Business Law
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Course Introduction
Business Law provides an overview of the legal principles and frameworks that govern commercial transactions and the operation of businesses. The course covers topics such as contract law, agency, sales, business organization structures, employment law, intellectual property, and regulatory compliance. Students will explore the rights and responsibilities of businesses and individuals within various legal contexts, analyze case studies, and understand how laws impact business decisions. By the end of the course, students will be equipped to identify legal risks, interpret relevant legislation, and apply legal reasoning in everyday business situations.
Recommended Textbook
Employment and Labor Law 8th Edition by Patrick J. Cihon
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Page 2
Chapter
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Q1) The Act which is aimed at letting employees know when a plant closing or mass layoff is in the offing is the:
A) Employee Retirement Income Security Act (ERISA).
B) Family and Medical Leave Act (FMLA).
C) Worker Adjustment and Retraining (WARN) Acts.
D) Federal Occupational Safety and Health Act (OSHA).
Answer: C
Q2) In Gilmer v.Interstate/Johnson Lane Corporation,Gilmer alleged that he had been discharged in violation of the:
A) Age Discrimination in Employment Act of 1967.
B) Employee Free Choice Act.
C) Worker Adjustment and Retraining (WARN) Acts.
D) Workers' compensation Act.
Answer: A
Q3) Which Act provides remedies for injured sailors?
A) Marine Labor Standards Act (1938)
B) Merchant Marine (Jones) Act (1936)
C) Navy Labor Relations Act (1935)
D) Social Security Act (1935)
Answer: B
Page 3
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Chapter 2: Employment Contracts And Wrongful Discharge
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Q1) An employee who has not been hired for more than a year can be fired by the employer for any reason or for no reason.This is the doctrine of:
A) self employed.
B) employment-at-will.
C) contractual employed.
D) whistleblowers.
Answer: B
Q2) Section 3(a) of the Model Employment Termination Act (META) protects employees from wrongful termination from employment and states that:
A) an employer may not terminate employment of an employee without good cause.
B) an employer can terminate employment of an employee with perverse reason.
C) an employer cannot terminate an employee without government consent.
D) an employer may not terminate an employee from work without court order.
Answer: A
Q3) Define dicta.
Answer: Opinions of a judge or appellate panel of judges that are tangential to the rule,holding,and decision which are at the core of the judicial pronouncement are known as dicta.
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Chapter 3: Commonly Committed Workplace Torts
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Q1) Define the tort of defamation.
Answer: A communication is defamatory if it tends to harm the reputation of another as to lower him in the estimation of the community or to deter third persons from associating or dealing with him.
Q2) What is qualified privilege and which kind of privilege is provided to public and private employees?
Answer: Immunity from a suit in the absence of malice is known as qualified privilege.Privilege can be absolute or qualified.Public employers may enjoy an absolute privilege or sovereign immunity from lawsuit.Private employers have a qualified privilege,meaning they are protected from lawsuit if they speak without malice.
Q3) Which of the following statements regarding privilege and private employers is accurate?
A) Private employers enjoy absolute privilege.
B) Private employers have qualified privilege.
C) Private employers are protected against suites even if they speak with malice.
D) Private and public employers have sovereign immunity from suites.
Answer: B
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Chapter 4: Employee Privacy Rights In The 21st Century
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Q1) Discuss why genetic testing is one of the most pressing ethical dilemma employers are facing today.
Q2) The most common way employers invade their employees' privacy is to:
A) intrude on their seclusion, solitude or private affairs.
B) probe into their personal lives and medical history.
C) monitor their relationships with individuals at the workplace.
D) request for irrelevant information and past records.
Q3) Which of the following is not part of a typical pre-employment drug testing policy?
A) Applicants will be required to voluntarily submit to a urinalysis test at a laboratory chosen by the company.
B) Any applicant with positive test results will be denied employment at that time.
C) The company will not entertain applications from candidates with a history of drug or alcohol abuse.
D) All job applicants need to undergo screening for the presence of illegal drugs or alcohol as a condition for employment.
Q4) Who are system administrators?
Q5) Identify the entities covered under HIPPA.
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Chapter 5: The Global Perspective: International
Employment Law And American Immigration Policy
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Q1) What are the components of Global Unions?
Q2) Which act sets the conditions for the temporary and permanent employment of aliens in the United States and includes provisions that address employment eligibility and employment verification?
A) Tort Claim Act
B) Immigration Reform and Control Act
C) The Immigration and Nationality Act
D) Torture Protection Claim Act
Q3) The federal statute which provides the cause of action for aggrieved noncitizen residents in the U.S.courts is:
A) National Labor Relations Act.
B) Alien Tort Claims Act.
C) Immigration Reform and Control Act.
D) Torture Victim Protection Act.
Q4) In Chamber of Commerce of U.S.v.Whiting,what act was examined?
A) Alien Tort Claims Act
B) Legal Arizona Workers Act
C) Torture Victim Protection Act
D) Immigration Reform and Control Act
Q5) Outline the duties of the International Labor Organization (ILO).
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Chapter 6: Title Vii Of The Civil Rights Act And Race Discrimination
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Q1) A method of demonstrating that an employment selection device correlates with the skills and knowledge required for successful job performance is called:
A) construct validity.
B) content validity.
C) disparate impact.
D) criterion-related validity.
Q2) A mathematical formula developed by the EEOC to demonstrate disparate impact of a facially neutral employment practice on selection criteria is:
A) the four-fifths rule.
B) disparate treatment.
C) disparate impact.
D) content validity.
Q3) What were the two amendments added to Title VII in 1991?
Q4) Can the use of the seniority system for employment decisions be protected under Title VII? Provide an illustration for your answer.
Q5) The equal employment opportunity legislation prohibits discrimination based on what criteria?
Page 8
Q6) What is bona fide occupational qualification?
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Chapter 7: Gender And Family Issues: Title Vii And Other Legislation
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Q1) Harassment where the employee's response to the harassment is considered in granting employment benefits is called:
A) hostile environment harassment.
B) mental harassment.
C) defamation.
D) quid pro quo harassment.
Q2) Central Airlines decided to give 30% pay hike to stewards and 15% pay hike to stewardesses,even though they were performing substantially similar kind of work.In this case,the airlines has most likely violated the:
A) Wage and Compensation Act.
B) Sarbanes-Oxley Act.
C) National Labor Relation Board.
D) Equal Pay Act.
Q3) When an employer places additional requirements on employees of a certain gender,but not on employees of the opposite gender,this is known as:
A) leave discrimination.
B) sexual harassment.
C) gender-plus discrimination.
D) equal pay discrimination.
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Chapter 8: Discrimination Based On Religion And National
Origin & Procedures Under
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Q1) Discuss the enforcement of Title VII.
Q2) What does Title VII of the Civil Rights Act of 1964 deal with?
Q3) Write down the provision of section 703(g) of Title VII.
Q4) Explain ministerial exemption within the context of Title VII.
Q5) The Civil Rights Act of 1991 amended Title VII to allow recovery of punitive damages in cases in which the employer has engaged in:
A) discrimination based on creed.
B) discrimination based on third party information.
C) religious discrimination.
D) racial discrimination.
Q6) Why should employers avoid arbitrary employment criteria,such as height or weight for applicants?
Q7) In which of the following cases did the Supreme Court uphold the court-ordered affirmative action to remedy prior employment discrimination?
A) New York Gaslight Club v.Carey
B) Local 28, Sheet Metal Workers v.EEOC
C) Christianburg Garment Co.v.EEOC
D) Franks v.Bowman Transportation Co.
Q8) What are the remedies provided under Title VII? Page 10
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Chapter 9: Discrimination Based on Age
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Q1) The complaint of an alleged ADEA violation must be filed with the Equal Employment Opportunity Commission within:
A) 60 days.
B) 180 days.
C) 190 days.
D) 300 days.
Q2) In O'Connor v.Consolidated Coin Caterers Corp.,the court of appeal said that the plaintiff was not able to form a prima facie case of alleged violation because the Age Discrimination in Employment Act (ADEA):
A) applies to employees of age 40 and above.
B) does not provide for disparate impact cases against older officers.
C)did not require the employer to demonstrate any intention to discriminate.
D)focuses on the effects of the action on the employee rather than the motivation for the action of the employer.
Q3) What is bona fide seniority or benefit plan? What is its significance?
Q4) What is meant by "age discrimination in employment" and under which act is it prohibited?
Q5) What are the remedies available for plaintiffs under the Age Discrimination in Employment Act?
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Chapter 10: Discrimination Based On Disability
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Q1) Private Transport Company was hiring for a bus driver position.Trevor was one of the candidates who applied for the job,but his application was rejected due to his poor vision.Trevor filed suit in court stating that the transport company violated ADA by rejecting his job application.In this case,the company most likely has defenses under: A) direct threat to safety.
B) religious entities.
C) health defenses.
D) job-related criteria.
Q2) An individual must first file an ADA complaint with a state or local agency,where appropriate,and then with the: A) EEOC.
B) OSHA.
C) NLRB.
D) U.S.Supreme Court.
Q3) Explain the food handler defense under the ADA.
Q4) Explain the provisions of the ADA.
Q5) What does Section 501 of the Rehabilitation Act deal with?
Q6) What are the defenses available under the ADA?
Q7) What is the American with Disabilities Act?
Page 13
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Chapter 11: Other Eeo And Employment Legislation: Federal And
State Laws
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Q1) Which one of the following legislative protections is mainly designed to protect smokers or tobacco users from employment discrimination as long as their tobacco use is after the working hours?
A) Criminal Record
B) Clean Indoor Air
C) Honesty Testing
D) Off-Duty Conduct
Q2) Employers from discriminating against employees because of their legal off-duty recreational or political activities are prohibited under _____ of the New York State Labor Law.
A) Section 201-a
B) Section 201-d
C) Section 205-d
D) Section 203-b
Q3) Define honesty tests.
Q4) What reasons allow employers not to reinstate employees after their military service?
Q5) What are the exceptions under EPPA to allow polygraph testing?
Q7) Define affirmative action plans. Page 14
Q6) What is the role of Uniformed Services Employment and Reemployment Rights Act?
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Chapter 12: The Rise Of Organized Labor And Its Regulatory Framework
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Q1) In NLRB v.Meenan Oil Co.,L.P.,the National Labor Relations Board filed petitions for enforcement of its order finding against the defendant regarding violation of:
A) Section 9 (a) (2) of the National Labor Relations Act.
B) Sections 8 (a) (1) and (5) of the National Labor Relations Act.
C) Sections 7 (a) (1) and (5) of the National Labor Relations Act.
D) Section 21 of the National Labor Relations Act.
Q2) The American Federation of Labor (AFL) adopted a pattern of union organization based on the British trade union system which provided the members with:
A) workers' compensation.
B) children educational benefit plan.
C) sick and death benefits.
D) housing loans.
Q3) The NLRA exclude all of the following from its definition of employer except:
A) public sector employers
B) railroads.
C) cooperatives.
D) airlines subject to the Railway Labor Act.
Q4) What are the types of legal issues the NLRB handles?
Q5) Explain antitrust laws.
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Chapter 13: The Unionization Process
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Q1) Mr.Todd was elected as a bargaining representative of the labor union at Hudson Manufacturing Company.Later,it was found that Mr.Todd did not have majority support to remain as a bargaining representative.So,a group of employees decided to file a(n) _____ under the provisions of Section 9 (c) (1) of National Labor Relations Act.
A) decertification petition
B) suo moto action
C) appeal
D) quo warranto
Q2) Under the exceptions to the contract bar rule,the Board provides a window,or "open season," during which a rival union can offer its challenge by filing a(n):
A) petition for injunction.
B) petition for summary dismissal.
C) criminal complaint.
D) election petition.
Q3) Which rule bars holding an election in the bargaining unit?
Q4) When should an employer file the election eligibility list in the regional office?
Q5) Explain the two exceptions of contract bar rule.
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Chapter 14: Unfair Labor Practices By Employers And Unions
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Q1) Section 8(a) (1) and Section 8(b) (1) of NLRB,prohibits:
A) union organizing campaigns.
B) strikes by employees.
C) coercion and restraint of employees.
D) poll conducted by employers.
Q2) Requirement of union shop agreement is that,after being hired by employer,employees should join union within:
A) thirty days.
B) forty days.
C) forty five days.
D) sixty days.
Q3) In Guard Publishing Company v.National Labor Relations Board,the court noted that the NLRB had held that,the company had not violated Section 8(a) (1) when it issued a(n):
A) termination order.
B) order to reinstate.
C) injunction.
D) disciplinary warning.
Q4) List the various types of employer conduct considered illegal under section 8(a) of National Labor Relation Act.
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Chapter 15: Collective Bargaining
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Q1) In _____,the Supreme Court held that an employer that pleads inability to pay in response to union ? demands in order to support his claim must provide some financial information.
A) NLRB v.Plymouth Stamping Division, Eltec Corp.
B) NLRB v.Truitt Mfg
C) Nurse Services of Western Massachusetts, Inc.v.NLRB
D) H.K.Porter Co.v.NLRB
Q2) When a union acquires bargaining rights by voluntary recognition rather than certification,the employer is required to recognize and bargain with the union only for _____ if no agreement is in ? effect.
A) ninety days
B) sixty days
C) a reasonable period of time
D) as long as the employer wants
Q3) Which of the following is not true of the Truitt requirement to furnish information?
A) It applies to employers with 100 or more employees.
B) It is not a "truth-in-bargaining" requirement.
C) It relates only to claims of financial inability to meet union proposals.
D) It is aimed to help the union validate the employer's claims.
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Chapter 16: Picketing And Strikes
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Q1) The General Electric case made the nature of the work performed by the secondary ? employees at the primary site the key to whether the union may target secondary employees ? with:
A) strike.
B) picketing.
C) legal action.
D) violence.
Q2) What is primary picketing?
Q3) In NLRB v.Business Machine & Office Appliance Mechanics Conference Board,IUE,Local 459 [Royal Typewriter Co.],there was a labor dispute between the Royal Typewriter Company and the Business Machine and Office Appliance Mechanics Conference Board,the certified bargaining agent of Royal's typewriter mechanics and other service personnel.In this case,it was held that Section 8(b)(4) of the NLRA: A) held employers liable for damages.
B) prohibited National Labor Relation Board the jurisdiction to hear the matter.
C) does not protect the employers.
D) does not protect employees.
Q4) What is a strike?
Q5) Discuss the jurisdictional disputes of Section 8(b)(4)(D).
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Chapter 17: The Enforcement And Administration Of The Collective Agreement
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Q1) Section 301 does not authorize damage suits against individual union officials when their union is liable for violating a(n):
A) due process clause.
B) election bylaw.
C) no-strike clause.
D) commerce clause.
Q2) In Alexander v.Gardner Denver Co.,the Supreme Court held that an employee who had lost in arbitration under the collective agreement was still able to bring a Title VII suit in court,stating that:
A) an order to arbitrate the grievance should not be denied unless it is denied with a positive assurance.
B) the arbitration clause of a collective agreement must contain a "clear and unmistakable waiver" of the individual employee's rights.
C) employee's rights under the collective agreement were distinct from the employee's statutory rights under Title VII.
D) it is the role of the courts, not that of the arbitrators, to resolve questions of whether a grievance is subject to arbitration.
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Chapter 18: The Rights Of Union Members
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Q1) If a breach of the duty of fair representation involves claims of discrimination based on race,sex,religion,or national origin,the affected employees may also have legal remedies under:
A) the Occupational Safety and Health Act.
B) the National Labor Relations Act.
C) Title VII of the Civil Right Act.
D) Labor-Management Reporting and Disclosure Act.
Q2) Describe the duties of union officers.
Q3) What is the duty of fair representation on part of the union?
Q4) One of the remedies available under Section 301 of the NLRA is:
A) imprisonment.
B) injunction.
C) forfeiture.
D) confiscate.
Q5) Under which provision of the National Labor Relation Act is improper disciplinary action protected?
Q6) What are the rights guaranteed under Section (10)(a)(1) of the Labor Management Reporting and Disclosure Act?
Q7) What remedies are provided under Section 8(b)(1)(A) of National Labor Relation Act?
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Chapter 19: Public Sector Labor Relations
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Q1) The Federal Service Labor-Management Relations Act elections allows for the holding of _____ to determine the exclusive representative of a bargaining unit.
A) contract negotiation
B) representation elections
C) neutral arbitration
D) consent elections
Q2) In National Treasury Employees Union v.Michael Chertoff,Secretary,United States Department of Homeland Security,the District Court held that the Department exceeded its authority in attempting to conscript the _____ into the HR system.
A) Federal Labor Relations Authority
B) Employment Relations Commission
C) National Labor Relations Board
D) Public Service Commission
Q3) Discuss appropriate representation units under the Federal Labor Relations Authority (FLRA).
Q4) What do public sector labor relations statutes define?
Q5) Name some of the unfair labor practices by agencies outlined under the Federal Service Labor-Management Relations Act?
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Chapter 20: Occupational Safety And Health
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Q1) Sheila,a physically-challenged employee at National Steel Manufacturing Company,informs her supervisor about the lack of ventilation in the assembly unit,but the supervisor takes no action on her suggestion.In this scenario,it may be concluded that National Steel Manufacturing Company has violated the:
A) Civil Rights Act.
B) Occupational Safety and Health Act.
C) Americans with Disability Act.
D) Equal Employment Opportunity Act.
Q2) OSHA's occupational safety and health standards are enforced through:
A) compliance to the variances issued by the Secretary of Labor.
B) company records of employee health issues and deaths.
C) third party data providers on health standards.
D) physical inspections of workplaces.
Q3) When a de minimis citation and proposed penalty are contested,the employer has an absolute defense to the citation if it can prove that:
A) compliance to the standard is impossible.
B) employees are not required to handle the hazardous/faulty technology.
C) the employment contract had explicitly cited the hazards present.
D) medical benefits cover the risk posed.
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Chapter 21: The employee s safety nets: unemployment
and workers compensation social security and retirement plans
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Q1) Although ERISA has sweeping preemptive impact on most state laws,it specifically exempts _____ from its preemptive powers.
A) state workers' compensation laws
B) retired pensioners' benefit laws
C) immigrant laborers' compensation laws
D) health care providers' compensation laws
Q2) What are the two types of benefit plans established under the Employee Retirement Income Security Act (ERISA)?
Q3) The original and the main purpose of the Social Security system is to provide partial replacement of earnings when:
A) an employee is discharged due to work-related injuries.
B) a worker decides it is time to retire.
C) a family loses an earning member to work-related accident.
D) a minority worker is unable to find "profitable" employment.
Q4) Explain the concept of a fiduciary.
Q5) What is the main purpose of Social Security?
Q7) Explain the concept of litigating unemployment claims. Page 25
Q6) Explain the role of the Employee Retirement Income Security Act (ERISA).
Q8) Explain the three major categories of the Social Security system.
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Chapter 22: The fair labor standards act
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Q1) Through the _____,the federal government attempted to the general regulation of wages and hours.
A) National Labor Relations Act
B) Federal Employment Liability Act
C) National Industrial Recovery Act (NIRA)
D) Workers' Compensation Act
Q2) Explain the concept of overtime pay under the FLSA.
Q3) Machinists and sewing machine operators are usually paid on a(n):
A) hourly basis.
B) piece-rate basis.
C) monthly basis.
D) lump sum basis.
Q4) What was impact of the first federal law against child labor?
Q5) Does the Fair Labor Standards Act (FLSA) prohibit all child labor?
Q6) Which are the categories of child labor exempted from the category of oppressive child labor under the Fair Labor Standards Act?
Q7) Discuss the provisions regarding child labor under the Fair Labor Standards Act.
Q8) What is willful violation?
Q9) Name three kinds of labor that have been found hazardous for minors by the Secretary of Labor. Page 27
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