Sample Test Questions For Exam 3

Sample Test Questions For Exam 3
(chapters 2, 16, 17, 18)
1) Bribery of foreign officials is prohibited by

a. the Sarbanes Oxley Act.
b. the Foreign Corrupt Practices Act.
c. the honest-services doctrine.
d. the Model Business Corporation Act.
2) The moral minimum is

a. compliance with the law.
b. compliance with the categorical imperative.
c. compliance with rights theory.
d. none of the above.
3) Ethical reasoning that includes a cost benefit analysis is

a. utilitarianism.
b. corporate social responsibility.
c. Kantian ethics.
d. duty based ethics.
4) Pak lies to his supervisor about his reason for taking a personal day. This is
a. Illegal and unethical.
b. unethical only.
c. illegal only.
d. neither illegal nor unethical.
5) Walter is an employee of Barb’s Plumbing Co.. While driving a company van,

Walter injures Anne. Barb’s Plumbing may be liable to Anne
a. if Walter was acting outside the scope of employment.
b. If Walter was on a frolic of his own.
c. if Walter was on a detour.
d. under the doctrine of respondeat inferior.
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6) The equal dignity rule
a. prohibits gender discrimination in pay.
b. requires equal pay for equal work.
c. requires large employers to provide 60 days’ notice before a mass
layoff.
d. requires that if the underlying contract must be in writing, an
agent’s authority must also be in writing.
7) Carlos hires Mary to act as his agent to buy equipment. He does not want the
seller to know who he is. He asks Mary to represent that she is acting as the
agent of a purchaser, but he asks that his name not be disclosed. Carlos is
a. a disclosed principal.
b. an undisclosed principal.
c. a partially disclosed principal.
d. a partially disclosed servant.
8) Luang is an employee of New Market Supplies, Inc. If either party can

terminate the employment relationship at any time for any reason, Luang is
a. a union employee.
b. an independent contractor.
c. an employee at-will.
d. a federal government employee.
9) If Marlin falls off a ladder and injures his back, Marlin

a. may be compensated under state workers’ compensation laws if
the injury occurred on the job.
b. may be compensated under state workers’ compensation laws even if
the injury occurred off the job.
c. may not be compensated under state workers’ compensation laws if
he is an employee-at-will.
d. may not be compensated under state workers’ compensation laws if
he is a union employee.
10)Mai is an employee. She must be paid overtime wages if she works more than
forty hours per week under
a. FMLA.
b. COBRA
c. FLSA.
d. ADEA.
2
11)Mike is African American. He files an employment, race based discrimination
suit against his employer, Ace Manufacturing, Inc., under Title VII, on a
disparate-impact theory. To succeed, Mike must show that Ace hires fewer
African Americans than the percentage of:
a. African Americans in Ace’s state.
b. African Americans who apply to Ace for work.
c. qualified African Americans in the US.
d. qualified African Americans in the local labor market
12)Perry is blind, Lara is overweight and Ty is a recovering alcoholic.

Considered to have a disability under the Americans with Disabilities Act are
a. Perry, Lara and Ty.
b. Perry and Lara.
c. Perry and Ty.
d. Lara and Ty.
13)Title VII prohibits employers with 15 or more employees from

discriminating against employees on the basis of
a. race, color and national origin.
b. race, color, gender and national origin.
c. race, color, gender, national origin and religion.
d. race, color, gender, national origin, religion and sexual orientation.
Ch 2
The principle that human beings have certain fundamental rights (to life,
freedom, and the pursuit of happiness, for example). Those who adhere to this
rights theory believe that a key factor in determining whether a business decision
is ethical is how that decision affects the rights of various groups. These groups
include the firm's owners, its employees, the consumers of its products or
services, its suppliers, the community in which it does business, and society as a
whole
a Categorical imperative
b The Principle of Rights
c Utilitarianism
d Cost-benefit analysis
3
A concept developed by the philosopher Immanuel Kant as an ethical guideline
for behavior. In deciding whether an action is right or wrong, or desirable or
undesirable, a person should evaluate the action in terms of what would happen
if everybody else in the same situation, or category, acted the same way.
c Utilitarianism
An approach to ethical reasoning that evaluates behavior in light of the

consequences of that behavior for those who will be affected by it, rather than on
the basis of any absolute ethical or moral values. In utilitarian reasoning, a good
decision is one that results in the greatest good for the greatest number of people
affected by the decision.
c Utilitarianism
A decision-making technique that involves weighing the costs of a given action

against the benefits of that action.
c Utilitarianism
Other Approaches to Ethical Reasoning

• Company & industry codes of ethics/conduct; (ENRON)
• Professional codes of ethics (law & public accounting); (CPA)
• Warren Buffet's "Front-Page-of-the-Newspaper Test" every time you question
yourself if your decision is ethical or not, imagine that your decision will be on
the front page of the news paper.
a Religious based approaches are exemplified by:

b Business based approaches are exemplified by:
4
Other Approaches to Ethical Reasoning
• The Christian Bible's "Ten Commandments".  they are not practical (NEVER
kill NEVER lie, NEVER steal)
a Religious based approaches are exemplified by:

b Business based approaches are exemplified by:
• as a good citizen, corporations should promote socially useful goals including

the solution of social problems; use their wealth and power in beneficial ways
a Stakeholder Approach
b Corporate Citizenship
• : the corporation must evaluate the impact of decisions not only on shareholders
but on employees, customers, creditors, suppliers, and the surrounding
communities as other stakeholders
a Stakeholder Approach
b Corporate Citizenship
CH 16
In a principal-agent relationship, the parties have

agreed that the agent will act on behalf and
instead of the principal in doing business with .....1.........
persons.
The fundamental doctrine of agency is that: "he who acts through another acts
himself".
An ..........2............or an ............3................... may act in the capacity of an agent.
third
employee
independent contractor
An .......1..............is one whose physical conduct

is controlled, or subject to control, by an employer.
The key feature is the employer's right to control the .......1.............in the
performance of tasks involved in the employment.
An .......1.............can be an agent if the .......1.............has the authority to
represent the employer.
5
0.
a) Employer-Employee Relationships
b) Employer-Independent Contractor Relationships
a
employee
...............1............... are not employees,

because the person for whom they have agreed to
perform has ......2.........over the physical conduct
of their performance.
An .............1............ may or may not be an agent.
0.
a) Employer-Employee Relationships
b) Employer-Independent Contractor Relationships
Independent contractors
no control
• : Generally, no formalities are required to create an agency relationship.

Agency can be created by a written or oral agreement. Is the most common type.
a) Agency by Agreement
b) Agency by Ratification
c) Agency by Estoppel
d) Agency by Operation of Law
• : when a principal affirms a contract made by a person who is not an agent, or

who is an agent acting outside the scope of his or her authority.
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• : when a principal causes a third person to believe that another is the
principal's agent, and the third person deals with the other.
• : These may be justified by social duty or in emergency situations.
Duties of Agents and Principals

An agency relationship is fiduciary (one of trust).
An agent owes the following duties to the principal: (5)
Performance
Notification
Loyalty
Obedience
Accounting
Duties of Agents and Principals

An agency relationship is fiduciary (one of trust).
A principal owes the following duties to the agent:
Compensation
Reimbursement & indemnification
Cooperation
Safe working conditions
Types of Authority of Agents
The authority of an agent specifically told or written to him by the principal
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a) Actual authority which includes:
-express authority, and implied authority
b) Apparent authority
c) Emergency authority
d) Ratification authority
the affirmation by the principal of a prior act performed on his/her behalf by

another without authority.

The appearance or the assumption of authority based on the actions, words, or

deeds of the principal or because of circumstances the principal created although
the agent has no express or implied authority.

type of implied authority that arises when the principal cannot be reached and
immediate action by the agent is required to protect the principal's interests

8
Liability for contracts executed by an agent for a principal depends on:
- The ...................1............................, and
- Whether the agent was ...........2..........to enter a contract for the principal.
.principal's classification
authorized
Classification of Principals
A principal in an agency relationship may be:
the third party with whom the agent deals knows he/she is dealing with an agent
and knows the identity of the principal. Most common.
a) Disclosed
b) Undisclosed
c) Partially disclosed
the third party does not know that he/she is dealing with an agent or the identity
of the principal
a) Disclosed
b) Undisclosed
the third party does not know the identity of the principal but knows that the
agent is acting on behalf of a principal.
a) Disclosed
b) Undisclosed
Contract Liability where the Principal is Disclosed, Partially Disclosed, or

Undisclosed
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If the principal is ................, the agent is not normally liable.
a) Disclosed
b) Undisclosed

Undisclosed
If the principal is ....................., the agent and principal are liable.
a) Disclosed
b) Undisclosed

Undisclosed
If the principal is ................, the principal and

the agent are both liable on the contract.
a) Disclosed
b) Undisclosed
Legal responsibility placed on one person for the acts of another for the reasons
of public policy. It is an indirect liability imposed on a supervisory party (such as
an employer) for the actions of a subordinate (such as an employee) because of
the relationship between the two parties.
vicarious liability
Termination of Agency Relationships
- This includes an agency for a specified duration and/or an agency for a specific
purpose.
- employer must ............1........... who have learned of the existence of the agency;
otherwise agent still possesses ...........2.........authority.
0.
a) By the Acts of the Parties
b) By Operation of Law
notify all 3rd parties

apparent
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Termination of Agency Relationships
This includes .....1........of employer, ......2........of employer, and destruction

of ............3......... of the agency.
No notice need be given to either the agent or third parties.
0.
a) By the Acts of the Parties
b) By Operation of Law
death
insanity
subject matter
Ch 17
state level
judges
Until the early 1900's the employment relationship was regulated at
the ........1......... by ......2......deciding employment disputes on a case by case
basis and without legislative guidance.
• By the 1930's, Congress and the state legislatures began enacting legislation
to regulate various aspects of the employment relationship.

employment-at-will doctrine
Under this common law doctrine, either party may terminate the employment
relationship at any time and for any reason.
• Unless otherwise specified, employment contracts are for an indefinite term.
• Unless otherwise explicitly specified, employers can terminate employees for
any legal reason even if the reason is arbitrary and not directly job related.

a
Exceptions to the Employment-at-Will Doctrine
Over the years, courts have carved out exceptions to the at-will presumption to
mitigate its sometimes harsh consequences.
Some courts have held that an implied employment contract exists between
employer and employee under an employer's handbook, personnel bulletin, or
the like that states that workers will be dismissed only for good cause; an
employer who fires a worker contrary to this promise may be held liable for
breach of contract.
- In a few states, all employment contracts are considered to contain an
implied contract of good faith; if an employer fires an employee arbitrarily or
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without a good reason, the employee can claim breach of this covenant.
a) Exceptions Based on Contract Theory

b) Exceptions Based on Public Policy

b
Exceptions to the Employment-at-Will Doctrine
Over the years, courts have carved out exceptions to the at-will presumption to
mitigate its sometimes harsh consequences.
Under this exception (the most widespread common law exception to the at-
will doctrine), an employer may not fire a worker in violation of a fundamental
................. .
- Firing workers who refuse to perform illegal acts violates .................... .
- Firing workers for complying with their legal duties violates ................... .
- Whistleblowers "may" be protected for ................... reasons in some states
and not in others.
a) Exceptions Based on Contract Theory

b) Exceptions Based on Public Policy

Wrongful Discharge
An employer's termination of an employee's employment in violation of the
law which permits recovery of damages for an illegal firing.
• This is an intentional tort which can justify a punitive damages award in
addition to compensatory/actual damages.

Compensation , Worker Safety , Income Security , Health Care , Family and
Medical Leave
Regulation of Employee Welfare
Federal and state governments enacted legislation to protection employees.
Examples of this movement include legislation regulating:
Name all 5

1
Fair Labor Standards Act (FLSA) - Established minimum wages, regulates

child labor, and maximum hours for all businesses engaged in interstate
commerce.
1. Compensation
2. Worker Safety
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3. Income Security
4. Health Care
5. Family and Medical Leave

Fair Labor Standards Act (FLSA)
Established minimum wages, regulates child labor, and maximum hours for all
businesses engaged in interstate commerce.

a
1. Compensation - Fair Labor Standards Act (FLSA)
............. under 14 can work in only limited occupations; ............under 16

cannot work full-time except for a parent under certain circumstances;
and ....... under 18 cannot work in hazardous jobs or in jobs detrimental to
their health and well being.
a) Child labor provisions

b) Minimum wage provisions
c) Overtime provisions
d) Overtime Exemptions

b
The current federal ................ is $7.25 hour.

- Note that many state and local governments also have ............... laws which
exceed the federal ..................


c
Employees who work more than 40 hours per week must be paid no less than
1.5 times their regular pay for all hours over forty.
- Note that many states also require payment of an ................ premium for
employees who work more than 8 hours in one day.
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
d
Employees who earn more than a specified amount per week and devote their
efforts to certain duties; also persons employed in executive, administrative or
professional positions.


Occupational Safety and Health Act
Labor's Occupational Safety and Health Administration
one
interstate
own
22
5
Regulation of Employee Welfare - Workplace Safety
The ................1.............. requires employers to furnish each employee a

workplace free from recognized hazards that are causing or are likely to cause
death or serious physical harm to the employee.
• The Act is administered by the Department of .........................2..................
(OSHA) and applies to any employer with at least ........3............employee and
who is engaged in a business affecting ........4............commerce.
• The Act encourages States to develop and operate their .........5.........job safety
and health programs; OSHA approves and monitors State plans and provides
up to 50 % of an approved plan's operating costs.
- Currently ............6........... states have such plans (covering both the private
sector and State and local government employees) plus ..........7........... more
states have plans which cover public employees only.
- States must set job safety and health standards that are "at least as effective
as" comparable federal standards and may promulgate standards covering
hazards not addressed by federal standards.
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
a
Federal Insurance Contributions Act
Medicare
Medicaid
Regulation of Employee Welfare - Income Security Legislation
a) The .............1............... provides for old-age retirement, survivors, disability,

and hospital insurance (OASDI). Both employers and employees must make
contributions under the .................2................ (FICA) to help pay for benefits
that will partially make up for the employee's loss of income on retirement.
• The .............1............... provides extensive health and medical care insurance
for disabled or persons age 65 or older; this program is known
as ...........3...............
- States fund a similar program called .............4.............for low income
residents.
1.
a) The Social Security Act of 1935
b) Consolidated Omnibus Budget Reconciliation Act (COBRA)
c) Employee Retirement Income Security Act (ERISA)
d) Patient Protection and Affordable Care Act (2010)
e) Federal Unemployment Tax Act (FUTA)
f) Workers' compensation statutes

c
private
retirement
5
b) The .............1............... was designed to bring uniformity

to .......2............sector pension plans and to protect employees from abuses of
such plans; the Act includes the following features:
• Funding requirements to assure participants that money will be available to
pay promised benefits at ............3............
• Mandatory plan termination insurance as provided by the Department of
Labor's Pension Benefit Guaranty Corporation.
• Strict rules requiring plan fiduciaries to exercise that degree of care that a
reasonable person would exercise in handling his or her own affairs in the
management, investment, and disposition of a fund's assets.
• Minimum vesting requirements (.......4........years is the most common)
• Record-keeping and reporting requirements for plan fiduciaries.
1.
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
e
one
strike
The ............1..............established a state system that provides unemployment

compensation to eligible individuals.
Unemployment insurance is funded by employer payments to a fund with the
proceeds paid to eligible unemployed workers.
Laws vary but generally:
• The applicant must wait ......2........week before applying for benefits, must
register with the state employment agency, and be ready, willing, and able to
undertake suitable employment.
• The applicant will be denied benefits if he/she refuses suitable work, was
fired for proper cause, quit work voluntarily, or is on ...........3............due to a
labor dispute.
1.

f
State statutes that provide compensation for workers (or their dependents)
when the workers are injured (or killed) in the course of employment
1.
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
b
Regulation of Employee Welfare - Health Care Legislation
federal law that requires employers to permit employee or their dependents to

extend their health insurance coverage at group rates for up to 18 months
following a qualifying event, such as a layoff, reduction in hours, or the
employee's death


d
Regulation of Employee Welfare - Health Care Legislation
expands the availability of health insurance by penalizing employers who do

not provide it to their employees and prohibiting health insurance firms from
excluding coverage for "preexisting conditions".
• The act's provisions will be implemented gradually through 2014.
• The constitutionality of this Act is being litigated and may ultimately be
decided by the Supreme Court.
= Obama Care


12
unpaid
same
50
1
state
18
lower
Regulation of Employee Welfare - Family and Medical Leave Act (FMLA)
17
The federal Family and Medical Leave Act (FMLA) which guarantees both men
and women up to .......1.........weeks of ..........2........leave each year for
childbirth, adoption, or medical emergencies for themselves or a family
member.
• An employee who takes a leave under the Act must be allowed to return to
the .........3........or an equivalent job with the same pay and benefits.
• The FMLA only applies to companies with .......4........... or more employees
and only to employees who have been with the employer for at
least ..........5........year.
Under the terms of FMLA, ..........6.........regulations that are more generous

than FMLA accommodations will take precedence over FMLA regulations.
Where this is not the case, FMLA regulations apply.
• At least .......7.......states, as well as the District of Columbia and Puerto Rico,
have laws that are more generous than FMLA.
- For example, in Vermont, Oregon, and the District of Columbia, the 50-
employee minimum is significantly ........8........and thus employees of smaller
businesses have leave rights.
- Also, several states have enacted paid medical and family leave laws and
Congress has debated this type of legislation.

26
12
Regulation of Employee Welfare - Family and Medical Leave Act (FMLA)
Recent FMLA Amendments
In 2008, President Bush signed into law a significant amendment to the

FMLA. These amendments created two new types of leave (unpaid) for
employees with family members in the military:
• First, an employee, who is the spouse, child, parent or next of kin of a service
member, is eligible for up to ..........1........ weeks of leave during a single 12-
month period to care for the serious illness or injury of the service member
• Second, employees will be eligible to take up to ............2........... weeks of
leave due to a "qualifying exigency" caused by a spouse, child or parent of the
employee being on active duty or being notified of an impending call to active
duty in support of a "contingency operation," which includes most types of
military service.

12.1
7.5
35.9
transportation
utilities
18
Unions in Today's Economy
According to the Bureau of Labor Statistics, .......1........% of the labor force in

the U.S. were union members as of 2007.
• Only .......2......... % of private sector workers were union members in 2007
while .......3....... % of government workers were union members.
• In the private sector, the ......4.......and ........5......industries had the most
union members.
• California, New York, Illinois, Michigan, Pennsylvania & New Jersey has the
most unionized workforces while Virginia and the Carolinas had the lowest
rates of unionization.

a) Norris-LaGuardia Act
b) National Labor Relations Act
c) Taft-Hartley Act
Federal Labor Laws
The three foundational federal labor statutes are:

a
yellow dog contract
Federal Labor Laws
In response to growing criticism of the use of ex-parte injunctions in labor

disputes, Congress passed the .....1......... in 1932 which protected the rights of
striking workers, by severely restricting the federal courts' power to issue
injunctions against peaceful strikes, picketing, and boycotts.
• The Act established procedural safeguards that required federal courts to
hold a hearing at which both sides could present evidence before an injunction
could be granted.
• The Act also outlawed the "...........2......." whereby employees agree, as a
condition of employment, that they would not join a union.
1.
c) Taft-Hartley Act

b
National Labor Relations Board
mutuality
Federal Labor Laws
The .............1............ (aka Wagner Act) of 1935 established the basic structure
of modern U.S. labor law.
• The Act created the ............2............ (NLRB) as the federal agency charged
19
with administering and enforcing its provisions.
• The Act expressly recognizes the rights of employees to form, join or assist
unions; to bargain collectively via those unions with employers; and the right
to engage in concerted activities for the purpose of collective bargaining.
Section 9 of the Act sets forth the methods by which employees may designate
who will represent them and directs the NLRB to define appropriate
bargaining units.
• Defining the appropriate bargaining unit requires a .............3................of
interest among all the workers to be represented by the proposed union
1.
c) Taft-Hartley Act

c
Federal Labor Laws
This act (also called Labor-Management Relations Act) passed in 1947 that put
increased restrictions on labor unions. It outlawed the closed shop but permits
the union shop, except in those states that have passed "right-to-work laws", in
which case even the union shop is illegal. It also established that the President
has the power to issue injunctions in strikes that endangered national health &
safety (80-day-"cooling off" period)
1.
c) Taft-Hartley Act

a
Federal Labor Laws - Taft-Hartley Act
A firm that requires union membership as a condition of employment. It was

made illegal by the Labor-Management Relations Act of 1947.
a) closed shop
b) union shop
c) right-to-work laws
d) agency shop

b
20
A firm that requires all workers, once employed, to become union members
within a specified period of time as a condition of their continued
employment. The Labor-Management Relations Act of 1947 permits it.
a) closed shop
b) union shop
d) agency shop

c
A state law providing that employees may not be required to join a union as a
condition of retaining employment.
a) closed shop
b) union shop
d) agency shop

d
A form of a union security agreement in which employees are not required to

join the union of a company, but must pay union dues
a) closed shop
b) union shop
d) agency shop

1986 Immigration Reform and Control Act (IRCA)
1990 Immigration Act.
Immigration Law
The two most important employment-related immigration laws are the:

a
Form I-9
3
3
Immigration and Customs Enforcement
11,000
Immigration Law
This Act makes it illegal to hire, recruit, or refer for a fee for work in the United
21
States a person who is not authorized to work here.
• Employers must complete ......1...........(Employment Eligibility Verification)
within ....2.....days of each employee's hiring (and retain it for ....3.....years);
the employer must verify each applicant's identity and eligibility to work.
• The Act is enforced by the U.S. .........4........... (ICE); ICE officers conduct
random audits and act on written complaints that allege an employer's
violation.
• Penalties for violators include civil fines of up to $.......5........for each
unauthorized employee and criminal penalties of additional fines and/or
imprisonment.
0.
a) 1986 Immigration Reform and Control Act (IRCA)
b) 1990 Immigration Act.

b
H-1B
3
6
IT
Immigration Law
This Act placed limits on the number of visas that can be issued to immigrants
each year.
• The most controversial visa program is the ...........1........... visa program
which permits workers to stay in the U.S.
for ........2...........to .........3...........years but to work only for the sponsoring
employer.
- Most of the recipients of these temporary visas have been in the ........4...........
industry and tend to fill very quickly
- This has generated effort to persuade Congress to increase the number of
available visas.
0.
a) 1986 Immigration Reform and Control Act (IRCA)
b) 1990 Immigration Act.

professionals, government employees, agricultural employees
employees NOT protected by federal labor laws
CH 18
22
Equal Pay Act
Act that requires men and women to be paid equally when they are doing equal
work in the same organization., men and women must be paid equally for
doing equal work

bona fide occupational qualification
Situation in which gender, religion, or national origin is reasonably necessary
to carrying out a particular job function in the normal operations of the
business or enterprise; aka BFOQ

state governments
federal government
Historically, the power to regulate conditions of an employment relationship
was considered a right of the ...............1......................
• This began to change in the early 1960's as
the ................................2............................adopted numerous statutes
attempting to eliminate various types of discrimination in the workplace.

Equal Pay Act
seniority
quantity of production
• The ..............1..............requires that men and women be paid equally where
they work for the same employer and are doing equal work except where such
wage differential is made because of any factor other than sex such
as .........2..........or .......3............. .

Title VII of the Civil Rights Act
race
sex
color
religion
national origin
...................1..................prohibits employers, unions, or employment agencies
from discriminating in respect to hiring, firing, promotion, or other terms and
conditions of employment on the basis of an employee's or
applicant's .......2............., ........3............, ...........4........., ........5............,
or ...........6........... .

Lilly Ledbetter Fair Pay Act
This act amended title VII and the Age Discrimination in Employment Act to
clarify that a discriminatory compensation decision occurs each time
compensation is paid pursuant to the discriminatory compensation. Employee
must file an EEOC complaint within 180 days of their most recent paycheck.
23

Equal Employment Opportunity Commission
The ....................1............................. (EEOC)
is now the primary enforcement agency for most federal anti-discrimination
laws.

a
bona fide occupational qualification
Theories of Discrimination Under Title VII of the Civil Rights Act of 1964
Two theories are available to plaintiffs who allege illegal employment
discrimination:
............1........... (intentional discrimination) which arises from treating

similarly situated employees differently because of a prohibited factor such as
race.
• Under the ...............2........... (BFOQ) defense, intentional discrimination is

permitted where reasonably necessary to carrying out a particular job
function in the normal operations of the business
1
a) Disparate treatment
b) Disparate impact

b
business necessity
Theories of Discrimination Under Title VII of the Civil Rights Act of 1964
Two theories are available to plaintiffs who allege illegal employment
discrimination:
...............1..............(unintentional discrimination) arises from policies that

appear neutral, but have an adverse impact on a protected group.
• Employers may defend by proving that the policy is actually job related and
consistent with ..............2............ (i.e. that this policy is job related).
1
a) Disparate treatment
b) Disparate impact

quid pro quo
hostile work environment
Sexual Harassment
Since 1986, courts have been receptive to claims of Title VII violations by
employees who contend that they were unfavorably treated in employment
24
decisions because they refused to cooperate with the sexual advances of a
supervisor, fellow employee, customer, etc. (i.e. were sexually harassed).
• The courts broadly recognize two types of sexual harassment: .......1...........
and ................2.....................

quid pro quo
a form of sexual harassment in which employment outcomes, such as hiring,
promotion, or simply keeping one's job, depend on whether an individual
submits to sexual harassment

hostile work environment
a form of sexual harassment in which unwelcome and demeaning sexually
related behavior creates an intimidating and offensive work environment

The ...............1............... is a valuable tool that can help employers avoid

liability for alleged unlawful sexual harassment. The United States Supreme
Court first articulated the defense in the 1998 companion cases of Faragher v.
Boca Raton and Burlington Industries, Inc. v. Ellerth.
This affirmative defense is available for claims of harassment under Title VII
of the Civil Rights Act of 1964 when the employer can prove:
- That the employer exercised reasonable care to prevent and
correct .............2........any .........3...........; and
- That the plaintiff employee unreasonably .........4..........to take advantage of
any preventive or corrective opportunities provided by the employer or to
avoid harm otherwise
Faragher Ellerth affirmative defense

promptly
sexually harassing behavior
failed
Charges of sexual harassment by supervisors sometimes result in retaliation

against the complaining employee.
• Title VII includes an "..........1..........." provision which prohibits retaliation
against an employee who files...................2.............. charges.
anti retaliatory
sexual harassment
25
Congress enacted the ............1............. that requires employers to provide
the .........2.............compensation for disabilities related to pregnancy and
childbirth as they provide for any other disability.
Pregnancy Discrimination Act

same
No federal law prohibits employment discrimination

based .................1................; however, Congress has considered
the ...............2..................... (ENDA) for several terms.
• A small but growing number of states (including Maryland) plus many local
ordinances prohibit employment discrimination based
upon .................1.............. and/or ........(1).........identity.
sexual orientation
Employment Nondiscrimination Act
.................1................... programs are an attempt to remedy past acts of

discrimination and have often been imposed by court orders or consent
decrees.
• Such programs have been outlawed by voter propositions in the states
of ........2........, .........3.......and .............4..........and have generated lawsuits
claiming .........5........... by whites and/or males.
Affirmative action
California
Texas
Washington
reverse discrimination
In 1967, Congress passed the ....................1.............(ADEA) which prohibited

employers, unions, and employment agencies form discriminating against
individuals on the basis of age.
- Initially, protection was granted to individuals in the .........2........-
to-..........3.......... age range.
26
- In 1986, the upper age limit was eliminated except for
highly ...................4.................... in high level policy making positions
Age Discrimination in Employment Act

40
65
compensated executives
The ADAAA makes changes to the definition of the term "disability," clarifying
and broadening that definition—and therefore the number and types of
persons who are protected under the ADA and other Federal disability
nondiscrimination laws.
The Act retains the ADA's basic definition of "disability" as an impairment that
substantially limits one or more major life activities; a record of such an
impairment; or being regarded as having such an impairment. However, it
changes the way that the statutory terms should be interpreted.
ADA Amendments Act
The ADA requires employers to make ...........1............. for the physical or

mental limitations of an otherwise qualified individual with a disability unless
to do so would impose an ...............2................
reasonable accommodations
undue hardship
Genetic Information Nondiscrimination
GINA
In May of 2008, President Bush signed the Genetic Information

Nondiscrimination Act (GINA).
• GINA prohibits ...........1................ from using genetic information to
deny ........2..........or raise ............3........for individual policies. And GINA
27
prohibits ............4...............from using genetic information to make decisions
in the workplace.
• Employers who use genetic information to make decisions
about ........5............., ...............6......... or ..............7..............can be fined as
much as $300,000 for each violation.
• GINA took effect in late November of 2009.
health insurance companies

benefits
premiums
employers
hiring
firing
compensation
This Act provides that .........2.........,

the ..........3..........and ...............4.................apply to U.S. citizens employed in
foreign countries by American-owned or controlled companies unless
compliance would cause the company to ..............5..............the law of the
foreign country in which it is located.
The Civil Rights Act of 1991

Title VII
ADA
ADEA
violate
Pending Federal Employment Legislation
The following legislation is being debated in Congress:

• The ....................1.................... would prohibit employers from discrimination
against employees or applicants on the basis of their sexual orientation.
• The ......................2................... would require employers with 15 or more
employees to provide a minimum paid sick leave of seven days annually for
employees who work at least 30 hours per week and a prorated number of
days for employees who work between 20 and 30 hours per week.
Employment Non-Discrimination Act

Healthy Families Act
28

Sample Test Questions For Exam 3

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Sample Test Questions For Exam 3

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Sample Test Questions For Exam 3

(chapters 2, 16, 17, 18)

1) Bribery of foreign officials is prohibited by

2) The moral minimum is

3) Ethical reasoning that includes a cost benefit analysis is

5) Walter is an employee of Barb’s Plumbing Co.. While driving a company van,

8) Luang is an employee of New Market Supplies, Inc. If either party can

9) If Marlin falls off a ladder and injures his back, Marlin

12)Perry is blind, Lara is overweight and Ty is a recovering alcoholic.

13)Title VII prohibits employers with 15 or more employees from

An approach to ethical reasoning that evaluates behavior in light of the

A decision-making technique that involves weighing the costs of a given action

Other Approaches to Ethical Reasoning

a Religious based approaches are exemplified by:

a Religious based approaches are exemplified by:

• as a good citizen, corporations should promote socially useful goals including

In a principal-agent relationship, the parties have

An .......1..............is one whose physical conduct

...............1............... are not employees,

• : Generally, no formalities are required to create an agency relationship.

• : when a principal affirms a contract made by a person who is not an agent, or

• : These may be justified by social duty or in emergency situations.

Duties of Agents and Principals

Duties of Agents and Principals

Types of Authority of Agents

The authority of an agent specifically told or written to him by the principal

Types of Authority of Agents

the affirmation by the principal of a prior act performed on his/her behalf by

a) Actual authority which includes:

Types of Authority of Agents

The appearance or the assumption of authority based on the actions, words, or

a) Actual authority which includes:

Types of Authority of Agents

a) Actual authority which includes:

Contract Liability where the Principal is Disclosed, Partially Disclosed, or

Contract Liability where the Principal is Disclosed, Partially Disclosed, or

If the principal is ....................., the agent and principal are liable.

Contract Liability where the Principal is Disclosed, Partially Disclosed, or

If the principal is ................, the principal and

Termination of Agency Relationships

notify all 3rd parties

This includes .....1........of employer, ......2........of employer, and destruction

a) Exceptions Based on Contract Theory

a) Exceptions Based on Contract Theory

Fair Labor Standards Act (FLSA) - Established minimum wages, regulates

............. under 14 can work in only limited occupations; ............under 16

a) Child labor provisions

The current federal ................ is $7.25 hour.

a) Child labor provisions

a) Child labor provisions

The ................1.............. requires employers to furnish each employee a

a) The .............1............... provides for old-age retirement, survivors, disability,

b) The .............1............... was designed to bring uniformity

The ............1..............established a state system that provides unemployment

federal law that requires employers to permit employee or their dependents to

a) The Social Security Act of 1935

expands the availability of health insurance by penalizing employers who do

a) The Social Security Act of 1935

Under the terms of FMLA, ..........6.........regulations that are more generous

Recent FMLA Amendments

In 2008, President Bush signed into law a significant amendment to the

According to the Bureau of Labor Statistics, .......1........% of the labor force in

In response to growing criticism of the use of ex-parte injunctions in labor