Business Law
Test Preparation
Course Introduction
Business Law provides an overview of the legal framework governing commercial activities in modern economies. The course covers key topics such as contract law, torts, property law, agency, employment law, forms of business organization, and government regulation. Through case studies and real-world examples, students learn how legal concepts impact business operations and decision-making. Emphasis is placed on understanding rights, responsibilities, and ethical considerations to ensure businesses comply with legal requirements while achieving organizational goals.
Recommended Textbook
Employment and Labor Law 9th Edition by Patrick
J. Cihon
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1403 Verified Questions
1403 Flashcards
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Chapter
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Sample Questions
Q1) In Gilmer v.Interstate/Johnson Lane Corporation case, Gilmer filed a charge with EEOC and brought suit in the District Court, alleging that he had been discharged in the violation of the:
A) Social Security Act (1935).
B) National Labor Relations Act (1935).
C) Civil Rights Act (1964).
D) Age Discrimination in Employment Act of (1967).
Answer: D
Q2) If Peter is engaged in illegal activities as part of an organized criminal outfit, the law designed to criminally penalize Peter is the:
A) Employee Retirement Income Security Act (ERISA).
B) Worker Adjustment and Retraining (WARN) Act.
C) Federal Occupational Safety and Health Act (OSHA).
D) Racketeer Influenced and Corrupt Organizations Act (RICO).
Answer: D
Q3) What are individual employee rights?
Answer: Individual employee rights are those rights that are enjoyed by workers as individuals, as against collective rights secured by unionization.
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Chapter 2: Employment Contracts and Wrongful Discharge
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Sample Questions
Q1) Brandy and Matthew are neighbors and live in Texas.Matthew was renovating his house, which caused dust and debris to collect in Brandy's front yard.Unfortunately her son was highly allergic to these particulates and fell grievously ill.In this case, Matthew violates:
A) the U..Constitution.
B) the Labor Act.
C) tort laws.
D) breach of trust.
Answer: C
Q2) If the statute itself provides the employee with a cause of action, the courts are reluctant to recognize an alternative remedy in the form of a lawsuit for wrongful discharge.
A)True
B)False
Answer: True
Q3) Public Policy Exception is not a commonly adopted exception to the pure employment-at-will rule.
A)True
B)False
Answer: False
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Chapter 3: Commonly Committed Workplace Torts
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Sample Questions
Q1) In the Duty v.Boys and Girls Club of Porter County, the plaintiff's claim succeeded because the alleged breach of contract was:
A) malicious.
B) accidental.
C) not malicious.
D) not exclusively directed at the plaintiff.
Answer: A
Q2) Negligent infliction of emotional distress is not recognized by any jurisdiction.
A)True
B)False Answer: False
Q3) Defamation and slander are two kinds of libel.
A)True
B)False Answer: False
Q4) Misappropriation of trade secrets is considered a crime in some states.
A)True
B)False Answer: True
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Chapter 4: Employee Privacy Rights in the 21st Century
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Sample Questions
Q1) What is HIPAA?
Q2) Who are system administrators?
Q3) Justifiably suspecting a person, based on facts or circumstances, of inappropriate or criminal activities is termed:
A) a tort.
B) surveillance.
C) reasonable suspicion.
D) as a misdemeanor.
Q4) Employers who are under the HIPAA umbrella are subject to the regulations of the Act and must certify in writing that they will comply with:
A) selected HIPAA regulations.
B) all HIPAA regulations.
C) amended HIPAA regulations.
D) HIPAA non disclosure policies.
Q5) What serious intrusion of employees' privacy has severe ethical implications?
Q6) Discuss the origin of Employee Privacy Rights.
Q7) FCRA stands for Financial Credit Reporting Agency.
A)True
B)False
6
Chapter 5: The Global Perspective:international
Employment Law and American Immigration Policy
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Q1) What is the role of U..Citizenship and Immigration Services (USCIS)?
Q2) Which one of the following is the largest investigative branch of the Department of Homeland Security (DHS)?
A) U..Social Security Administration
B) U..Immigration and Customs Enforcement
C) U..Department of Justice
D) U..Citizenship and Immigration Services
Q3) The Convention on the Civil Aspects of International Child Abduction aims to control and eliminate exploitation of child labor.
A)True
B)False
Q4) All of the following are services of the U..Citizenship and Immigration Services except:
A) adjudication of immigrant visa petitions.
B) adjudication of naturalization petitions.
C) protecting civil rights.
D) establishing immigration services policies and priorities.
Q5) What are the necessary documents an employer must show to prove that the employee is a U..Citizen or is lawfully authorized to work in the United States?
Page 7
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Chapter 6: Title VII of the Civil Rights Act and Race Discrimination
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Sample Questions
Q1) The pass rate in Duke Power Company for the African American employees who took the Wonderlic Personnel Test and the Bennett Mechanical Comprehension Test was:
A) 12 percent.
B) 8 percent.
C) 6 percent.
D) 10 percent.
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) 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.
Q4) Define construct validity.
Q5) How is seniority defined under Title VII?
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Chapter 7: Gender and Family Issues:title VII and Other Legislation
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Sample Questions
Q1) Jack and Adam were the employees of Steel Co.Inc.Both of them performed equal work in the industry, however, the company decided to give a 40 percent hike to Jack because he was senior to Adam, whereas Adam was only given a 20 percent pay hike to his salary.In this scenario, the company wage differential is justified under the:
A) Bennett Amendment.
B) discretionary power of company.
C) public policy exception.
D) Lilly Ledbetter Fair Pay Act.
Q2) Section 703(e)(1) of the Bona Fide Occupational Qualification allows employer to select employees based on sex and gender in certain instances.
A)True
B)False
Q3) There is no provision for employers' defense under The Equal Pay Act.
A)True
B)False
Q4) What is the provision relating to pregnant women working in hazardous condition?
Q5) What are the conditions to receive family temporary disability insurance benefits?
Page 9
Q6) What is sexual harassment? Explain employer liability for sexual harassment.
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Chapter 8: Discrimination Based on Religion and National
Origin and Procedures Under Title VII
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Sample Questions
Q1) Discuss the enforcement of Title VII.
Q2) Title VII does not allow employers to hire employees of a particular ethnic or national origin even if based on legitimate business, safety, or security concerns.
A)True
B)False
Q3) Luke was selected for the post of junior manager in a five-star hotel.The employer's application for employment contained a Dispute Resolution Agreement requiring employees to submit all employment disputes to binding arbitration.Applicants who refused to sign the Dispute Resolution Agreement were not hired.Such an agreement is:
A) not enforceable under the FAA, as held by the district court.
B) not enforceable under the FAA, as held by the Supreme court.
C) enforceable under the FAA , as held by the Supreme court.
D) enforceable under the FAA, as held by the district court.
Q4) Title VII was amended in 1972 to cover:
A) judicial organizations.
B) federal employers.
C) employees of the state and federal employers.
D) employees of state and local employers.
Page 10
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Chapter 9: Discrimination Based on Age
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Sample Questions
Q1) Bruce is an employee of the Regus Group of Companies.His employer was not satisfied with performance and warned Bruce that if he could not improve his productivity, he should consider voluntary retirement since he was already 58 years of age.Within two days of receiving the warning, Bruce was given a notice by the human resources division asking him to submit his resignation without offering any early retirement benefits.In this instance, the employer violated both the Age Discrimination in Employment Act and:
A) Health management Act.
B) Americans with Disabilities Act.
C) Fair Equity Management Act.
D) Older Workers Benefit Protection Act.
Q2) The Age Discrimination in Employment Act (ADEA) does not include labor unions and employment agencies.
A)True
B)False
Q3) When is arbitration for ADEA claims enforced?
Q4) What are the provisions of the Age Discrimination in Employment Act?
Q5) What is meant by "age discrimination in employment" and under which act is it prohibited?
Page 11
Q6) How is the Age Discrimination in Employment Act enforced and administered?
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Chapter 10: Discrimination Based on Disability
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Sample Questions
Q1) The Rehabilitation Act of 1973 does not protect the employment rights of individuals with a disability.
A)True
B)False
Q2) The Civil Rights Act of 1991 was amended to allow suits for compensatory and punitive damages against parties accused of intentional discrimination in violation of the Americans with Disabilities Act (ADA) under:
A) Fourth Amendment of the U..Constitution.
B) U...section 1980b.
C) Section 704(k) Title VII.
D) 42 U...Section 1981A.
Q3) Title I of the Americans with Disabilities Act (ADA) prohibits discrimination against individuals who are qualified for employment.
A)True
B)False
Q4) What are the defenses available under the ADA?
Q5) Explain the provisions of the ADA.
Q6) Is AIDS a disability under ADA and Rehabilitation Act? Why or why not?
Q7) Explain the term "qualified individual with a disability.
Page 12
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Chapter 11: Other EEO and Employment Legislation:federal and
State Laws
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Sample Questions
Q1) In Cleveland Board of Education v.LaFleur, the Supreme Court struck down a rule imposing a mandatory maternity leave on teachers reaching the fifth month of pregnancy on grounds that it violated the _____ rights of the teachers.
A) due process
B) equal protection
C) affirmative action
D) fundamental
Q2) Section 1983 of the Civil Rights Act is restricted to claims of intentional discrimination.
A)True
B)False
Q3) What is the responsibility of the federal Office of Special Counsel?
Q4) Persons who are affected by alleged violations of the USERRA must file written complaints with the:
A) National Labor Relations Board.
B) Equal Employment Opportunity Commission.
C) National Federation of Labor Union.
D) Federal Secretary of Labor.
Q5) Define honesty tests.
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Chapter 12: The Rise of Organized Labor and Its Regulatory Framework
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Q1) What are the types of legal issues the NLRB handles?
Q2) In National Labor Relations Board v.Kentucky River Community Care, Inc. the lower court's judgment was:
A) remanded.
B) dismissed.
C) reversed.
D) upheld.
Q3) Discuss the Congress of Industrial Organizations.
Q4) In Duplex Printing Press Company v.Deering, Duplex responded to the national boycott called by the Machinists' Union by filing suit for an injunction under the: A) Sherman Act.
B) National Labor Relations Act.
C) Clayton Act
D) Norris-La Guardia Act.
Q5) For labor issues, the National Labor Relations Board itself is the: A) judicial branch.
B) administrative branch.
C) legislative branch.
D) arbitral tribunal.
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Chapter 13: The Unionization Process
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Sample Questions
Q1) The newly certified bargaining agent should be given a reasonable opportunity to fulfill its mandate by successfully negotiating a(n) _____ with the company.
A) contract
B) election procedure
C) collective bargaining agreement
D) affirmative action plan
Q2) What is the relevance of filing objection after election has been conducted?
Q3) In _____, the court held that the NLRB will intervene if either party uses a forged document that renders the voting employees unable to recognize the propaganda for what it is.
A) NLRB v.St.Francis Healthcare Center
B) Bro-Tech Corp.v.NLRB
C) Packard Motor Car v.NLRB
D) American Hospital Association v.NLRB
Q4) The Board requires that the parties in an election should refrain from formal campaigning for twenty-four hours prior to the election.
A)True
B)False
Q5) What is the consequence of filing a decertification petition by an employer?
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Chapter 14: Unfair Labor Practices by Employers and Unions
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Sample Questions
Q1) An employer who recognizes a union without the support of a majority of employees does not violate Section 8(a)(2).
A)True
B)False
Q2) According to NLRB v.Johnnie's Poultry Co.and Wisconsin Porcelain Co, an interrogation must include reassurances that participation in the interrogation is:
A) performance related.
B) mandatory.
C) fair labor practice.
D) voluntary.
Q3) In Atlantic-Pacific Coast Inc.v.NLRB, employee collecting signatures of coworkers on a letter to management protesting the selection of a new supervisor was held to be engaged in:
A) negotiation tactics.
B) bargaining.
C) protected activity.
D) pressure tactics
Q4) What is the exception regarding the encouragement of unions?
Q5) Which act defines unfair labor practices?
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Chapter 15: Collective Bargaining
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Q1) Permissive bargaining subjects are those matters not directly related to wages, hours, terms and conditions of employment, and are not prohibited.
A)True
B)False
Q2) What was the purpose of the Worker Adjustment and Retraining Act (WARN)?
Q3) According to Section 8(d), failure to _____, may make any strike by the union or lockout by the employer an unfair labor practice.
A) give prior bargaining notice
B) register under the NLRB
C) recognize the bargaining unit
D) prove two-thirds majority
Q4) When an impasse results from a party's rigid insistence upon a particular proposal that relates to wages, hours, or terms and conditions of employment, then it is not a violation of:
A) good faith.
B) Civil Rights Act.
C) take-it-or-leave-it bargaining.
D) duty to bargain.
Q5) Define mass layoffs.
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Chapter 16: Picketing and Strikes
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Q1) Sections 10(j) and 10(l) of the NLRA authorize the National Labor Relations Board (NLRB) to seek injunctions against:
A) economic strike.
B) appointment of employee.
C) holding of election.
D) unfair labor practice.
Q2) Section 8(b)(4) NLRA, deals with:
A) secondary boycotts.
B) employer's power of termination.
C) peaceful picketing.
D) unfair labor practice.
Q3) What are the national emergency provisions under the Taft-Hartley Act of 1947?
Q4) The labor union of Consolidated Iron and Steel Company, despite its illegal status, organized a picketing against the company demanding assigning of work to them.Such picketing is prohibited under _____ of the NLRA.
A) Section 9(c)(1)
B) Ordinance no.7
C) Section 8(b)(4)(D)
D) Article 8(b)(4)(ii)(b)
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Chapter 17: The Enforcement and Administration of the Collective Agreement
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Q1) In Major League Baseball Players Association v.Garvey, the Supreme Court emphasized that even when the court vacates an arbitration award, the court:
A) has a duty to arbitrate that continues after the expiration of the agreement if the grievance arises under the agreement.
B) may refuse to enforce an arbitration award only if the award violates "explicit" public policy.
C) should refuse to enforce an arbitration decision that violates the law.
D) must remand the issue back to arbitration for resolution rather than settling the merits of the dispute.
Q2) The parties generally incorporate arbitration as the final step of the grievance procedure.
A)True
B)False
Q3) California law requires that employers pay discharged employees all wages owed to them immediately at the time of the discharge.
A)True
B)False
Q4) How does an arbitration clause affect the right of individual employees?
Page 19
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Chapter 18: The Rights of Union Members
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Q1) Under which provision of the National Labor Relation Act is improper disciplinary action protected?
Q2) _____ of the Labor Management Reporting and Disclosure Act, guarantees the right of union members to participate in all membership business.
A) Section 301(a)
B) Section 101(a)(2)
C) Section 101(a)(1)
D) Section 10(a)(5)
Q3) The provisions of the LMRDA require that union members must first strive for external action for violation of the rights granted by the LMRDA.
A)True
B)False
Q4) The requirement of exhausting contractual remedies flows from the policy of fostering:
A) voluntary settlement of disputes.
B) adherence to contractual obligations.
C) amicable relations between union and management.
D) minimal legal intervention in labor disputes.
Q5) How is the duty of fair representation enforced?
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Chapter 19: Public Sector Labor Relations
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Sample Questions
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) Briefly explain the role of the Federal Service Labor-Management Relations Act.
Q3) All collective agreements under the Federal Service Labor-Management Relations Act must contain a grievance procedure.Within how many days may either of the parties appeal to the Fair Labor Relations Authority if arbitration is invoked?
A) 90
B) 15
C) 30
D) 60
Q4) Name some of the unfair labor practices by agencies outlined under the Federal Service Labor-Management Relations Act?
Q5) What do public sector labor relations statutes define?
Q6) How does the Postal Service Reorganization Act influence an impasse?
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Chapter 20: Occupational Safety and Health
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Sample Questions
Q1) The Occupational Safety and Health Act provides for the issuance of three kinds of standards:interim standards, permanent standards, and emergency standards.
A)True
B)False
Q2) A de minimis violation is a significant technical violation.
A)True
B)False
Q3) Obama's first budget was released in late February 2009, and passed in early April 2009, which increased funding to the Occupational Safety and Health Administration (OSHA).
A)True
B)False
Q4) The Occupational Safety and Health Act does not apply to employees who work for an employer that is engaged in a business affecting interstate commerce.
A)True
B)False
Q5) What is the National Institute of Occupational Safety and Health?
Q6) What are three kinds of standards under Occupational Safety and Health Act?
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Sample Questions
Q1) An employee's injury must be work-related in order to be eligible for:
A) medicare.
B) unemployment compensation.
C) workers' compensation.
D) insurance benefits.
Q2) The unemployment claim is usually evaluated in the first instance by an unemployment officer or agency in the area where the:
A) employee was terminated.
B) office is located.
C) employee was hired.
D) worker resides.
Q3) Explain the three major categories of the Social Security system.
Q4) 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
Q5) What can disqualify an out-of-work worker from receiving unemployment compensation? Page 23
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Page 24
Chapter 22: The Fair Labor Standards Act
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Q1) Which of the following Acts is not aimed at restricting or regulating child labor?
A) The National Industrial Recovery Act
B) The Walsh-Healy Act
C) The Fair Labor Standards Act
D) Age Discrimination and Employment Act
Q2) Minors under age fourteen can be employed only in _____ under specific limitations and with parental consent.
A) agriculture
B) packaging
C) domestic-care jobs
D) sports companies
Q3) Discuss the provisions regarding child labor under the Fair Labor Standards Act.
Q4) The Davis-Bacon Act provides that contractors working on government construction projects must pay the prevailing wage rates in the geographic area, as determined by the:
A) NLRB.
B) federal laws.
C) labor contract.
D) secretary of labor.
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