Business Law and Ethics

Q1. The Worker Adjustment and Retraining Notification Act requires certain employers planning large layoffs to:
a. give employee advance notice
b. give employees and certain officials advanced notice
c. to notify the Secretary of Labor
d. find new jobs for employees who will lose jobs
e. to contact the state unemployment commission

Q2. Protected concerted activities under the NLRA, that covers all workers, unionized or not, include:
a. refusal to work because of unreasonable hazards
b. refusal to work in freezing conditions without protection
c. refusal to work due to conditions that endanger health
d. refusal to work in freezing conditions without protection and refusal to work due to conditions that endanger health
e. refusal to work in freezing conditions without protection and refusal to work due to conditions that endanger health and refusal to work because of unreasonable hazards

Q3. Featherbedding, the illegal use of union funds for the personal benefit of union leaders, is outlawed by the Landrum-Griffin Act.
a. true
b. false

Q4. In right-to-work states, only the workers who vote to be represented by a union are covered by the collective bargaining agreement between the employer and the union.
a. true
b. false

Q5. Unions are opposed to right-to-work laws because they claim that the laws:
a. prevent the unions from using dues for political action
b. allow some employees to be free riders because can benefit from the union without having to pay dues
c. allow some employees to have more influence than others in union decisions
d. give employers more power over unions

Q6. Workers who engage in threats or acts of violence:
a. are protected by the NLRA
b. are not protected by the NLRA
c. are protected by the Supreme Court
d. are protected by the NLRA in states with right-to-work laws

Q7. Violations of OSHA regulations are civil, there are no criminal penalties.
a. true
b. false

Q8. Lockouts are legal as long as:
a. there is no evidence of bad intent
b. there is evidence of non-violent attempts to break a union
c. there is physical force involved
d. there is not any physical force involved

Q9. Which of the following are examples of illegal discrimination under the Pregnancy Discrimination Act?
a. not providing health insurance to employees
b. suspending a pregnant waitress because she might not be appealing to the diners at a café
c. denying a pregnant reporter an assignment to a dangerous country because of her condition
d. suspending a pregnant waitress because she might not be appealing to the diners at a café and denying a pregnant reporter an assignment to a dangerous country because of her condition
e. suspending a pregnant waitress because she might not be appealing to the diners at a café and denying a pregnant reporter an assignment to a dangerous country because of her condition and not providing health insurance to employees

Q10. The Equal Pay Act allows differences in wages between men and women employees if the differences are due to:
a. a system that measures earnings by quantity produced
b. a merit system
c. a seniority system
d. a system that measures earnings by quantity produced or a merit system
e. a system that measures earnings by quantity produced or a merit system or a seniority system

Q11. The pay that an employee would have earned from the date the discrimination began or the difference between the pay received and what should have been received is known as:
a. back pay
b. punitive damages
c. front pay
d. compensatory damages

Q12. All employers are subject to Title VII rules regarding discrimination in employment.
a. true
b. false

Q13. Discrimination on the basis of sexual preference or sexual identity:
a. is prohibited by Title VII of the Civil Rights Act
b. is not prohibited by Title VII of the Civil Rights Act
c. is prohibited by most states
d. is an accepted practice in most workplaces

Q14. When a person believes she or he has been the victim of discrimination covered by Title VII, the first step is to file a complaint with the federal or a state equal employment opportunity agency.
a. true
b. false

Q15. A labor union had once been whites only but is now integrated. Its membership rules used to state that to obtain employment through the union you had to be related to or recommended by a union member. Such a rule would now be:
a. not illegal because segregation had been eliminated
b. not illegal because Title VII does not apply to unions
c. illegal because blacks who entered the union would be junior to whites in seniority
d. illegal because it would perpetuate past intentional discrimination

Q16. If an employer uses a decision rule that causes discrimination in some aspect of employment based on protected class status, but the discrimination was unintentional, the discrimination is called:
a. disparate treatment, but is legal so long as not intentional
b. disparate treatment, which is illegal
c. disparate impact, but is legal so long as not intentional
d. disparate impact, which is illegal
e. differential impact, but is legal so long as not intentional

Q17. Based on court rulings, one would expect that retail dealers and manufacturers may discuss ways in which their respective profitability will be enhanced so long as:
a. they agree to fix prices in a vertical arrangement
b. they agree to fix prices in a horizontal arrangement
c. they agree to fix prices in a territorial arrangement
d. their activities help interbrand competition

Q18. Under the merger guidelines a major reason to approve a merger is:
a. the demonstration that the merger will increase profits
b. the demonstration that the merger will reduce profits
c. the demonstration that the merger will create jobs
d. the demonstration that the merger will enhance efficiency in the market
e. the demonstration that the merger will reduce market share

Q19. The classic example of a per se violation of antitrust law is:
a. two companies agreeing to stop buying from a third company
b. a group of competitors deciding to outsource all manufacturing overseas
c. a group of 5 or more competitors agreeing to use the same supplier so they can buy things in bulk and get better prices
d. a group of competitors agreeing on the prices they will charge for their goods so as to eliminate price competition

Q20. If one of the firms involved in a potential merger is facing bankruptcy the Supreme Court will:
a. most likely oppose the merger
b. charge a lot of fees
c. require evidence that the firm will not actually go bankrupt before allowing the merger
d. look more favorably upon the merger

Q21. A horizontal restraint of trade occurs when the businesses involved are on the same level of operation and work together to limit competition.
a. true
b. false

Q22. A criticism of the European Union antitrust law is that:
a. it is too lenient
b. it is too focused on small European companies
c. it is used strategically against foreign firms
d. it favors the United States
e. it discriminates against big European companies that want to merge with US companies

Q23. A key motive behind the Sherman Act was:
a. concern over the undue influence banks had over Congress
b. Congressional concern to limit competition faced by U.S. agricultural producers
c. concern that businesses were too influential in state legislatures
d. unpopularity of large businesses organizations
e. a desire to end import tariffs

Q24. Horizontal market division is often held to violate antitrust law because it:
a. eliminates competition among firms competing in a national market
b. increases efficiency, but raises prices
c. leads to price fixing
d. gives consumers more choice
e. decreases exports

Q25. Agreements that provide horizontal ________________ are often held to violate antitrust law.
a. customer allocations
b. customer preference
c. customer bargaining
d. customer trading