Chapter 21b A large business must provide notice before closing a plant that employs

Document Type
Test Prep
Book Title
The Legal Environment of Business: Text and Cases: Ethical-- Regulatory-- Global-- and Corporate Issues 8th Edition
Authors
Frank B. Cross, Roger LeRoy Miller
1. Federal wage-hour laws cover all employers engaged in interstate
commerce.
1. Generally, under employment-at-will doctrine, an employee may quit a
job at any time for any reason.
1. The key consideration in determining whether an employment manual
creates an implied contract is the reasonable expectation of the
employer.
1. Whenever an employer discharges an employee in violation of an em-
ployment contract, the employee may bring an action for whistleblowing.
1. Working times and hours are not restricted for persons between the
ages of sixteen and eighteen.
1. Certain employees are exempt from federal overtime provisions.
1. All employees are entitled to overtime pay.
1. A large business must provide notice before closing a plant that
employs a certain number of workers.
1. Certain employers must provide their employees with up to fifteen
weeks of unpaid family or medical leave during any fifteen-month
period.
1. An employer generally is required to notify an employee when an ab-
sence will be counted as family or medical leave under federal law.
1. Employers have a general duty to keep workplaces safe.
1. Nonemployees may recover benefits under workers’ compensation laws.
1. To recover workers’ compensation, an employee must prove that an in-
jury did not occur on the job or in the course of employment.
1. Vesting gives an employee a legal right to receive pension benefits at
some future date when he or she stops working.
1. Employers are required to establish retirement plans for their
employees.
1. All employers are required to provide health insurance for their
employees.
1. If employees are not informed that certain communications are being
monitored, the employer may be held liable for invading their privacy.
1. No employee has a reasonable expectation of privacy in the workplace.
1. The privacy rights and drug testing of private-sector employees are gov-
erned by the U.S. Constitution.
1. Federal law does not restrict what employers may do on the basis of
results of genetic testing.
1. Thalia is an employee of Universal Insurance Company. Universal’s em-
ployee manual states that workers 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.
1. Fresh Food Packaging Company employs workers, including Gregor, at
six locations in two states. Fresh Food’s discharge of Gregor outside
the terms of an employment contract may result in
a. Fresh Food’s liability for damages.
b. Gregor’s liability for damages.
c. discontinuance of Gregor’s health-plan coverage.
d. monitoring Fresh Food’s communications for privacy violations.
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. Frida is an employee of Green Recycled Products Company. A state
statute protects Frida from Green‘s retaliation if Frida reports to state
officials, or others, that Green is involved in unsafe or illegal activity.
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. Bunky is seventeen years old. Under the Fair Labor Standards Act,
Bunky cannot work
a. during school hours.
b. in a hazardous occupation.
c. more than eighteen hours per week.
d. without a special permit.
1. 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.
1. Ilsa works as a clerk for Java Café at minimum wage. The federal
minimum-wage rate is revised
a. annually, according to the rate of inflation.
b. every seven years, according to changes in the cost of living.
c. periodically by Congress.
d. whenever the president issues an executive order to revise the
rate.
1. Backwater Heavy Equipment Corporation currently employs three hun-
dred full-time workers. Because business has declined, Backwater plans
to lay off one hundred workers. If Backwater does not send advance
notice of the layoff to the appropriate parties, 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.
1. Cupcake Creations, Inc., employs one hundred workers at three
locations in two states. Under federal law, Cupcake 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.
1. 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.
1. Eduardo is an employee of Free-Flo Plumbing Corporation. With respect
to the workplace, under federal health and safety statutes, Free-Flo has
a. a general duty to keep it safe and to meet specific standards.
b. no general duty to keep it safe but must meet specific standards.
c. no general duty to keep it safe or to meet specific standards.
d. only a general duty to keep it safe.
1. Hoppy, who works as an employee for Imperial Power Corporation, suf-
fers 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.
1. 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.
1. Jay works as an employee for Kitchen Appliances, Inc. (KAI), which is
subject to the Occupational Safety and Health Act. Jay is killed in a
work-related accident. To avoid a fine, KAI must notify
a. the Social Security Administration.
b. the U.S Department of Health and Human Services.
c. the U.S. Department of Justice.
d. the U.S. Department of Labor.
1. Leah is an employee of Mega Corporation. To help pay for
Leah’s medical costs on retirement, contributions are required by law to be
paid by
a. Leah and Mega.
b. Leah only.
c. Mega only.
d. neither Leah nor Mega.
1. Pam is an administrative employee of Quality Assurance Company.
Contributions to help pay for Social Security benefits that will partially
make up for Pam’s loss of income on retirement are required to be
made by
a. neither Pam nor Quality Assurance.
b. Pam and Quality Assurance.
c. Pam only.
d. Quality Assurance only.
1. Luke is a maintenance employee for Natural Products Company. Under
the Employee Retirement Income Security Act, Luke’s contributions to
his pension plan vest
a. after five years of employment.
b. after five years of retirement.
c. five years before retirement.
d. immediately.
1. 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.
c. Bev files a suit against Community for wrongful discharge.
d. Community decides not to pay Bev’s premium.
1. Chemco Sales, Corporation wants to monitor its employees’ electronic
communications. To avoid liability under laws related to employee moni-
toring, Chemco should notify
a. no one.
b. the employees.
c. the government.
d. the public generally.
1. Petro Oil Company wants to conduct genetic testing of its workers to
identify those who might develop significant health problems in the fu-
ture. 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.
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?
1. Elin works for Form Molding Company. Near her workstation is a con-
veyor belt that runs through a large industrial oven. Some workers, in-
cluding Greg, Elin’s supervisor, use the oven to heat food. Thirty-inch-
high flasks containing molds are fixed at regular intervals on the con-
veyor and transported into the oven. Elin walks between the flasks to
get to her workstation. One day, when the conveyor is not moving, Elin
uses the oven to cook a frozen potpie. As she removes the pie from
the oven, the conveyor comes on. One of the flasks strikes Elin,
seriously injuring her. Elin seeks recovery under the state workers’
compensation law. Should she recover? Why or why not?

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