Mgmt 101 3 (3)

28 Questions | By Samofman | Updated: Mar 21, 2022 | Attempts: 339

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Questions and Answers

1.

Maxine lost her job as an electrical engineer with a large company which had provided health insurance benefits for Maxine and her family. She now:
- A.
  
  Must try to find insurance on her own or try to find another job with health insurance benefits.
- B.
  
  Is protected under COBRA, which allows her continued health insurance coverage for 18 months as long as she pays the cost.
- C.
  
  Is protected under COBRA, which requires her employer to continue her health insurance coverage for six months under whatever copayment arrangements she had while she was employed.
- D.
  
  Has some protection under the NLRA, which requires her employer to pay for continued health insurance for three months following her termination if she did not leave the company voluntarily.
2.

Maude was denied employment with Trucks R Us as a warehouse worker because she didn't meet the weight requirement of 160 pounds. Trucks argued the weight requirement was reasonable because warehouse workers often have to lift things weighing up to 100 pounds. If she sues Trucks, she will
- A.
  
  Lose, as the weight requirement seems like a reasonable occupational requirement.
- B.
  
  Lose, as the 160-pound requirement doesn't discriminate.
- C.
  
  Win, as the weight requirement is discriminatory and doesn't appear necessary for the requirement of lifting 100 pounds.
- D.
  
  Win, as the employer specifically cannot have a weight requirement.
3.

Jim was a mechanic. One day when he attempted to weld a car's gasoline tank, it exploded and he was hurt. He filed to collect workers' compensation. His employer resisted on grounds that Jim had been negligent and had also violated the express regulations of the company when he attempted to weld a gasoline tank. Which statement is correct?
- A.
  
  Jim cannot recover if it is shown that his negligent conduct caused the explosion.
- B.
  
  Jim cannot recover if it is shown that he violated the express regulations of his employer.
- C.
  
  Workers' compensation doesn't apply in situations like this.
- D.
  
  Jim can recover even if he was negligent and violated the employer's rules.
4.

Roxanne was fired from her job when her employer instituted a new policy that prohibited employees from smoking cigarettes. This requirement applied to off-duty time as well as job-related time. Roxanne claimed that she could not quit smoking and that she was wrongfully fired since she did not smoke in the workplace -- only when she was outside the building and during off-duty time.
- A.
  
  The company has wrongfully fired Roxanne and is liable to her for damages.
- B.
  
  The company would be liable to Roxanne only if there is a state statute prohibiting employers from passing such job-related requirements.
- C.
  
  The company is not liable to Roxanne since the nonsmoking requirement is reasonable given the high cost of treating smoking-related illness.
- D.
  
  The company is not liable to Roxanne since the United States Supreme Court has expressly ruled such a company policy does not violate the worker's right to privacy.
5.

Which of the following is true?
- A.
  
  It is much easier for the government, as an employer, to test an employee for drugs or alcohol than it is for a private employer.
- B.
  
  Generally speaking, in most states, it is easier for a private employer than the government to test an employee for drugs or alcohol.
- C.
  
  Neither the government nor private employers may test employees for drugs or alcohol.
- D.
  
  Both the government and private employers may test employees for drugs or alcohol without restriction.
6.

In 1932, Congress passed what legislation prohibiting federal court injunctions in nonviolent labor disputes, thereby declaring that workers should be permitted to organize unions and use their collective power to achieve legitimate economic ends?
- A.
  
  The Sherman Act.
- B.
  
  The Norris-LaGuardia Act.
- C.
  
  The National Labor Relations Act.
- D.
  
  Labor-Management Relations Act.
7.

Which of the following persons is an agent?
- A.
  
  Diane, a shoe salesperson for a retail store.
- B.
  
  Tim, a real estate broker for a large real estate company.
- C.
  
  Craig, a telephone marketing employee.
- D.
  
  All the above.
8.

Can a person work as an agent for two different people with conflicting interests?
- A.
  
  Yes, under the equal dignities rule.
- B.
  
  Yes, provided the agent discloses to both principals that she is representing both persons and the principals agree to the dual relationship.
- C.
  
  No, dual agency relationships are per se illegal.
- D.
  
  No, this would be power coupled with an interest.
9.

Which of the following is not required of an agency relationship?
- A.
  
  Consideration.
- B.
  
  Fiduciary relationship.
- C.
  
  Consent of the parties to act as agent or principal.
- D.
  
  Control of principal over agent's conduct.
10.

Janet was employed as a sales representative for Esday, Inc. An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract. Can Janet keep the bracelet?
- A.
  
  Yes. The bracelet was given to Janet personally and intended for her.
- B.
  
  Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet.
- C.
  
  No. An agent is not allowed under any circumstances to personally profit as a result of the agency relationship.
- D.
  
  No. The bracelet is regarded as an unfair trade practice and violates antitrust law.
11.

Nikki was a tax accountant with HBR Accounting. Nikki decided to do some tax consulting in the evenings and on wekkends. HBR is unaware of Nikki’s consulting work. Which statement is correct?
- A.
  
  Nikki has not breached a fiduciary duty to HBR since her consulting is done after her work for HBR.
- B.
  
  Nikki has not breached a fiduciary duty to HBR since her behavior does not reflect badly on the accounting firm.
- C.
  
  Nikki has not breached a fiduciary duty to HBR since Nikki has a contractual relationship with her clients, not her employer.
- D.
  
  Nikki has breached a fiduciary duty to HBR since she is competing with HBR.
12.

Under a written contract dated May 1, Jodi hired Jenna to buy a piece of lakefront property. On May 30, Jenna finalized a deal with Brandon for the purchase of the land and a contract was signed. On May 31, Jenna learned Mrs. O'Leary had died on May 29. Which statement is correct concerning the contract Jenna entered into with Brandon?
- A.
  
  The contract is void since the agency terminated May 29.
- B.
  
  The contract is valid since the agency’s purpose was achieved before Jenna was notified of Mrs. O'Leary's death.
- C.
  
  The contract is voidable at the option of Mrs. O'Leary's estate.
- D.
  
  The contract is voidable at the option of Brandon.
13.

Megan was employed by a large company. Her supervisor told her to falsify government reports. She refused and was fired. She sued for wrongful discharge. Her employer claimed since Megan was an at-will employee, she had no legal right to claim it was liable for damages. Is the employer right?
- A.
  
  Yes. An at-will employee does not have a legal right to claim wrongful discharge of employment.
- B.
  
  Yes. As an employee, Megan owes a duty of loyalty to her employer. If the company was found to have acted illegally by falsifying the reports, it (not Megan) would be liable.
- C.
  
  No. Even though Megan was an at-will employee, such employees may not be fired without just cause.
- D.
  
  No. Though at-will employees do not have extensive rights relative to job security, they may not be legally fired for refusing to perform an illegal act.
14.

Which of the following may be legitimate nondiscriminatory criteria for selection of an employee?
- A.
  
  Age.
- B.
  
  Race.
- C.
  
  Color.
- D.
  
  Educational level.
15.

Ron and several fellow workers of Vicy, Inc., a small manufacturing company, wished to organize a union. When Vicy learned of this activity, it issued a bulletin to all workers stating that a union will only hurt the company and that “we are a family that can solve any problems ourselves—we do not need union activists from outside our company trying to tell us what to do!” Which statement is correct concerning the bulletin issued by Vicy?
- A.
  
  Vicy has committed an unfair labor practice. Vicy must remain neutral during the organizing drive.
- B.
  
  Vicy has committed an unfair labor practice. The bulletin constitutes outrageous interference with the union organizing campaign.
- C.
  
  Vicy has not committed an unfair labor practice. An employer may vigorously present anti-union views to its employees.
- D.
  
  Whether Vicy has committed an unfair labor practice depends on whether the bulletin was approved by the NLRB.
16.

Zoe, who works as a retail clerk, wishes to talk with her co-worker about organizing a union. Her employer threatens to fire her if she talks with other workers about union activity in the presence of customers while she is working. Does the employer have a legal right to make this threat to Zoe?
- A.
  
  Yes.
- B.
  
  Yes, but only if expressly authorized by state law.
- C.
  
  Yes, but only if expressly authorized by the National Labor Relations Board.
- D.
  
  No.
17.

Exec-Pac, Inc. is extremely opposed to having its employees organize. The union attempting to organize a collective bargaining unit filed an unfair labor practices claim with the National Labor Relations Board (NLRB), alleging that Exec-Pac illegally interfered with its unionization drive. The NLRB, convinced that an election would be pointless, waived the requirement of an election and certified the union as the exclusive representative of Exec-Pac's workers. Which statement is correct?
- A.
  
  The NLRB had to be convinced that the employer's interference with the union's attempt to organize the workers was outrageous.
- B.
  
  The NLRB has the authority to waive the requirement of a union election if it believes the employer has shown anti-union bias.
- C.
  
  The NLRB may waive an election if the employer has distributed written materials stating it is opposed to a union.
- D.
  
  None of the above.
18.

Mega Corp is negotiating a collective bargaining agreement with a union. The company claims it is not financially able to pay with the wages increase the union is demanding. Which statement is correct?
- A.
  
  The union has a legal right to inspect the financial records of the company to verify that the employer cannot pay the proposed wage increase.
- B.
  
  It is an unfair labor practice if the employer claims it cannot pay the higher wages but refuses to allow the union to inspect its financial records.
- C.
  
  Both of the above are correct.
- D.
  
  None of the above.
19.

A union declares it will be engaging in a partial strike whereby its employees will alternate between working for a period of time and then walking off the job for an indefinite time. Thus, employees may work for a few days or only a few hours before walking off the job again. The employer claims the union does not have the legal right to engage in a partial strike. Which statement is correct?
- A.
  
  The employer is correct. The union must either strike or work—it cannot alternate between working and striking.
- B.
  
  The employer is correct only if the union does not state the specific hours or days workers will be off the job. The law requires the union to provide the employer with at least seven days' notice of when workers will be off the job.
- C.
  
  The employer is not correct since the NLRA expressly states workers have a right to engage in a partial strike.
- D.
  
  Whether the employer is correct depends on state law.
20.

Employees of Truan went on strike because Truan refused to bargain in good faith. After an unfair labor practices strike, the striking workers are:
- A.
  
  Entitled to get their jobs back.
- B.
  
  Not entitled to get their jobs back.
- C.
  
  Entitled to get their jobs back but only as they become available.
- D.
  
  Fired.
21.

All the forms of organization listed below have limited liability except the:
- A.
  
  Limited liability company.
- B.
  
  General partnership.
- C.
  
  Subchapter "S" corporation.
- D.
  
  Corporation.
22.

Jill and Jane plan to start a business in which each will be an equal owner, but only Jill will be active in the business. They do not want to form a corporation. Their best choice for business organization is probably:
- A.
  
  A general partnership.
- B.
  
  A franchise.
- C.
  
  A limited partnership.
- D.
  
  Two sole proprietorships.
23.

Murray was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership and was well qualified to do the work his father had done. Which statement best describes Frank's rights in the partnership if he inherits the interest?
- A.
  
  Frank has a right to take over for his father in the partnership.
- B.
  
  Frank is entitled to the value of his father’s interest in the partnership, but not to become a full partner.
- C.
  
  Frank has no rights to his father's partnership interest.
- D.
  
  None of the above.
24.

Jill was a limited partner in a retail business that was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Which statement best describes Jill’s potential liability?
- A.
  
  Jill has no potential liability to the customer.
- B.
  
  Jill can be held personally liable to the customer since she is a partner.
- C.
  
  Jill can only be liable to the amount of her investment.
- D.
  
  Jill is personally liable, but the woman must first collect from the general partners before collecting from Jill.
25.

The business form that is taxed as a partnership and gives all owners limited liability, is:
- A.
  
  General partnership.
- B.
  
  Corporation.
- C.
  
  Limited liability company.
- D.
  
  Limited partnership.