Employment Law for Managers
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Course Introduction
Employment Law for Managers provides a comprehensive overview of the legal principles and regulations governing the employer-employee relationship. The course focuses on key areas such as employment contracts, workplace discrimination, harassment, employee rights, termination procedures, and health and safety obligations. Designed specifically for managers, it emphasizes practical strategies for compliance with relevant legislation, minimizing legal risks, and fostering a fair workplace. Through real-world scenarios and case studies, participants will gain the knowledge and skills necessary to handle employment issues effectively and ethically in the modern organizational context.
Recommended Textbook Managers and the Legal Environment Strategies for the 21st Century 7th Edition by Constance E.
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Chapter 1: law, value creation, and risk management
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Q1) Refer to fact pattern 1-1. Assuming that Susan seeks to be a legally astute manager,which of the following is true regarding the advice given by Sam to ignore the regulations pending an investigation?
A) Sam is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored.
B) Sam is correct only if ABC has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations.
C) Sam is incorrect but only because safety regulations are concerned.
D) Sam is incorrect because a legally astute manager will take a proactive approach to regulations.
Answer: D
Q2) Private law provides the legal rules within which firms compete.
A)True
B)False
Answer: False
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Chapter 2: Ethics ant the law
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Q1) If an action does not maximize shareholder value,and the firm has no ethical reason to act,the action should not be taken.
A)True
B)False
Answer: True
Q2) As opposed to other forms of business,it is well accepted that the primary ethical and legal duty of corporations is to maximize shareholder value.
A)True
B)False
Answer: False
Q3) Which of the following plays the most significant role in instilling a sense of ethics throughout an organization?
A) The CEO
B) The human resources manager
C) Each employee's immediate supervisor
D) The employees themselves
Answer: A
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Chapter 3: Courts, sources of law, and dispute resolution
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Q1) What is the inscription on the front of the U.S.Supreme Court building in Washingto,D.C.?
A) Live free or die
B) Equal justice under the law
C) Due Process for all
D) Equal protection for all
Answer: B
Q2) Explain how a federal court hearing a diversity case would apply conflict-of -law rules.
Answer: The court would apply the conflict-of-law rules promulgated by the state in which it is sitting.
Q3) Case law,the legal rules made by judges when they decide a case where no constitution,statute or regulation exists to resolve the dispute,is known as ________.
A) English law
B) Civil law
C) Common law
D) Disputed law
Answer: C
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Chapter 4: Constitutional bases for business regulation
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Q1) Which of the following was the result at the U.S.Supreme Court level in Citizens United v.Federal Election Commission regarding the constitutionality of the federal law providing that televised electioneering communications funded by anyone other than a candidate must include a disclaimer setting forth identifying information as to sponsorship?
A) That the law was unconstitutional only if a corporate entity, not an individual, sponsored the communication.
B) That the law was unconstitutional only if an individual, not a corporate entity, sponsored the communication.
C) That the law was unconstitutional in that it involved small expenditures as well as larger ones.
D) That the law was constitutional.
Q2) Under Supreme Court rulings,certain provisions granted in the Bill of Rights are applied to the States by the ________ Amendment.
A) Tenth
B) Eleventh
C) Thirteenth
D) Fourteenth
Q3) Under what circumstances is state law preempted in favor of federal law?
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Chapter 5: Agency
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Q1) Once an agent is given express authority,he or she also has _______ authority to do whatever is reasonable to complete the task he or she has been instructed to undertake.
A) implied
B) absolute
C) limited
D) contractual
Q2) Federal law provides that electronic agents may legally bind a user to click-wrap agreements.
A)True
B)False
Q3) Leased workers are precluded from being considered employees of the company for which they are doing work because they are on the payroll of an employment agency.
A)True
B)False
Q4) The Electronic Signatures in Global and National Commerce Act provides that contracts executed by electronic agents are invalid.
A)True
B)False
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Chapter 6: Administrative Law
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Q1) Administrative agencies are usually part of the legislative branch.
A)True
B)False
Q2) Which of the following is not exempt from a Freedom of Information Act request?
A) records related solely to the internal personnel rules and practice of an agency.
B) reports prepared by Congress regarding the regulation of an agency.
C) trade secrets or confidential commercial and financial information.
D) information compiled for law enforcement purposes.
Q3) The general rule is that agency action is ripe for judicial review when the impact of the action is sufficiently direct and immediate as to make review appropriate.
A)True
B)False
Q4) Rules adopted by a federal agency are published in the
A) Federal Reporter
B) Federal Register
C) Uniform Register
D) Legislative Reporter
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Chapter 7: Contracts
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Q1) Commercial transactions involving the sale of goods,movable personal property,are governed by which of the following?
A) Article 2 of the Uniform Commercial Code
B) Articles 1-3 of the Uniform Sale of Goods Code
C) Article 1 of the Federal Sales Code
D) Article 1 of the Uniform Credit Code
Q2) Only an attorney can hold a power of attorney.
A)True
B)False
Q3) Which of the following are damages that give the plaintiff the benefit of its bargain,putting the plaintiff in the case position it would have been in if the contract had been fulfilled?
A) Expectation damages
B) Reliance damages
C) Restitution damages
D) In kind damages
Q4) Mutuality of obligation applies only to bilateral contracts.
A)True
B)False
Q5) Define the term "consideration" as it is used in contract law.
Page 9
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Chapter 8: sales,licensing,and e-commerce
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Q1) Indicate how a seller may disclaim warranties under the UCC.
Q2) Most courts require that a plaintiff prove reliance on an express warranty in order to recover damages.
A)True
B)False
Q3) Which of the following is governed by Article 2 of the UCC?
A) A contract for sale of a commercial building.
B) A contract for sale of office supplies.
C) An employment contract.
D) A life insurance contract.
Q4) The UCC does not specifically define an offer or an acceptance.
A)True
B)False
Q5) According to the UCC,if no amount of time is specifically stated,a firm offer provided by a merchant must be kept open for a reasonable period of time,up to _____.
A) one year
B) six months
C) three months
D) sixty days
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Chapter 9: Torts and Privacy protection
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Q1) The tort of conversion requires that the defendant know that the goods belonged to the plaintiff.
A)True B)False
Q2) The Class Action Fairness Act of 2005 moved many class actions from federal courts into state courts.
A)True B)False
Q3) Refer to fact pattern 9-1. Is there any federal law prohibiting Dr.Bozo from revealing Frank's medical history?
A) There is no such federal law.
B) There is a federal law called the Health Insurance Portability and Accountability Act that prohibits the revelation of private medical information by health care providers.
C) There is a federal law called the Gramm-Leach-Bliley Act that prohibits the revelation of private medical information by health care providers.
D) There is a federal law called the Physician-Nurse Privacy Act that prohibits the revelation of private medical information by health care providers.
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Chapter 10: product liability
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Q1) In Ramirez v.Plough,Inc.,the case in the text involving the provision of warnings for non-English-speaking Hispanics,the California Supreme Court held that a manufacturer of nonprescription drugs has a duty to warn purchasers about the dangers of its products in ______.
A) English only.
B) English and Spanish.
C) English, Spanish, and Chinese.
D) All spoken languages in California.
Q2) Under the preemption defense,certain federal laws and regulations that set minimum safety standards are held to preempt state-law product liability claims.
A)True
B)False
Q3) The preemption defense involves certain ________,which set minimum safety standards for products.
A) federal laws
B) court decisions
C) state laws
D) private guidelines
Q4) What are the four basic parts of the rationale for strict product liability?
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Chapter 11: Intellectual property
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Q1) A _________ mark is a real word whose ordinary meaning has nothing to do with a trademarked product.
A) arbitrary
B) suggestive
C) descriptive
D) fanciful
Q2) Terms that were once enforceable trademarks may become generic and thereby not protected.
A)True
B)False
Q3) Refer to fact pattern 11-2. Can Professor Peter be found guilty of copyright infringement?
A) No, he was engaged in fair use because of his involvement in education.
B) No, because he did not do the actual copying.
C) No, because he did not make a profit.
D) It is likely that he would be found guilty of copyright infringement particularly since he arranged for copying of the entire manual, not limited sections.
Q4) Discuss in detail common law rights,if any,in a trademark in the U.S.
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Chapter 12: The employment agreement
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Q1) Traditionally,defamation law requires ______,meaning that the communicator of the defamatory information must disclose the information to a third party.
A) utterance
B) publication
C) exposure
D) revelation
Q2) List the factors set forth in the text that may give rise to an implied obligation to discharge the employee only for good cause in jurisdictions recognizing the contract-based implied contract judicial exception to the employment-at-will rule.
Q3) The majority of states have refused to adopt the doctrine of self-publication to support a cause of action for defamation.
A)True
B)False
Q4) List exceptions,if any,to the Employee Polygraph Protection Act's ban on polygraph testing.
Q5) What standards are applied in regard to judicial review of ERISA decisions by plan administrators?
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Chapter 13: civil rights and employment discrimination
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Q1) Federal legislation to amend Title VII to include sexual orientation has not been enacted.
A)True
B)False
Q2) The principal federal law prohibiting discrimination in employment on the basis of age is
A) Title VII.
B) ADEA.
C) OWBPA.
D) EEOC.
Q3) Plaintiffs in Title VII cases may only bring claims of harassment based on sex.
A)True
B)False
Q4) Under the EEOC,gender will qualify as a BFOQ where a gender-based restriction is based on
A) assumptions of the comparative employment characteristics of women in general.
B) the rights of others to privacy.
C) stereotyped characterizations of the sexes.
D) sex but not age.
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Chapter 14: Criminal law
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Q1) Under the ________ rule,a statement made by a defendant in custody is admissible only if the defendant was informed prior to police interrogation of his or her constitutional rights.
A) forced self-incrimination
B) double jeopardy
C) Miranda
D) due process
Q2) A misdemeanor is a crime punishable by a fine or a jail sentence of one year or less.
A)True
B)False
Q3) Officer Sam obtained a search warrant to search Susie's apartment based upon a tip from Alice,an informant,to the effect that Susie was selling drugs. Alice had actually lied to Sam because she was angry with Susie for going out with Alice's boyfriend. Sam was suspicious of all the tenants in Susie's building and got a search warrant authorizing a search of the building for anything illegal. In Susie's apartment he found a small amount of marijuana that Susie used personally. Alice started feeling guilty and confessed that she had lied about the whole matter. Susie is being prosecuted. Does she have any defense based upon the warrant? Why or why not?
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Chapter 15: Environmental law
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Q1) What does the Superfund Recycling Equity Act do?
A) It exempts recyclers from liability in private-party actions under CERCLA.
B) It exempts recyclers from suits brought by the state or federal government.
C) It provides a 10% federal rebate for recycling expenses incurred by corporations engaged in recycling activities.
D) It provides a 5% federal rebate for recycling expenses incurred by corporations engaged in recycling activities.
Q2) When can a corporate officer be held civilly liable under the Clean Water Act?
A) Corporate officers are strictly liable whenever a violation by their company is established.
B) Only if the corporate officer specifically ordered the unlawful discharge.
C) If the corporate officer had the authority to exercise control over the activity that caused the unlawful discharge or if the officer knowingly violated the act.
D) Corporate officers may never be held liable in an individual capacity.
Q3) Environmental law does not cover land-use regulation.
A)True
B)False
Q4) Who are potentially responsible parties under CERCLA?
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Chapter 16: Antitrust
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Q1) Sections 1 and 2 of the Sherman Act have extraterritorial reach.
A)True
B)False
Q2) Which of the following is true regarding monopoly law in China?
A) Each offense is specifically set forth with no catch-all provisions.
B) It is not used against foreign investors.
C) It prevents behavior classified as abuse of dominant market position.
D) China lacks an anti-monopoly law although drafting has been in process for several years.
Q3) The merger of an airplane manufacturer and an airplane engine manufacturer would normally be considered a conglomerate merger.
A)True
B)False
Q4) The __________ concludes that market forces defeat most anticompetitive practices.
A) Chicago School
B) Antitrust School
C) Contra-antitrust School
D) Economic Forecasting Model
Q5) What types of price-fixing agreements are considered horizontal price-fixing?
Page 18
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Chapter 17: Consumer Protection
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Q1) Courts usually consider advertisements to be only an offer to deal.
A)True
B)False
Q2) Which of the following is true regarding the use of irradiated foods in the U.S.?
A) Irradiated foods are outlawed.
B) Irradiation is allowed only for fruits and vegetables, and no notice is required.
C) Irradiation is allowed for fresh and frozen red meat, and no notice is required.
D) Irradiation is allowed for fresh and frozen red meat, but notice must be required.
Q3) Executive branch regulatory agencies are located in cabinet departments.
A)True
B)False
Q4) The Federal Commerce Commission has adopted guidelines specifying when manufacturers and marketers can label their products "Made in USA."
A)True
B)False
Q5) Set forth the four main provisions of the CAN-SPAM Act.
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Chapter 18: real property and land use
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Q1) John owns a 20-acre parcel of land in Smallville.Bob is a developer that wants to build a subdivision in Smallville.He offers John $1,000 for a 30-day option to purchase the land for $1 million.John agrees.Clara is John's sister and has a valid right of first refusal on the same land.Bob has been told by his bank that the bank will provide a construction loan for the development.What rights did Bob legally obtain when he purchased his option? What effect will Clara's rights have on Bob's option? Explain the three types of loans-construction,gap,and take-financing-that could be involved to complete the development.Discuss fully.
Q2) A ground lease is a very long-term lease.
A)True
B)False
Q3) The type of deed used by the seller determines the scope of the warranties the buyer is given.
A)True
B)False
Q4) An outstanding mortgage balance in excess of the value of a house is referred to as negative equity.
A)True
B)False
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Chapter 19: Forms of business organizations
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Q1) Which of the following statements is not true regarding the advantages and disadvantages of a sole proprietorship?
A) A sole proprietorship can be created without formal agreements or state filings.
B) The proprietor reports income from the business on a personal tax return.
C) The proprietor alone bears liability for the losses.
D) It is usually easy for sole proprietorships to raise capital.
Q2) What does the term "reverse piercing" reference in regard to a corporation and its shareholders?
A) Holding a corporation liable for debts of a shareholder
B) Holding a shareholder liable for debts of a corporation
C) Holding a corporation liable for debts of a shareholder and holding a shareholder liable for debts of a corporation
D) Holding a corporation liable for debts of a shareholder, holding a shareholder liable for debts of a corporation, and holding officers liable for debts of a corporation.
Q3) An outside director is a director who lives outside the state of incorporation.
A)True
B)False
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Chapter 20: Directors, Officers, and Controlling Shareholders
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Q1) The Securities and Exchange Commission recognizes the affirmative responsibility of officers and directors under federal securities laws to ensure the accuracy and completeness of public company filings with the SEC.
A)True
B)False
Q2) Breakup fees are liquidated damages for a terminated proxy fight.
A)True
B)False
Q3) A ________ is an agreement in a proposed takeover that allows the board of directors to negotiate with other bidders or to terminate a merger agreement.
A) termination clause
B) fiduciary out
C) revolving door
D) no talk provision
Q4) What is meant by the business judgment rule?
Q5) What is greenmail? What is a standstill agreement? When,if ever,is the process of greenmail protected by the business judgment rule?
Page 22
Q6) What is a poison pill? What factors favor keeping a poison pill in place?
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Chapter 21: Public and Private Offerings of Securities
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Q1) Set forth the difference between firm commitment underwriting and best-efforts underwriting.
Q2) The term "security," for purposes of the Securities Act of 1933,is narrowly interpreted to include only such traditional investments as a stock or a bond.
A)True
B)False
Q3) Proxies give the proxy holder the right to vote the shares owned by the person who signs the proxy card.
A)True
B)False
Q4) A secondary offering is the subsequent offering of securities by the original issuer.
A)True
B)False
Q5) Shelf registration under the Securities Act of 1933 allows registration of a number of securities at one time for issuance later.
A)True
B)False
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Chapter 22: Securities Fraud and insider trading
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Q1) Refer to fact pattern 22-1. Is there a basis upon which to hold Trudy liable for a securities violation for disclosing to Frank the information regarding the likely dismissal of the lawsuit?
A) Not unless she had signed a confidentiality agreement with Food Corporation.
B) Yes, she could be held liable as a tipper.
C) Yes, she could be held liable as a tippee.
D) Yes, she could be held liable as a remote tippee.
Q2) If a purchase or sale by an officer,director,or greater-than-10 percent shareholder that would otherwise result in recoverable short-swing profits was involuntary and did not involve the payment of cash and if there was no possibility of speculative abuse of inside information,than a court may hold that it was a(n)________ to which no liability will attach.
A) innocent transaction
B) approved negotiation
C) unorthodox transaction
D) designated sale
Q3) Rule 10b-5 does not result in any private rights of action.
A)True
B)False
Q4) List the seven elements of a Rule 10b-5 cause of action.
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Chapter 23: Debtor-Creditor Relations and Bankruptcy
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Q1) ________ a security interest involves making it valid as against other creditors of the debtor.
A) Finalizing
B) Perfecting
C) Organizing
D) Signing
Q2) A Chapter 7 discharge is not available to a debtor who has received a discharge in a bankruptcy filed in the preceding _______ years or in a Chapter 13 case filed in the preceding _______ years.
A) two, four
B) six, seven
C) eight, six
D) seven, six
Q3) A ________ is an agreement whereby one or more creditors of a common debtor agree to defer payment of their claims until another creditor of the same debtor is fully paid.
A) participation loan
B) cross-collateralization
C) debt subordination
D) lien subordination
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Chapter 24: International Business
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Q1) The European Commission is the ________ of the European Union.
A) executive branch
B) legislative branch
C) administrative agency
D) police arm
Q2) Senator Smith is tired of all the imports of televisions coming into this country. He proposes a bill by which all foreign-made televisions will be taxed an additional $100 before being allowed into the country. He receives a great deal of support for his bill,but one senator questions whether such an arrangement is illegal since it will discriminate against imported goods. Which of the following is correct?
A) There is no problem with the additional tax because the U.S. is a sovereign nation.
B) There is no problem with the tax so long as it can be shown that American jobs are being lost due to the number of televisions being imported.
C) Under the principle of national treatment, the U.S., as a member of the World Trade Organization, may not discriminate against imported goods and may not apply the tax unless it is also applied equally to domestic products.
D) The tax may not be imposed under the Uniform Trade Initiative.
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