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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Version | 2021 |
Category | TEST BANK |
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Pages | 433 |
Language | English |
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