Chapter 01
The Regulation of the Employment
True / False Questions
1. (p. 6) Regulations governing the employer-employee relationship are based on agency law
and failure of an employee/agent to act according to the employer's instructions could
result in liability for the employer.
TRUE
Difficulty: Easy
2. (p. 8) Misclassification of employees as independent contractors can result in liability
under the Fair Labor Standards Act of 1938.
TRUE
Difficulty: Easy
3. (p. 41) Colton Manufacturing shut down 3 manufacturing facilities without prior notice to
its 3000 employees. Colton has graciously offered to provide outsourcing assistance to its
displaced employees and informed them of their right to continue to receive health
insurance coverage through COBRA for eighteen months. Colton has no further liability to
its former employees.
FALSE
Difficulty: Hard
,
,4. (p. 39) Hannah Bing was hired by Friendly Catering Company. The employee handbook
stated that employees would only be terminated for good cause. Hannah was fired and
replaced by her supervisor's niece. Hannah cannot file a wrongful discharge lawsuit against
Friendly Catering Company because she is an employee-at-will.
FALSE
Difficulty: Medium
5. (p. 40) Promissory Estoppel is an exception to the employment-at-will doctrine if the
employee can show that he/she relied on the employer's promise to her detriment.
TRUE
Difficulty: Easy
6. (p. 41) Major Tire Company's plant in Charleston, South Carolina was destroyed when
Hurricane Hazel hit the coast. The company officially closed the facility after reviewing the
damage and terminated all 500 workers. The company did not give the employees 60 days
notice, and it is liable under the WARN Act.
FALSE
Difficulty: Hard
7. (p. 20) Under the economic realities test, courts consider whether the worker is
economically dependent on a particular enterprise or works for himself or herself.
TRUE
Difficulty: Easy
, 8. (p. 20-21) A signed agreement between a company and a worker that specifically states that
no employee–employer relationship exists will be controlling in the event of a legal dispute
over whether the worker is covered by the National Labor Relations Act.
FALSE
Difficulty: Easy
The Regulation of the Employment
True / False Questions
1. (p. 6) Regulations governing the employer-employee relationship are based on agency law
and failure of an employee/agent to act according to the employer's instructions could
result in liability for the employer.
TRUE
Difficulty: Easy
2. (p. 8) Misclassification of employees as independent contractors can result in liability
under the Fair Labor Standards Act of 1938.
TRUE
Difficulty: Easy
3. (p. 41) Colton Manufacturing shut down 3 manufacturing facilities without prior notice to
its 3000 employees. Colton has graciously offered to provide outsourcing assistance to its
displaced employees and informed them of their right to continue to receive health
insurance coverage through COBRA for eighteen months. Colton has no further liability to
its former employees.
FALSE
Difficulty: Hard
,
,4. (p. 39) Hannah Bing was hired by Friendly Catering Company. The employee handbook
stated that employees would only be terminated for good cause. Hannah was fired and
replaced by her supervisor's niece. Hannah cannot file a wrongful discharge lawsuit against
Friendly Catering Company because she is an employee-at-will.
FALSE
Difficulty: Medium
5. (p. 40) Promissory Estoppel is an exception to the employment-at-will doctrine if the
employee can show that he/she relied on the employer's promise to her detriment.
TRUE
Difficulty: Easy
6. (p. 41) Major Tire Company's plant in Charleston, South Carolina was destroyed when
Hurricane Hazel hit the coast. The company officially closed the facility after reviewing the
damage and terminated all 500 workers. The company did not give the employees 60 days
notice, and it is liable under the WARN Act.
FALSE
Difficulty: Hard
7. (p. 20) Under the economic realities test, courts consider whether the worker is
economically dependent on a particular enterprise or works for himself or herself.
TRUE
Difficulty: Easy
, 8. (p. 20-21) A signed agreement between a company and a worker that specifically states that
no employee–employer relationship exists will be controlling in the event of a legal dispute
over whether the worker is covered by the National Labor Relations Act.
FALSE
Difficulty: Easy
