Management and the Law
Textbook Exam Questions
Course Introduction
This course explores the intersection of management practices and legal principles, providing students with an understanding of how law influences and shapes business decisions. Key topics include contracts, employment law, corporate governance, regulatory compliance, intellectual property, and dispute resolution. By examining real-world cases and applying theoretical frameworks, students will learn to identify legal risks, navigate legal challenges, and ensure ethical and effective management within organizations. The course equips future managers with the skills necessary to operate confidently in complex legal environments and make informed decisions that balance organizational objectives with legal responsibilities.
Recommended Textbook Employment Law for Business 8th Edition by
Dawn Bennett
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16 Chapters
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Page 2
Chapter 1: The Regulation of the Employment Relationship
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Q1) The First Family Painting Company (FFPC)employs two supervisors,seven painters,four helpers,two schedulers,two carpenters,and one office manager.They are all permanent workers of the company who work throughout the year for eight hours each day.The company's owner wants to know whether her employees are covered under Title I of the Americans with Disabilities Act of 1990,Title VII of the Civil Rights Act of 1964,and the Age Discrimination in Employment Act of 1967.In this context,which of the following is true?
A) All three laws apply to the employees of the company because the company has at least 15 employees who work throughout the year for eight hours each day.
B) The employees are covered only under Age Discrimination in Employment Act.
C) Only the painters and carpenters are covered under Title VII of the Civil Rights Act.
D) The employees are covered under Title VII of the Civil Rights Act and the Americans with Disabilities Act but not under the Age Discrimination in Employment Act.
Answer: D
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Chapter 2: The Employment Law Toolkit: Resources for
Understanding the Law and Recurring Legal Concepts
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Q1) Janet is an employee of DF Infra Inc.,a private building contractor.She discloses to the Department of Justice information relating to fraud in carrying out a construction assignment on which she is working.DF Infra subsequently fires her.Janet then files a lawsuit against DF Infra for violating the Federal Whistleblower Statute.Which of the following is most likely to happen in this scenario?
A) Janet's case will be dismissed.
B) Janet can only win compensatory damages.
C) Janet can win both compensatory and punitive damages.
D) Janet's claim is invalid as she is an at-will employee.
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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4
Chapter 3: Title Vii of the Civil Rights Act of 1964
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Q1) Which of the following is a difference between filing discrimination cases under 42 U.S.C.section 1981 and Title VII of the Civil Rights Act of 1964?
A) Employees cannot file racial discrimination claims under section 1981, whereas under Title VII they can.
B) The statute of limitations under section 1981 is longer than under Title VII.
C) The damages that employees can claim under Title VII are unlimited, unlike those under section 1981 that have caps.
D) Employees do not have to offer evidence against their employees when they file their claim under Title VII, whereas employees bringing claims under section 1981 must produce evidence.
Answer: B
Q2) 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
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Chapter 4: Legal Construction of the Employment Environment
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Q1) Discuss the potential liability for defamation that can result from the use of performance appraisals.
Q2) A performance evaluation may be considered false where the rater does not include information that would explain or justify a poor appraisal.
A)True
B)False
Q3) Under common law,employers can be found liable for fraud in recruitment if they:
A) offer all candidates the same information about a position or their company.
B) allow an applicant to believe something about a job that they know is false.
C) use word-of-mouth recruiting to obtain new employees.
D) fill a job position by promoting from within the company.
Q4) In the context of preemployment tests,construct validity is generally most useful when an employer is seeking to measure:
A) psychological characteristics.
B) motor skills.
C) demographic factors.
D) physical stamina.
Q5) What is eligibility testing? Why are eligibility tests conducted?
Page 6
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Chapter 5: Affirmative Action
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Q1) Riverhill University,on conducting a self-audit,identifies a racial imbalance in its workforce where 85 percent of its department chairs and deans are white men.The university voluntarily institutes a short-term plan that mandates that future selections for department chairs and deans will be on a one-for-one basis until an appropriate ratio is achieved.Paul,a white male professor from the same university,applies for the position of a dean and gets rejected.He subsequently discovers that an equally qualified black female is selected for the position.In this scenario,Paul:
A) does not have a valid discrimination claim because suits based on reverse discrimination are barred by Title VII of the Civil Rights Act of 1964.
B) has a valid claim because Executive Order 11246 prohibits voluntary race-conscious affirmative action plans.
C) has an acceptable claim because the affirmative action plan unnecessarily trammels the rights of white employees.
D) does not have a valid claim because temporary plans to eliminate existing imbalances are permitted based on the United Steelworkers of America, AFL-CIO v. Weber case.
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Chapter 6: Race and Color Discrimination
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Q1) Zhu is the owner of Orchid Cleaning and Housekeeping Services.He never hires or promotes a black applicant to the position of supervisor because he believes that his predominantly Asian crew will not follow instructions from a black supervisor.Thus,Zhu is liable for:
A) reverse discrimination against an individual because of others' perceptions about the individual.
B) disparate treatment, and he cannot use the bona fide occupational qualification defense to protect himself.
C) constructive discharge, but he can use the business necessity defense to protect himself.
D) employment discrimination against an individual because of his or her association with someone of a particular race.
Q2) Discrimination against an individual based on perception of his or her race violates Title VII of the Civil Rights Act of 1964 even if that perception is wrong.
A)True
B)False
Q3) Describe an employer's best approach to avoiding liability for racial harassment in the workplace.
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8
Chapter 7: National Origin Discrimination
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Q1) The Equal Employment Opportunity Commission (EEOC)created a special classification,"Code Z," to designate complaints from undocumented workers regarding workplace abuses.
A)True
B)False
Q2) Which of the following is an employer's responsibility under the Immigration Reform and Control Act (IRCA)?
A) Accepting a green card for the purposes of Form I-9
B) Storing Form I-9 records in employee personnel files
C) Making threats of reporting an employee to the Immigration and Naturalization Service (INS) in retaliation for discrimination complaints or other protected activity
D) Asking assistance from the Immigration and Naturalization Service when a document submitted by an employee or an applicant does not reasonably appear to be genuine
Q3) If an employee is consistently subject to harassment based on national origin but never informs his or her employer,the employer may still be liable for not being aware.
A)True
B)False
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Chapter 8: Gender Discrimination
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Q1) The historic AFSCME v.State of Washington case was the first significant statewide case to challenge:
A) discrimination against people on the basis of their national origin.
B) skill-based pay differences in the workplace.
C) gender-based pay differences on the basis of the comparable worth theory.
D) discrimination against employees on the basis of their sexual orientation.
Q2) Liam works as a sales clerk at Big Time TV and Stereo,an entertainment and appliance retailer.Big Time has a grooming policy that requires employees to be generally neat in appearance and specifically prohibits male employees from wearing long hair.Liam,an aspiring actor,has been growing his hair out for a role.Though he makes a point to pull his hair back neatly in a ponytail,he has been issued a warning about violating the store's grooming policy and faces termination if he fails to comply.Liam claims that the policy constitutes gender discrimination because there is no such limitation on female employees.Does Liam have a valid claim for gender discrimination against Big Time?
Q3) It is unlawful for employers to refuse to hire on the basis of gender when gender acts as a bona fide occupational qualification.
A)True
B)False
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Page 10
Chapter 9: Sexual Harassment
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Q1) Lakeisha,a management assistant at the Fourth Bank and Trust Company of Pasadena,is involved in a romantic affair with Wilson,the senior vice president of the bank.Though the relationship between Lakeisha and Wilson is very strong,Wilson is concerned that he and the bank might be accused of sexual harassment at some point in the future.The director of human resources recommends that Wilson and Lakeisha sign a "love contract." Though it may not be a perfect solution to liability for sexual harassment,this contract will:
A) restate the voluntary nature of their relationship and assure Lakeisha that decisions regarding her employment will not be influenced by the end of their relationship.
B) affirm that they end the relationship with immediate effect and that Lakeisha accept money in return for any damages caused during their relationship.
C) affirm that they shall resolve any work-related dispute through litigation and not through other alternative dispute resolution mechanisms.
D) restate that under no circumstances shall Lakeisha adopt retaliatory conduct against Wilson in the future if their relationship ends in a bad manner.
Q2) What are the elements of hostile environment sexual harassment?
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Chapter 10: Sexual Orientation and Gender Identity
Discrimination
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Q1) Gay Pride Month commemorates the beginning of the modern gay rights movement in:
A) 1993 when President Clinton implemented the military's "Don't Ask, Don't Tell" policy.
B) 1969 when riots occurred in New York after police officers raided a gay bar.
C) 1973 when the American Psychiatric Association removed homosexuality from its official list of mental disorders.
D) 2005 when the Canadian Parliament passed a bill legalizing gay marriage throughout the country.
Q2) The Defense of Marriage Act (DOMA)defined marriage as between any two individuals,regardless of their gender identities or sexual orientations,for federal purposes.
A)True
B)False
Q3) Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of sexual orientation.
A)True
B)False
Q4) What protections,if any,does Title VII of the Civil Rights Act of 1964 afford gay and lesbian individuals?
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Chapter 11: Religious Discrimination
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Q1) In order to accommodate an employee's religion per Title VII of the Civil Rights Act of 1964,an employer:
A) need not previously know of, or have heard of, or approve of the employee's religion.
B) must be convinced that the employee has been practicing the religion before his or her current employment.
C) must be convinced that the employee is a member of an organized religion.
D) need not be informed of the conflict by the employee.
Q2) Which of the following categories under Title VII (of the Civil Rights Act of 1964)requires reasonable accommodation?
A) Gender
B) National origin
C) Religion
D) Race
Q3) 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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13
Chapter 12: Age Discrimination
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Q1) In O'Connor v.Consolidated Coin Caterers,the U.S.Supreme Court held that:
A) a plaintiff can state a claim as long as she or he is replaced by someone younger, even if the replacement is 40 years old or older.
B) a plaintiff can state a claim for age discrimination only if the plaintiff has worked for the employer for five years or more.
C) claims of disparate impact discrimination are not recognized under the Age Discrimination in Employment Act.
D) burden shifting occurs in Age Discrimination in Employment Act cases.
Q2) If an employee who believes that his or her employer has engaged in age discrimination files a complaint with the federal Equal Employment Opportunity Commission,he or she cannot file a lawsuit in state court under state age discrimination laws as these legal options are mutually exclusive.
A)True
B)False
Q3) What method must an employee filing an action against his or her employer under the Age Discrimination in Employment Act utilize to prove age discrimination? List the elements that must be established by an employee to persuade the court that she or he has a claim for age discrimination.
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Page 14
Chapter 13: Disability Discrimination
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Q1) An accommodation under the Americans with Disabilities Act (ADA)is reasonable if it:
A) creates a new job specifically for a disabled employee.
B) does not require a disabled employee to follow the employer's other workplace rules and policies.
C) modifies the essential functions of a job to accommodate a disabled individual.
D) does not cause an undue burden on the employer.
Q2) With regard to workplace accidents or injury,the failure to meet the appropriate standard of care for avoiding unreasonable risk of harm to others is known as _____.
A) negligence
B) nuisance
C) assault
D) battery
Q3) Current illicit drug users are protected by the Americans with Disabilities Act (ADA). A)True
B)False
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Chapter 14: The Employees Right to Privacy and Management of Personal Information
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Q1) Rosalie is an employee of HG Mighty Inc.She uses her office computer to check her personal email.Rosalie opens one of her emails to find a link to a joke with a pornographic picture embedded in the message.Rosalie is called into her supervisor's office and reprimanded for violating the company's policy against accessing pornography.Which of the following statements is most likely to be true in this scenario?
A)Rosalie can file an action against HG Mighty for intrusion upon seclusion.
B)Rosalie has no cause for action against HG Mighty because she has no reasonable expectation of privacy regarding her personal email when she uses the company's computer.
C)Rosalie can maintain an action for violation of the Electronic Communications Privacy Act.
D)Rosalie has no cause for action against HG Mighty because she was conducting personal business at work instead of performing the duties of her job.
Q2) No comprehensive federal workplace privacy legislation exists.
A)True
B)False
Q3) 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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Q1) Individuals in a bargaining unit who do not pay dues but whom the union is still obligated to represent are known as _____.
A) free riders
B) yellow dog contract members
C) union members
D) independent contractors
Q2) Discuss the Landrum-Griffin Act of 1959.
Q3) The Landrum-Griffin Act of 1959 provided a bill of rights for union members.
A)True
B)False
Q4) The National Labor Relations Act is also known as the _____.
A) Landrum-Griffin Act
B) Taft-Hartley Act
C) Norris-LaGuardia Act
D) Wagner Act
Q5) 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.
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Chapter 16: Selected Employment Benefits and Protections
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Q1) A defined contribution plan is a retirement plan where:
A) the benefits payable to a participant are based on the principal and income contributed.
B) the amount an employee receives at retirement is specifically designated at the time the employee enters the plan.
C) contributions made by an employee toward the plan are determined actuarially.
D) contributions toward the plan generally only come from an employer.
Q2) It is mandatory for employers to display an Occupational Safety and Health Act (OSHA)poster in the workplace so as to keep their employees informed of their rights under the act.
A)True
B)False
Q3) An employer will not be held responsible under the Occupational Safety and Health Act (OSHA)for workplace hazards or injuries where the harm is the result of reckless behavior by an employee.
A)True
B)False
Q4) What are the fiduciary standards established by the Employee Retirement Income Security Act (ERISA)?
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