Chapter 1

Question 1

Agency is a ___ relationship (a legally binding agreement) between a principal and an agent whereby the principal, expressly or implicitly, authorizes the agent to work on his or her behalf and with the power to bind the principal.
A. Undefined
B. Informal
C. Formal
D. Contract

Answer 1

D. Contract

Question 2

An employer can be exposed to liability in tort (a civil wrong which causes someone harm) for the acts or omissions of the employee. This employment law concept is best known as:

Answer 2

Vicarious liability

Question 3

Employee conduct which is reasonably relative to a job description and foreseeable by the employer as part of that job description is referred to as

A. Employment characteristics
B. Respondeat superior
C. Scope of employment
D. Dual purpose mission

Answer 3

C. Scope of Employment

Question 4

In the scope of employment context, which of the following is an example of frolic and detour?

A. An employee runs an errand while on his/her lunch break
B. An employee runs a work errand while off work
C. An employee runs a personal errand while driving to a meeting at a company branch office
D. An employee works from home for the day

Answer 4

C. An employee runs a personal errand while driving to a meeting at a company branch office

Question 5

Which of the following is not a purpose or function of the law?
A. Determine procedures for changing the law
B. Settle private and public disputes
C. Facilitate for private arrangements between individuals
D. Prevent desirable, or promote undesirable, behavior

Answer 5

D. Prevent desirable, or promote undesirable, behavior

Question 6

What is a precendent?
A. Reason a law is made
B. A group or person exempt from the laws
C. A controlling rule, example, or guide
D. An exception to the rule

Answer 6

C. Controlling rule, example, or guide

Question 7

What is a judicial review?
A. The ability of the Supreme Court to overrule every other court
B. When a decision cannot be made in district court, it moves to Supreme Court
C. The power of the Supreme Court to consider whether a law comports with the Constitution
D. When a business is investigated by the Supreme Court

Answer 7

C. The power of the Supreme Court to consider whether a law comports with the Constitution.

Question 8

Which of the following laws has the least amount of power under the Supremacy Clause?
A. State laws
B. Federal laws
C. Treaties and federal regulations
D. The Constitution

Answer 8

A. State Law

Question 9

Of the following classifications of worker, which causes the smallest obligation to the employer?

A. Employee
B. Independent contractor
C.Union workers
D. Both independent contractor and employee

Answer 9

B. Independent Contractor

Question 10

Which of the following is not one of the three different tests commonly used to determine if a worker is an employee or independent contractor?

A. The IRS 20-factor analysis
B. The working description test
C. The economic realities test
D. The common law agency test

Answer 10

B. The working description test

Question 11

What is the main purpose of the economic realities test?

A. Determine if a business has enough economic freedom to hire and fire whomever it deems necessary
B. Determine whether the worker has little freedom to exit the relationship because he/she is economically dependent on the business
C. Understand the pressure unions are putting on the cost of business
D. Discover if an organization can afford to hire more employees

Answer 11

B. Determine whether the worker has little freedom to exit the relationship because he/she is economically dependent on the business

Question 12

The IRS has adopted the 20-factor analysis as a guide to employers in determining if workers are indeed independent contractors. Which of the following is not a factor?

A. Instructions: Who controls when, where, and how work is to be done?
B. Integration: How closely are the employer business processes linked to a worker’s performance?
C. Relationship: How many hours per year do the employee and employer spend time together outside of work?
D. Training: How much training does the employer give?

Answer 12

C. Relationship: How many hours per year do the employee and employer spend time together outside of work?

Question 13

What is the definition of an employer?

A. An entity that employs another to work on his or her behalf for pay
B. An entity that produces goods and services
C. A person who works to provide a good or service for another
D. A person who pays for the goods or services of another

Answer 13

A. An entity that employs another to work on his or her behalf for pay

Question 14

Operations of two or more employers are considered so intertwined that they can be considered the single employer for purposes of both federal statutory coverage and liability. This is known as a(n):

A. Conglomerate
B. Integrated enterprise
C. Publicly traded company
D. Free standing business

Answer 14

B. Integrated enterprise

Question 15

Which of the following is not a qualification to fall under federal employment law statutes?

A. An entity represents the employees of an employer
B. An entity maintains a hiring hall which procures employees for at least one covered employer
C. An entity’s membership exceeds a certain number
D. An entity is not engaged in an industry-affecting commerce

Answer 15

C. An entity’s membership exceeds a certain number

Question 16

Under the Employment-At-Will Doctrine, _______________.

A. An employer can hire whomever it wants for whatever reason it wants
B. Only federal employers can hire and fire employees at their own will
C. An employer may terminate an employee at any time, for any legal reason, without incurring liability
D. If an employee desires to quit, he/she needs to have a legally viable reason to want to depart from the organization

Answer 16

C. An employer may terminate an employee at any time, for any legal reason, without incurring liability

Question 17

Which of the following is not a recognized exception to at-will doctrine under the common law?

A. Public policy
B. Economic sustainability
C. Implied covenant of good faith
D. Implied contract

Answer 17

B. Economic sustainability

Question 18

If an employee is terminated for claiming minimum wage or overtime compensation, engaging in union activities, opposing unlawful discriminatory practices, filing for workers’ compensation, or “whistleblowing,” the employer may face liability for

A. defamation
B. economic sustainability
C. implied covenant
D. public policy exception

Answer 18

A. defamation

Question 19

What is the doctrince of Constructive Discharge?

A. Conditions in which an employer needs to terminate an employee due to changing business plans and strategy
B. Situation in which the employer helps a discharged employee locate new employment
C. When an employee is creating such a harsh and unhealthy environment for other employees that management is forced to terminate him/her
D. Conditions of unfairness or mistreatment exist at work to such a degree that no reasonable employee would feel he/she had any other option but to quit

Answer 19

D. Conditions of unfairness or mistreatment exist at work to such a degree that no reasonable employee would feel he/she had any other option but to quit

Question 20

When a third party, perhaps a co-worker or client, pressures the employer to terminate an employee without cause, it is referred to as:

A. Voiding a contract
B. Intentional interference with a contract
C. Constructive discharge
D. Statute of frauds

Answer 20

B. Intentional interference with a contract

Question 21

_____________ prohibits termination for other than good cause once an employee has successfully passed a probationary period and allows for an employee to seek arbitration for a termination dispute.

A. Stare decisis
B. Montana Wrongful Discharge From Employment Act
C. National Labor Relations Act
D. Vicarious Liability

Answer 21

B. Montana Wrongful Discharge From Employment Act