyond their actual authority are personally liable on the contract

True

An agent is personally liable on a contract she enters into with a third party on behalf of an undisclosed principal unless the third party elects to hold the principal liable

True

An agent may create apparent authority by assuring a third party of his authority to perform contractual acts on behalf of his principal

True

If Drugs-R-Us agrees to settle a complain that the company engaged in deceptive advertising, the agreement is called a consent decree?

True

If it is shown that an employment qualification rule, practice or device has a discriminatory impact, the employer must persuade the court that the practice has a manifest relationship to job performance and is a business necessity

True

In cases of affirmative action, the courts have held that discrimination in favor of qualified women or minority workers may be legal

True

Independent contractors are one type of employee

True

It is likely that a company has the legal right to require the passing of a drug test as part of a pre-employment screening

True

It is not necessary that an employer alter an employee's tangible job benefits (hours, overtime, office, wages, etc.) for that employer to be liable for sexual harassment

True

The Americans With Disabilities Act requires employers to make reasonable accommodations for employees with disabilities

True

The Norris-Laguardia Act generally prohibits federal court injunctions in labor disputes

True

The Taft-Hartley Act was an "anti-union" statute

True

The purpose of the Landrum-Griffin Act was primarily to regulate internal affairs between union management and union membership

True

31. A place of employment where all employees are represented by a union and most employees are union members, but non-union workers must pay fees to the union, is called: a) an agency shop b) a union shop c) closed shop d) a yellow-dog shop e) none of the above

a) an agency shop

45. The Electronic Fund Transfer Act concerns liability limits for stolen ATM cards. Which statement is correct about maximum consumer liability: a. $50 if the financial institution is notified within 2 days b. $100 if the financial institution is notified within 3 business days c. $250 if the financial institution is notified within 5 days d. $500 if the financial institution is notified within 70 business days e. none of the above

a. $50 if the financial institution is notified within 2 days

33. Which of the following are afforded limited liability for the debts and torts of a business? a. Limited partners b. shareholders c. General partners d. Sole proprietors e. More than one of the above answers

a. Limited partners

28. Which of the following is always required when an administrative agency makes legislative/substantive rules. a. Notice and comment b. Hearing "on the record." c. Written justification by the agency for the rule adopted d. Oral testimony by interested members of the public e. None of the above are always required

a. Notice and comment

26. Create a corporation: a. articles of incorporation and an application must first be filed with the federal government b. the federal government issues a certificate of incorporation, which must be filed with an application to do business in the relevant states c. the incorporators must hold a public organization meeting, then file articles of incorporation d. the corporation's articles of incorporation are filed with the appropriate officer of the state e. none of the above

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

30. For the NLRB to oversee a representation election, at least what percent of employees must request an election? a) 20% b) 30% c) 50% d) 75% e) 100%

b) 30%

35. A principal's duties toward an agent do not include; a) Duty of indemnification b) Duty of obedience c) Duty to compensate d) Duty of reimbursement e) A principal's duties include all of the above

b) Duty of obedience

15. The Environmental Protection Agency (EPA) wants to establish a list of air pollutants and make rules defining their permissible levels. These rules would be characterized as; a. Procedural rules b. Substantive/legislative rules c. Interpretive rules d. More than one of the above e. None of the above

b. Substantive/legislative rules

47. Which of the following is not a feature of the Fair Credit Billing Act: a) restricts the mailing of unsolicited credit cards b) creditors must follow specific procedures in case a bill is disputed c) maximum liability for unauthorized charges is $100 if the creditor is notified d) procedures exist for reporting stolen or lost credit cards e) all of the above are features

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

29. In the absence of a contrary agreement, a general partner's share of the partnership profits is determined by a. Her capital contribution to the partnership b. Her participation in the partnership c. Each general partner shares equally in the profits d. Her position within the partnership e. None of the above

c. Each general partner shares equally in the profits

24. Dissolution of a partnership takes place, unless otherwise provided for by contract, in the following instances except: a. bankruptcy of a partner b. withdrawal of a partner c. change in financial condition of a partner d. death of a partner e. all of the above would require dissolution

c. change in financial condition of a partner

32. The workers at a meat packing plant are on strike. They picket the banks in town to put pressure on the meat packing plant to come to a settlement. The pickets at the banks are: a. legal primary boycotts b. legal under First Amendment rights to free speech c. illegal secondary boycotts d. illegal for committing a tort of injuring bank business e. none of the above

c. illegal secondary boycotts

25. The business organization that has at least one general partner and other investors who have limited liability is a: a. corporation b. general partnership c. limited partnership d. limited liability company e. sole proprietorship

c. limited partnership

22. A _____________ is an association of two or more persons to carry on a business as co-owners for profit. a. proprietorship b. corporation c. partnership d. cooperative e. all of the above

c. partnership

39. The "Mail Order Rule" slates that if a company: a. buys products through the mail it must use the U.S. Postal Service, and not a private courier system b. buys products through the mail from a foreign country, it must register with the FTC c. sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advertised d. sells products through the mail is must provide toll-free 800 phone numbers for its customers to use so that they do not spend additional money placing an order e. none of the above are correct

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

27. A limited liability company: a) is taxed like a partnership b) has the liability of a corporation c) is taxed like a corporation d) a and b e) b and c

d) a and b

34. An agent's duties do not include; a. Duty of utmost loyalty b. Duty of obedience c.Duty of accounting d. Duty to reimburse e. Duty to inform

d. Duty to reimburse

44. The Fair Debt Collection Practices Act applies to: a. all creditors attempting to collect debts b. all corporations attempting to collect debts c. merchants attempting to collect debts from their customers, but not to financial institutions d. debt collection agencies e. all of the above

d. debt collection agencies

37. Comparing regulation of drugs to other countries, the U.S. is: a. not very strict compared to nations of Europe b. not very strict compared to most underdeveloped nations c. one of the strictest nations but has little impact on the world market d. one of the strictest nations and has great impact on the world market e. none of the above

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

43. Suppose a debt collector has been calling and sending notices of a debt you owe. If you wish to end further notification from the debt collector, you must: a. obtains an injunction against further contact b. pay the debt in full within 30 days c. contact the Federal Trade Commission to request limits to notification d. send the debt collector a letter requesting they stop contact e. none of the above

d. send the debt collector a letter requesting they stop contact

23. A partnership can begin with: a. an implied agreement that can be inferred from the conduct of the parties doing business b. a written agreement c. an oral agreement d. b and c e a, b and c

e .a, b and c

46. A consumer buys living room furniture. The store gives the consumer $2,000 credit to be paid back over two years. The store fails to disclose the interest rate that it charges for credit. Under the Truth-in-Lending Act, the store is wrong for not listing the interest: a. but the customer agreed to it, so there is no violation b. but the consumer's only recourse is to cancel the contract c. and must pay the consumer a finance charge as a result d. and may have to pay the consumer up to $1,000 (civil damages) plus attorney fees e. There is no violation here

e. There is no violation here

42. If a consumer's application for credit is denied, the creditor must provide written notice to the consumer containing what information? a. the name and address of the federal agency regulating compliance by the creditor b. the basic provisions of the Equal Credit Opportunity Act c. either the specific reasons for the action taken or disclose the applicant's right to receive a statement of reasons d. a and c e. a, b and c

e. a, b and c

8. Which of the following are public-policy exceptions recognized by most states as limits to the employment-at-will doctrine allowing termination of employees? a. refusing to commit an illegal act b. performing a public duty (reporting for jury duty) c. exercising freedom of speech rights d. a and b only e. a, b and c

e. a, b and c

38. The Federal Trade Commission regulates: a. deceptive business practices b. false advertising claims c. unfair business practices d. a and b e. a, b and c

e. a,b and c

49. The average cost of developing a new drug and clearing all FDA regulations to get the drug to market are: a. paid by the FDA only if the drug is approved b. paid by the FDA only if the drug is not approved c. paid by the FDA whether or not the drug is approved d. paid by the National Institute of Health e. about $500 million and are paid by the drug companies

e. about $500 million and are paid by the drug companies

40. Which of the following is not part of the FTC policy statement for determining if a practice is deceptive? a. there is a misrepresentation or omission of information in a communication to consumers b. the deception is likely to mislead a reasonable consumer c. the deception is material—likely to mislead the consumer to his or her detriment d. there is proximate cause between the deception and the losses suffered by consumers who are misled e. all of the above are a part of the deception standard

e. all of the above are a part of the deception standard

48. Which of the following is not a function of the Food and Drug Administration? a. inspections of food and drug producing establishments b. drug evaluation studies c. food additives studies d. classifying unsafe foods e. all of the above are functions of the FDA

e. all of the above are functions of the FDA

41. The Truth-in-Lending Act applies lo which of the following transactions? a. your friend loans you $4,000 b. you purchase and get a $45,500 loan for a new Lexus c. your company, Shoes, Incorporated. borrows $10,000 to buy more inventory d. b and c e. none of the above

e. none of the above

36. The Food and Drug Administration does not have which of the following powers: a. to restrict false advertising of drugs b. to inspect plants where drugs are manufactured c. to set the levels of additives that may be used in food d. to seize drugs that are already approved to be on the market e: all of the above are FDA powers

e: all of the above are FDA powers