Employment Law for Business, 2024, 11e By Dawn Bennett-Alexander (Test
Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of
Each Chapter
All Chapters Test Bank Supplement files download link at the end of this file.
Chapter 1
Student name:__________
1) Agency law, based on the traditional law called master and servant, governs employment
relationships.
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority, the
principal may be liable for any resulting loss to a third party.
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because
of this relationship, Great Northern is responsible for withholding and paying Myra's
employment taxes, including federal unemployment compensation (FUTA), Social Security
(FICA) and FICA excise tax.
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the
scope of the working relationship.
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers,
and the government.
⊚ true
⊚ false
Version 1 1
,Chapter 1
6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent
over a part-time office assistant, Fresh Ideas asked the firm to replace her with someone from
a different race. The replaced office assistant cannot proceed with a discrimination claim
under Title VII of the Civil Rights Act since she (the part-time office assistant) was never an
employee of Fresh Ideas.
⊚ true
⊚ false
7) If an employee has a car accident while driving a company car from one company office to
another, the employer may be liable to the owner of the other vehicle under which legal
theory?
A) Vicarious liability
B) Joint liability
C) Strict liability
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
A) Occupational Safety and Health Act
B) National Labor Relations Act
C) Fair Labor Standards Act
D) Labor Management Relations Act
9) A willful misclassification of workers by an employer may result in harsh sanctions,
including imprisonment and a fine of up to $10,000, under which federal law?
A) Federal Unemployment Compensation Act (FUTA)
B) Fair Labor Standards Act (FLSA)
C) National Labor Relations Act (NLRA)
D) Federal Insurance Contributions Act (FICA)
10) Which of the following is currently considered to be the leading test to determine employee
status?
A) Common-law agency test
B) IRS 20-factor analysis
C) Economics realities test
D) Degree of control test
Version 1 2
,Chapter 1
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as
an employer under the Act?
A) 15 employees
B) 20 employees
C) 50 employees
D) No minimum requirement
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts
with the federal government in excess of how much annually?
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
13) CMS, Incorporated solicited bids from various contractors to develop and maintain the
grounds of its new office complex. Roberta, the head of facilities management at CMS, told
her secretary, LeAnne, that she will not accept any bids from a Russian contractor. She then
rejected a bid made by a Russian contractor without any legitimate reason. If the Russian
contractor brings a lawsuit against CMS for discrimination, what is the likely result?
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the
Social Security Act.
B) Roberta's refusal to hire Russian contractors will be found to be a violation of the
Consumer Protection Act.
C) Roberta's refusal to hire Russian contractors will not be considered an offense
because employers in the United States are free to discriminate against employees
based on their race or national origin.
D) Roberta's refusal to hire Russian contractors will not be considered a violation of Title
VII of the Civil Rights Act because that law does not cover discrimination against
independent contractors.
Version 1 3
, Chapter 1
14) Riley is a freelance handyperson hired by Bob’s Burgers whenever small repairs are needed
in the store. Riley is paid per project and usually works at Bob’s Burgers one day a month.
Which of the following is likely true of this scenario?
A) Bob’s burgers will need to withhold a certain percentage of Riley's wages for federal
income tax purposes.
B) Riley cannot be held liable for any torts committed by him within the scope of the
working relationship.
C) Riley can make a claim for medical or retirement benefits from Bob’s Burgers as he is
an employee.
D) Riley cannot make a claim for medical or retirement benefits from Bob’s Burgers as
he is an independent contractor.
15) Employment law based on agency principles imposes a duty on an employee to act as
authorized. If the employee exceeds his or her authority, the employer is:
A) not liable for any loss or damage that results from the employee's unauthorized acts.
B) liable for damages or losses incurred by third parties and has no recourse against the
employee for the losses incurred.
C) liable for damages or losses incurred by third parties, while the employee remains
liable to the employer.
D) not liable for any loss or damage incurred by third parties, unless the damage is
beyond $35,000.
16) Nelson is misclassified as an independent contractor for FunTime Toys. He is actually an
employee. While driving to a meeting at FunTime's headquarters, Nelson caused a car
accident in which a cab driver was hurt. Upon investigation, it was found that Nelson was on
the phone with one of the managers at FunTime when he was driving that day. Which of the
following may be true in the context of liability for the accident?
A) FunTime has no liability, because Nelson is classified by FunTime as an independent
contractor.
B) FunTime has vicarious liability.
C) FunTime has no liability even if Nelson is an employee.
D) FunTime has strict liability.
Version 1 4
Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of
Each Chapter
All Chapters Test Bank Supplement files download link at the end of this file.
Chapter 1
Student name:__________
1) Agency law, based on the traditional law called master and servant, governs employment
relationships.
⊚ true
⊚ false
2) In an employment-agency relationship, if an agent acts beyond his or her authority, the
principal may be liable for any resulting loss to a third party.
⊚ true
⊚ false
3) Myra provides accounting services as an independent contractor for Great Northern. Because
of this relationship, Great Northern is responsible for withholding and paying Myra's
employment taxes, including federal unemployment compensation (FUTA), Social Security
(FICA) and FICA excise tax.
⊚ true
⊚ false
4) Employers are not liable for most torts committed by an independent contractor within the
scope of the working relationship.
⊚ true
⊚ false
5) There is a single commonly accepted definition of "employee" used by courts, employers,
and the government.
⊚ true
⊚ false
Version 1 1
,Chapter 1
6) Fresh Ideas employs part-time workers through a staffing firm. After the staffing firm sent
over a part-time office assistant, Fresh Ideas asked the firm to replace her with someone from
a different race. The replaced office assistant cannot proceed with a discrimination claim
under Title VII of the Civil Rights Act since she (the part-time office assistant) was never an
employee of Fresh Ideas.
⊚ true
⊚ false
7) If an employee has a car accident while driving a company car from one company office to
another, the employer may be liable to the owner of the other vehicle under which legal
theory?
A) Vicarious liability
B) Joint liability
C) Strict liability
D) Negligence
8) Which federal law protects employees from unfair labor practices of employers?
A) Occupational Safety and Health Act
B) National Labor Relations Act
C) Fair Labor Standards Act
D) Labor Management Relations Act
9) A willful misclassification of workers by an employer may result in harsh sanctions,
including imprisonment and a fine of up to $10,000, under which federal law?
A) Federal Unemployment Compensation Act (FUTA)
B) Fair Labor Standards Act (FLSA)
C) National Labor Relations Act (NLRA)
D) Federal Insurance Contributions Act (FICA)
10) Which of the following is currently considered to be the leading test to determine employee
status?
A) Common-law agency test
B) IRS 20-factor analysis
C) Economics realities test
D) Degree of control test
Version 1 2
,Chapter 1
11) How many employees must an entity have under The Civil Rights Act of 1866 to qualify as
an employer under the Act?
A) 15 employees
B) 20 employees
C) 50 employees
D) No minimum requirement
12) The Rehabilitation Act of 1973 applies to government contractors that maintain contracts
with the federal government in excess of how much annually?
A) $1,000
B) $5,000
C) $10,000
D) No minimum dollar amount
13) CMS, Incorporated solicited bids from various contractors to develop and maintain the
grounds of its new office complex. Roberta, the head of facilities management at CMS, told
her secretary, LeAnne, that she will not accept any bids from a Russian contractor. She then
rejected a bid made by a Russian contractor without any legitimate reason. If the Russian
contractor brings a lawsuit against CMS for discrimination, what is the likely result?
A) Roberta's refusal to hire Russian contractors will be found to be a violation of the
Social Security Act.
B) Roberta's refusal to hire Russian contractors will be found to be a violation of the
Consumer Protection Act.
C) Roberta's refusal to hire Russian contractors will not be considered an offense
because employers in the United States are free to discriminate against employees
based on their race or national origin.
D) Roberta's refusal to hire Russian contractors will not be considered a violation of Title
VII of the Civil Rights Act because that law does not cover discrimination against
independent contractors.
Version 1 3
, Chapter 1
14) Riley is a freelance handyperson hired by Bob’s Burgers whenever small repairs are needed
in the store. Riley is paid per project and usually works at Bob’s Burgers one day a month.
Which of the following is likely true of this scenario?
A) Bob’s burgers will need to withhold a certain percentage of Riley's wages for federal
income tax purposes.
B) Riley cannot be held liable for any torts committed by him within the scope of the
working relationship.
C) Riley can make a claim for medical or retirement benefits from Bob’s Burgers as he is
an employee.
D) Riley cannot make a claim for medical or retirement benefits from Bob’s Burgers as
he is an independent contractor.
15) Employment law based on agency principles imposes a duty on an employee to act as
authorized. If the employee exceeds his or her authority, the employer is:
A) not liable for any loss or damage that results from the employee's unauthorized acts.
B) liable for damages or losses incurred by third parties and has no recourse against the
employee for the losses incurred.
C) liable for damages or losses incurred by third parties, while the employee remains
liable to the employer.
D) not liable for any loss or damage incurred by third parties, unless the damage is
beyond $35,000.
16) Nelson is misclassified as an independent contractor for FunTime Toys. He is actually an
employee. While driving to a meeting at FunTime's headquarters, Nelson caused a car
accident in which a cab driver was hurt. Upon investigation, it was found that Nelson was on
the phone with one of the managers at FunTime when he was driving that day. Which of the
following may be true in the context of liability for the accident?
A) FunTime has no liability, because Nelson is classified by FunTime as an independent
contractor.
B) FunTime has vicarious liability.
C) FunTime has no liability even if Nelson is an employee.
D) FunTime has strict liability.
Version 1 4
