Employment Environment Law

Question 1

Describe the Federal Unemployment Tax Act

Answer 1

An employer-paid tax. Must file return and pay even if only one employee works there. Deductible to company - Not deductible by the employee. Allows employers to credit the FUTA liability by the amount of State Unemployment Tax (SUTA) they pay.

Question 2

What are the major aspects of FICA and Social Security taxes?

Answer 2

Paid by Employer AND Employee - Employer withholds from employee’s paycheck and must pay tax matching employee’s withholding

If employer under-withholds; they are required to make up the difference

Self-employed individuals must pay both the employer and the employee share; which is Self Employment Tax

People drawing Social Security may have their benefits reduced if they go back to work and earn an income

Question 3

When is an employee covered by Workman’s Compensation?

Answer 3

Employees injured on the job get protection; even if they messed up and caused the injury themselves

Exception: If the employee intentionally harmed themselves; there is no Workman’s Compensation

Question 4

What age group is protected under Age Discrimination Laws?

Answer 4

They protect people ages 40 and above at companies where at least 20 people are employed

Question 5

What are the tenets of the Occupational Safety and Health Act (OSHA)?

Answer 5

Employers should promote a safe workplace and environment for their employees to work in

Injury records must be kept
Penalties can be both
o Civil - $1;000 fine per day
o Criminal - Could include imprisonment

Employer can require a search warrant for OSHA to investigate their facilities

Question 6

What types of discrimination are prohibited for employers based on civil rights laws?

Answer 6

Sex

Race

Religion

National Origin

Question 7

What are the powers granted under the Environmental Protection Act?

Answer 7

EPA has the power to assess civil penalties for violating environmental laws like the Clean Air Act
The EPA can sue violators
Citizens can sue violators
States can sue violators
Citizens can even sue the EPA to force enforcement
For hazardous waste sites: owners; operators; transporters; and lenders associated with the site can
be held liable

Question 8

Under the Federal Age Discrimination in Employment Act, which practices are usually prohibited?

Answer 8

Compulsory retirement of employees below the age of 65

Question 9

What can employers be given OSHA citations for?

Answer 9

Breach of the general duty obligations
Breach of specific safety and health standards
Failure to keep records of job-related injuries, make reports or post notices as required by the Act.

Question 10

True or False: OSHA prohibits an employer from discharging an employee for revealing OSHA violations

Answer 10

True

Question 11

True or False: An employee who received workers compensation can recover in full against and employee and his/her employer who caused and accident, but must reimburse the workers’ compensation carrier to the extent the recovery duplicates benefits already obtained under workers’ compensation law

Answer 11

True

Question 12

What right does an employee have under the Family and Medical Leave Act

Answer 12

The employee has the right to up to 12 work weeks of unpaid leave to care for his or her spouse who has a serious health problem.

Question 13

What are included under the Employee Retirement Income Security Act of 1974?

Answer 13

An employee’s right to the employee’s contributions vests immediately
An employee’s right to the employer’s contributions vest after 5 years of service
Pension fund managers must follow standards of pension fund investment

Question 14

True or False: Employers are required to set up a pension plan for all full-time permanent employees

Answer 14

False

Question 15

Under the Clayton Act of 1914, mergers or acquisitions of assets or stock are prohibited in what circumstance.

Answer 15

If the effect of the merger might substantially lessen competition or tend to create a monopoly.

Question 16

What is the purpose of the Antitrust law?

Answer 16

To promote:
Efficient allocation of resources
Greater choice by consumers
Greater business opportunities
Fairness in economic behavior
Avoidance of concentrated political power resulting from economic power

Question 17

What is the Antitrust law intended to do?

Answer 17

Foster competition by ensuring that markets are driven by customer demands.

Question 18

What does Section 1 of the Sherman Act of 1890 details?

Answer 18

Makes illegal every contract, combination, or conspiracy in restraint of trade in interstate or foreign commerce

Question 19

What are the two restraints under Section 1 of the Sherman Act of 1890?

Answer 19

1) Horizontal restraint involves collaboration among competitors at the same functional level in the chain of distribution (e.g. manufacturers, wholesalers, or retailers)
Examples are price fixing, division of markers, and group boycotts.

2) Vertical Restraint: imposed by parties that are not in direct competition at the same functional level of distribution.
Examples are (a) resale price maintenance; (b) tying arrangements; (c) exclusive dealing agreements; and (d) customer, territorial, and location restrictions

Question 20

What is rule of reason as it pertains to Section 1 of the Sherman Act of 1890?

Answer 20

The rule of reason is applied when determining restraints. Unreasonable restraints are illegal.

Question 21

True or False: Some arrangements among competitors are deemed to be unreasonable without inquiry as to harm or excuse. They are illegal per se. A plaintiff need not prove a limit on competition, and the court need not perform an economic analysis.

Answer 21

True

Question 22

What are examples of per se violations?

Answer 22

Price fixing
Division of markets
Group boycotts
Tying arrangements

Question 23

What does Section 2 of the Sherman Act of 1890 prohibits?

Answer 23

Prohibits acts of monopolizing or attempting to monopolize. It applies to acts of one party.

Question 24

What does the Clayton Act prohibits?

Answer 24

Tying or tie-in sales
Exclusive dealing
Reciprocal dealing
Price discrimination

Question 25

True or False: The Sherman Act, but not the Clayton Act, provides for criminal penalties. However, the Clayton Act provides for recovery of treble damages.

Answer 25

True

Question 26

What does the Federal Trade Commission Act of 1914 prohibits?

Answer 26

This statutes prohibits unfair methods of competition, and unfair or deceptive activity affecting interstate commerce

Question 27

What is the basic objectives of the Federal Trade Commission (FTC)?

Answer 27

To initiate antitrust actions and to protect the consumer public.

Question 28

What is the Robinson-Patman Act of 1936?

Answer 28

This act amended the Clayton Act with respect to price discrimination. Price discrimination involving commodities of like grade and quality is illegal is the effect is to less competition substantially or tend to create a monopoly

Question 29

Under the Clean Air Act, the best available control technology (BACT) is the emission limitation that achieves the maximum reduction of pollutant with considering which 3 factors?

Answer 29

The BACT is the emission limitation that achieves the maximum reduction of pollutants considering energy, environmental and economic factors

Question 30

Define the term “navigable water”?

Answer 30

All freshwater wetlands adjacent to all covered waterways.