MGMT 311 Exam 4 - FLASHCARDS - Practice questions

Question 1

Heather is an artist and has several watercolors she would like to sell. Heather orally asks Rylee to sell the paintings for her and directs Rylee that each painting should be sold for at least $100. Rylee schedules a showing in her art gallery to display Heather’s paintings. On the day of the showing, a customer offers to buy one of the paintings for $100, and Rylee accepts. When Heather finds out the price the painting sold for, she tries to get the painting back from the customer. Heather claims that she and Rylee did not have a written agency agreement, and, therefore, an agency relationship did not exist between them. Is Heather correct?

Yes, most agency agreements must be in writing to be effective.

No. Agency agreements are never in writing.

No, most agency agreements do not have to be in writing to be effective.

Yes. Allowing this agency agreement to stand would violate the statute of frauds.

Answer 1

No, most agency agreements do not have to be in writing to be effective.

Question 2

Roland and Alfreeda enter into a written agency agreement in which Alfreeda will represent Roland as his agent to obtain acting jobs for Roland. No termination provisions are included in the written agreement. If Roland wishes to terminate his agreement with Alfreeda

Roland must do so by sending the termination notice to Alfreeda by certified mail.

Roland must do so in writing because the agency agreement is in writing.

Roland may do so by providing notice to Alfreeda in any reasonable manner.

Roland must do so in person only.

Answer 2

Roland must do so in writing because the agency agreement is in writing.

Question 3

True or false: employees who deal with third parties are agents of their employers?

Answer 3

TRUE

Question 4

True or false: an agent owes his or her principal a duty to act in good faith?

Answer 4

TRUE

Question 5

True or false: an agent who fails to use reasonable diligence and skill on acting on behalf of his principal may be liable for breaching a duty of performance?

Answer 5

TRUE

Question 6

True or false: a principal is not liable for harm caused to a third party by an agent acting in the scope of employment?

Answer 6

FALSE

Question 7

True or false: both parties to an agency have the right to terminate the agency at any time?

Answer 7

False. Both parties have the power to terminate at any time, but not the right

Question 8

True or falseL if a principal does not ratify an otherwise unauthorized contract, the principal is not bound?

Answer 8

TRUE

Question 9

True or false: an e-agent is a person?

Answer 9

FALSE

Question 10

True or false: when n agent enters into a contract on behalf of a principal, the principal must ratify the contract to be bound?

Answer 10

FALSE

Question 11

Elman is an officer for Fizzy Frothy Corporation. When acting for Fizzy in ordinary business situations, Elman is
a. an agent.
b. an agent and a principal.
c. a principal.
d. neither an agent nor a principal.

Answer 11

an agent.

Question 12

Campbell is a salesperson for DownRiver Enterprises, Inc. In determining whether Campbell is DownRiver’s employee or an independent contractor, the most important factor is what?

Answer 12

the degree of control that DownRiver exercises over Campbell

Question 13

Estimable Finance Company hires Flotilda, who holds herself out as possessing special accounting skills, to act as its agent. As an agent, Flotilda must use the degree of skill or care expected of
a. an average, unskilled person.
b. a person having those special skills.
c. reasonable person.
d. Estimable Company.

Answer 13

a person having those special skills. In performing an agency, an agent is expected to use reasonable diligence and skill, which is the degree of skill of a reasonable person under similar circumstances. If an agent claims special skills, such as those of in this problem, he or she is expected to use those skills

Question 14

Gregg, a salesperson at Hubris Electronics store, tells Irma, a customer, “Buy your home theatre system here, and I’ll set it up for less than what Hubris would charge.” Irma buys the system, Gregg sets it up, and Irma pays Gregg, who keeps the money. Gregg has breached the duty of
a. loyalty.
b. notification.
c. obedience.
d. performance.

Answer 14

Loyalty

Question 15

Juicy Beverage Company hires Keith to manage one of its kiosks. Although their employment agreement says nothing about Keith being able to hire employees to work in the kiosk, Keith has this authority. This is
a. apparent authority.
b. express authority.
c. imaginary authority.
d. implied authority.

Answer 15

Implied authority

Question 16

Metro Movie Company employs Nora as an agent. To terminate her authority, Metro must notify
a. Nora and third parties who know of the agency relationship.
b. only Nora.
c. only third parties who know of the agency relationship.
d. the public generally.

Answer 16

Nora and third parties who know of the agency relationship. Until an agent is notified of the principal’s decision to terminate the agency relationship, the agent’s authority continues. Similarly, third parties with whom the agent deals must be informed of the termination to end the agent’s apparent authority, as regards those third parties.

Question 17

Questa Products Company requires its customers to pay by check. Ray, a Quality agent, tells customers that they can pay him with cash. Questa learns of Ray’s collections, but takes no action to stop them. Ray steals some of the cash. Questa may be liable for the loss under the doctrine of
a. apparent authority.
b. express authority.
c. imaginary authority.
d. implied authority.

Answer 17

apparent authority

Question 18

Swifty Delivery Company employs Taesha as a driver. While acting within the scope of employment, Taesha causes an accident in which Vaughn is injured. Vaughn can recover from

a. neither Swifty nor Taesha.
b. Swifty only.
c. Swifty or Taesha.
d. Taesha only.

Answer 18

Swifty or Taesha

Question 19

Benjamin works for The Cabinet Maker, a large manufacturing plant that makes ready-to-hang cabinets for the kitchen and bath. Benjamin is running a table saw that cuts wood into strips to make a cabinet. As Benjamin loads wood onto the conveyer belt, he slips on the concrete floor and falls into the table saw. Benjamin’s face and arms are severely injured by the table saw, and he is rushed to the hospital. Benjamin’s injuries are so severe that he is admitted to the hospital for four days. The Cabinet Maker must file a report of Benjamin’s work-related injury with the Occupational Safety and Health Administration (OSHA) within

48 hours.

8 hours.

24 hours.

one week.

Answer 19

24 hours

Question 20

Gerald has been a sales representative for Goldsmith’s Department Store for the past 5 years. When Gerald was hired, the general manager told Gerald that he would have a job there as long as he made $3,000 in sales each month. Every month, Gerald has exceeded that level in sales, so he is surprised when his supervisor calls him into the office and fires him. Gerald tells the supervisor about the promise from the general manager not to fire him as long as his sales were $3,000 each month. The supervisor responds by telling Gerald that the law in this state is employment at will, so he can fire him at any time for any reason. If Gerald sues Goldsmith’s for wrongful termination, he will likely

be successful because the general manager orally promised him that he would remain in his job as long as his sales stayed at a specific level, and he has maintained that level.

be successful because employment at will does not mean that an employee can be fired at any time for any reason.

not be successful because employment at will means that an employee can be fired at any time for any reason.

not be successful because the promise from the general manager was not in writing.

Answer 20

be successful because the general manager orally promised him that he would remain in his job as long as his sales stayed at a specific level, and he has maintained that level.

Question 21

Onida is an employee at Kale’s Manufacturing Company. The company makes bicycle tires, and Onida’s job is to inspect the inner tubes before they are inserted into the tires. She recently noticed that the inner tubes are thinner than the safety specifications require. Onida tells her supervisor, Tom, about the problem, and is instructed to ignore it because these thinner tubes save the company money. Onida cannot ignore this problem in good conscience, so she tells Tom that if he is not going to report the problem, she will. Tom then fires Onida. Kale’s Manufacturing Company is in an employment-at-will state. If Onida brings a lawsuit for wrongful termination, she will likely

be unsuccessful because employment at will means that an employee can be fired at any time for any reason.

be unsuccessful because she refused to follow her supervisor’s directions.

be successful because employment at will means that a company must have a valid reason for terminating an employee.

be successful because she was fired for an unlawful reason.

Answer 21

be successful because she was fired for an unlawful reason.

Question 22

Rosemary’s son Dave is a United States Marine. Dave was recently injured in a covert operation in the Middle East and now needs round-the-clock care. Rosemary works at the Silver Spoon Café, which has 63 employees. Rosemary advises her supervisor that she needs to take time off to care for Dave. Rosemary quickly uses up all her accrued leave time, so she applies for time off under the Family and Medical Leave Act (FMLA). Under the FMLA, Rosemary may take unpaid time off to care for her injured son for up to

12 weeks.

15 weeks.

26 weeks.

10 weeks.

Answer 22

26 weeks.

Question 23

Mateo is 16 years old and just got his first job bagging groceries at Harry’s Market, a local grocery store. During the school year, Mateo works limited hours after school and on the weekends. Now that school is out, Harry’s Market increases Mateo’s hours to 6 days a week and 8 hours a day. Mateo’s mother Isabel is concerned about Mateo working such long hours. She knows there is a federal law, the Fair Labor Standards Act (FLSA), that protects children from working long hours and too many days per week. When Isabel raises the issue with Mateo’s supervisor, Mateo’s supervisor explains to Isabel that

under the FLSA, children who are 16 or 17 years old may work unlimited hours as long as they work in nonhazardous jobs.

under the FLSA, children under 18 must work less than 30 hours per week.

under the FLSA, children under 18 must work less than 40 hours per week.

under the FLSA, children under 18 must work less than 35 hours per week.

Answer 23

under the FLSA, children who are 16 or 17 years old may work unlimited hours as long as they work in nonhazardous jobs.

Question 24

True or false: Drug testing by private employers is permitted?

Answer 24

TRUE

Question 25

True or false: There are no exceptions to the employment “at will” doctrine?

Answer 25

FALSE

Question 26

True or false: Employers are required to establish retirement plans for their employees?

Answer 26

FALSE. Employers are free to offer employees no benefits

Question 27

True or false: Federal wage-hour laws cover all employers engaged in interstate commerce?

Answer 27

TRUE

Question 28

True or false: Whistleblower statutes protect employers from workers’ disclosure of the employer’s wrongdoing?

Answer 28

FALSE

Question 29

True or false: Under federal law, employers can monitor employees’ personal communications?

Answer 29

FALSE. The Electronic Communications Privacy Act prohibits the interception of telephone (and other electronic) communications.

Question 30

True or false: Workers’ compensation laws cover all employees in all states?

Answer 30

FALSE

Question 31

True or false: Except to investigate theft, employers cannot order employees to take lie-detector tests?

Answer 31

TRUE

Question 32

True or false: Children fourteen and older can work in hazardous occupations?

Answer 32

FALSE

Question 33

True or false: Some employees can continue their group health benefits after a loss of employment?

Answer 33

TRUE

Question 34

Flash in the Pan is a fast-food restaurant. To verify Flash in the Pan’s compliance with statutes governing employees’ wages and hours, its personnel records should be checked against the provisions of
a. the Fair Labor Standards Act.
b. the Family and Medical Leave Act.
c. the Occupational Safety and Health Act.
d. the Worker Adjustment and Retraining Notification Act

Answer 34

The Fair Labor Standards Act.

Question 35

Interstate Distributors, Inc., is investigating losses due to theft. Without violating employees’ rights of privacy, Interstate may
a. monitor all employee phone conversations only.
b. require employees to take lie-detector tests only.
c. monitor all employee phone conversations and require employees to take lie-detector tests.
d. none of the choices.

Answer 35

Require employees to take lie-detector tests only.

Question 36

Erin, an employee of First-Stop Machine Shop, is injured. For Erin to receive workers’ compensation, the injury must be
a. accidental and arise out of a preexisting disease or condition.
b. accidental and occur on the job or in the course of employment.
c. intentional and arise out of a preexisting disease or condition.
d. intentional and occur on the job or in the course of employment

Answer 36

Accidental and occur on the job or in the course of employment.

Question 37

Michelle, an employee of Neverquit Company, is covered by federal overtime provisions. These rules apply only after an employee has worked more than
a. eight hours in a day.
b. five days in a week.
c. forty hours in a week.
d. 160 hours in a month.

Answer 37

Forty hours in a week. Under the Fair Labor Standards Act, employees must be paid no less than one and a half times their regular pay for all hours that they work over forty in a week. Various categories of workers, including executives, administrative employees, professional employees, outside salespersons, and computer employees, are exempt if their pay exceeds a certain amount, their duties do not include certain types of work, and they meet other requirements.

Question 38

Rose is an employee of Soaring Sales Company. Rose and Soaring contribute to the federal social
security system under
a. the Employee Payments Act.
b. the Employment Retirement Income Security Act.
c. the Federal Insurance Contributions Act.
d. the Federal Unemployment Tax Act.

Answer 38

The Federal Insurance Contributions Act.

Question 39

Digby Road Construction, Inc., sets up a pension fund for its employees. Digby’s operation of the
fund is regulated by
a. the Employer Payments Act.
b. the Employment Retirement Income Security Act.
c. the Federal Insurance Contributions Act.
d. the Federal Unemployment Tax Act

Answer 39

The Employment Retirement Income Security Act. The Employment Retirement Income Security Act (ERISA) covers such employers.

Question 40

7. Fruit Packaging Corporation provides health insurance for its 150 employees, including Gladys, When Gladys takes twelve weeks’ leave to care for her child, she
   a. can collect “leave pay” equal to twelve weeks’ of health insurance coverage.
   b. can continue her heath insurance at Fruit Packaging’s expense.
   c. can continue her heath insurance at her expense.
   d. loses her heath insurance immediately on taking leave

Answer 40

Can continue her heath insurance at Fruit Packaging’s expense.

Question 41

Reba works for Silo Storage Company as an at-will employee. This employment may be terminated at any time for any reason by
a. neither Reba nor Silo Storage,
b. Reba only.
c. Reba or Silo Storage.
d. Silo Storage only.

Answer 41

Reba or Silo Storage. When an employment relationship is “at will,” either the employer or the employee may terminate it at any time-and for any reason.

Question 42

Millions Mining Company is a private employer that wants to test its employees for drug use. This testing may
a. be limited or prohibited at the sole discretion of the employer.
b. be limited or prohibited under a state constitution, statute, or court decision.
c. not be permitted under any circumstances.
d. not be prohibited under any circumstances.

Answer 42

Be limited or prohibited under a state constitution, statute, or court decision.

Question 43

Bernard and Hilda have both worked for Home Refinance Inc. for many years. Bernard has been with the company for 15 years, and Hilda has been with the company for 9 years. Both Bernard and Hilda are loan managers for the company, so they perform the exact same duties. Hilda discovers that Bernard’s salary is 20 percent higher than hers. She cannot believe that she is paid less for the same job just because she is a woman. If Hilda sues the company over the disparity in pay, Hilda’s lawsuit will likely

succeed because companies must pay men and women the same salary for the same work.

fail because companies do not have to pay men and women the same salary.

succeed if Hilda can get their paycheck stubs admitted into evidence.

fail if Home Refinance can prove the difference in pay is due to Bernard’s seniority.

Answer 43

fail if Home Refinance can prove the difference in pay is due to Bernard’s seniority.

Question 44

Fritz applies for a job as a waiter at Mexico Cantina. Three positions are available, but he is not hired for any of them. Fritz inquires about his application and is informed by the restaurant manager that they could not hire him because he is not Hispanic. Fritz is told that Mexico Cantina wants its patrons to experience an authentic Mexican dining event in its restaurant, so Mexico Cantina will only hire female Mexican wait staff, who are then required to dress in traditional Mexican outfits. Fritz sues for employment discrimination, claiming that Mexico Cantina discriminated against him because he is not Hispanic. Mexico Cantina responds to the lawsuit by claiming that being female and Hispanic are bona fide occupational qualifications (BFOQ). Fritz will probably

lose the lawsuit because gender is a bona fide occupational qualification.

lose the lawsuit because race is a bona fide occupational qualification.

win the lawsuit because gender is a bona fide occupational qualification.

win the lawsuit because race is not a bona fide occupational qualification.

Answer 44

win the lawsuit because race is not a bona fide occupational qualification.

Question 45

The faculty at Hopeland University have always been predominantly white. Concerned that it may be discriminating against potential nonwhite faculty members, Hopeland institutes an affirmative action program that provides that 50 percent of any new faculty positions at the university will be reserved for nonwhite applicants. Clara, who is white, applies for a faculty position at Hopeland. The position is given to a black applicant, even though Clara has more teaching experience and higher educational credentials. When Clara challenges the hiring decision by claiming that the Hopeland University affirmative action program violates the Equal Protection Clause of the Fourteenth Amendment:

she will not be successful because the Hopeland University affirmative action program does not use quotas.

she will not be successful because the Hopeland University affirmative action program uses quotas.

she may be successful because the Hopeland University affirmative action program does not use quotas.

she may be successful because the Hopeland University affirmative action program uses quotas.

Answer 45

she may be successful because the Hopeland University affirmative action program uses quotas.

Question 46

Bill and Mark have lived together for 20 years, and they finally decide to get married. Three days after their marriage, Bill returns to his job at Hometown Furnishings. When his supervisor finds out that Bill has just gotten married to a man, she immediately fires Bill. Bill is devastated; he has worked for Hometown Furnishings for 5 years and never had an issue of any kind. The next day, Bill and Mark go to see an attorney to discuss Bill’s options. The attorney will likely advise Bill that

Hometown Furnishings could fire him for any reason, based on the principle of employment at will.

Hometown Furnishings firing him because he is gay violates the Civil Rights Act of 1964.

Hometown Furnishings firing him is a violation of the Lily Ledbetter Fair Pay Act.

Hometown Furnishings firing him is reverse discrimination and, therefore, illegal.

Answer 46

Hometown Furnishings firing him because he is gay violates the Civil Rights Act of 1964.

Question 47

Daria applies for a position at Corinthian Tire Works as an assembly line worker. The only requirements for the job are a high school diploma and the ability to lift 30 pounds. Daria is called in for an interview with the supervisor, Edwardo. The interview goes very well, and Daria is sure she will get the job. Three days later, however, Daria receives a phone call from Edwardo informing her that she did not meet their needs. Edwardo states to Daria that they need to make sure their employees have the stamina required for the job. Daria remembers that during the interview Edwardo kept looking at her medical alert bracelet, which she wears because she is a diabetic. If Daria decides to sue Corinthian Tire Works for discrimination based on disability

Daria will likely not be successful because under the employment at will doctrine Corinthian can hire whichever employees it desires.

Daria will likely not succeed because diabetes does not qualify as a disability under federal law.

Daria will likely succeed if she can show that her being a diabetic is the only reason she was denied the position because diabetes qualifies as a disability under federal law.

Daria will likely succeed if she can show that her being a diabetic is one of the reasons she was denied the position because diabetes qualifies as a disability under federal law.

Answer 47

Daria will likely succeed if she can show that her being a diabetic is the only reason she was denied the position because diabetes qualifies as a disability under federal law.

Question 48

True or false: Once an affirmative action program has succeeded, it must be changed or dropped?

Answer 48

TRUE

Question 49

True or false: In a sexual harassment case, where an employee harasses another employee, an employer cannot be held liable for the actions of an employee?

Answer 49

FALSE

Question 50

True or false: In a sexual harassment case, an employer cannot be held liable for the actions of a nonemployee?

Answer 50

FALSE

Question 51

True or false: Women affected by pregnancy must be treated for all job-related purposes the same as persons not so affected but similar in ability to work?

Answer 51

TRUE

Question 52

True or false: Employment discrimination against persons with a physical or mental impairment that substantially limits their everyday activities is prohibited?

Answer 52

TRUE

Question 53

True or false: Discrimination complaints brought under federal law must be filed with the Equal Opportunity Employment Commission?

Answer 53

TRUE

Question 54

True or false: If the Equal Employment Opportunity Commission decides not to investigate a claim, the victim has no other option?

Answer 54

FALSE

Question 55

True or false: All employers are subject to Title VII of the Civil Rights Act of 1964?

Answer 55

False. Title 7 only covers employers with 15 or more employees

Question 56

True or false: Disparate-treatment discrimination occurs when an employer intentionally discriminates against an employee?

Answer 56

TRUE

Question 57

True or false: Title VII prohibits employers and unions from discriminating against persons because of their
religions?

Answer 57

TRUE

Question 58

Dona applies to Estuary Management Corporation for an administrative assistant’s job, which requires certain typing skills. Dona cannot type but tells Estuary that she is willing to learn. Estuary does not hire her, and she later sues. To successfully defend against the suit under Title VII, Estuary must show that
a. being a member of the majority is a BFOQ.
b. Dona was not willing to learn to type.
c. Estuary has a valid business necessity defense.
d. Estuary’s work force reflects the same percentage of members of a protected class that characterizes qualified individuals in the local labor market.

Answer 58

Estuary has a valid business necessity defense.

Question 59

Greg and Holly work for Interstate Services, Inc. (ISI), as electrical engineers. Greg is paid more than Holly because, according to ISI, he is a man with a family to support. This is prohibited by
the Age Discrimination in Employment Act of 1967.
b. the Americans with Disabilities Act of 1990.
c. the Equal Pay Act of 1963.
d. none of the choices.

Answer 59

the Equal Pay Act of 1963.

Question 60

Neville, who is hearing impaired, applies for a position with Mold Casters Company. Neville is qualified but is refused the job and sues Mold Casters. To succeed under the Americans with Disabilities Act, Neville must show that
a. Neville was willing to make a “reasonable accommodation” for Mold Casters.
b. Neville would not have to accept “significant additional costs” to work for Mold Casters.
c. Mold Casters refused to make a “reasonable accommodation” for Neville.
d. Mold Casters would not have to accept “significant additional costs” to hire Neville.

Answer 60

Mold Casters refused to make a “reasonable accommodation” for Neville.

Question 61

Insurance Sales, Inc., promotes employees on the basis of color. Employees with darker skin color are passed over in favor of those with lighter skin color, regardless of their race. This is prohibited by
a. the Americans with Disabilities Act of 1990.
b. the Equal Pay Act of 1963.
c. Title VII of the Civil Rights Act of 1964.
d. none of the choices.

Answer 61

Title VII of the Civil Rights Act of 1964.

Question 62

Mina is an employee of Widebody Trucking Corporation. Mina attempts to resolve a gender- based discrimination claim with Widebody, whose representative denies the claim. Mina’s next best step is to
a. ask the Equal Opportunity Employment Commission whether a claim is justified.
b. file a lawsuit.
c. forget about the matter.
d. secretly sabotage company operations for revenge

Answer 62

Ask the Equal Opportunity Employment Commission whether a claim is justified.

Question 63

Curt, personnel director for Digital Products, Inc., prefers to hire Asian Americans, because “they’re smarter and work harder” than other minorities. This is prohibited by
a. the Age Discrimination in Employment Act of 1967.
b. the Americans with Disabilities Act of 1990.
c. Title VII of the Civil Rights Act of 1964.
d. none of the choices

Answer 63

Title VII of the Civil Rights Act of 1964.

Question 64

Simplex Corporation terminates Tom, who sues on the basis of age discrimination. To succeed under the Age Discrimination in Employment Act, Tom must show that at the time of the dis- charge, he was
a. forty or older.
b. forty or younger.
c. replaced with someone forty or older.
d. replaced with someone forty or younger

Answer 64

Forty or older.

Question 65

Heavy Equipment Company requires job applicants to pass certain physical tests. Only a few female applicants can pass the tests, but if they pass, they are hired. To successfully defend against a suit on this basis under Title VII, the employer must show that
a. any discrimination is not intentional.
b. being a male is a BFOQ.
C. passing the tests is a business necessity.
d. some men cannot pass the tests.

Answer 65

Passing the tests is a business necessity.

Question 66

Dex and Erin work for Citycore Promotions Company. Dex is Erin’s supervisor. During work, he touches her in ways that she perceives as sexually offensive. She resists the advances. He cuts her pay. Citycore is
a. liable, because Dex’s conduct constituted sexual harassment.
b. liable, because Erin resisted Dex’s advances.
c. not liable, because Dex’s conduct was not job-related.
d. not liable, because Erin resisted Dex’s advance

Answer 66

Liable, because Dex’s conduct constituted sexual harassment.

Question 67

Tallahassee Furniture Company, a local company with over 50 employees has a policy concerning all employees must be clean shaven. Bob applies for a job at the company. He has a beard and is an African American. Bob is told to have the job at the company, he must shave his beard. He refuses to shave his beard because he suffers from painful shaving bumps, a condition which is remedied by growing a beard. This condition is common among African American men. Bob is not offered the job. If Bob sues Tallahassee Furniture Company for discrimination, what does Bob have to prove to win his case:
a. The company has a neutral policy that is neutrally
applied;
b. The company’s policy has a significant adverse
impact on a protected class;
c. The company does not have a legitimate business
reason for its policy;
d. A and B are both correct;
e. A, B and C are all correct.

Answer 67

A and B are both correct