TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Agency law, based on the traditional law called master and servant, governs employment
relationships.
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority,...
Employment Law for Business 10th Edition
Bennett-Alexander TEST BANK
,TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) Agency law, based on the traditional law called master and servant, governs employment
relationships.
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority, the
principal may be liable for any resulting loss to a third party.
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern.
Because of this relationship, Great Northern is responsible for withholding and paying Myra's
employment taxes, including federal unemployment compensation (FUTA), Social Security
(FICA) and FICA excise tax.
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within
the scope of the working relationship.
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers,
and the government.
⊚ true
⊚ false
,6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm
sent over a part-time office assistant, Fresh Ideas asked the firm to replace her with someone
from a different race. The replaced office assistant cannot proceed with a discrimination claim
under Title VII of the Civil Rights Act since she (the part-time office assistant) was never an
employee of Fresh Ideas.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question.
7) If an employee has a car accident while driving a company car from one company office
to another, the employer may be liable to the owner of the other vehicle under which legal
theory?
A) Vicarious liability
B) Joint liability
C) Strict liability
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
A) Occupational Safety and Health Act
B) National Labor Relations Act
C) Fair Labor Standards Act
D) Labor Management Relations Act
9) A willful misclassification of workers by an employer may result in harsh sanctions,
including imprisonment and a fine of up to $10,000, under which federal law?
A) Federal Unemployment Compensation Act (FUTA)
B) Fair Labor Standards Act (FLSA)
C) National Labor Relations Act (NLRA)
D) Federal Insurance Contributions Act (FICA)
, 10) Which of the following is currently considered to be the leading test to determine
employee status?
A) Common-law agency test
B) IRS 20-factor analysis
C) Economics realities test
D) Degree of control test
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify
as an employer under the Act?
A) 15 employees
B) 20 employees
C) 50 employees
D) No minimum requirement
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts
with the federal government in excess of how much annually?
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
13) CMS, Inc. solicited bids from various contractors to develop and maintain the grounds of
its new office complex. Roberta, the head of facilities management at CMS, told her secretary,
LeAnne, that she will not accept any bids from a Russian contractor. She then rejected a bid
made by a Russian contractor without any legitimate reason. If the Russian contractor brings a
lawsuit against CMS for discrimination, what is the likely result?
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