Chapter 21
Employment Relationships
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. Generally, under employment-at-will doctrine, an employer may fire an
employee even if doing so would violate a federal or state statute.
2. The key consideration in determining whether an employment manual creates
an implied contract is the employee’s reasonable expectations.
3. 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 fundamental
common sense.
4. Generally, under the employment-at-will doctrine, an employee may quit a job
at any time for any reason.
5. Federal wage-hour laws cover all employers engaged in interstate commerce.
6. Certain employees are exempt from federal overtime provisions.
7. Children under fourteen years of age are not allowed to work.
8. An employer can voluntarily pay overtime to ineligible employees.
9. Certain employers must provide advance notice of a layoff to the affected
workers or their representative (if the workers are members of a labor union).
10. An employee may take up to twenty-six weeks of military caregiver leave within
a twelve-month period to care for a family member with a serious injury or
illness incurred as a result of military duty.
11. Whenever a work-related injury or disease occurs, employers must make
reports directly to the Occupational Safety and Health Administration.
12. An employer generally is required to notify an employee when an absence will
be counted as family or medical leave under federal law.
13. Employers have a general duty to keep workplaces safe.
14. To recover workers’ compensation, an employee must prove that an injury did
not occur on the job or in the course of employment.
15. Vesting gives an employee a legal right to receive pension benefits at some
future date when he or she stops working.
16. Like Social Security, Medicare is funded by contributions from the employer
and the employee.
17. Most employers with fifty or more employees are required to offer health–
insurance benefits.
18. Employers are required to establish retirement plans for their employees.
19. Employees of private (nongovernment) employers have some privacy
protection under the U.S. Constitution.
20. Federal law does not restrict what employers may do on the basis of results of
genetic testing.
MULTIPLE CHOICE QUESTIONS
1. Vidal is an employee of Wild Thing Ranch. Vidal learns that Wild Thing is
illegally importing endangered animals to sell as pets. He reports his
employer’s illegal activities but is laid off shortly thereafter and successfully
sues Wild Thing for retaliatory discharge. With respect to the employment–at–
will doctrine, this is
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.
2. Febo is an employee of Guitar & Drum Company. Guitar & Drum’s employee
manual states that workers, such as Febo, will be dismissed only for good
cause. With respect to the employment-at-will doctrine, this is
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.
3. Processed Food Packaging Company employs workers, including Quint, at six
locations in two states. Processed Food’s discharge of Quint outside the terms
of an employment contract may result in
a. Processed Food’s liability for damages.
b. Quint’s liability for damages.
c. discontinuance of Quint’s health-plan coverage.
d. monitoring Processed Food’s communications for privacy violations.
4. Lena offers Miguel a job, representing falsely that it will be long term. In
reliance, Miguel takes the job but is laid off shortly thereafter and successfully
sues Lena for fraud. With respect to the employment–at-will doctrine, this is
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.
5. Backfill Equipment Corporation currently employs three thousand full-time
workers. Because business has declined, Backfill plans to lay off one hundred
workers. If Backfill does not provide advance notice of the layoff, the employer
may be subject to
a. fines, employee back-pay awards, attorneys’ fees, and more.
b. a cease-and-desist order or other injunction but no economic liability.
c. imprisonment but no injunctive or economic sanction.
d. no sanctions.
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 notice
of at least
a. thirty days.
b. sixty days.
c. ninety days.
d. one year.
7. Flannery is seventeen years old. Under the Fair Labor Standards Act, she
cannot work
a. during school hours.
b. in a hazardous job.
c. more than eighteen hours per week.
d. without a special permit.
8. Curtis is an employee of Deepwater Drilling, 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.
9. Geno’s Italiano Ristorantes, Inc., employs three hundred workers at four loca-
tions in two states. Under federal law, Geno’s must provide each employee,
during any twelve-month period, family or medical leave of up to twelve
a. days.
b. weeks.
c. months.
d. years.
10. Hauser takes temporary family leave from his job at Gelato Confectionary
Corporation to care for a new baby. On Hauser’s return from the leave, Gelato
must
a. restore Hauser to his original position.
b. reimburse Hauser for his expenses while on leave.
c. promote Hauser to the status of a key employee.
d. do nothing.
11. Livia takes temporary family leave from her job at Meatpackers Corporation to
care for a new baby. On Livia’s return from the leave, Meatpackers must
a. restore Livia to her original position.
b. reimburse Livia for her expenses while on leave.
c. promote Livia to the status of a key employee.
d. do nothing.
12. Thom, who works as an employee for Upstate Power Corporation, suffers an
injury in an accident. Thom 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.
13. Cy, an employee of Dockyard Shipping Corporation, is injured on the job and
accepts workers’ compensation. Cy can successfully sue Dockyard
a. only if the injury was caused by Dockyard intentionally.
b. only if the injury was caused by Dockyard’s negligence.
c. regardless of Dockyard’s fault.
d. under no circumstances.
14. Steel Production Industries, Inc., employs five hundred workers. For the
Occupational Safety and Health Administration, Steel Production must do all of
the following except
a. keep occupational injury and illness records for each employee.
b. report any work-related diseases.
c. report any employee death due to a work-related incident within eight
hours.
d. pay employees higher wages for working in more dangerous areas.
15. Blayne is an employee of Chemical Refinery, Inc. Blayne is threatened with a
discharge when he refuses a transfer to a Chemical Refinery department in
which several employees suffered serious injuries from exposure to hazardous
chemicals. Blayne 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.
16. Seiko works for TallTales Publishing, Inc. The basis for Seiko’s contribution
under the Federal Insurance Contribution Act to help pay for benefits that will
partially make up for her loss of income on retirement is her
a. seniority at TallTales.
b. annual wage base.
c. special job skills.
d. county of residence.
17. Community Recycling, Inc., plans to lay off fifty of its five hundred workers,
including Bev. Bev has a right to continued health-care coverage under
Community’s group plan unless
a. Community changes its insurer.
b. Community completely cancels its plan.
10 TEST BANK—UNIT FIVE: THE EMPLOYMENT ENVIRONMENT
c. Bev files a suit against Community for wrongful discharge.
d. Community decides not to pay Bev’s premium.
18. Petro Oil Company wants to conduct genetic testing of its workers to identify
those who might develop significant health problems in the future. Under
federal law, Petro may use genetic information to
a. make decisions about hiring or firing.
b. make decision about job placement or promotion.
c. deny group health-care coverage or charge a higher premium.
d. none of the choices.
19. Investment Sales Corporation wants to monitor its employees’ electronic com–
munications. Investment Sales’s best course of action to avoid liability under
laws related to employee monitoring is to notify
a. no one.
b. its employees.
c. its clients.
d. the public generally.
20. Data & Data Accountants, a private employer, handles bookkeeping for small
employers. In most circumstances, with exceptions, federal law clearly prohibits
Data & Data from subjecting its employees to
a. job-skills tests.
b. monitoring of business communications.
c. drug tests.
d. lie-detector tests.
ESSAY QUESTIONS
1. Owen, a counter clerk at Pastry Bakery, notices that the bakers are not wearing
protective gloves while preparing baked goods, a violation of state law. Owen
reports this to Quinn, the owner, who does nothing. Owen tells Roberta, a
reporter for STUV, a local television station. STUV reports the violations on a
newscast. Pastry’s business drops 40 percent. Can Quinn fire Owen for this?
2. Francesca works for Glassworks Inc. Near her workstation is a conveyor belt
that runs into a large industrial oven. Some workers, including Harry,
Francesca’s supervisor, use the oven to heat food. One day, when the
conveyor is not moving, Francesca uses the oven to cook her lunch. As she
removes the food from the oven, the conveyor comes on and Francesca is
pulled partially into the oven and suffers serious burns. Francesca seeks
recovery under the state workers’ compensation law. Should she recover? Why
or why not?
