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Q:
Under no circumstances may a franchisor establish an additional franchise in a territory allotted to a franchisee.
Q:
Franchisees ordinarily pay no fee for a franchise license.
Q:
If a party to a franchise contract fails to perform, he or she may be subject to a suit for breach of contract.
Q:
A state deceptive trade practice statute may limit the actions of franchisors.
Q:
An owner's license of the ingredients of a certain product to an outside party is not a franchise.
Q:
An owner's license of a formula to make a certain product to an outside party is a franchise.
Q:
Most fast-food chains are a chain-style franchises.
Q:
A manufacturer's license to an outside dealer to sell a product creates a chain-style franchise.
Q:
A franchise is a form of business organization.
Q:
A franchise is an association, which may or may not be incorporated, that is organized to provide an economic service to its members.
Q:
A sole proprietorship is a separate legal entity for tax purposes.
Q:
In a sole proprietorship, the owner receives all of the risk.
Q:
In most states, a sole proprietorship must file a certificate of proprietorship.
Q:
Sara is a repairperson for Telecommunications Company (TC). The job requires driving to remote areas to make repairs under any conditions. Sara has had the job longer than other employees. Sara applies for a promotion to a supervisory position that requires constant communication with others in the field. TC rejects the application on the ground that Sara is hearing impaired. TC acknowledges that Sara is otherwise qualified, but asserts that it "needs someone who does not have a hearing disability." Sara files a suit against TC under the Americans with Disabilities Act of 1990. What is the issue in this problem, and what are the relevant considerations on which its resolution depends?
Q:
On the night of the first Tuesday of every month, the accounting firm of Jones & Smith holds an "update session" for junior partners. This session is designed to keep accountants up-to-date on various changes in statutes, regulations, and rules that impact them. Kelly, a junior partner, is a member of a religious group that practices druidism, a religion based on the practices of the ancient Celts. Because the religious group meets on Tuesday nights, Kelly does not attend the update sessions. Can Jones & Smith discharge Kelly for missing the mandatory meetings?
Q:
Chris sues Delta, Inc., for employment discrimination under a state law. When compared to federal law, state law may apply to firms with
a. fewer employees.
b. more employees only.
c. no employees.
d. the same number of employees only.
Q:
United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is
a. a bona fide occupational practice.
b. a business necessity.
c. constructive discharge.
d. reverse discrimination.
Q:
Ace Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school education and job performance. In a suit against Ace under Title VII, this requirement is shown to have a discriminatory effect. Ace has
a. an affirmative action defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. no defense.
Q:
Sam worked for The Burger, a fast-food restaurant, receiving high marks at performance evaluations. When Sam learned that he had cancer, he told Uri, his boss. Wrongly believing that the cancer was contagious, Uri told Sam's co-workers, who began to harass him. The Burger fired Sam, citing poor performance. He filed a suit against The Burger, claiming discrimination and seeking damages for emotional injuries. The only evidence was his testimony. Under Case 34.3, Flowers v. Southern Regional Physician Services, Inc., the court will most likely hold that the amount of emotional damages
a. should be egregious, because Sam was fired for having cancer.
b. should be nominal, because Sam's only evidence is his own testimony.
c. should be nothing, because there is no basis for such an award.
d. should be punitive, because Sam's co-workers harassed him.
Q:
Dan has AIDS, Eve is blind, and both work for First National Bank. Considered disabled under the Americans with Disabilities Act
a. are Dan and Eve.
b. is Dan only.
c. is Eve only.
d. is neither Dan nor Eve.
Q:
Gina has cerebral palsy, Hal has kleptomania, and both work for Investment Insurance Company. Considered disabled under the Americans with Disabilities Act
a. are Gina and Hal.
b. is Gina only.
c. is Hal only.
d. is neither Gina nor Hal.
Q:
Dick is easily embarrassed, Elin is easily sunburned, and both work for First City Bank. Considered disabled under the Americans with Disabilities Act
a. are Dick and Elin.
b. is Dick only.
c. is Elin only.
d. is neither Dick nor Elin.
Q:
Abel is an alcoholic, Baker is morbidly obese, and both work for Charlie Company. Considered disabled under the Americans with Disabilities Act
a. are Abel and Baker.
b. is Abel only.
c. is Baker only.
d. is neither Abel nor Baker.
Q:
Fact Pattern 34-2
Alice replaces Ben in his job at Commercial Business Corporation (CBC).
Refer to Fact Pattern 34-2. To succeed with an age-discrimination claim against CBC, Ben will have to show that
a. Alice is not qualified for Ben's job.
b. Ben is qualified for his job.
c. CBC's qualifications for Ben's job are too high.
d. no one could do Ben's job as well as he could.
Q:
Fact Pattern 34-2
Alice replaces Ben in his job at Commercial Business Corporation (CBC).
Refer to Fact Pattern 34-2. Ben believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply
a. Alice must be forty years of age or older.
b. all parties must be forty years of age or younger.
c. Ben must be forty years of age or older.
d. CBC must have been in existence for at least forty years.
Q:
Jill is thirty-five years old, Kyle is forty-five years old, and both work for Little Company, which has ten employees. Parties protected under the Age Discrimination in Employment Act include
a. Jill and Kyle.
b. Jill only.
c. Kyle only.
d. neither Jill nor Kyle.
Q:
Eve is twenty-five years old, Frank is fifty years old, and both work for Growing Business, Inc., which has thirty employees. Parties protected under the Age Discrimination in Employment Act include
a. Eve and Frank.
b. Eve only.
c. Frank only.
d. neither Eve nor Frank.
Q:
National Manufacturing Corporation (NMC) is a private employer involved in a Title VII employment discrimination suit. Punitive damages may be recovered against NMC only if the employer
a. acted with malice or reckless indifference.
b. can easily afford to pay the amount.
c. has one hundred or more employees.
d. none of the above.
Q:
Marie, an employee of Nickel Tool Company, files a sexual-harassment suit against Owen, her supervisor. Marie wins. Nickel may also be liable if it had effective harassment policies and complaint procedures, and
a. Marie failed to follow them.
b. Marie followed them.
c. Owen failed to follow them.
d. Owen followed them..
Q:
Fact Pattern 34-1
Karen, manager of Liberty Service Company's office in Metro City, decides to replace the office's male employees with females. Nina, an assistant manager transferred from a different Liberty office, refuses to cooperate. Karen retaliates against Nina, who quits. Within a year, all of the male employees also quit. Refer to Fact Pattern 34-1. Under the reasoning of the court in Case 34.1, Conway-Jepsen v. Small Business Administration, liability for Karen's conduct rests with
a. Liberty's male employees, who should have acted themselves.
b. Liberty, which should have known, and Karen, who did the acts.
c. Nina, who refused to cooperate.
d. no one, because no law was violated.
Q:
Fact Pattern 34-1
Karen, manager of Liberty Service Company's office in Metro City, decides to replace the office's male employees with females. Nina, an assistant manager transferred from a different Liberty office, refuses to cooperate. Karen retaliates against Nina, who quits. Within a year, all of the male employees also quit.Refer to Fact Pattern 34-1. As in Case 34.1, Conway-Jepsen v. Small Business Administration, Karen's conduct is a violation of
a. no law.
b. the Age Discrimination in Employment Act.
c. the Americans with Disabilities Act.
d. Title VII of the Civil Rights Act.
Q:
Gail is an employee of Home Appliances, Inc., but is unable to perform her job because of her pregnancy. Gail is
a. entitled to disability leave only if Home treats other temporarily disabled employees similarly.
b. entitled to disability leave under any circumstances.
c. not entitled to disability leave because she cannot perform her job.
d. not entitled to disability leave under any circumstances.
Q:
Holly files an employment, gender-based discrimination suit against Imperial Corporation under Title VII, on a disparate-impact theory. To succeed, Holly must show that Imperial hires fewer women than the percentage of
a. qualified women in the local labor market.
b. qualified women in the United States.
c. women in Imperial's state.
d. women who apply to Imperial for work.
Q:
Pam applies for a job at a Quik Mart store but is not hired due to her gender. Pam files a suit against Quik Mart. A prima facie case is established. Pam
a. loses the suit regardless of Pam's response.
b. loses the suit unless Pam asserts an appropriate defense.
c. wins the suit regardless of Quik Mart's response.
d. wins the suit unless Quik Mart asserts an appropriate defense.
Q:
Standard Company denies a promotion to Tony, a member of a minority, when he fails to pass a required test. Few members of minorities have passed the test. The number of promoted employees who are members of minorities does not reflect their percentage in the local labor market. In a suit against Standard, if Tony can show a connection between the test and the number of promoted minority members
a. it must be proved that Standard had discriminatory intent.
b. it must be proved that Standard has other discriminatory practices.
c. it must be proved that the test had a discriminatory purpose.
d. no evidence of discriminatory intent is necessary.
Q:
At least one court has held that an affirmative action program violated the U.S. Constitution.
Q:
An employer who discovers an employee's misconduct after discharging the employee may have a good defense to an employment discrimination suit.
Q:
An employer who hires and fires workers according to a fair seniority system may have a good defense to an employment discrimination suit.
Q:
Terminating an employee who uses drugs violates the Americans with Disabilities Act of 1990.
Q:
An employer must hire a disabled applicant even if he or she lacks necessary job qualifications.
Q:
Under the Americans with Disabilities Act of 1990, a person with a mental impairment that "substantially limits" everyday activities is not disabled.
Q:
Under the Americans with Disabilities Act of 1990, a person with a physical impairment that "substantially limits" everyday activities is disabled.
Q:
To establish a prima facie case of discrimination under the Americans with Disabilities Act of 1990, a plaintiff must show that discriminatory intent motivated an employer's decision.
Q:
The Age Discrimination in Employment Act of 1967 prohibits employment discrimination on the basis of age against persons over twenty-one years old.
Q:
Under the Equal Pay Act of 1963, all of the women on an employer's staff must be paid the same as all of the men.
Q:
An employer can be liable for an employee's online harassment.
Q:
An employer is not liable for a Title VII violation by a nonemployee.
Q:
An employer can be liable for a Title VII violation by a manager.
Q:
Damages are not available for victims of intentional employment discrimination based on religion.
Q:
Disparate-impact discrimination occurs when an employer intentionally discriminates against an employee who is a member of a protected class.
Q:
To establish a prima facie case of discrimination under Title VII, a plaintiff must show that discriminatory intent motivated an employer's decision.
Q:
Title VII does not prohibit unintentional discrimination.
Q:
Title VII applies to all employers within the United States.
Q:
Title VII applies to employers affecting interstate commerce with at least five employees.
Q:
Beth, managing editor of the City News, has a lenient policy concerning employee tardiness. She would prefer that employees be to work by 9 a.m., but does not usually enforce this policy. One week, Don, who had spent the previous month in an alcohol-abuse rehabilitation program, was late three days in a row. Given his appearance, it was obvious that he had been drinking. Can Beth suspend him without pay for two weeks?
Q:
With a couple of new ideas regarding software design, Carol and Ray start a partnership that, with business success, becomes Pacific Applications Company. The company grows to include a staff of twenty-one employees. Over time, Pacific develops a new computer operating system. The firm signs licensing contracts with several computer manufacturers, but needs to double the number of its employees to fulfill those contracts. Is Pacific subject to federal antidiscrimination laws? If so, what should it consider in hiring new employees?
Q:
Allen sues Business Investment Company for employment discrimination under a state law. When compared to federal law, state law may provide
a. less damages only.
b. more damages.
c. no damages.
d. the same damages only.
Q:
Sophisticates, a women's clothing store, employs female attendants to assist customers in the dressing rooms. Tom, a forty-one-year-old male, applies for an attendant's job, but is not hired. In Tom's suit against Sophisticates for employment discrimination under Title VII, the store has
a. an after-acquired evidence defense.
b. a bona fide occupational qualification defense.
c. a business necessity defense.
d. a seniority systems defense.
Q:
Standard Company gives preferential treatment in hiring and promotion to the members of some protected classes. This results in discrimination against members of a majority group who are not given preferential treatment. This is
a. a bona fide occupational practice.
b. a business necessity.
c. constructive discharge.
d. reverse discrimination.
Q:
In Case 34.3, Flowers v. Southern Regional Physician Services, Inc., the court held that a person who was harassed and fired for having HIV was entitled to
a. damages because harassment and discharge constituted actual injury.
b. damages regardless of any actual injury.
c. no damages because she not been subjected to discrimination.
d. no damages because the harassment did not cause any actual injury.
Q:
Aero Corporation requires its pilots to have 20/20 vision without glasses. Neither Beth, an African-American female, nor Clyde, a fifty-year-old male, can satisfy this requirement. Relief under the Americans with Disabilities Act is
a. available to Beth and Clyde.
b. available to Beth only.
c. available to Clyde only.
d. not available to Beth or Clyde.
Q:
Fact Pattern 34-2
Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly impossible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability.
Refer to Fact Pattern 34-2. To successfully defend against Beth's claim, COC will have to show that
a. Beth consistently failed to meet the essential requirements of her job.
b. COC cannot make changes to the doors without undue hardship.
c. Dian is qualified for Beth's position.
d. the doors were not installed as an act of intentional discrimination.
Q:
Fact Pattern 34-2
Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly impossible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability.
Refer to Fact Pattern 34-2. To succeed with a claim against COC under the Americans with Disabilities Act, Beth will have to show that
a. Beth consistently met the essential requirements of her job.
b. COC refused to make reasonable accommodation for Beth.
c. Dian is unqualified for Beth's position.
d. the doors were installed as an act of intentional discrimination.
Q:
Macro Corporation replaces Neal, a fifty-two-year-old employee, with Olivia. Neal files a suit against Macro under the Age Discrimination in Employment Act. To establish a prima facie case, Neal must show, among other things, that he was discharged under circumstances that give rise to
a. a certainty of discrimination.
b. an impossibility of discrimination.
c. an inference of discrimination.
d. an unlikelihood of discrimination.
Q:
Lloyd and Molly are employees of New Tech Corporation. They have the same job. Under the Equal Pay Act, New Tech can legitimately pay Lloyd more than Molly on the basis of
a. Lloyd's greater production only.
b. Lloyd's greater production or seniority.
c. Lloyd's greater seniority only.
d. neither Lloyd's greater production nor his greater seniority.
Q:
Pat files an employment discrimination suit against Quantity Properties, Inc., under Title VII, based on its discharge of Pat. In these circumstances, possible relief under Title VII includes
a. damages only.
b. damages or job reinstatement.
c. job reinstatement only.
d. neither damages or job reinstatement.
Q:
United Company replaces Vera, a forty-five-year-old employee, with Wendy. Vera files a suit against United under the Age Discrimination in Employment Act. To establish a prima facie case, Vera must show, among other things, that she is
a. deserving of higher pay than Wendy.
b. generally more dependable than Wendy.
c. older than Wendy.
d. qualified for the position.
Q:
Mona files an employment discrimination suit against Nationwide Corporation (NC) under Title VII. If Mona shows that NC acted with malice or reckless indifference, she may recover
a. compensatory damages only.
b. compensatory or punitive damages.
c. neither compensatory nor punitive damages.
d. punitive damages only.
Q:
Kay is a salesperson for Liberty Financial Corporation. Mac is also a Liberty salesperson. Neil is Kay and Mac's supervisor. Owen is a Liberty customer. Liberty may be liable for sexual harassment to Kay by
a. Mac only.
b. Mac, Neil, or Owen.
c. Mac or Neil only.
d. Neil only.
Q:
Auto Repair Shop does not take any action to prevent sexual harassment of its employees. Auto Repair may be liable for such harassment by
a. a customer only.
b. a customer or an employee.
c. an employee only.
d. not a customer or an employee.
Q:
Ken, who is Hispanic, applies for a job at Local Plant, Inc. Mary, the interviewer, says that Local Plant does not hire Hispanics. This is
a. impermissible discrimination on the basis of race.
b. permissible discrimination because it is an honest response.
c. permissible discrimination because it occurs before employment.
d. permissible discrimination because "Ken" is not an Hispanic name.
Q:
Cody believes that Delta Corporation has discriminated against him on the basis of gender. Cody files a suit against Delta under Title VII. To establish a prima facie case of employment discrimination, Cody must show that
a. Cody is a member of a protected class.
b. Delta has no legal defenses against the claim.
c. discriminatory intent motivated Delta's act.
d. other firms in Delta's industry have committed discriminatory acts.
Q:
Fact Pattern 34-1
Flo works for General Construction Contractors (GCC) but is the only woman on her shift. The male workers often play minor pranks on each other. Flo attempts a prank. Hank, her supervisor, fires her, because "GCC doesn"t hold with pranks."
Refer to Fact Pattern 34-1. To successfully defend itself in Flo's suit, GCC must show that Hank's statement was
a. a legitimate, nondiscriminatory reason for Flo's discharge.
b. not Flo's feeling about pranks at GCC.
c. only a pretext for Flo's discharge.
d. unofficial GCC policy.
Q:
Fact Pattern 34-1
Flo works for General Construction Contractors (GCC) but is the only woman on her shift. The male workers often play minor pranks on each other. Flo attempts a prank. Hank, her supervisor, fires her, because "GCC doesn"t hold with pranks."
Refer to Fact Pattern 34-1. Flo files a suit against GCC under Title VII. To succeed, Flo must show that Hank's statement was
a. a legitimate, nondiscriminatory reason for Flo's discharge.
b. also her feeling about pranks at GCC.
c. only a pretext for Flo's discharge.
d. unofficial GCC policy.
Q:
Lee is seventy years old and Mira is gay. Based on this information, members of protected classes include
a. Lee and Mira.
b. Lee only.
c. Mira only.
d. neither Lee nor Mira.
Q:
AAA Personnel, Inc., discharges Barb, who feels the discharge is due to her religious beliefs. She decides to file an employment-discrimination suit against AAA. She should contact the Equal Employment Opportunity Commission
a. after filing the suit.
b. any time or no time.
c. at the same time the suit is filed.
d. before filing the suit.
Q:
Most states have statutes that prohibit employment discrimination.
Q:
Under current law, an employer cannot adopt an affirmative action plan.
Q:
Race can be a bona fide occupational qualification.
Q:
A good business reason for a practice that has a discriminatory effect may permit an employer to avoid liability for discrimination.