Due Thursday, October 18, 2018
Chapter 32
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In an agency relationship involving two parties, the agent agrees to represent or act for the principal. True
A familiar example of an agent is a: corporate officer who serves in a representative capacity for the owners of the corporation
Definitions
a. Independent Contractor – One who works for, and receives payment from, an employer but whose working conditions and methods
are not controlled by the employer. An independent contractor is not an employee but may be an agent.
b. Agency – A relationship between two parties in which one party, the agent, agrees to represent or act for the other, the principal
c. Fiduciary – As a noun, a person having a duty created by his or her undertaking to act primarily for another’s benefit in matters
connected with the undertaking. As an adjective, a relationship founded on trust and confidence.
With respect to their employers, employees who deal with third parties are generally deemed to be agents
Agency relationships can exist outside an employer-employee relationship, and thus agency law has a broader reach than does employment law.
True
Courts will determine independent contractor status by asking several questions. These include the following: How much control does the
employer exercise over the details of the work? Is the worker engaged in an occupation or business distinct from that of the employer? Is the
work usually done under the employer’s direction or by a specialist without supervision? Does the employer supply the tools at the place of
work? For how long is the person employed? What is the method of payment, by time period or at the completion of the job? What degree of
skills is required of the worker?
Whether a worker is an employee, or an independent contractor can affect the employer’s liability for workers’ actions. If the IRS decides that
an employee is misclassified as an independent contractor, the employer will be responsible for paying Social Security, withholding, and
unemployment taxes.
Any copyrighted work created by an employee within the scope of her or his employment at the request of the employer is called a work for
hire
Agency relationships are normally consensual, coming about through voluntary consent and agreement between the parties. True
Who can become a principal and who can become an agent? A person must have contractual capacity to be a principal, but any person can
become an agent.
Which of the following is NOT one of the four ways in which an agency relationship can arise? Agency by federal law
When a person who is not an agent makes a contract on behalf of a principal, the principal cannot benefit from the contract. False
In agency law, ratification occurs when: a principal, by words or by actions, affirms a contract made by a person who in fact is not an
agent.
Agency by estoppel is created when the principal causes a third party to reasonably believe that an agency relationship exists.
In which TWO situations may the courts find an agency relationship in the absence of a formal agreement? In family relationships and in
emergency situations.
The agency relationship is a fiduciary relationship based upon trust and each party owes the other the duty to act with the utmost good faith.
True
Which of the following is NOT a duty the agent owes the principal? Superior competence
The degree of skill or care required of an agent is usually that expected of a reasonable person under similar circumstances.
Generally, the liability of the principal will depend on whether the agent was authorized to form a contract. True
A gratuitous agent may be held liable for breach of contract. False
The agent has the duty to act solely for the benefit of the principal and not in the interest of the agent or a third party.
An agent’s actions must be strictly for the benefit of the principal and must not result in any secret profit for the agent
Which of the following is NOT a duty the principal owes the agent? Substantial ownership in the business
When the principal grants an agent an exclusive territory, we say that the principal has created an exclusive agency.
When an agent fails to perform his or her duties, for what may the agent be liable to the principal? (choose two). Breach of contract and tort
liability
If two parties in the agency agreement disagree about how much the principal owes the agent, the agent may suspend performance and demand
an accounting
When the principal-agent relationship is not contractual, the agent may receive an order for specific performance from the court to ensure that
the agency relationship may continue. False
The principal has several remedies available, including contractual for breach of fiduciary duties and tort remedies if the agent engages in
misrepresentation, negligence, deceit, libel, slander, or trespass. Anything that the agent obtains by virtue of the agency relationship belongs to
the principal and will be considered held in constructive trust for the principal. If the agent breaches the agreement, the principal also has a
right of avoidance. Finally, if the principal is sued for the agent’s negligent conduct, the principal can sue the agent for indemnification.
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The land in this case was originally owned by Kortney Branson
At the time of the sale to the mall, the land in this case was owned by Anderson Crossing Investments, Inc.
William Hill worked for Anderson Crossing Investments, Inc.
Richard Anderson was a minority owner of Anderson Crossing Investments, Inc.
In purchasing the land, Hill was not working on behalf of Richard Anderson as an individual.
In purchasing the land, Hill was acting as an agent for Anderson Crossing Investments, Inc.
Hill was not an actual agent for Richard Anderson.
Branson sued Richard Anderson
Branson’s theory for holding Richard Anderson personally liable for Hill’s actions is that Richard Anderson created a reasonable belief that Hill
was Anderson’s agent in doing the activity, thus creating agency by estoppel
Branson believed that Hill was Richard Anderson’s agent because Anderson told her about the sale to the mall
The second basis for Branson’s belief that Hill was Richard Anderson’s agent was that Hill told Branson that he was doing the work for
“Anderson”
For the alleged type of agency to exist, it does not matter what the assumed agent said or did to create the belief in the agency.
Whether a court finds that an agency relationship exists depends on whether Branson’s belief that an agency agreement existed was reasonable
and created by Richard Anderson
In addition to this reliance, the third party must act to his or her detriment in reliance on the belief of the agency relationship.
It is possible that Branson sold the property because Hill mentioned “Anderson,” and she believed that was Richard Anderson
If Branson did believe that Hill was talking about Richard Anderson, then any indication that an agency relationship between Richard Anderson
and Hill existed came from Hill
Because Richard Anderson did not say or do anything prior to the sale of the land, the belief in the agency agreement was not created by him,
and Branson could not have relied on that belief.
The court should dismiss the claim against Richard Anderson.
Under these facts, Hill is an actual agent for Anderson Crossing Investments, Inc.
Under these facts, Ms. Branson met with Mr. Hill believing that he was an agent of Mr. Anderson
Ms. Branson’s belief under these circumstances was based on the language of Mr. Anderson
This speech occurred before the sale of the property.
Under these facts, it is likely that a court would hold that Ms. Branson’s belief was reasonable and that it was caused by Mr. Anderson
Under these facts, it is likely that a court would hold that agency by estoppel existed, and a cause of action against Mr. Anderson could be
sustained
Due Tuesday, October 23, 2018
Chapter 33
53. Generally, the liability of the principal will depend on whether the agent was authorized to form a contract. True.
54. An agent’s authority to act for a principal: may be actual or apparent
55. Definitions:
a. Notary public – A public official authorized to attest to the authenticity of signatures.
b. Equal dignity rule – In most states, a rule stating that authority given to an agent must be in writing if the contract to be made on
behalf of the principal is also required to be in writing
c. Power of attorney – A written document authorizing another to act as one’s agent. This may be special, permitting the agent to do
specified acts only, or general, permitting the agent to transact all business for the principal.
d. Express authority – Power given by one party to another in clear and definite terms to act on that person’s behalf.
56. The equal dignity rule has several exceptions. For example, an executive officer of a corporation normally can conduct ordinary business
transactions without written authority. Likewise, when an agent acts in the presence of a principal, the rule does not apply. Finally, when the
agent’s signature is merely a formality, the agent does not need written authority to sign.
57. An ordinary power of attorney ends when: the person giving the power dies or becomes incapacitated
58. Definitions:
a. Apparent authority – Authority that is only apparent, not real. In agency law, a person may be deemed to have had the power to act
as an agent for another party if the other party’s manifestations to a third party led the third party to believe that an agency existed
when, in fact, it did not.
b. Ratification – The act of accepting and giving legal force to an obligation that previously was not enforceable
Implied authority – Authority that is created not by an explicit oral or written agreement but by implication. In agency law, implied
authority of the agent can be conferred by custom, inferred from the position the agent occupies, or implied by virtue of being
reasonably necessary to carry out express authority.
An agent’s implied authority can be inferred by the position the agent occupies
When a third party reasonably believes a person has authority to act on another’s behalf, even if that person does not have such authority, the
situation is known as apparent authority
Apparent authority usually comes into existence through a principal’s pattern of conduct over time. True
A court can apply the doctrine of agency by estoppel when a principal has given a third-party reason to believe that an agent has authority to
act.
An agent will have emergency powers: to protect the principal’s property and rights when the agent is unable to communicate with the
principal.
Ratification occurs when the principal accepts responsibility for the agent’s unauthorized acts. For ratification to be valid, the agent must have
acted on behalf of an identified principal, that principal must know all of the material facts, must affirm the agent’s act in its entirety, and must
have the legal authorization to ratify the transaction both at the time the agent engages in the act and at the time the principal ratifies it. The
principal’s ratification must occur before the third party withdraws from the transaction, and the principal must observe the same formalities
when ratifying the act as would have been required to authorize it initially.
When the principal does not ratify an unauthorized contract resulting in an unaccepted offer, the third party can: revoke the offer at any time
without liability.
Liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or
unauthorized. True
Which of the following is NOT a classification of a principal? Materially disclosed
Definitions:
a. Undisclosed principal – A principal whose identity is unknown by a third person, and the third person has no knowledge that the agent
is acting for a principal at the time the agent and the third person form a contract.
b. Partially disclosed principal – A principal whose identity is unknown by a third person, but the third person knows that the agent is
or may be acting for a principal at the time the agent and the third person form a contract
c. Disclosed principal – A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
If an agent has authority to sign a contract on behalf of a disclosed principal, the third party may hold either the principal or the agent
responsible to perform. False
An undisclosed principal can require the third party to fulfill the contract unless the undisclosed principal was expressly excluded as a party in
the written contract, the contract is a negotiable instrument signed by the agent with no indication of signing in a representative capacity, or
the performance of the agent is personal to the contract, thus allowing the third party to refuse the principal’s performance.
If an agent has no authority but nevertheless contracts with a third party, the principal cannot be held liable on the contract. True
If the third party knows at the time the contract is made that the agent does not have authority, the principal nonetheless remains liable. False
If an agent contracts with a third party without authority from the principal, the principal is not liable on the contract. If the third party knows of
the existence of a principal, either disclosed or partially disclosed, then the agent is liable to the third party who relied on the agency status. In
this situation, there is a breach of the implied warranty of authority. If the third party knows that the agent does not have authority, then the
agent is not liable to the third party.
Today, standard agency principles also apply to e-agents. True
A principal may be liable for the tortious conduct of an agent based on the principal’s own actions, including all of the following EXCEPT:
providing explicit accurate written instructions to the agent
A principal who authorizes an agent to commit a tort may be liable to persons or property injured because the act is considered to be the
principals. True
A principal is always responsible for an agent’s misrepresentations made within the scope of the agent’s authority.
Definitions:
a. Vicarious liability – Legal responsibility placed on one person for the acts of another
b. Respondeat superior – A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or
employees while acting within the course and scope of their agency or employment
We all have a social duty that requires us to manage our affairs so as to not injure another. This duty applies even when we act through an agent.
True
In determining whether a particular act occurred within the scope of employment, courts will evaluate whether the employee’s act was
authorized by the employer; the time, place, and purpose of the act; whether the act was one commonly performed by the employees on behalf
of their employers; the extent to which the employer’s interest was advanced by the act; the extent to which the private interests of the
employee were involved; whether the employer furnished the means by which an injury was inflicted; whether the employer had reason to know
c.
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that the employee would perform the act in question, and whether the employee had done it before; and whether the act involved the
commission of a serious crime.
If an agent is on a detour, the principal will be liable, but if the agent is on a frolic, the principal will not be liable.
The employer is charged with knowledge of any dangerous conditions discovered by an employee and pertinent to the employment situation. True
A principal will be liable for the intentional torts of an employee-agent in all of the following situations, except: if the agent committed the
intentional tort while on a frolic
If an agent commits a crime, the employer-principal is not liable unless the principal participated in the crime by conspiracy
Agency law is similar to contract law in that both an agency and a contract may be terminated by the parties or by operation of law. True
One or more parties may terminate an agency relationship by placing into the agreement a time period for termination. When that time lapses,
the agency ends. In addition, the parties can specify that the agency is for a particular purpose. Once that is achieved, the agency ends.
Alternatively, the parties can include a specific event as a trigger for termination; once that event occurs, the agency ends. The parties can
terminate an agency relationship prior to any of the preceding events by mutual agreement, or revocation by either individual party.
Definitions:
a. Revocation – The unilateral termination of the agency agreement by the principal
b. Renunciation – The unilateral termination of the agency agreement by the agent
Either party has the power to terminate the agency agreement, but they may not have the right to do so without legal consequence.
With an agency at will, the principal who wishes to terminate must give the agent reasonable notice
An agency coupled with an interest involves a situation in which the agent has: some legal right or interest in the property that is the
subject of the agency.
An agency coupled with an interest is created solely for the principal’s benefit. False
The principal is required to inform any third parties who know of the existence of an agency that the agency has been terminated.
When an agency is terminated all of the agent’s authority is terminated as well. False
To give adequate notice of the termination of the agency relationship, the principal (select two): Must directly contact all persons the
principal knows interacted with the agent and may give constructive notice, such as through publication in a newspaper, to any person
who has not yet dealt with the agent but who may have heard about the agency relationship.
Which of the following is NOT a valid reason for a termination of an agency by operation of law? Prior engagement
Generally, death or insanity of either party will automatically and immediately terminate the agency relationship. If performance becomes
impossible, the agency relationship will terminate. A significant change in circumstances may trigger termination of the agency if the agent can
reasonably infer that the principal will not want the relationship to continue. Bankruptcy of the principal most likely will terminate the agency,
but bankruptcy of the agent may or may not terminate the agency. Finally, if the nationality of the two parties is different and those nations are
at war, the relationship is terminated because there is no way to legally enforce the rights of either party.
Kim hires Michelle to go to the art gallery and purchase a specific painting for him. The painting costs $1,500. Because this is the purchase and
sale of goods for more than $500, the contract for the painting must be in writing. In order to have a legal purchase of the paining, Kim: may
have Michelle sign on his behalf if the agency agreement is in writing
Selma, an elderly widow gives her young neighbor Steven written power of attorney. This means that Steven now: has express authority to act
as Selma’s agent
Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability to hire or terminate
lower level employees in the Marketing division. If Melina has this power, it is based on her: implied authority
Dean is not Paul’s agent, but Paul tells Charlie that Dean has always been a good friend and can “handle any of my business affairs.” If Dean were
to later enter into a contract with Charlie on Paul’s behalf, Dean would be acting under an: apparent authority
Lizzie works for Gary in his dance supply shop and is authorized to sell inventory but not to order new merchandise. Rena, a sales representative
for a new line of dance wear, comes into the store and Lizzie places an order with her. When Gary learns the details of Lizzie’s purchase he wants
to ratify the contract. The one condition that is NOT necessary for ratification is: Rena must withdraw from the transaction before Gary
ratifies it.
Gina buys a piece of pottery from Woodward for her principal, Kelvin. If Woodward knows that Gina is buying the pottery on behalf of someone
other than herself but does not know the identity of that person, Kelvin is: a partially disclosed principal
Maureen knows that her friend Kramer collects duck memorabilia. One day, she spots a carved wooden duck she is sure he will love. She tells the
shop owner that Kramer will pay her for the duck as soon as he sees it, and she takes the duck with her to show it to Kramer. Kramer is: not
liable
Patricia hires Albert to sell Patricia’s expensive sports car. Albert agrees on a sale with Zeke, who wants to purchase the car for its powerful
engine and well-kept condition. Albert does not disclose Patricia’s identity to Zeke. Albert also does not disclose the fact that Albert is an agent
for someone else. Zeke tenders the purchase price to Albert, but Patricia refuses to deliver the car as agreed. In this situation: Patricia is
bound to perform
105. Jason instructs his agent Miguel to obtain a piece of artwork from Martina by threatening to beat her if she refuses to sell the artwork. Miguel
follows Jason’s instruction and beats Martina when she refuses to sell the item. In this situation: both Jason and Miguel are liable for
Martina’s injuries
106. Donald is a new financial analyst for a large stock-brokerage company. On the way to work, Donald collides with Yolanda, injuring her. Donald
would normally be considered to be acting: outside the scope of employment
107. Francis drives a delivery truck for Weston Industries. In the middle of his delivery route, Francis stops to have a two-hour lunch with friends
twenty miles away. While in the restaurant, Francis spills some water and another person falls on it. That person sues Weston Industries. To
determine liability, a court would likely decide that Francis was acting: outside the scope of employment
108. Sarah asks Sergio to mow her lawn. Sergio, who is overloaded with work, contracts with Dan to do the work for him as an independent
contractor. As Dan is mowing, Sarah walks out of her house and the lawnmower throws a rock and hits Sarah, causing serious injuries. In this
situation, Sergio is: probably not liable for Sarah’s injuries
109. Ernest signs a listing agreement with Lisa to sell his house. Before Lisa finds a buyer, the house is destroyed by flooding. In this case, the agency
agreement between Ernest and Lisa: terminates based on impossibility
110. Selena signs a power of attorney appointing Kim, for the sole purpose of signing paperwork on her behalf that relates to the sale of her house.
The power of attorney will automatically terminate based on: the purpose being achieved
111. Samantha borrows $10,000 from John to start her business. She gives John her stock in AT&T, authorizing him to sell it if she defaults on her
loan. If she later attempts to terminate his authority to sell the stock, she will not be successful because she gave John an agency: coupled with
an interest
112. The plaintiff in this case is the Criss family
113. The defendant in this case is Pappas
114. In the contract, Pappas signed as an agent for Outside Creations
115. Outside Creations would be a disclosed principal in the contract
116. This type of principal is liable to a third party for contracts made by its agents
117. In this situation, Outside Creations is liable on that contract
118. At trial, Pappas claimed that he was an agent for Forever Green Landscaping and Irrigation, Inc.
119. At trial, Pappas claimed that Outside Creations was just another name for Forever Green Landscaping and Irrigation, Inc.
120. Forever Green was not mentioned in the contract and would be an undisclosed principal
121. This type of principal is bound to perform the contract
122. Forever Green cannot perform on the contract because it is bankrupt
123. Once an undisclosed principal’s identity is revealed, the third party generally can hold either the principal or the agent liable on the contract.
124. A court likely will find for the Criss family on the breach of contract claim.
125. Under these facts, the landscaper in the contract is Outside Creations
126. Because of the phone conversation between Pappas and the Criss family, Forever Green is a disclosed principal
127. Because of this, Forever Green is liable on the contract
128. And because of the type of agency, Pappas is not liable on the contract
129. Under these facts, the court should dismiss Pappas from the suit
Due Thursday, October 25, 2018
Chapter 34
130. To a large extent, statutory law has displaced common law doctrines that apply to employment relationships. True
131. Definitions:
a. Minimum wage – The lowest wage, either by government regulation or union contract, that an employer may pay nonexempt
employees
b. Wrongful discharge – An employer’s termination of an employee’s employment in violation of an employment contract or a statutory
law protecting employees.
c. Employment at will – A common law doctrine under which either party may terminate the employment relationship at any time for
any reason, unless doing so violates an employee’s statutory or contractual rights.
d. Whistleblowing – An employee’s disclosure to government authorities, upper-level management, or the media that the employer is
engaged in some unsafe or illegal activity.
132. An employer may be held liable for the wrongful discharge of an employee if the discharge violated: the common law or statutory law
133. The most common exception to the employment-at-will doctrine is made on the basis that the employer’s reason for firing the employee violates
a fundamental public policy of the jurisdiction. True
134. The federal government began to regulate wages and working hours of employees in the 1930s
135. Which of the following laws does NOT relate to the regulation of wages and working hours? The National Recovery Act
136. The Fair Labor Standards (FLSA) does NOT: restrict the power of federal courts issuing injunctions against unions
137. Children under fourteen years of age are allowed to do only certain types of work, such as delivering newspapers or working for their parents.
Youths between the age of fourteen and fifteen cannot be employed in hazardous occupations. Any employee who works more than forty hours
per week must be paid no less than 1.5 times her or his regular pay for all hours over forty.
138. One of the major federal laws dealing with layoffs is the: Worker Adjustment and Retraining Notification Act (WARN)
139. The WARN Act applies to employees with at least 100 full-time employees
140. A mass layoff is defined as one that involves at least 1/3 of the full-time employees at a particular job site
141. The Family and Medical Leave Act (FMLA) supersedes all state and local laws that provide more generous protection. False
142. The FMLA affects employers who have 50 or more employees
143. Under the Fair Labor Standards Act, eligible employees may take up to twelve weeks of leave within a twelve-month period to care for the
employee’s spouse, child, or parent who has a serious health condition. True
144. Which of the following reasons is an employee NOT able to use as unpaid leave granted by the Family and Medical Leave Act? For routine annual
medical checkups and general maintenance
145. With respect to a worker’s health-care coverage, when an employee takes FMLA leave, the employer: must continue the worker’s health-care
coverage on the same terms as if the employee had continued to work
146. If an employer violates the FMLA, the employer may be required to provide all of the following remedies EXCEPT: permanent employment
147. Federal rules concerning worker safety are enforced by OSHA
148. Whenever a work-related injury or disease occurs, employers must make reports directly to OSHA. True
149. Definitions:
a. Workers’ compensation laws – State statutes establishing an administrative procedure for compensating workers’ accidental
injuries that arise out of—or in the course of—their employment, regardless of fault.
b. Vesting – Under the Employee Retirement Income Security Act of 1974, a pension plan becomes vested when an employee has a legal
right to the benefits purchased with the employer’s contributions, even if the employee is no longer working for this employer
150. What can OSHA compliance officers do with respect to facilities of establishments covered by the act? Enter and inspect the facilities
151. If an employee recovers benefits from a workers’ compensation claim, he or she: is normally barred from suing the employer for negligence
152. In order to recover benefits under state workers’ compensation laws, there must be the existence of an employment relationship and a
accidental injury that occurred on the job or in the course of employment
153. In order for a worker to recover benefits under state workers’ compensation laws, the worker must not be at fault for the injury that occurred
on the job or in the course of employment. False
154. To qualify for workers’ compensation benefits, an injured employee must notify her or his employer usually within 30 days of the accident
155. The key federal law dealing with employee protection from the financial impact of retirement is the Social Security Act
156. The Social Security Act provides for all BUT the following: dental care insurance
157. The act that regulates private pension funds is ERISA
158. The Federal Unemployment Tax Act created a state-administered unemployment compensation system.
159. The federal law that provides continued access to health insurance to workers who have been terminated from their employment is known as
COBRA
160. The Affordable Care Act (Obamacare) applies to most employers with 50 or more full-time employees.
161. The First Amendment’s protection of free speech prevents private and public employers from restraining speech by blocking websites. False
162. If employees have been informed that their communications are being monitored, they cannot reasonably expect those interactions to be private.
True
163. In order to comply with current immigration laws, employers must verify a new hire’s right to work through completion of: an I-9 Employment
Eligibility form
164. Acceptable documents verifying legal eligibility to work include all of the following EXCEPT: a driver’s license
165. Individuals with H-1B visas can stay in the United States for Three to six years and can work only for the sponsoring employer
166. A common name for an I-551 Alien Registration Receipt is a: green card
167. All of the following are employer practices unfair to labor under the National Labor Relations Act EXCEPT: Discrimination in the payment of
wages and benefits according to the skill and ability of the workers employed by the employer
168. Definitions
a. Closed shop – A firm that requires union membership as a condition of employment. The closed shop was made illegal by the Labor
Management Relations Act of 1947.
b. Union Shop – A place of employment in which all workers, once employed, must become union members within a specified period of
time as a condition of their continued employment.
c. Right-to-work laws – A state law providing that employees must not to be required to join a union as a condition of obtaining or
retaining employment
Hot-cargo agreements – An agreement in which employers voluntarily agree with unions not to handle, use, or deal in goods of other
employers produced by nonunion employees.
e. Cease-and-desist order – An administrative or judicial order prohibiting a person or business from conducting activities that an
agency or court has deemed illegal.
The first step in creating a union is to: have workers sign authorization cards
The National Labor Relations Act established the right to: engage in collective bargaining and to strike
Only employees are covered by the National Labor Relations Act. False
Union Shops are technically illegal in the states that have right-to-work laws. True
The Labor-Management Reporting and Disclosure Act creates reporting requirements for union activities
The practice of featherbedding involves a union requiring: employers to hire more employees than necessary
Definitions:
a. Collective bargaining – The process by which labor and management negotiate the terms and conditions of employment, including
working hours and workplace conditions
b. Lockouts – Occurs when an employer shuts down to prevent employees from working typically because it cannot reach a collective
bargaining agreement with the union
c. Secondary boycott – A union’s refusal to work for purchase from, or handle the products of a secondary employer, with whom the
union has no dispute, for the purpose of forcing that employer to stop doing business with the primary employer, with whom the union
has a labor dispute
d. Strike – An extreme action undertaken by unionized workers when collective bargaining fails.
Which of the following is NOT considered bad faith collective bargaining? Utilizing bargainers who have the authority to enter into
agreements of behalf of the employer
If necessary, strikers may legally remain in the plant without working and engage in secondary boycotts in order to encourage good faith
bargaining. False
What rights do strikers have after a strike ends? They are guaranteed to return to their jobs after the strike if no satisfactory
replacement workers have been found
An employer may not use a lockout as a tool to break a union and pressure employees into decertification. True
Erin works for a dry-cleaning company that has a contract with the U.S. government. To save on cleaning fluid, her boss orders her to wash
some clothes that are supposed to be dry-cleaned in a washing machine. When the courier hired to pick up the cleaned garments arrives, Erin
tells him about her boss’s actions. Erin tells no one else about what is going on and is later fired. Erin: is not protected by the whistleblower
statute because she failed to inform the proper party of the contract violation
Abigail works for a large pharmaceutical company as a scientist. While testing a potential new drug, she learns that company managers are
illegally falsifying results that are being sent to the FDA in order to streamline drug approvals. Abigail reports this practice to federal law
enforcement. Company managers learn about Abigail’s disclosures and fire her. Abigail: is protected from wrongful discharge by the
exception based on public policy.
John works at San Marino Food Store as an assistant store manager. John’s boss, Michael, does not approve of John’s interest in football.
Michael believes that baseball is the better sport. As a result, Michael fires John. Assuming no other contractual relationship exists between
John and his employer, John: is not protected from discharge because he is an employee at will.
The Scooter Store notified its employees at 5p.m. on Friday that it is laying off two thirds of its workforce as of today, and told them not to come
in on Monday. It failed to provide advance notice to anyone and in doing so likely violated: the Worker Adjustment and Retraining Notification
Act.
Kera is an hourly employee of Xeon, Inc., who earns a wage of $10.00 an hour. During a busy season, Kera works 50 hours in one week. Xeon pays
Kera $11.00 an hour for her overtime pay. Xeon is: not in conformance with the Fair Labor Standards Act because Xeon is obligated to pay
no less than 1.5 times Kera’s regular pay for hours she worked over 40 in one week.
Julie’s father has been diagnosed with dementia, and Julie needs to be home to take care of her father for six consecutive weeks. Julie asks her
employer, BigCo, for six weeks of medical leave under the Family and Medical Leave Act (FMLA) and her regular salary paid. Is BigCo obligated to
grant this request? Partially yes, the FMLA requires granting employees twelve weeks of medical leave per year for a qualifying reason.
However that leave does not have to be paid leave.
Grocer’s Choice is the largest employer in the Pacific Northwest. It is covered by numerous federal employment laws. As such, it is required by
the FMLA of 1993 to provide employees with up to: 12 weeks of unpaid family or medical leave during any 12-month period.
Byron works at Stich-Rite Clothing Factory. The company is required to maintain safe working conditions under the: Occupational Safety and
Health Act
When Kimberly begins working for Pharmco Industries the company tells her that at a future date, based upon her years of employment with the
company, she can receive retirement pay. Her rights to receive pay upon retirement would be considered: vesting
d.
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189. Maria works for MegaCorp, a large privately owned company specializing in sales of ball bearings. MegaCorp introduces filtering software to
block access to certain non-work related Web sites, as well as sites containing sexually explicit images. Can Maria legally challenge the new
policy? No, because private employers generally are free to use filtering software to block access to certain Web sites
190. Josh works for a federal governmental agency that requires drug testing as a condition of employment. He wants to challenge the
constitutionality of the testing in court. For his case, Josh will attempt to rely on: the Fourth Amendment
191. Jonah owns a food processing company. His business was recently raided by U.S. Immigration and Customs Enforcement agents based on a tip
that he was employing undocumented workers. In defending against this charge, Jonah map assert any of the following except: failure to
maintain proper paperwork evidencing the right to work.
192. Meg needs an electrician to do some work at her home. Her father advises her to make sure that the firm she plans to hire is not a closed shop.
Meg is not sure what this means, but later learns that the “closed shop” that her father was referring to is: a firm that requires union
membership by its workers as a condition of employment.
193. Forest Products is a mill that has always successfully resisted unionization of its workers by offering better pay and benefits than other
employers. Nevertheless, Wilson and several others would like to unionize. The first step they will need to take is to: have workers sign
authorization cards.
194. Employment at will does give employers broad discretion to hire and fire their employees
195. The discretion of employment at will does not require employers to give an employee sufficient notice before the employee is discharged
196. The most common exception to the employment at will doctrine is the exception based upon public policy
197. The public policy exception may apply to an employee discharged for whistleblowing
198. Whistleblowing involves the disclosure of unsafe or illegal activity to appropriate individuals or entities, such as government authorities, upperlevel managers, or the media
199. Did Mia speak about illegal activities by her employer? Yes
200. Did Mia report her findings of illegal overbilling to government authorities? No
201. Did Mia report her findings of illegal overbilling to upper-level managers? No
202. Did Mia report her findings of illegal overbilling to the media? No
203. Is Mia a whistleblower under the law? No
204. Why? Mia did not report activity to the necessary individuals or entities.
205. Can BuildCo legally fire Mia in this case? Yes
206. Assume now that Mia reported her findings to the local television news. Has Mia met the legal requirement of a whistleblower? Yes
207. Why? Mia reported illegal activity and Mia reported activity to the necessary individuals or entities.
208. Does the fact that Mia is an employee at will impact the legality of the decision? No
209. On what grounds can Mia seek redress? Public policy exception to employment at will and Whistleblower Protection Act
210. What should BuildCo executives have done when they learned of the overbilling from Mia? Report it to the state and punish the managers who
committed wrongdoing.
Due Thursday, November 1, 2018
Chapter 35
211. Which of the following is NOT covered by the Civil Rights Act of 1964, but may be covered under other statutes? Age
212. Definitions:
a. Employment discrimination – Treating employees or job applicants unequally on the basis of race, color, national, origin, religion,
gender, age, or disability. This is prohibited by federal statutes.
b. Disparate-impact discrimination – A form of employment discrimination that occurs when a protected group of people is adversely
affected by an employer’s practices, procedures, or tests, even though they do not appear to be discriminatory.
c. Disparate-treatment discrimination – A form of employment discrimination that results when an employer intentionally
discriminates against employees who are members of a protected class.
d. Protected class – A class of persons with identifiable characteristics who historically have been victimized by discriminatory
treatment for certain purposes. Depending on the context, these characteristics include age, color, gender, national origin, race, and
religion.
213. The most important federal statute prohibiting employment discrimination against members of a protected class is: Title VII of the Civil Rights
Act of 1964
214. The federal agency that monitors compliance with Title VII is the Equal Employment Opportunity Commission
215. Title VII applies to employers with 15 or more employees.
216. In 2011, the United States Supreme Court limited the rights of employees to bring discrimination claims against their employers as a group in the
form of a class action lawsuit. True
217. In order to show disparate-treatment discrimination, a person must show that she or he is a protected member of a class, applied for and was
qualified for the job in question, was then rejected by the employer, and the employer continued to seek applicants for the position, or filled the
position with a person not in a protected class
218. What is one way for a plaintiff to prove a disparate impact? By comparing the employer’s workforce to the pool of qualified individuals
available in the local market.
219. When labor practices discriminate against those in the majority it is called reverse discrimination
220. In addition to the Civil Rights Act of 1964, victims of racial or ethnic discrimination may also have a cause of action under 42 U.S.C. Section 1981
221. Employers cannot treat their employees more or less favorably based on their religious beliefs or practices.
222. Title VII of the Civil Rights Act prohibits government employers, private employers and unions from discriminating against persons because of
their religion. True
223. The Equal Pay Act requires equal pay for male and female employees working at the same establishment doing similar work. True
224. The Lily Ledbetter Act states that an employee who claims she has received discriminatory wages has a limited time period with which to file a
complaint in federal court. False
225. Constructive discharge occurs when the employer causes the employee’s working conditions to be so intolerable that a reasonable person in the
employee’s position would feel compelled to quit. True.
226. Definitions:
a. Quid pro quo harassment – Harassment that occurs when sexual favors are demanded in return for job opportunities, promotions,
salary increases, or other benefits.
b. Hostile environment – Harassment that occurs when a pattern of sexually offensive conduct runs throughout the workplace, and the
employer has not taken steps to prevent or discourage it.
227. For an employer to be held liable for a supervisor’s sexual harassment of a subordinate, the supervisor normally must take a tangible
employment action against the employee. This is defined as a significant change in employment status. The Ellerth/Faragher defense allows an
employer to decrease or eliminate liability if the employer took reasonable care to prevent and correct the behavior and if the plaintiff
unreasonably failed to take advantage of any employer-provided opportunities to avoid the harm.
228. In a retaliation claim, an individual asserts that he or she has suffered harm as a result of making a Title VII complaint, or testifying or
participating in an investigation or proceeding. True
229. When sexual harassment is between co-workers, the employer generally is liable only if the employer knew or should have known about the
harassment and failed to take action.
230. Punitive damages are always awarded to successful plaintiffs in sexual harassments claims, because in order to win the plaintiff must show at
least negligence by the employer in handling the situation. False
231. The most widespread form of discrimination may be age discrimination
232. For the Age Discrimination in Employment Act of 1967 (ADEA) to apply to an employer, that employer must have at least how many employees? 20
233. In an age discrimination lawsuit, the employee has the burden of establishing that age was the actual reason for the discrimination. True
234. To establish a prima facie case of age discrimination, the plaintiff must show membership in a protected class, meaning the plaintiff is at least
40 years old. In addition, the plaintiff must show qualification for the position and that age was the “but for” cause of the adverse employment
action.
235. Once the plaintiff in an ADEA case has demonstrated the prima facie case, the employer has what? The burden to raise a legitimate
nondiscriminatory reason for the adverse action.
236. If the employer gives a legitimate nondiscriminatory reason for adverse employment action, the plaintiff then can show that the reason given is
not the real reason, but is a pretext
237. Generally, states are immune from lawsuits brought by private individuals in federal courts for discrimination under the Eleventh Amendment
238. The primary law dealing with disability discrimination is the: ADA
239. The Americans with Disabilities Act (ADA) requires an employer to accommodate a disability, even to extreme costs. False
240. To show a prima facie case under the ADA, a plaintiff must show the presence of a disability that falls under the ADA, qualification for the
position, and that the disability was the sole reason for the adverse employment action.
241. Unlike Title VII, the ADA does not require the plaintiff to first file with the Equal Employment Opportunity Commission. False
242. The ADA defines the term “disability” very broadly. It includes any physical or mental impairment that substantially limits one or more of the
major life activities of the affected individual. It also includes any record of having such an impairment. Finally, it includes being regarded as
having such an impairment.
243. An employer cannot discriminate against a disabled person, but can refuse to hire a caretaker of a disabled person. False
244. Whether a plaintiff is disabled is determined on a(n) case-by-case basis.
245. The ADA has a provision that requires protecting and keeping confidential the medical information of an employee. True
246. The ADA requires that employers reasonably accommodate disabilities unless it will create an undue hardship. In addition, employers are
required to modify their processes for applications.
247. Substance addiction is considered a disability under the ADA, but the act does not protect those who are using illegal drugs. True
248. Workers with disabilities may be given modified health-insurance plans to reduce the expense to other employees. False
249. The USERRA protects civilian job rights and benefits for members of the military, former military personnel, and reservists. It also provides
additional protections for veterans who are disabled. True
250. The Uniformed Services Employment and Reemployment Act of 1994 (USERRA) specifies that veterans remain employees at will in their private
workplaces. False
251. When USERRA-covered employee returns from service they are to be reemployed in the jobs that they would have attained had they not
been absent for military service
252. Definitions:
a. Seniority system – A defense to charges of apparent discrimination when workers with more years of service are promoted first or
laid-off last.
b. BFOQ – A defense to charges of illegal discrimination, that the discrimination should be allowed so that the business may operate
normally and within the bounds of societal expectations. Race is not allowed in this defense.
c. Affirmative Action – A program that uses past discrimination to justify giving members of protected classes preferential treatment
in hiring and promotion.
d. Business necessity – A defense to charges of illegal discrimination that the discrimination was required for legitimate, job-related
reasons.
253. A legitimate requirement of a job that discriminates against a protected class of people would be considered a business necessity
254. Discrimination that is not based on ability to perform the functions of the job, but that is societally necessary (meaning the class of people being
denied employment could perform the functions of the job, but for some reason society requires that they not be hired is justified by: a BFOQ
255. For several reasons, an employer may want to promote from within based on performance and time in position. For those employers who used to
discriminate, this seniority system would be a valid defense to charges of discrimination so long as discrimination is not still occurring at the
entry level.
256. Sometimes employers discover evidence of employee misconduct after someone has sued them for discrimination. Employers may try to use
this evidence to completely avoid liability for the wrongful discrimination. While they cannot eliminate liability with this information, they may be
able to limit the amount of damages they might have to pay.
257. Title VII originally required all employers to implement affirmative action programs if they had a record of discrimination. False
258. Affirmative action programs go further than Title VII by attempting to make up for past discrimination
259. Affirmative action programs: are controversial because they are seen as reverse discrimination
260. One of the possible legal challenges to affirmative action programs is that they violate the equal protection clause of the Fourteenth
Amendment. Because this amendment is at play, any affirmative action program that uses race or ethnicity as a basis for decision making is
reviewed by the courts using strict scrutiny
261. Because discrimination law is primarily federal, states are not allowed to pass laws that ban affirmative action or protect classes other than
those in the federal laws. False
262. Min applies for a job as a receptionist at an accounting firm. If she is denied a job because she is of Asian origin, she may be a victim of:
disparate-treatment discrimination.
263. Julio lives in an area with a high percentage of Hispanic workers. Many of these workers are legal immigrants who have relatively little college
training. If, when Julio applies for his job, he is given an examination designed for a college graduate, and if he and most Hispanic applicants fail
to pass the test, the employer, might be engaged in disparate-impact discrimination.
264. Carl tells Jenny that he will give her a raise if she agrees to have a romantic relationship with him. In legal terms, this is known as: quid pro quo
harassment
265. Tammy, age 63, works for Westcon, Inc. Tammy has been showing up for work late and has a habit of placing confidential work files on her
personal computer in violation of company policy. Jack, Tammy’s manager, fires Tammy for these reasons. Jack also considers an incidental
benefit of Tammy’s discharge the fact that they can get someone younger in Tammy’s position. If Tammy files an Age Discrimination in
Employment Act (ADEA), she will: be unsuccessful in court because Tammy’s age was not the “but for” reason for her discharge.
266. Kurt is 52 years old and has worked for a company covered by the Age Discrimination in Employment Act (ADEA) of 1967. He wants to bring a
claim of age discrimination against his employer because he was replaced by a younger, lower-paid worker. To make out a prima facie of age
discrimination, Kurt does not have to establish that he: was replaced by someone who was below the age of 40.
267. Mary is a data-entry employee at Computer Services, Inc., a small computer company. Mary’s sole job is to input information into a computer
from paper invoices and spreadsheets. Mary develops chronic carpel tunnel syndrome, rendering her unable to type. As a reasonable
accommodation, she requests that her employer hire a new employee to do the data entry on her behalf. Mary’s request: is not a reasonable
accommodation because Mary’s request would place an undue hardship on the company
268. Wally is blind and would like to work for the Dairy Times writing articles on the dairy industry. Wally uses voice-recognition software that allows
him to dictate articles to his computer. His computer is specially designed for visually impaired individuals. The Dairy Times interviews Wally but
offers the job to a sighted person instead. Dairy Times may have violated: the ADA.
269. Sarah is employed at Tulip Factory, Inc, as an accountant. Sarah takes military leave and two months later returns from military service. Tulip
Factory managers offer Sarah a new job as a junior bookkeeper. This decision: violates the USERRA because returning service members are
to be reemployed in the jobs that they would have attained had they not been absent for military service.
270. Executives at MegaCorp refuse to promote Nora, and then fire her, because of a preference to have only men in top leadership positions. Nora
files a lawsuit against MegaCorp claiming sex discrimination. During the lawsuit, MegaCorp learns that Nora had been stealing company assets
for five years. A possible outcome of this information may: limit the amount of damages for which the employer is liable.
271. Eastminster Presbyterian Church has an opening for a new head pastor. Mohammed, who is a Muslim, applies for the job. The church declines to
hire him and continues to look for other applicants. If Mohammed files a claim of illegal discrimination against the church, the church: may
assert a bona fide occupational qualification (BFOQ) defense
272. The University Smyth has an admissions policy that requires a certain number of points to be automatically awarded to minority applicants. This
type of policy is likely a violation of the: equal protection clause.
273. Hostile work environment sexual harassment is prohibited under what law? Title VII of the Civil Rights Act of 1964
274. Title VII prohibits discrimination in employment based on: race, color, religion, national origin, gender
275. Hostile work environment is what type of discrimination prohibited by Title VII? gender
276. Hostile work environment is created when a pattern of sexually offensive conduct occurs.
277. Hostile work environment is created when the working environment becomes abusive
278. Who is the employee who routinely engaged in offensive sexual behavior on the job? Lisa Stander
279. Was Lisa Stander’s conduct sexually offensive to at least one co-worker? Yes
280. Was Lisa Stander’s conduct continuing? Yes
281. Lisa Stander was a co-worker
282. What must a supervisor do when informed of sexual harassment? Prevent and promptly correct any sexually harassing behavior
283. Did the supervisor take immediate remedial action to stop the harassing conduct? No
284. Does it matter if Billie Bradford was a man or a woman? No
285. Why? Sexual harassment may occur with members of the same sex.
286. Is a court likely to find that employer, Kentucky Department of Community Based Services (DCBS), liable for sexual harassment? Yes
287. Would the employer, Kentucky Department of Community Based Services normally be liable to Billie Bradford? no
288. Why? DCBS did take reasonable care to prevent and promptly correct any sexually harassing behavior and Billie Bradford unreasonably failed
to take advantage of preventive or corrective opportunities provided by the employer to avoid harm.
289. Is Billie Bradford left without recourse? no
290. Would Lisa Stander still be liable for sexual harassment? yes
291. Could DCBS fire Billie Bradford in response to her allegations of sexual harassment in order to maintain workplace civility? No