Legal Environment of Business
Final Exam
Course Introduction
The Legal Environment of Business introduces students to the complex framework of laws and regulations that influence the operation of businesses. This course explores the foundational principles of contract law, torts, agency, employment law, intellectual property, and government regulation, with a focus on how these legal concepts impact business decision-making and strategy. Students will analyze real-world cases, study statutory and regulatory material, and consider the ethical implications of business conduct within the modern legal landscape. By the end of the course, students will be equipped to identify potential legal risks and make informed business decisions in compliance with applicable legal standards.
Recommended Textbook
Employment Law for Business 8th Edition by
Dawn Bennett
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16 Chapters
786 Verified Questions
786 Flashcards
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Page 2
Chapter 1: The Regulation of the Employment Relationship
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Sample Questions
Q1) Paula works as an accountant at Axva Inc.Per the company's payroll Paula is currently an independent contractor.Paula will be misclassified as an independent contractor if:
A) Axva Inc. has the right to discharge Paula at any time.
B) Paula can realize a profit from the business through management of resources.
C) Paula has significant investment in the business.
D) Axva Inc. allows her to work for more than one firm at a time.
Answer: A
Q2) In the context of the Fair Labor Standards Act of 1938,individual coverage refers to the protections offered to:
A) shareholders if a publicly held company incurs a minimum loss of $ 300,000.
B) consumers if the damages incurred by them from using a product is more than $10,000.
C) employees if their work regularly involves them in commerce between states.
D) employers if their work is temporary or seasonal.
Answer: C
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Page 3
Chapter 2: The Employment Law Toolkit: Resources for
Understanding the Law and Recurring Legal Concepts
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Sample Questions
Q1) According to the Worker Adjustment and Retraining Notification (WARN)Act,_____.
A) all but small employers and public employers are required to provide written notice of a plant closing or mass layoff no less than 60 days in advance.
B) employers who have less than 500 full-time employees are not covered under the act.
C) employers are not required to give an advance notice in case of mass layoffs.
D) all actions arising out of a natural disaster such as a flood, earthquake, or drought require an employer to provide 60 days' advance notice to the employees.
Answer: A
Q2) In the context of employment discrimination remedies,punitive damages can be recovered from governmental employers.
A)True
B)False
Answer: False
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Chapter 3: Title Vii of the Civil Rights Act of 1964
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Q1) If the Equal Employment Opportunity Commission (EEOC)concludes that a workplace discrimination claim does not violate Title VII of the Civil Rights Act of 1964,the employee has no right to pursue the matter further in any court.
A)True
B)False Answer: False
Q2) A person can file a discrimination lawsuit in a court against his or her employer without going through the Equal Employment Opportunity Commission's administrative process.
A)True
B)False Answer: False
Q3) Jim Crow laws,which required racial desegregation,were passed after the Brown v.Topeka Board of Education case.
A)True
B)False Answer: False
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Chapter 4: Legal Construction of the Employment Environment
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Sample Questions
Q1) Title VII of the Civil Rights Act of 1964 permits the use of an employment eligibility test that may have a disparate impact on a protected class provided:
A) it is proved that the test has been professionally developed and it is not been used to discriminate.
B) it is proved that the employer's efficiency concerns do not trump the individual's privacy interests.
C) the employer can show that the test evaluates factors that are not directly job related.
D) the employer can show that there was no invasion of privacy during the test.
Q2) While promoting from within an organization may raise employee morale and encourage loyalty,the strategy has the potential to lead to either a real or perceived lack of balance or discriminatory impact.
A)True
B)False
Q3) The Drug-Free Workplace Act of 1988 prohibits the drug testing of federal employees under all circumstances.
A)True
B)False
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Chapter 5: Affirmative Action
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Sample Questions
Q1) The _____ Amendment to the United States Constitution abolished slavery in 1865.
A) Fourth
B) Thirteenth
C) Fourteenth
D) Twenty-First
Q2) Actions such as not giving minority or female employees credit for ideas they propose but accepting those ideas when they come from someone in the majority constitutes micro-aggression.
A)True
B)False
Q3) As an effort to value diversity at a workplace,employers should tie performance reviews of managers to their measurable support for diversity and inclusion.
A)True
B)False
Q4) Why is valuing diversity and inclusion in the workplace important? How should employers contribute to diversity at the workplace?
Q5) Distinguish between quotas and affirmative action placement goals at the workplace.
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Chapter 6: Race and Color Discrimination
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Sample Questions
Q1) An ineffective way to handle racial harassment at the workplace would be:
A) providing a positive, nonthreatening, constructive forum for the discussion of racial issues.
B) making sure that there is a top-down message that the workplace will not tolerate race discrimination in any form.
C) offering training in racial awareness and sensitivity to all employees.
D) telling an employee who reports discrimination based on race that he or she must be mistaken, even before investigating.
Q2) Discuss national origin discrimination at the workplace.
Q3) Which of the following is an effective management practice to avoid claims of race discrimination from employees?
A) Underplaying the significance of what occurred when an employee reports racial harassment
B) Reducing diversity within a workplace as much as possible
C) Providing a positive, nonthreatening, constructive forum for the discussion of racial issues
D) Believing that race discrimination can never occur in one's organization
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8
Chapter 7: National Origin Discrimination
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Q1) The Immigration Reform and Control Act (IRCA)has established only civil penalties and no criminal penalties for hiring illegal aliens.
A)True
B)False
Q2) "Not all harassment is prohibited under Title VII of the Civil Rights Act of 1964." Explain.
Q3) Jing,a Chinese citizen who is legally permitted to work in the United States,and Sophia,a white American woman,apply for the same job at Golden Bird Enterprises.Jing loses the job to Sophia.In order to prevail in a national origin discrimination claim under the Immigration Reform and Control Act (IRCA),Jing must prove that:
A) the job is a business necessity for her.
B) she has been living in the United States for more than 20 years.
C) the employer has hired other Chinese employees.
D) she is more qualified for the job than Sophia.
Q4) The Fair Labor Standards Act protects undocumented workers from abuse at workplaces.
A)True
B)False
Q5) Distinguish between national origin and citizenship.
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Page 9
Chapter 8: Gender Discrimination
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Sample Questions
Q1) Fetal protection policies are:
A) legally required only if an employer has more female employees than male employees.
B) prohibited by Title VII of the Civil Rights Act of 1964 if the policy applies only to women.
C) prohibited by the Fair Labor Standards Act if the policy applies equally to both women and men.
D) judicially administered only when there are more male employees than female employees in a workplace.
Q2) Prior to the Civil Rights Act of 1964,it was common for states to have laws that limited or prohibited women from working at certain jobs,under the theory that such laws were for the protection of women.
A)True
B)False
Q3) If both genders were performing the same job,a female wearing a smock would qualify as comparable to a male wearing a coat and tie.
A)True
B)False
Q4) What is gender stereotyping,and how does it result in gender discrimination?
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Chapter 9: Sexual Harassment
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Sample Questions
Q1) Which of the following is an effective way to deal with sexual harassment at the workplace?
A) Taking a reactive approach rather than a preventive approach toward sexual harassment
B) Promoting the use of in-house alternative dispute resolution resources for settling sexual harassment disputes
C) Punishing every act of sexual harassment, regardless of its severity, with termination
D) Keeping all sexual harassment claims confidential and not notifying the alleged harasser until the investigation is complete
Q2) Which of the following statements is true of complaints about acts of sexual harassment?
A) They are accepted only if they are in a written form.
B) They need not be treated seriously or investigated if made anonymously.
C) They can be made by anyone who has observed the harassment in the workplace.
D) They are accepted only in cases where the harassee is a female employee.
Q3) What are the elements of hostile environment sexual harassment?
Q4) Distinguish quid pro quo sexual harassment from hostile environment sexual harassment.
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Page 11
Chapter 10: Sexual Orientation and Gender Identity
Discrimination
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Q1) After an employee undergoes gender reassignment surgery,the safest thing for an employer is to treat the employee consistently with the way the employee presents his or her identity.
A)True
B)False
Q2) Lara is a lesbian.She is subjected to verbal abuse at work because of her sexual orientation.The harassment includes calling her a "dyke" and introducing her to new employees as "the resident lesbian." Lara has spoken to her supervisor,and nothing has changed.Lara has a cause of action under Title VII of the Civil Rights Act of 1964.
A)True
B)False
Q3) Research shows that in states with laws prohibiting discrimination against gays and lesbians,the laws had:
A) not generated a significant amount of litigation.
B) increased the number of discrimination claims by 20 percent.
C) not been effective in reducing discrimination based on sexual orientation.
D) decreased the number of homosexuals hired by employers.
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Page 12
Chapter 11: Religious Discrimination
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Sample Questions
Q1) When an objection under Title VII (of the Civil Rights Act of 1964)is directed toward a union,a government employer does not have a duty to reasonably accommodate an employee's religious conflict.
A)True
B)False
Q2) Under the guidelines established by President Clinton for the religious freedom of federal employees,workers are permitted to engage in religious expression directed at fellow employees.
A)True
B)False
Q3) The U.S.Supreme Court's determination of what constitutes undue hardship in the process of attempting reasonable accommodation was established in Trans World Airlines,Inc.v.Hardison.
A)True
B)False
Q4) Can an employer legally discharge an employee for refusing to join the union because of his or her religious beliefs? Explain.
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Chapter 12: Age Discrimination
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Sample Questions
Q1) Distinguish the perception of older workers from the reality of their impact in the workplace.
Q2) Steve is a police officer with the New York Police Department (NYPD).NYPD asks Steve to retire when he turns 65.It also informs Steve that he is eligible for an annual pension of $40,000.Steve feels that he is a good police officer and that he has been unfairly discriminated against because of his age.He files a complaint under the Age Discrimination in Employment Act against the NYPD).Which of the following statements is true in this case?
A) Steve will most likely win the case as it is illegal to subject an employee who receives less than $44,000 a year to mandatory retirement.
B) Steve will most likely lose the case as it is legal for police officers to be subjected to mandatory retirement.
C) Steve will most likely lose the case as he is not a high-level employee.
D) Steve will most likely win the case as he is not yet 70, and it is only legal to subject employees who are 70 and older to mandatory retirement.
Q3) What are the Equal Employment Opportunity Commission's interpretive rules that offer guidance regarding the language used in advertisements?
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Page 14
Chapter 13: Disability Discrimination
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Q1) Disability is determined on the basis of the effect the impairment has on the disabled person's life.
A)True
B)False
Q2) Describe the interactive process that should occur when there is a possible need for reasonable accommodation.Include the respective responsibilities of an employer and an employee.
Q3) Under the Americans with Disabilities Act,which of the following is a reasonable accommodation that an employer is required to provide to a disabled employee?
A) Moving the disabled employee's workstation closer to equipment, materials, and rooms that he or she frequently uses
B) Reducing the workload of the disabled employee and assigning it to a nondisabled employee
C) Providing the disabled employee with more rights to his or her job than those provided to nondisabled employees
D) Creating a whole new position that fits the abilities of the disabled employee
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Chapter 14: The Employees Right to Privacy and Management of Personal Information
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Q1) Employment-at-will means that the employee serves at the will of the employer.
A)True
B)False
Q2) Sean was employed by HGB Inc.as a manager.He was fired for sexually harassing his secretary.A prospective employer called HGB for a reference and was told that Sean was terminated on charges of sexual harassment.Which of the following statements is most likely to be true in this case?
A)Sean has a cause for action against HGB for defamation.
B)HGB is not liable for defamation because the statement was true and made in good faith.
C)Sean has a cause for action for invasion of privacy.
D)HGB is liable for public disclosure of private facts because it is illegal to make defamatory statements about an ex-employee.
Q3) No comprehensive federal workplace privacy legislation exists.
A)True
B)False
Q4) Provide a justification for electronic surveillance conducted by employers.
Q5) What must exist for the Fourth Amendment's protection against unreasonable search and seizure to be applicable to a given situation?
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Chapter 15: Labor Law
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Sample Questions
Q1) Loraine was the shop steward for the union at Capricorn Manufacturing Corp.The union members discovered that Loraine had stolen $17,000 from the union over a 10-year period.Loraine is guilty of a federal crime under the _____.
A) National Labor Relations Act
B) Taft-Hartley Act
C) Landrum-Griffin Act
D) Norris-LaGuardia Act
Q2) During a unionizing campaign,an employer is prohibited from:
A) trying to help employees form a union.
B) sending letters to employees' homes.
C) telling employees how good the company's working conditions are.
D) giving pay raises or benefits to all workers.
Q3) Sharon is not required to join the union that represents co-workers at her place of employment under the agency shop clause.This means that:
A) she must, nevertheless, pay union dues.
B) she has a choice in making union dues payments.
C) she is exempt from paying a service fee to the union.
D) she is, nevertheless, bound by the rules and regulations of the union.
Q4) Discuss the Landrum-Griffin Act of 1959.
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Chapter 16: Selected Employment Benefits and Protections
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Q1) Lucy,the administrator of pension and welfare plans for the Gold Sea Corporation,invests all of the participants' funds in the stock of TechvaSys Inc.The stock price plummets,resulting in a loss for the participants.Thus,Lucy has:
A) violated her fiduciary duty of disclosure.
B) violated her fiduciary duty of diversification.
C) violated her fiduciary duty of selective purpose.
D) violated her fiduciary duty of transparency.
Q2) The safety standards enforced by the Occupational Safety and Health Administration are researched and formulated by the:
A) National Center for Complementary and Integrative Health.
B) Occupational Safety and Health Review Commission.
C) National Institute for Occupational Safety and Health.
D) Equal Employment Opportunity Commission.
Q3) Briefly describe the difference between the two types of pension or retirement plans that the Employee Retirement Income Security Act (ERISA)covers.
Q4) Explain the general provisions of the Family and Medical Leave Act (FMLA).
Q5) What are the fiduciary standards established by the Employee Retirement Income Security Act (ERISA)?
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