Business Law
Exam Practice Tests
Course Introduction
Business Law provides an in-depth exploration of the legal principles and frameworks that govern commercial transactions and the business environment. The course covers key topics such as contract law, agency, sales of goods, negotiable instruments, employment law, and the formation and operation of different business entities. Students will gain an understanding of the rights and responsibilities of businesses and individuals, as well as how legal considerations impact managerial decision-making and everyday business practices. Through case studies and practical examples, learners will develop the analytical skills necessary to identify and address legal issues in business contexts.
Recommended Textbook
Employment and Labor Law 9th Edition by
Patrick J. Cihon
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22 Chapters
1403 Verified Questions
1403 Flashcards
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Chapter 1: First the Forest, Then the Trees:an Overview of Employment and Labor Law
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Sample Questions
Q1) The Taft-Hartley Act was a federal statute, which enacted unfair labor practices for which unions might be charged or punished.
A)True
B)False
Answer: True
Q2) The new laws and common-law legal theories have often supplanted labor unions as the main source of legal protection for American workers.
A)True
B)False
Answer: True
Q3) Federal legislation such as the Federal Employers Liability Act (1908) and the Railway Labor Act (1926) allowed for alternative methods for dispute resolution, first in the railroad, and later in the airline industry.
A)True
B)False
Answer: True
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Chapter 2: Employment Contracts and Wrongful Discharge
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Q1) What is META? Explain the importance of Section 3(a) of META.
Answer: META stands for Model Employment Termination Act and Section 3(a) of META prohibits the employers from terminating the employees from employment without having good reasons.
Q2) An act that contains anti-retaliation provisions is:
A) the Equal wage Act.
B) the Civil Procedure Act.
C) the Gender Discrimination Act.
D) the Occupational Safety and Health Act.
Answer: D
Q3) Section 3(a) of the Model Employment Termination Act states "an employer may terminate the employment of an employee without good cause.
A)True
B)False
Answer: False
Q4) When did the employment-at-will doctrine become the norm in American common law?
Answer: The employment-at-will doctrine became the norm in 19th century American common law.
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Chapter 3: Commonly Committed Workplace Torts
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Q1) How can a person be immune from a defamation suit if he is protected by qualified privilege?
Answer: If a person is protected by qualified privilege his remarks will be immune from defamation suit, provided he made them in good faith.
Q2) Qualified privilege is recognized by law.
A)True
B)False
Answer: True
Q3) Why have some courts been reluctant to adopt the tort of intentional infliction of emotional distress?
Answer: Courts have been concerned that in the absence of physical injury, plaintiffs can readily fake emotional distress and win undeserved verdicts, and, hence, have been reluctant to adopt this tort.
Q4) What is the remedy for an employer in case of theft of trade secrets by a former employee?
Answer: Employers whose employees misappropriate trade secrets for their own use or for the benefit of a new employer, are entitled to obtain an injunction (court order) putting a stop to such illegal behavior.
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Page 5
Chapter 4: Employee Privacy Rights in the 21st Century
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Sample Questions
Q1) What tort is committed when the privacy rights of private employees disregarded?
Q2) In Marken v.Santa Monica-Malibu Unified School Dist. the court found that the district's planned disclosure of personnel files:
A) did not violate the teacher's right to privacy under state constitution.
B) did violate the teacher's right to privacy under state constitution.
C) was unconstitutional.
D) was false light invasion of privacy.
Q3) Drug testing is mandatory under the Drug-Free Workplace Act for employers who work in:
A) the legal department of private sectors.
B) chemical factories.
C) educational institutes.
D) public sector organizations.
Q4) The Fourth Amendment of the U..Constitution provides protection to public employees.
A)True
B)False
Q5) Describe malice in the context of defamation and invasion of privacy.
Q6) Elaborate on the policy regarding employee personal files.
Q7) What does surveillance and eavesdropping mean?
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Chapter 5: The Global Perspective:international
Employment Law and American Immigration Policy
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Q1) Which one of these following is an organization which is aimed at meeting the globalization of corporations, trade, and manufacturing?
A) International Labor Organization (ILO)
B) American Federation of Labor/Congress of Industrial Organization (AFL-CIO)
C) Union Network International (UNI)
D) Department of States (DOS)
Q2) UNI claims that signing global agreements with targeted companies would lead to the organization's focus going backward.
A)True
B)False
Q3) As a general proposition, immigration law and policy are not deemed to be the exclusive provinces of the federal government.
A)True
B)False
Q4) What is the role of U..Citizenship and Immigration Services (USCIS)?
Q5) Outline the duties of the International Labor Organization (ILO).
Q6) State the purpose of the Immigration Reform and Control Act (IRCA) of 1986.
Q7) What does the Alien Tort Claims Act provide?
Q8) What is the purpose of the Immigration Reform and Control Act (IRCA) of 1986? Page 7
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Page 8
Chapter 6: Title VII of the Civil Rights Act and Race Discrimination
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Sample Questions
Q1) Which of the following statement pertains to criterion-related validity?
A) It is a means of measuring whether the requirement or test actually evaluates abilities required on the job.
B) The specific traits or constructs for the test may be based on observations but cannot be measured directly.
C) It concerns the statistical correlation between scores received on tests and job performance.
D) It is a means of isolating and testing for specific traits or characteristics that are deemed essential for job performance.
Q2) In EEOC v.Dial Corp. after the Work Tolerance Screen (WTS) was adopted:
A) the percentage of new female hires declined.
B) the percentage of new female hires significantly increased.
C) the percentage of new hires from minority groups declined.
D) the percentage of new male hires significantly declined.
Q3) Seniority, or the length of service on the job, is frequently used to determine entitlement to employment benefits, promotions, or transfers, and even job security itself.
A)True
B)False
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Chapter 7: Gender and Family Issues:title VII and Other Legislation
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Sample Questions
Q1) A transport company had a policy that required every female employee to go through a mandatory physical examination prior to a promotion.However, the test was not mandatory for male candidates.A group of female candidates filed a lawsuit against the company.In this instance, the court most likely held that the company violated:
A) Title VII, on the basis of gender stereotyping.
B) Title VII, on the basis of gender-plus discrimination.
C) Title VII, on the basis of national origin.
D) National Labor Relation Act.
Q2) Samantha worked as an ocean lifeguard for the Marine Safety Section of the Parks and Recreation Department.Her immediate supervisor was Bruce.Bruce repeatedly touched Samantha without invitation and passed sexual comments on her.In this case, Samantha has a legal remedy in the form of:
A) injunction.
B) imprisonment.
C) liquidated damages.
D) specific performance.
Q3) What are the important aspects of the Family and Medical Leave Act?
Q4) What is sexual harassment? Explain employer liability for sexual harassment.
Q5) Define the Bennett Amendment.
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Chapter 8: Discrimination Based on Religion and National
Origin and Procedures Under Title VII
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Q1) Unions and employers generally agree that any dispute arising under their collective agreements will be settled through arbitration.
A)True
B)False
Q2) Identify the case in which the Court of Appeals held that the employer had committed an unlawful employment practice under Section 703(a)(1) of the Act.
A) Trans World Airlines v.Harry
B) Atkinson Airlines v.Hudson
C) Starbucks Airlines v.Hardsen
D) Trans World Airlines v.Hardison
Q3) Which of the following employees are subject to Title VII through the Congressional Accountability Act of 1995?
A) National Labor Relations Board counselor
B) Capitol Guide Service
C) Office of the Architect of the Supreme Court
D) Office of the Attending Physician of the U..Attorney General.
Q4) The EEOC enforces federal laws prohibiting employment discrimination.
A)True
B)False
11
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Chapter 9: Discrimination Based on Age
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Sample Questions
Q1) The Equal Employment Opportunity Commission administers and enforces the Age Discrimination in Employment Act (ADEA).
A)True
B)False
Q2) A plaintiff who alleges violation under the Age Discrimination in Employment Act (ADEA) must establish:
A) directed verdict.
B) privacy of contract.
C) a prima facie case.
D) a suo moto case.
Q3) Complaints must be filed within 180 days of alleged ADEA violations with the Equal Employment Opportunity Commission.
A)True
B)False
Q4) When is arbitration for ADEA claims enforced?
Q5) The Age Discrimination in Employment Act (ADEA) recognizes that age maybe a bona fide occupational qualification for some jobs.
A)True
B)False
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Chapter 10: Discrimination Based on Disability
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Sample Questions
Q1) In Severino v.North Fort Meyers Fire Control Dist. it was held that a firefighter who was HIV-positive was reasonably accommodated under the Rehabilitation Act by being reassigned to light duties because the medical evidence indicated a risk of transmission of his disease to others during:
A) communication with others.
B) rescue operations.
C) training.
D) meal times.
Q2) Wills appeared for a written examination for a job in the Department of Health in Federal Government.He was selected for the particular job, but the head of the department disqualified him on the ground of disability.In this case, 501 of the Rehabilitation Act, prohibits discrimination on the basis of disability by the:
A) jury.
B) state executive.
C) federal executive.
D) state legislature.
Q3) Explain the provisions of the ADA.
Q4) What is the constitutional validity of drug testing by public sector employment?
Q5) What is the consequence for failure to make reasonable accommodation?
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Chapter 11: Other EEO and Employment Legislation:federal and
State Laws
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Sample Questions
Q1) The federal Employee Polygraph Protection Act of 1988 prohibits honesty testing.
A)True
B)False
Q2) Employees who were ordered to active military service are entitled to reinstatement and employee benefits if they meet the following requirements except:
A) they gave the employer notice of the period of military service.
B) they are absent for a cumulative total of less than five years.
C) they were initially employed for a brief, nonrecurring period.
D) they submitted an application for reemployment within the designated time period.
Q3) Except in those instances where sex may be a BFOQ, all state EEO laws, in terms or conditions of employment, prohibit the discrimination on the basis of:
A) age.
B) gender.
C) sexual orientation.
D) race.
Q4) Who administers the contract compliance program?
Q5) Define affirmative action plans.
Q6) What are the requirements of strict scrutiny test?
Page 14
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Chapter 12: The Rise of Organized Labor and Its Regulatory Framework
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Q1) One of the grounds on which the National Labor Relations Board will review an election is if:
A) the majority of employees demand review.
B) the procedure involved some error that prejudiced a party.
C) there is a tie among the parties.
D) the parties demand review.
Q2) What does Section 103 the Labor-Management Reporting and Disclosure Act deal with?
Q3) Section 2(3) of the NLRA, in its definition of "employee" expressly excludes:
A) factory workers.
B) supervisors.
C) federal employees.
D) labor unions.
Q4) The NLRB adopted an administrative organization that made it prosecutor, judge, and jury with regard to complaints under the act because the Wagner Act gave little guidance concerning the administrative structure of the agency.
A)True
B)False
Q5) Discuss the Congress of Industrial Organizations.
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Chapter 13: The Unionization Process
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Q1) Any employee, group of employees, or labor organization can file a petition seeking a representation election or a decertification election on behalf of the employees as a whole.
A)True
B)False
Q2) Economic strikes are strikes over economic issues, such as grievances or a new contract.
A)True
B)False
Q3) The labor union at the National Textile Industry decided to go for a strike in order to press for increased wages and other benefits in industry.This strike would be called a(n):
A) unfair labor practice strike.
B) whipsaw strike.
C) economic strike.
D) surveillance strike.
Q4) What is the relevance of filing objection after election has been conducted?
Q5) What is the significance of Section 9(e)(1) of the NLRA pertaining to election?
Q6) While determining the bargaining agent, on what grounds the can the Board decision be appealed in Washington?
Page 16
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Chapter 14: Unfair Labor Practices by Employers and Unions
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Q1) What are the remedies for violation of Section 8(a)(2) of NLRA?
Q2) Which act defines unfair labor practices?
Q3) List the various types of employer conduct considered illegal under section 8(a) of National Labor Relation Act.
Q4) What are antiunion remarks?
Q5) Management at Freedom Solar Technologies Inc.supported a captive union in their company that, while creating an impression of collective input, allowed management control.As this type of employer domination is outlawed under Section 8(a)(2), the company may apply any of the remedies mentioned below except:
A) to disband an in-house or captive union.
B) to support and encourage the majority union.
C) to cancel any agreements reached with the union.
D) to cease recognizing the union.
Q6) Multiemployer bargaining is not mentioned in Section 8(b)(1)(B) of NLRA.
A)True
B)False
Q7) Weingarten rights are not available to nonunion employees.
A)True
B)False
Page 17
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Chapter 15: Collective Bargaining
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Q1) If the employer pleads inability to pay, the union:
A) can demand a lockout.
B) must make a good faith demand for financial information.
C) is entitled to petition the NLRB against the employer.
D) can legally conduct an economic strike.
Q2) Despite the union being certified as bargaining representative, the National Labor Relations Board (NLRB) does not require that the employer recognize and bargain with the union.
A)True
B)False
Q3) To determine whether the union has the majority support for the first twelve months of the strike, the NLRB held that economic strikers must be considered as members of:
A) the global union.
B) a bargaining unit.
C) a labor union.
D) the Federal Mediation and Conciliation Service.
Q4) What are prohibited bargaining subjects?
Q5) What are mandatory bargaining subjects?
Q6) What is meant by "failing firm exception"?
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Chapter 16: Picketing and Strikes
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Q1) _____ requires that the Board seek an injunction against the picketing when a complaint alleging a violation of Section 8(b)(4)(D) is filed.
A) Section 7(a)
B) Section 9(a)
C) Section 10(l)
D) Section 8(a)(4)
Q2) What are the national emergency provisions under the Taft-Hartley Act of 1947?
Q3) Picketing to protest substandard wages paid by an employer is subject to Section 8(b)(7), as long as the union does not have a recognitional object.
A)True
B)False
Q4) Employers are free to permanently replace employees who go on an economic strike.
A)True
B)False
Q5) Briefly discuss state regulation(s) on picketing.
Q6) Section 8(e) allows the negotiation and enforcement of hot cargo clauses.
A)True
B)False
Page 19
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Chapter 17: The Enforcement and Administration of the Collective Agreement
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Q1) Who can file grievances under the collective agreement?
Q2) When arbitration is used to create a new agreement or renew an existing one, it is known as _____ arbitration.
A) mandatory
B) conciliated
C) interest
D) rights
Q3) What happens to the financial obligations of a corporation when it files a petition for the protection of the bankruptcy laws?
Q4) According to the NLRB, an employer unilaterally abrogating an agreement _____ is guilty of violating Section 8(a)(5) of the NLRA.
A) before reelecting the bargaining unit
B) after modifying it terms and conditions
C) that is under consideration of the NLRB
D) without obtaining bankruptcy court relief
Q5) Define grievance process.
Q6) What conditions should be met by an employer petitioning for bankruptcy protection to reject the collective agreement?
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Chapter 18: The Rights of Union Members
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Q1) Briefly describe the union members' bill of rights.
Q2) Which of the following is not true of the "duty of fair representation" in a dispute?
A) The duty of fair representation arose out of the union's exclusive bargaining agent status under the Railway Labor Act.
B) The duty of fair representation is also extended to unions granted bargaining agent status under Section 9(a) of the NLRA.
C) Unions, in representing employees, must make unilateral decisions that affect all employees in equally.
D) The Supreme Court held that unions should be given broad discretion by the courts in negotiation practices.
Q3) Explain the election procedure and requirements for election under Section 401 of the LMRDA?
Q4) What is meant by exhausting internal remedies?
Q5) One of the remedies available under Section 301 of the NLRA is:
A) imprisonment.
B) injunction.
C) forfeiture.
D) confiscate.
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Chapter 19: Public Sector Labor Relations
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Q1) The employees of the U.._____ are not subject to the Federal Service Labor-Management Relations Act (FSLMRA).
A) Transport Services
B) Judicial Service
C) Military Service
D) Postal Service
Q2) The Civil Service Act passed in the year 1883 is also known as the:
A) Equal Pay Act.
B) Thurmond Act.
C) Pendleton Act.
D) Hatch Act.
Q3) What does the collective bargaining for the public sector employees involve?
Q4) The Civil Service Act granted the Congress the sole authority to set wages, hours, and other terms and conditions of federal employment.
A)True
B)False
Q5) Explain briefly the conditions of employment of the Federal Service Labor-Management Relations Act.
Q6) What is the importance of the Federal Mediation and Conciliation Service?
Page 22
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Chapter 20: Occupational Safety and Health
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Q1) When it comes to worker violence or threats of violence, employers have adopted the policies of:
A) compensation.
B) zero-tolerance.
C) compromise.
D) feasibility.
Q2) The National Institute of Occupational Safety and Health (NIOSH) is an agency created to cater to:
A) employers' needs.
B) dispute settlement.
C) research.
D) corporate investigations.
Q3) The Occupational Safety and Health Act allows the employer and a representative authorized by the employees to accompany the inspector during physical inspection of the work site.
A)True
B)False
Q4) How many agencies are created under the Occupational Safety and Health Act for administration and enforcing the Act?
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Q1) The Employee Retirement Income Security Act imposes standards of conduct and responsibility on fiduciaries of benefit plans established or maintained by employers and unions engaged in or affecting interstate commerce.
A)True
B)False
Q2) Unemployment compensation litigation starts with the active worker's application for benefits.
A)True
B)False
Q3) How much should a worker be credited when he becomes disabled between the ages of thirty-one and forty-two?
A) Twenty-five quarters
B) Thirty-two quarters
C) Twenty quarters
D) Forty-five quarters
Q4) Workers' compensation has been left primarily to the states to administer.
A)True
B)False
Q5) Define unemployment compensation. Page 24
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Page 25
Chapter 22: The Fair Labor Standards Act
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Q1) Which of the following is not a condition for administrative employees to be exempt from overtime and minimum wage requirements under the FLSA?
A) Employee is compensated with a salary of not less than $455 per week.
B) The primary duty is the performance of office work directly related to the management.
C) The primary duty does not include general business operations with the firm's customers.
D) Her/his primary duty includes the exercise of discretion
Q2) In West Coast Hotel Co.v.Parrish, the appellant was in the hotel business.The appellee, Elsie Parrish, was employed as a chambermaid and brought suit to recover the difference between wages paid to her and the wages set as standard.The appellant challenged the act as repugnant to the due process under the _____ of the U..Constitution.
A) First Amendment
B) Fifth Amendment
C) Eleventh Amendment
D) Fourteenth Amendment
Q3) Discuss the provisions regarding child labor under the Fair Labor Standards Act.
Q4) Does the Fair Labor Standards Act (FLSA) prohibit all child labor?
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