, CHAPTER 01 m
The Regulation of Employment
m m m
Truem/mFalsemQuestions
1. (p.m 7)m Regulationsmgoverningmthememployer-
employeemrelationshipmarembased monmagencymlawmand mfailuremof manmemployee/agent mtomact macco
rdingmtomthememployer'sminstructionsmcould mresult minmliabilitymformthememployer.
TRUE
Difficulty: m1 mEasy
2. (p.m 8)m Misclassificationmof memployeesmasmindependent mcontractorsmcanmresult minmliabilitymun
dermthemFairmLabormStandardsmAct mof m1938.
TRUE
Difficulty: m1 mEasy
3. (p.m 7)m If manmagent mactsmwithout mauthoritymof mthemprincipal,mthemprincipalmismnot mliablemform
anymresultingmlossmtomamthird mparty.
FALSE
Difficulty: m1 mEasy
4. (p.m 7)m Theremismonemcommonlymaccepted mdefinitionmof m"employee"mused mbymcourts.
FALSE
Difficulty: m1 mEasy
,5. (p.m 9)m Anmemployermismvicariouslymliablemformthemactionsmof manmemployeemcausingmharmmt
omamthird mpartymoutsidemthemcoursemof memployment.
FALSE
Difficulty: m2 mMedium
6. (p.m 16)m Undermthemeconomicmrealitiesmtest,mcourtsmconsidermwhethermthemworkermismeconomica
llymdependent monmamparticularmenterprisemormworksmformhimself mormherself.
TRUE
Difficulty: m1 mEasy
7. (p.m 16)m A msigned magreement mbetweenmamcompanymand mamworkermthat mspecificallymstatesmthat m
nomemployee-
employermrelationshipmexistsmwillmbemcontrollingminmthemevent mof mamlegalmdisputemovermwhethe
rmthemworkermismcovered mbymthemNationalmLabormRelationsmAct.
FALSE
Difficulty: m1 mEasy
8. (p.m 8)m MarcomprovidesmaccountingmservicesmtomthemConsolidated mBankmasmanmindepend
ent mcontractor.mMarcommust mpaymhismownmSocialmSecuritym(FICA),mFICA mexcise,mand mfe
deralmunemployment mcompensationm(FUTA),mtaxes.mHowever,mConsolidated mismrespons
iblemformfederalmand mstatemincomemtaxmwithholdings.
FALSE
Difficulty: m1 mEasy
9. (p.m 11)m Willfulmviolationsmof mFLSA msubject manmemployermtomcriminalmliability.
TRUE
Difficulty: m1 mEasy
, 10. (p.m 8,m13)m If manmemployermdoesmnot mmakemanymwithholdingmfrommamworker'smpaymformtaxes,mt
henmthemIRSmdeemsmthemworkermtombemanmindependent mcontractor.
FALSE
Difficulty: m2 mMedium
11. (p.m20)m ThemWondermCitymRestaurant musesmamstaffingmfirmmtomobtainmtemporarymworkers.mAf
termthemstaffingmfirmmsent movermamtemporarymhostess,mWondermasked mthemfirmmtomreplacemherm
withmsomeonemof manothermrace.mIf mthemhostessmwhomwasmreplaced mproceedsmwithmamTitlemVII m
claim,mWondermcannot mbemliablembecausemthemtemporarymhostessmwasmneverm itsmemployee.
FALSE
Difficulty: m1 mEasy
12. (p.m 28)m Non-competemagreementsmaremgoverned mbymfederalmlaw.
FALSE
Difficulty: m2 mMedium
13. (p.m 26)m ThemCivilmRightsmAct mof m1866mappliesmtomemployersmwithm15mormmorememployees.
FALSE
Difficulty: m2 mMedium
14. (p.m 27)m ThemRehabilitationmAct mappliesmtomfederalmcontractorsmwithmcontractsmwithmthemfede
ralmgovernment minmexcessmof m$10,000mannually.
TRUE
Difficulty: m2 mMedium
The Regulation of Employment
m m m
Truem/mFalsemQuestions
1. (p.m 7)m Regulationsmgoverningmthememployer-
employeemrelationshipmarembased monmagencymlawmand mfailuremof manmemployee/agent mtomact macco
rdingmtomthememployer'sminstructionsmcould mresult minmliabilitymformthememployer.
TRUE
Difficulty: m1 mEasy
2. (p.m 8)m Misclassificationmof memployeesmasmindependent mcontractorsmcanmresult minmliabilitymun
dermthemFairmLabormStandardsmAct mof m1938.
TRUE
Difficulty: m1 mEasy
3. (p.m 7)m If manmagent mactsmwithout mauthoritymof mthemprincipal,mthemprincipalmismnot mliablemform
anymresultingmlossmtomamthird mparty.
FALSE
Difficulty: m1 mEasy
4. (p.m 7)m Theremismonemcommonlymaccepted mdefinitionmof m"employee"mused mbymcourts.
FALSE
Difficulty: m1 mEasy
,5. (p.m 9)m Anmemployermismvicariouslymliablemformthemactionsmof manmemployeemcausingmharmmt
omamthird mpartymoutsidemthemcoursemof memployment.
FALSE
Difficulty: m2 mMedium
6. (p.m 16)m Undermthemeconomicmrealitiesmtest,mcourtsmconsidermwhethermthemworkermismeconomica
llymdependent monmamparticularmenterprisemormworksmformhimself mormherself.
TRUE
Difficulty: m1 mEasy
7. (p.m 16)m A msigned magreement mbetweenmamcompanymand mamworkermthat mspecificallymstatesmthat m
nomemployee-
employermrelationshipmexistsmwillmbemcontrollingminmthemevent mof mamlegalmdisputemovermwhethe
rmthemworkermismcovered mbymthemNationalmLabormRelationsmAct.
FALSE
Difficulty: m1 mEasy
8. (p.m 8)m MarcomprovidesmaccountingmservicesmtomthemConsolidated mBankmasmanmindepend
ent mcontractor.mMarcommust mpaymhismownmSocialmSecuritym(FICA),mFICA mexcise,mand mfe
deralmunemployment mcompensationm(FUTA),mtaxes.mHowever,mConsolidated mismrespons
iblemformfederalmand mstatemincomemtaxmwithholdings.
FALSE
Difficulty: m1 mEasy
9. (p.m 11)m Willfulmviolationsmof mFLSA msubject manmemployermtomcriminalmliability.
TRUE
Difficulty: m1 mEasy
, 10. (p.m 8,m13)m If manmemployermdoesmnot mmakemanymwithholdingmfrommamworker'smpaymformtaxes,mt
henmthemIRSmdeemsmthemworkermtombemanmindependent mcontractor.
FALSE
Difficulty: m2 mMedium
11. (p.m20)m ThemWondermCitymRestaurant musesmamstaffingmfirmmtomobtainmtemporarymworkers.mAf
termthemstaffingmfirmmsent movermamtemporarymhostess,mWondermasked mthemfirmmtomreplacemherm
withmsomeonemof manothermrace.mIf mthemhostessmwhomwasmreplaced mproceedsmwithmamTitlemVII m
claim,mWondermcannot mbemliablembecausemthemtemporarymhostessmwasmneverm itsmemployee.
FALSE
Difficulty: m1 mEasy
12. (p.m 28)m Non-competemagreementsmaremgoverned mbymfederalmlaw.
FALSE
Difficulty: m2 mMedium
13. (p.m 26)m ThemCivilmRightsmAct mof m1866mappliesmtomemployersmwithm15mormmorememployees.
FALSE
Difficulty: m2 mMedium
14. (p.m 27)m ThemRehabilitationmAct mappliesmtomfederalmcontractorsmwithmcontractsmwithmthemfede
ralmgovernment minmexcessmof m$10,000mannually.
TRUE
Difficulty: m2 mMedium
