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Chapter 29
Employment, Immigration,
and Labor Law
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. Under the employment-at-will doctrine, an employer can end an employment
relationship at any time.
2. A promise that an employer makes in an employee handbook regarding
discharge will not be considered part of an implied contract.
3. An employee who is fired outside of the terms of an implied employment
contract may succeed in an action for breach of contract.
4. A whistleblower is an employee who reveals confidential information about a
fellow employee to an employer.
2 UNIT FOUR: AGENCY AND EMPLOYMENT LAW
5. Whistleblower statutes protect employees from retaliatory discharge.
6. Whistleblower statutes protect employers who report their employees’
wrongdoing.
7. Children must be at least thirteen years old to work in hazardous occupations.
8. Employees who receive tips on the job cannot be paid less in direct wages than
the federal minimum wage.
9. Employees are entitled to overtime pay only at their employer’s discretion.
10. All employers must provide their employees with up to twelve months of family
or medical leave.
11. Under federal law, only key employees who take temporary family or medical
leave are entitled to job reinstatement.
12. A key employee is defined as an employee whose pay falls within the top 10
percent of the firm’s workforce.
CHAPTER 29: EMPLOYMENT, IMMIGRATION, AND LABOR LAW 3
13. State workers’ compensation laws establish a procedure for employees injured
on the job to sue their employers.
14. If an employee dies in a work-related incident, the employer must notify OSHA
within eight hours.
15. Only the federal government sets safety standards governing workplaces.
16. An employee can usually recover workers’ compensation for injuries occurring
on the commute to and from work.
17. Both employers and employees contribute to help pay for benefits that will
partially make up for the employees’ loss of income on retirement.
18. The basis for an employee’s contribution to Social Security is the employee’s
age.
19. All unemployed workers who are willing and able to work are eligible for
unemployment compensation.
20. There is federal regulation of employers’ retirement plans for employees.
21. Employers that fall under the provisions of the Federal Unemployment Tax Act
of 1935 are taxed at regular intervals.
22. An employee can continue the health benefits provided by his or her employer
for a period of time only on an involuntary loss of employment.
23. Generally, an employer’s monitoring of electronic communications in the
workplace does not violate employees’ privacy rights.
24. An employer may avoid laws regulating monitoring activities by informing
employees that they are subject to monitoring.
25. Only federal law governs drug tests of private-sector employees.
26. The privacy rights of private-sector employees are governed by state law,
which varies widely.
27. Federal law does not restrict employers’ use of the results of genetics tests.
28. An employer may not hire an illegal immigrant under any circumstances.
29. To hire employees from other countries, an employer must first obtain the
approval of the U.S. Immigration and Customs Enforcement.
30. The Norris-LaGuardia Act effectively declared a national policy permitting
employees to organize.
31. Unfair labor practices are defined by the Norris-LaGuardia Act.
32. An employer can refuse to bargain collectively with a duly designated
employee representative.
33. Individual states may pass their own right–to-work laws.
34. Management may never legally limit unionizing activities.
35. An employer may not hire substitute workers to replace strikers.
6 UNIT FOUR: AGENCY AND EMPLOYMENT LAW
MULTIPLE CHOICE QUESTIONS
1. Workbilt Hardware Company employs workers, including Gina, at six locations
in two states. Workbilt’s discharge of Gina outside the terms of an employment
contract may result in
a. Workbilt’s liability for damages.
b. Gina’s deportation under the Immigration Act.
c. discontinuance of Gina’s health-plan coverage.
d. monitoring Workbilt’s communications for privacy violations.
2. Marvin is an employee of Wild Thing Farms. Marvin finds out that the head of
Wild Thing Farms is illegally importing endangered animals to sell as pets. If
Marvin reports his employer’s illegal activities he will probably be protected fro
retaliatory discharge by
a. unemployment statutes.
b. worker compensation statutes.
c. whistleblower statutes.
d. no statutes.
3. Thelma is an employee at Foreign Food Mart. Thelma is called for jury duty
and as a result cannot work her scheduled shift at Foreign Food Mart. Foreign
Food Mart fires Thelma. This is a violation of
a. an example of the doctrine.
b. an exception based on contract theory.
c. an exception based on public policy.
d. an exception based on tort theory.
4. Tyrone is seventeen years old. Under the Fair Labor Standards Act, he
a. cannot work in a hazardous occupation.
b. cannot work during school hours.
c. must obtain a permit to work.
d. none of the choices.
5. Cash is an employee of Drowsy Resort, Inc., covered by federal overtime
provisions, which apply only after an employee has worked more than
a. eight hours in a day.
b. forty hours in a week.
c. 160 hours in a month.
d. one year for the same employer.
6. Mythic Games Company employs two hundred workers full-time. If Mythic Games
plans to have a mass layoff, it must provide its employees with at least
a. thirty days of notice.
b. sixty days of notice.
c. ninety days of notice.
d. one year of notice.
7. Café Cuisine Dining, Inc., employs one hundred workers at three locations in
two states. Under federal law, Café Cuisine must provide its employees, during
any twelve-month period, family or medical leave of up to
a. twelve days.
b. twelve weeks.
c. twelve months.
d. twelve years.
8. Big Drill Oil Company employees one hundred workers. Big Drill must do all of
the following except
a. keep occupational injury and illness records for each employee.
b. report any work-related diseases directly to OSHA.
c. report any employee death due to a work-related incident to OSHA
within eight hours.
d. pay employees higher wages for working in more dangerous areas.
9. Quinn is an employee of Regional Industries, Inc. Quinn is threatened with a
discharge when he refuses a transfer to a Regional department in which
several employees suffered serious injuries from exposure to hazardous
chemicals. Quinn may be entitled to protection from discharge under
a. no law.
b. the Family and Medical Leave Act.
c. the Occupational Safety and Health Act.
d. the state workers’ compensation act.
10. Jo works for Tall Tales Publishing, Inc. The basis for Jo’s contribution under the
Federal Insurance Contribution Act (FICA) is based on her
a. seniority at Tall Tales.
b. annual wage base.
c. special job skills.
d. county of residence.
11. Hoppy, who works as an employee for Imperial Power Corporation, suffers an
injury in an accident. Hoppy will be compensated under state workers’
compensation laws
a. only if the injury occurred during working hours.
b. only if the injury occurred off the job.
c. only if the injury occurred on the job.
d. whenever and wherever the injury occurred.
12. Clive works for Digby Excavation Corporation. While operating a backhoe,
Clive suffers an injury. Clive will be compensated under state workers’
compensation laws only if
a. he does not have health insurance.
b. he is completely disabled.
c. his injury was accidental.
d. his injury was intentional.
13. Phyllis intentionally injures herself while performing her job for Stone Cutters,
Inc. Phyllis will be entitled to
a. full workers’ compensations.
b. half of the normal workers’ compensation.
c. 10 percent of the normal workers’ compensation.
d. no workers’ compensation.
14. Julie works as an employee for Organic Produce Express, Inc. (OPI). Rowan,
who is unemployed, collects unemployment compensation. This compensation
is provided by a tax on
a. Julie and other employees.
b. Julie, OPI, and other employees and employers.
c. OPI and other employers.
d. not Julie, OPI, or other employees or employers.
15. Which of the following is not a common form of electronic surveillance of
employees in the workplace?
a. Reviewing employees’ emails
b. Requiring employees to wear electronic location monitoring bracelets
c. Video-recording job performance
d. Listening to employees’ telephone conversations
16. Investors Fund, a large financial institution, announces that it will start
monitoring its employees’ electronic communications. If Mary, an Investors
Fund employee, resists this policy, her best argument is that the monitoring
violates
a. employee privacy rights.
b. worker health and safety.
c. federal labor law.
d. the employment-at–will doctrine.
17. Network Industries, Inc., wants to monitor its employees’ electronic com–
munications. To avoid liability under laws related to employee monitoring,
Network should announce the monitoring to
a. no one.
b. the employees.
c. the government.
d. the public generally.
18. Samson is a government employee. Samson is limited in drug testing by the
a. First Amendment.
b. Second Amendment.
c. Fourth Amendment.
d. Eighth Amendment.
19. The Employee Polygraph Protection Act of 1988 prohibits most private
employers from doing all of the following except
a. requiring or causing employees or job applicants to take lie-detector
tests.
b. using, accepting, or referring to, or asking about the results of lie–
detector tests taken by employees or applicants.
c. taking or threatening negative employment-related action against
employees or applicants based on results of lie-detector tests.
d. using lie-detector tests to investigate losses due to theft.
20. Nimble Numbers Accounting Corporation, a private employer, handles
bookkeeping for small employers. In most circumstances, with exceptions,
federal law clearly prohibits Nimble from subjecting its employees to
a. job-skills tests.
b. monitoring of business communications.
c. drug tests.
d. lie-detector tests.
21. Sunny Energy Company wants to genetically test its workers for potentially
significant, future health problems. Sunny may
a. discharge employees who test “positive.”
b. discriminate against job applicants who test “positive.”
c. deny group health insurance for its employees who test “positive.”
d. not make employment decisions based on genetic testing.
22. Southwestern Foods Corporation operates a packaging plant near the border between
the United States and Mexico. Due to the location, it would be easier for Southwestern
to employ noncitizens. With respect to persons not authorized to work in the United
States, an employer can
a. hire them.
b. recruit them.
c. refer them for a fee.
d. not hire them, recruit them, or refer them for a fee.
23. Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S. employers,
must perform I-9 verifications for
a. a random selection of new hires.
b. every other new hire.
c. new hires with certain racial or ethnic characteristics.
d. each new hire.
24. Hu, Ivan, and Juana apply to work for King Meatpacking Company. These individuals’
identities and eligibility to work must be verified by
a. the employer.
b. the individuals.
c. the individuals’ countries of origin.
d. the U.S. Citizenship and Immigration Services.
25. Fruits & Vegetables, Inc., employs hundreds of seasonal and permanent
workers, both skilled and unskilled, in seven states. Fruits & Vegetables can
hire illegal immigrants
a. if either the employer or the immigrants file special forms.
b. only if the employer files a special form.
c. only if the immigrants file special forms.
d. under no circumstances.
26. Finance Professionals Union represents the workers of Business & Commerce
Banking Corporation. The management of the firm refuses to bargain with the
union. This violates
a. federal labor law.
b. state right-to-work laws.
c. federal wage and hour laws.
d. no federal or state law.
27. Employers are not allowed to interfere with employees’ efforts to form or join a
union under
a. the Norris-LaGuardia Act.
b. the National Labor Relations Act.
c. the Labor-Management Reporting and Disclosure Act.
d. the Labor-Management Relations Act.
28. Food Packagers Union represents the workers of Garden Variety, Inc. The
company does not require its workers to join the union as a prerequisite to
obtaining employment. The union would like the employer to require the
workers to join after a specified amount of time on the job. This would violate
a. federal labor law.
b. federal full employment law.
c. federal employment discrimination law.
d. no federal law.
29. Clerical Workers Union represents the employees of Miracle Medical Research
Company. The management of the firm refuses to bargain with the union over
the hiring of unnecessary workers. This violates
a. federal labor law.
b. state right-to-work laws.
c. federal employment discrimination law.
d. no federal or state law.
30. Elections for union officers are regulated by
a. the Labor-Management Relations Act.
b. the Civil Rights Act.
c. the Labor-Management Reporting and Disclosure Act.
d. no federal law.
31. During a union election campaign, Autowerks Repair, Inc., prohibits on-site
solicitations by any party, including Mechanics Union, which is seeking the
workers’ unionization. This violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
32. During a union election campaign, Sapphire Blue Finance Company prohibits
on–site solicitations by Credit Workers Union, which is seeking the workers’
unionization, while permitting charities to solicit the same workers. This violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
33. Following a union election campaign by Service Employees International Union
among the employees of Quality Hotels & Resorts, Inc., the union does not
obtain a majority vote in the election. This most likely violates
a. federal labor law.
b. federal elections law.
c. federal employment discrimination law.
d. no federal law.
34. Dag is an employee of Ridge Mining Company. Under federal labor law, Dag
and other employees have the right to
a. bargain collectively with Eagle through their representatives.
b. insist that Ridge require union membership as a condition of work.
c. interfere with the efforts of others to form labor organizations.
d. refuse to bargain with Ridge through their representatives.
35. The employee union at Top Tech Toys decides to go on strike. Their strike will
be legal if
a. the strikers form a picket line.
b. the strikers form a massed barrier and deny management and nonunion
workers access to Top Tech Toys’ plant.
c. the strikers stay in Top Tech Toys’ plant without working.
d. the strikers violently attack management.
ESSAY QUESTIONS
1. Borealis Power Company is subject to mandatory workers’ compensation laws
in the states in which it does business. Chad and Dex work for Borealis as part
of a crew that travels to remote locations to repair downed power lines and
other damaged equipment. At a distant site, Chad is injured in an accident that
is entirely Dex’s fault. Chad files a claim for workers’ compensation. Should the
claim be granted? What would be Borealis’s best defense against it?
2. Healthy Harvest Company runs a candy and fruit processing and packaging
plant. Most of Healthy Harvest’s business is done during holiday seasons,
especially between Halloween and New Year’s Day, and in the spring. The
CHAPTER 29: EMPLOYMENT, IMMIGRATION, AND LABOR LAW 19
company hires a large temporary workforce during its busiest times.
Occasionally, a position opens for an individual with highly specialized skills,
particularly to operate and maintain the company’s inventory and sales control
systems. Can Healthy Harvest hire noncitizens for its temporary, seasonal
work? Can the company hire a noncitizen with special skills for certain jobs? If
so, what procedures must the employer follow in both situations to do this
hiring? If not, how can Healthy Harvest be assured that it is hiring only citizens?