Economics Chapter 35 The Americans with Disabilities Act of 1990 defines persons with disabilities

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Chapter 35
Employment Discrimination
and Diversity
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
B1. The Civil Rights Act of 1964 prohibits job discrimination on the basis of merit.
B2. Title VII of the Civil Rights Act of 1964 applies to employers with fifteen or less
employees.
B3. Intentional discrimination by an employer against an employee is known as
disparate-treatment discrimination.
B4. Title VII of the Civil Rights Act of 1964 prohibits only intentional discrimination.
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2 TEST BANK BUNIT SEVEN: AGENCY AND EMPLOYMENT
B5. Title VII of the Civil Rights Act of 1964 prohibits job discrimination against
majority group individuals, such as white males.
B6. Most employers can treat their employees more or less favorably based on
their religious beliefs or practices.
B7. The Equal Pay Act and other federal laws prohibit employers from engaging in
gender-based wage discrimination.
B8. If a wage differential is due to any factor other than gender, then it does not
violate the Equal Pay Act.
B9. Employee demotion is one of the least frequently cited reasons for a finding of
constructive discharge under Title VII of the Civil Rights Act of 1964.
B10. Sexual harassment occurs when sexual favors are demanded in return for job
opportunities, promotions, salary increases, or other benefits.
B11. For an employer to successfully defend against a charge of a supervisor’s
sexual harassment, the plaintiff-employee must have taken a tangible
employment action against the supervisor.
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CHAPTER 35: EMPLOYMENT DISCRIMINATION AND DIVERSITY 3
B12. When the harassment of co-workers creates a hostile working environment, an
employee may have a cause of action against an employer.
B13. Compensatory damages are not available in cases of intentional discrimination
in violation of Title VII of the Civil Rights Act of 1964.
B14. Under the Age Discrimination in Employment Act of 1967 permits private cause
of action against employers for age discrimination.
B15. The Americans with Disabilities Act of 1990 defines persons with disabilities as
persons with physical or mental impairments that “substantially limit” one or
more everyday activities of the affected individuals.
B16. If a job applicant or an employee with a disability, with reasonable
accommodation, can perform essential job functions, the employer must make
the accommodation.
B17. Employers are not required to modify their job-application and selection
process so that those with disabilities can compete for jobs with those who do
not have disabilities.
B18. The distribution of promotions and other job benefits according to a seniority
system is not normally a good defense to a suit for employment discrimination.
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4 TEST BANK BUNIT SEVEN: AGENCY AND EMPLOYMENT
B19. Employers can avoid liability for employment discrimination on the basis of
after-acquired evidence of an employee’s misconduct.
B20. Any federal, state, or local affirmative action program that uses racial or ethnic
classifications as the basis for making decisions is subject to strict scrutiny by
the courts.
MULTIPLE CHOICE QUESTIONS
B1. Iago believes that he is a victim of a form of employment discrimination that
falls under the Civil Rights Act of 1964. Compliance with this statute is
monitored by
a. employees and job applicants, not an administrative agency.
b. employers and businesses, not an administrative agency.
c. the courts and Congress, not an administrative agency.
d. the Equal Employment Opportunities Commission.
B2. Sara believes that she was rejected for a position at Trek n’ Travel Agency on
the basis of her race. Sara files a suit against Trek n’ Travel under the Civil
Rights Act of 1964. To establish a prima facie case of employment discrimi-
nation, Sara must show all of the following except that
a. she is a member of a protected class.
b. she applied and was qualified for the job in question.
c. she was rejected for a position by Trek n’ Travel.
d. other persons of her race hold similar positions with other similar
employers.
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CHAPTER 35: EMPLOYMENT DISCRIMINATION AND DIVERSITY 5
B3. Neville, a member of a protected class, applies for a job with Origami Paper
Products Corporation, but fails the company’s employment test and is not
hired. Neville believes that the test has an unintentionally discriminatory effect.
If so, this is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
B4. Buena files a suit against Credit Services Corporation under the Civil Rights
Act of 1964, alleging employment discrimination on the basis of gender on a
disparate-impact theory. To succeed, Buena must show that Credit Services
hires fewer women than the percentage of
a. qualified women in the local labor market.
b. qualified women in the United States.
c. women in Credit Services’s state.
d. women who apply to Credit Services for work.
B5. Melanie files an employment discrimination suit against Natural Resources
Industries Corporation under the Civil Rights Act of 1964 on a disparate-impact
theory. To succeed, Melanie must show that members of a protected class are
adversely affected by any of the following except the employers
a. practices.
b. procedures.
c. tests.
d. seniority system.
B6. Insurance Sales Corporation gives preferential treatment in hiring and
promotion to the members of all protected classes. This treatment results in
discrimination against members of the majority. This is
a. disparate-impact discrimination.
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6 TEST BANK BUNIT SEVEN: AGENCY AND EMPLOYMENT
b. gender discrimination.
c. not discrimination.
d. reverse discrimination.
B7. Conrad and Delilah are employees of EcoCrop Feed & Seed Corporation.
Under the Equal Pay Act of 1963, EcoCrop can legitimately pay different wages
on the basis of
a. seniority.
b. job descriptions.
c. substantial equality of skill, effort, and responsibility.
d. gender.
B8. Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee.
The owner announces that some employees will be discharged. Ruta tells Tim
that for sexual favors she will give him an excellent performance review and
recommend a raise. This is
a. harassment on the basis of sexual orientation.
b. hostile-environment harassment.
c. not harassment.
d. quid pro quo harassment.
B9. Emylee, an employee of Farm Supplies, Inc., files a sexual-harassment suit
against Gowan, her supervisor. Emylee wins. Farm Supplies may also be liable
if it had effective harassment policies and complaint procedures, and
a. none of the employees followed them.
b. Emylee followed them.
c. all of the employees were aware of them.
d. Gowan followed them.
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CHAPTER 35: EMPLOYMENT DISCRIMINATION AND DIVERSITY 7
B10. Elsa participates in an investigation into possible violations of the Civil Rights
Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa’s
employer demotes her. Elsa can file a
a. harassment complaint.
b. retaliation claim.
c. constructive discharge claim.
d. disparate-impact discrimination claim.
B11. Boni, the owner of Café Rico, knows about, but does not take any action to
prevent, the sexual harassment of employees. Boni and the café may be liable
for such harassment by
a. an employee’s previous employer.
b. a customer or a co-worker.
c. an employee’s spouse or other close relative.
d. none of the choices.
B12. Lisa brings a successful lawsuit against her employer Metal Mold & Die
Corporation for unlawful discrimination. Lisa may be awarded
a. back pay, but not retroactive promotions.
b. retroactive promotions, but not back pay.
c. damages, but not back pay.
d. back pay, retroactive promotions, and damages.
B13. Free-Flo Pipes & Plumbing Corporation is a private employer involved in an
employment discrimination suit under the Civil Rights Act of 1964. Punitive
damages may be recovered against Free-Flo only if the employer
a. acted with malice or reckless indifference.
b. can easily afford to pay the amount.
c. has one hundred or more employees.
d. consents.
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8 TEST BANK BUNIT SEVEN: AGENCY AND EMPLOYMENT
Fact Pattern 35-1B (Questions B14B15 apply)
Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC).
B14. Refer to Fact Pattern 35-1B. Lomax believes that he has been discriminated
against on the basis of his age. For the Age Discrimination in Employment Act
of 1967 to apply
a. Kyla must be forty years of age or younger.
b. Kyla must be forty years of age or older.
c. Lomax must be forty years of age or older.
d. Lomax must have been MVMC’s employee for at least forty years.
B15. Refer to Fact Pattern 35-1B. To succeed with an age-discrimination claim
against MVMC, Lomax will have to show that
a. Kyla is not qualified for Lomax’s job.
b. Lomax is qualified for his job.
c. MVMC’s qualifications for Lomax’s job are too high.
d. no one could do Lomax’s job as well as he could.
B16. Helene, a disabled person, applies for a job at Industrial Engineering
Applications Inc. for which she is well qualified, but for which she is rejected.
Industrial Engineering continues to seek applicants and eventually fills the posi-
tion with a person who is not disabled. Helene is most likely to succeed in a suit
against Industrial Engineering for discrimination under the Americans with
Disabilities Act of 1990 if she can show that
a. she was not hired solely because of her disability.
b. she can function well with corrective devices or on medication.
c. her disability causes her undue hardship.
d. she could not perform the job even with reasonable accommodation.
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CHAPTER 35: EMPLOYMENT DISCRIMINATION AND DIVERSITY 9
B17. Merlin is a drug addict who has completed a supervised drug-rehabilitation
program. Nabil used drugs casually in the past. Both work for Omni Insurance
& Investments Inc. Considered to have a disability under the Americans with
Disabilities Act of 1990
a. are Merlin and Nabil.
b. is Merlin only.
c. is Nabil only.
d. none of the choices.
B18. Satin, Silk & Swimwear, a women’s clothing store, employs female attendants
who assist customers in the dressing rooms. Toribio, a forty-one-year-old male,
applies for an attendant’s job, but is not hired. In Toribio’s suit against Satin,
Silk & Swimwear for employment discrimination under the Civil Rights Act of
1964, the store has
a. no defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. an affirmative action defense.
B19. Solar Power Panels Corporation requires its employees to have a high school
diploma, claiming a connection between a high school education and job
performance. In a suit against Solar Power under the Civil Rights Act of 1964,
this is shown to have a discriminatory effect. Solar Power has
a. an affirmative action defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. no defense.
B20. Lumber Mill Inc. is a private employer with more than twenty employees. Its
employment practices do not indicate a past pattern of discrimination. It is
located in Metro City, which has recently seen an increase in the number of its
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10 TEST BANK BUNIT SEVEN: AGENCY AND EMPLOYMENT
citizens who are members of protected classes. Under the Civil Rights Act of
1964, Lumber Mill is
a. required to promote diversity in its workplace, but not to implement an
affirmative action policy.
b. not required to implement an affirmative action policy.
c. required to implement an affirmative action policy until the number of its
minority employees is proportional to the number of minority individuals
in Metro’s labor pool.
d. required to implement an affirmative action policy that considers race
merely as a plus factor.
ESSAY QUESTIONS
B1. For twenty years, Maynard works for Natural Gas Wells, Inc., which employs
more than five hundred persons in two states. Natural Gas Wells drills for and
mines natural gas to sell and transport to refineries, which in turn pipes
liquefied gas to other states. Maynard starts as an unskilled worker in the
drilling fields. After a career of positive job evaluations and pay raises, Maynard
is ultimately promoted to the position of chief of maintenance for a dozen
wellheads. Five years later, a new employee, Oberto, is hired to oversee
operations at all of the wellheads. Oberto demotes Maynard, who is now over
the age of forty, and freezes his salary. Oberto demotes five other employees
over the age of forty and places Maynard under the supervision of Pitt, who is
twenty-three. Maynard overhears Pitt say, “We’re going to have to do away
with these old men.” Maynard quits and files a suit against Natural Gas Wells
for employment discrimination. Should he prevail? Explain.
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CHAPTER 35: EMPLOYMENT DISCRIMINATION AND DIVERSITY 11
B2. Veronica is a repairperson for Wind Power Company. The job requires
traveling to remote areas to make repairs to windmills, transmission towers,
and power stations under any conditions. Veronica has had the job longer than
other employees. Veronica applies for a promotion to a supervisory position
that requires constant communication with others in the field. Wind Power
rejects the application on the ground that Veronica is hearing impaired. Wind
Power acknowledges that Veronica is otherwise qualified, but asserts that it
“needs someone who does not have a hearing problem.” Veronica files a suit
against Wind Power under the Americans with Disabilities Act of 1990. What is
the issue, and what are the relevant considerations on which its resolution
depends?

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