5. Tedium according corporation, a private employer, handles bookkeeping to
small employers. In most circumstances, with exceptions, federal law clearly
prohibits Tedium from subjecting its employees to:
A. Drug tests.
B. Electronic monitoring of business communications.
C. Genetic Tests.
D. Lie-detector Tests. 6. Florida Sugar Corporation has made a corporate decision that they will be
reducing their workforce. They currently have a workforce of 5,500 employees and
will reduce that by 10%:
A. The corporation is not required to give employees any notice prior to the layoff.
B. The corporation is required to give a 30-day notice period before the layoff.
C. The corporation is required to give a 45-day notice period before the layoff.
D. The corporation is required to give a 60-day notice period before the layoff. 7. Sarah works for a small law firm with a total of 30 employees. Sarah is pregnant
and requests time off:
A. The employer is required to give her 12 weeks off under the Family Medical
Leave Act.
B. The employer is required to give her 8 weeks off under the Family Medical
Leave Act. C. The employer is required to give her 12 weeks of paid leave under the Family
Medical Act.
D. The employer is not required to give her time off. 8. Sam is an hourly employee. He punches a time clock and is paid to the nearest
1/10th of the hour based upon an agreement that he shall work approximately 40
Hours in a given work week. One week, Sam works 50 hours. Sam earns $10 an
hour and his check for that week is $500. Sam objects and claims he has a right to
overtime.
A. The employer is required to pay Sam. 1.5 times his salary for every hour over
40.
B. The employer has a right to argue that they only have to pay Sam overtime if
her works more than 80 hours in a two-week period.
C. The employer is not required to pay Sam Overtime.
D. Sam is entitled to overtime if he can show that he is an essential employee. 9. Employment at will means:
A. A person can leave their job at any time for any reason.
B. A company can terminate employment at any time as long as termination is not
discriminatory.
C. All of the above.
D. None of the above. 21. Linda replaces Manny in his job at Neighborly Business Corporation. Manny
believes that he has been discriminated against on the basis of his age. For the Age
Discrimination in Employment Act to apply: A. All parties must be 40 years of age or younger.
B. Linda must be 40 years of age or older.
C. Manny must be 40 years of age or older.
D. Neighborly Business Corporation must have been in existence for 40 years. 22. A group of police officers takes an annual examination which will qualify them
for additional trainings and possible promotion. The pool of test takers includes
40% minorities. When the test results are returned, half of the non-minority
applicants passed and none of the minority applicants passed. The county
invalidated all test results. Those with a passing grade sued to have their results
certified:
A. The results will be certified because they passed
B. The results were justifiably invalidated because the test must have had some
fault that caused all minorities to fail.
C. Those who pass will be required to take an additional test.
D. The county is required to curve the scores such that minorities applicants also
passed the exam. 23. Clerical workers union demands that miracle medical research company hire
unnecessary workers. This most likely violates:
A. Federal labor laws
B. State right to work laws
C. Federal wage and hour laws
D. No federal or state laws 24. Contracts limiting employees’ rights to join union are lawful:
A. True
B. False 25. A union obtains authorization cards from a majority of workers to justify an
election among the workers for unionization:
A. True
B. False 26. Frank owns a chemical manufacturing plant. He has written procedures in
place to ensure that all workers are legally authorized to work in the United States.
The immigration and customs enforcement agency raids his factory and discovers
of his 150 workers, 14 of them are undocumented immigrants. Frank is charged
with violation of immigration and citizenship act.
A. Frank is likely to be found guilty because he employed illegal immigrants.
B. Frank is likely to be found guilty in a reasonable manner in hiring
undocumented immigrants.
C. Frank is likely to not be found guilty because he had reasonable procedures in
place.
D. Frank is likely not to be found guilty because this constituted less than 10% of
his workforce. 27. Clarice organizes a strike at her factory. During the strike, management hires
replacement workers. After the strike has been brought to conclusion, Clarice is
told her replacement is being retained and she will not be offered her former
position.
A. Clarice has an absolute right to her former position. B. There is no guarantee to restore a striking worker to his or hers former position.
C. The replacement worker will be required to join the union in order to retain
his/her job.
D. The replacement worker will be required to join the union and pay union dues in
order to retain his/her job. 28. The workers at Twinkies organized a strike. Management and the union
representatives are unable to reach an agreement. Eventually, Twinkies declares
bankruptcy and seeks liquidation. During the bankruptcy proceedings a new
investor decides to buy the asset and Twinkie name. The new owner is:
A. Required to hire back all union workers and recognize the union.
B. Required to hire back all union workers but does not have to recognize the
union.
C. Does not have to hire back all workers but must recognize the union.
D. Does not have to hire back all workers and does not have to recognize the
union. 30. George and Joan have decided to organize a union. During one of their
organizational meeting in the company lunch room, a member of management sits
in the lunch room and takes notes as to the activities. He reports back to other
senior management as to the activities and George and Joan are fired.
A. The firing is a result of an illegal surveillance under the national labor relations
act.
B. The firing is a result of violation of due process.
C. The firing violates the free speech rights.
D. The firing is legal. 31. Shep buys a car from his neighbor Tyron for $8,000.00 and agrees to make
monthly payments of $800.00 until the price is paid. This transaction is not subject
to federal credit regulations because:
A. The parties are two consumers.
B. The transaction is a sale.
C. The sale involves a car.
D. The parties are neighbors. 32. A credit card holder is liable for all unauthorized charges made before the
creditor is notified that the card has been lost.
A. True
B. False 33. Vague generalities and obvious exaggerations constitute deceptive advertising.
A. True
B. False 34. Mark owns a toy manufacturing company. He receives several reports relating
to small parts becoming disassembled and actual injury to children. Mark has an
obligation to report these instances to the consumer product safety commission.
A. within 30 days.
B. Immediately.
C. After thorough investigation.
D. Only if it is determined that the product was defectively made. 35. Under the fair credit report act:
A. A consumer is always provided access to their credit report.
B. A consumer must be denied credit in order to gain access to their credit report.
C. A consumer must be granted credit in order to gain access to their credit report.
D. A consumer can gain access only if the request is reasonable. 36. Howards sells Wolowitz oil. He has a whole list of ailments for which
Wolowitz oil is intended to cure. In fact, Wolowitz oil is merely a mixture of olive
oil and some flavoring.
A. Howard is allowed to sell it and the buyer must be aware.
B. Howard is allowed to sell it because he is a respected engineer.
C. Howard is not allowed to sell it because the claims are deceptive and untrue.
D. Howard is not allowed to sell it because placing the oil in interstate commerce
violates the commerce clause. 37. In enforcing a complaint against an advertiser, the federal trade commission:
A. Issue complaint orders.
B. Issue cease and desist orders.
C. All of the above.
D. None of the above. 38. Brian occasionally has brokered deals for David. Brian meets Joe one day and
Joe asks, “Aren’t you an agent for David?” Brian says “Yes.”, even though he has not acted as David’s agent for more than a year on any matter. Joe says, “I have a
great deal for him, do you want it?” Brian says “yes”, and signs a contract. Joe
begins to spend money in anticipation of the work. Brian then takes the contract to
David. David does not want the deal.
A. David is liable for damages because Joe reasonably thought Brian was David’s
agent.
B. Joe suffers financial loss and loans based on his actions.
C. Brian is personally liable for damages.
D. Brian and David are jointly liable for damages. 39. Brian occasionally has brokered deals for David. . Brian meets Joe one day and
Joe asks, “Aren’t you an agent for David?” Brian says “Yes.”, even though he has
not acted as David’s agent for more than a year on any matter. Joe says, “I have a
great deal for him, do you want it?” Brian says “yes”, and signs a contract. Brian
then takes the contract to David.
A. David cannot accept the contract because Brian was not his agent at the time the
deal was signed.
B. David can accept the contract under the theory of agent by ratification.
C. David can accept a contract based on the theory of laches.
D. David cannot accept the contract based on the theory of laches. 40. Danny works for John. While at work Danny thinks of a cool accessory for one
of his company’s products. He hires an attorney and does a paten search when he
realizes the product could be patent. He quits his job and begins full time
development work. John finds out about the work.
A. Danny’s accessory is owned by John because he thought of it while working for
him. B. Danny’s accessory is owned by John because Danny used John’s workplace to
think of the idea.
C. Danny’s accessory is not owned by John because he left the company before
developing it.
D. Danny’s accessory is not owned by John because John did not file a patent. 41. Stan hires Will as his agent to build a website. Will creates the content and
uploads it. Later, Will uses some of the same content for Stuart. Stan sues Will for
breach of fiduciary duty.
A. Stan wins because he hired Will.
B. Stan wins because he owns the website.
C. Will wins because he created the content.
D. Will wins because he was not an employee of Stan. 42. Fried food inc. operates a commercial frying plant discharging pollutants into
the air. Greg reports the violation to the environmental protection agency. Greg:
A. Is not entitled to a payment.
B. May be paid up to any amount.
C. May be paid up to a $1,000.00.
D. May be paid up to a $10,000.00. 43. Fruitful garden company makes and sells pesticides. For the pesticides to
remain on the market, the acceptable level of risk to people of developing cancer
from exposures to the products is:
A. One in a hundred B. One in a million
C. One in a thousand
D. Zero 44. Industry processes corporation generates solid waste considered hazardous.
Industry label and packages properly all waste to be transported to a disposal site.
Under the resource conservation and recovery act, this is most likely:
A. Not a violation.
B. A violation because industry generates solid waste.
C. A violation because the waste is transported off site.
D. A violation because the waste is considered hazardous.

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