Test Bank for Employment

Law for Business 10th Edition

by Bennett Alexander

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Description

Table of Contents

Part One

Chapter 1 The Regulation of the Employment Relationship

Chapter 2 The Employment Law Toolkit: Resources for Understanding

the Law and Recurring Legal Concepts

Chapter 3 Title VII of the Civil Rights Act of 1964

Chapter 4 Legal Construction of the Employment Environment

Part Two

Chapter 5 Affirmative Action

Chapter 6 Race and Color Discrimination

Chapter 7 National Origin Discrimination

Chapter 8 Gender Discrimination

Chapter 9 Sexual Harassment

Chapter 10 Sexual Orientation and Gender Identity Discrimination

Chapter 11 Religious Discrimination

Chapter 12 Age Discrimination

Chapter 13 Disability Discrimination

Part Three

Chapter 14 The Employee’s Right to Privacy and Management of

Personal Information

Chapter 15 Labor Law

Chapter 16 Selected Employment Benefits and Protections

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Chapter 01 – The Regulation of the Employment Relationship

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© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not

authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,

forwarded, distributed, or posted on a website, in whole or part.

Chapter 01

The Regulation of the Employment Relationship

True/False Questions

1. The law relating to the employment relationship is based on the traditional law called master

and servant, which evolved into the law of agency.

Answer: True

LO: 01-02 Identify who is subject to which employment laws and understand the implication of

each of these laws for both the employer and employee.

Topic: Introduction to the Regulatory Environment

Blooms: Remember

Difficulty: 1 Easy

AACSB: Analytical Thinking

Feedback: The law relating to the employment relationship is based on the traditional law

called master and servant, which evolved into the law of agency. In an agency relationship, one

person acts on behalf of another. The actor is called the agent, and the party for whom the agent

acts and from whom that agent derives authority to act is called the principal.

2. In an employment–agency relationship, if an agent acts beyond his or her authority, the

principal is not liable for any resulting loss to a third party.

Answer: False

LO: 01-02 Identify who is subject to which employment laws and understand the implication of

each of these laws for both the employer and employee.

Topic: Introduction to the Regulatory Environment

Blooms: Remember

Difficulty: 1 Easy

AACSB: Analytical Thinking

Feedback: In an employment–agency relationship, the employee–agent is under a specific duty

to the principal to act only as authorized. As a rule, if an agent goes beyond his or her authority

or places the property of the principal at risk without authority, the principal is now responsible

to the third party for all loss or damage naturally resulting from the agent’s unauthorized acts

(while the agent remains liable to the principal for the same amount).

3. An employer has vicarious liability if an employee causes harm to a third party while the

employee is in the course of employment.

Answer: True

LO: 01-02 Identify who is subject to which employment laws and understand the implication of

each of these laws for both the employer and employee.

Topic: Introduction to the Regulatory Environment

Blooms: Remember

Difficulty: 1 Easy

AACSB: Analytical Thinking

Feedback: An employer has vicarious liability if an employee causes harm to a third party while

the employee is in the course of employment. While the employee may be required to

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Chapter 01 – The Regulation of the Employment Relationship

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© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not

authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,

forwarded, distributed, or posted on a website, in whole or part.

reimburse the employer if the employer has to pay for the damages, generally the third party

goes after the employer because the employee does not have the funds to pay the liability.

4. The National Labor Relations Act of 1935 (NLRA) protects independent contractors from

unfair labor practices of employers.

Answer: False

LO: 01-02 Identify who is subject to which employment laws and understand the implication of

each of these laws for both the employer and employee.

Topic: Introduction to the Regulatory Environment

Blooms: Remember

Difficulty: 1 Easy

AACSB: Analytical Thinking

Feedback: The National Labor Relations Act of 1935 (NLRA) protects only employees and not

independent contractors from unfair labor practices. However, independent contractors may be

considered to be employers; so they may be subject to these regulations from the other side of

the fence.

5. Kevin provides auditing services to the Global Trusted Bank as an independent contractor.

Thus, the bank is responsible for paying Kevin’s federal unemployment compensation (FUTA),

Social Security (FICA), and the FICA excise tax.

Answer: False

LO: 01-02 Identify who is subject to which employment laws and understand the implication of

each of these laws for both the employer and employee.

Topic: Introduction to the Regulatory Environment

Blooms: Apply

Difficulty: 2 Medium

AACSB: Reflective Thinking

Feedback: Global Trusted Bank is not responsible for paying Kevin’s Social Security (FICA),

the FICA excise tax, and federal unemployment compensation (FUTA) as Kevin is an

independent contractor. An employer who maintains employees has the responsibility to pay

Social Security (FICA), the FICA excise tax, Railroad Retirement Tax Act (RRTA)

withholding amounts, federal unemployment compensation (FUTA), IRS federal income tax

withholdings, Medicare, and state taxes. In addition, it is the employer’s responsibility to

withhold a certain percentage of the employee’s wages for federal income tax purposes. On the

other hand, an independent contractor has to pay all of these taxes on his or her own.

6. Employers are liable for most torts committed by an independent contractor within the scope

of the working relationship.

Answer: False

LO: 01-02 Identify who is subject to which employment laws and understand the implication of

each of these laws for both the employer and employee.

Topic: Introduction to the Regulatory Environment

Blooms: Remember

Difficulty: 1 Easy

AACSB: Analytical Thinking

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