Chapter 21a under employment-at-will doctrine, an employer may fire an employee

Document Type
Test Prep
Book Title
The Legal Environment of Business: Text and Cases: Ethical-- Regulatory-- Global-- and Corporate Issues 8th Edition
Frank B. Cross, Roger LeRoy Miller
1. Generally, under employment-at-will doctrine, an employer may fire an
employee at any time for any reason.
1. Courts in a few states have held that all employment contracts an im-
plied covenant of good faith.
1. Whistleblowing occurs when an employer signals the end of a work day
by sounding a buzzer, ringing a bell, or otherwise “blowing the whistle “
1. State law regulates overtime pay.
1. Under federal law, the term wages includes only a set amount of pay
expressed in dollars.
1. Any employee who works more than eight hours per day must be paid
1. Children under fourteen years of age are not allowed to work.
1. A large business must provide notice before implementing a mass
1. Certain employers must provide their employees with up to twelve
weeks of paid family or medical leave during any twelve-month period.
1. A violation of federal family and medical leave requirements may result
in liability for an employer but not personal liability for a supervisor.
1. Employer who willfully violates safety regulations can be prosecuted
under state criminal laws.
1. There is no general duty on employers to keep workplaces safe.
1. In most states, employers who show an ability to pay claims do not
need to buy workers’ compensation insurance.
1. Only employees contribute under federal law to help pay for benefits
that will partially make up for their loss of income on retirement.
1. To be eligible for unemployment compensation, a worker must be
willing and able to work.
1. Employee contributions to pension plans vest immediately.
1. For works whose jobs have been terminated, federal law provides no
right to continued health-care coverage.
1. Normally, if employees are informed that their communications are be-
ing monitored, they cannot expect those communications to be private.
1. Employers can require or cause employees, but not job applicants, to
take lie-detector tests.
1. Only state law governs drug tests of private-sector employees.
1. Myron is an employee of Nero. Either party can terminate the employ-
ment relationship at any time for any reason without liability. With re-
spect 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.
1. Nita works as an employee for Optimal Sales Corporation. To protect
Nita and other employees from arbitrary discharge, courts have
created exceptions to the employment-at-will doctrine based on
a. an implied agency theory.
b. a public policy theory.
c. a standard operating agreement theory.
d. a “fair and balanced” theory.
1. Richard is an employee of Stealth Security Company. Stealth
discharges Richard for refusing to infiltrate a competitor’s organization
to learn its trade secrets. 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.
1. 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.
1. Uri is an employee of Verity Security Services. For Uri to obtain the
benefits of federal wage-hour requirements, Verity must be engaged in
a. business activity.
b. employment at will.
c. international commerce.
d. interstate commerce.
1. Emma, Frick, Glenda, and Huey are employees of different-sized
employers in different industries. Under the Fair Labor Standards Act, a
minimum wage must be paid to employees in
a. all industries.
b. covered industries only.
c. no industries.
d. small-business industries only.
1. Rich works as a forklift operator for Storage Warehouse Company.
Assuming that Rich meets other requirements, the maximum number of
hours that he can work per week without overtime pay is
a. thirty-nine.
b. forty.
c. forty-one.
d. unlimited.
1. Jenna is fifteen years old. Under the Fair Labor Standards Act, Jenna
cannot work
a. in the entertainment industry.
b. in a hazardous occupation.
c. for her parents.
d. in the delivery of newspapers.
1. Delicious Fruit-of-the-Month Company currently employs five hundred
full-time workers and two hundred part-time seasonal workers. Because
business has declined, Delicious plans to close a plant that employs
more than fifty full-time workers. Advance notice of the layoff must be
sent to
a. affected workers or their union representative.
b. all workers, even those who are not being laid off.
c. potential customers and suppliers.
d. no one.
1. Miley takes temporary medical leave from her job at Lumber Mill Inc. to
care for a parent with a serious health condition. When she attempts to
return to work, Lumber Mill refuses to reinstate her. Under the Family
and Medical Leave Act, Miley may obtain
a. an award of key employee status but no injunctive or economic
b. a cease-and-desist order or other injunction but no economic
c. double damages, job reinstatement, a promotion, and more.
d. nothing.
1. Chuck works for Deepwater Drilling Corporation. While operating a
Deepwater drill, Chuck suffers an injury. Under state workers’ compen-
sation laws, Chuck will be compensated only if
a. he does not have health insurance.
b. he is completely disabled.
c. his injury was accidental.
d. his injury was intentional.
1. Lucretia retires from her job as a project manager for Medico Pharma,
Inc. Federal law provides for
a. timely and uninterrupted payment of private pension benefits.
b. employers’ required establishment of pension plans.
c. vesting of employees’ rights to all pension benefits immediately.
d. termination of pension benefits on employment termination.
1. Alex is an employee of Bigg Corporation. To help pay for employees’
loss of income on retirement, contributions are required by law to be
paid by
a. Alex and Bigg.
b. Alex only.
c. Bigg only.
d. neither Alex nor Bigg.
1. Ewa is a current employee of Financial Accounting, Inc. Gomer, a
former Financial employee who is currently unemployed, collects
unemployment compensation. This is provided by a tax on
a. Ewa and Gomer only.
b. Ewa, Financial, and Gomer.
c. Financial only.
d. none of these parties.
1. Machine Operations, Inc. (MO), employs four hundred workers at three
locations in three states. Workers who do not have a right to continue
group health benefits provided by MO for a limited time after the loss
of their jobs include those who
a. are fired for gross misconduct.
b. are laid off for budgetary reasons.
c. have their hours decreased from full-time to part-time.
d. quit their jobs voluntarily.
1. Interstate Distribution, Inc. (IDI), provides its employees with an e-mail
system. IDI notifies them that it will monitor their communications over
the system. Some employees file a suit against IDI, claiming a violation
of privacy. The court is most likely to hold that, with respect to commu-
nications over the e-mail system,
a. the employees did not have a reasonable expectation of privacy.
b. the employer violated the employees’ privacy rights.
c. federal law prohibits the employer’s “intentional interception.”
d. federal law prohibits the employees’ privacy claim.
1. First National Bank may subject its employees to lie-detector tests
when investigating
a. health and medical conditions.
b. losses attributable to theft.
c. prior work history.
d. suspected drug use.
1. Tedium Accounting Corporation, a private employer, handles
bookkeeping for small employers. In most circumstances, with excep-
tions, federal law clearly prohibits Tedium from subjecting its employees
a. drug tests.
b. electronic monitoring of business communications.
c. genetic tests.
d. lie-detector tests.
1. Lee works as an employee for Maximum Industries, Inc., a private em-
ployer. Maximum announces that it will start random drug testing of its
employees. If Lee resists this policy, he may look for protection under
a. a federal administrative agency rule.
b. a state constitution or statute.
c. the U.S. Constitution.
d. all of the choices.
1. Home Healthcare Services wants to its employees and applicants to
undergo genetic testing. Home may
a. discharge employees who have a genetic predisposition to
b. discriminate against applicants who have a genetic predisposition
to disease.
c. test its employees for a genetic predisposition to disease.
d. none of the choices.
1. Carla, a waitress at Diners Coffee Shop, notices that the kitchen staff
is not wearing protective gloves while preparing food, a violation of
state law. Carla reports this to Esau, her manager, but no steps are
taken. Carla then tells Free Press, a local newspaper. Free Press
runs a story on the violations. Business at Diners drops 65 percent.
Can Diners fire Carla for these actions?
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?

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