Exam (elaborations)

Test Bank For Employment Law for Business 9Th Ed by Dawn Bennett Alexander

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Employment Law - Test Bank

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Employment Law - Test Bank

Employment Law for Business, 9e (Bennett) Chapter 3 Title VII of the Civil Rights Act of 1964 1) The 1964 Civil Rights Act was passed the year after the historic march on Washington, which was led by the late Rev. Dr. Martin Luther King, Jr. Answer: TRUE Explanation: The 1964 Civil Rights Act wa...

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test bank for employment law for business
test bank for employment law

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Employment Law - Test Bank
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Employment Law - Test Bank
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Employment Law - Test Bank

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,Employment Law for Business, 9e (Bennett)
Chapter 1 The Regulation of Employment

1) Agency law, based on the traditional law called master and servant, governs employment
relationships.

Answer: TRUE
Explanation: Laws relating to employment relationships are based on the traditional law called
master and servant, which evolved into the law of agency. In an agency one person (the agent or
employee) works on behalf of another (the principal or employer).
Difficulty: 1 Easy
Topic: Introduction to the Regulatory Environment
Learning Objective: 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.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

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.

Answer: TRUE
Explanation: 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 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).
Difficulty: 1 Easy
Topic: Introduction to the Regulatory Environment
Learning Objective: 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.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

1
Copyright ©2019 McGraw-Hill

,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
Explanation: 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
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.
Difficulty: 1 Easy
Topic: Introduction to the Regulatory Environment
Learning Objective: 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.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

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

Answer: FALSE
Explanation: 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.
Difficulty: 1 Easy
Topic: Introduction to the Regulatory Environment
Learning Objective: 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.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

2
Copyright ©2019 McGraw-Hill

, 5) 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.

Answer: FALSE
Explanation: Great Northern is not responsible for withholding and paying Myra's employment
taxes (Social Security (FICA), the FICA excise tax, and federal unemployment compensation
(FUTA)). Myra is an independent contractor, and employers are only responsible for withholding
and paying these taxes for employees. In addition, an employer is responsible for withholding a
certain percentage of the employee's wages for federal income tax, and state and local taxes
where applicable. As an independent contractor, Myra is responsible for all of these taxes
herself.
Difficulty: 2 Medium
Topic: Introduction to the Regulatory Environment
Learning Objective: 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.
Bloom's: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

6) Employers are not liable for most torts committed by an independent contractor within the
scope of the working relationship.

Answer: TRUE
Explanation: Employers are not liable for most torts committed by an independent contractor
within the scope of the working relationship because Title VII of the Civil Rights Act of 1964
applies to employers and prohibits them from discriminating against employees. It does not,
however, cover discrimination against independent contractors.
Difficulty: 1 Easy
Topic: Introduction to the Regulatory Environment
Learning Objective: 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.
Bloom's: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

3
Copyright ©2019 McGraw-Hill

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Test Bank For Employment Law for Business 9Th Ed by Dawn Bennett Alexander

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