Questions and Answers of Essentials of Business Law

Kenneth Lipsitz sold magazine subscriptions through a friendly and congenial staff located in New York City. Numerous affi davits and complaints alleged either that the magazines never arrived or
Napster, Inc. provided a free service for visitors to its Web site that allowed users to share music digitally. Napster did not receive permission from the owners of the music. Several large
Netscape offered all visitors to its Web site free“SmartLoad” software provided the visitor clicked his or her mouse on a designated box labeled “Download.” A reference to a license agreement
An agreement that specifi es that the employer agrees to pay, and the employee agrees to work, for a specifi ed period of time at a specifi ed salary.a. 1099b. employment a t w illc. employment c
A tax form provided to employees.a. 1099b. employment a t w illc. employment c ontractd. employee ha ndbooke. independent contractorf. respondeat superior g. W-2
A person or fi rm that performs services for another.a. 1099b. employment a t w illc. employment c ontractd. employee ha ndbooke. independent contractorf. respondeat superior g. W-2
A tax form provided to independent contractors.a. 1099b. employment a t w illc. employment c ontractd. employee ha ndbooke. independent contractorf. respondeat superior g. W-2
A doctine that states that, just as an employee may choose to terminate his or her employment at any time he or she wishes, so too an employer may terminate an employee’s employment at any time.a.
A manual published by an employer that contains the many policies of the fi rm.a. 1099b. employment a t w illc. employment c ontractd. employee ha ndbooke. independent contractorf. respondeat
A legal doctrine that holds that the acts of an employee committed while performing duties are considered the acts of the employer.a. 1099b. employment a t w illc. employment c ontractd. employee ha
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Acts of an employee while performing duties of employment are considered the acts of the
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Workers’ compensation laws are designed to ensure that all employees are paid fairly.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Independent contractors are under the direct control of the person who engages them.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.An independent contractor can sue the person with whom he or she made the contract.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.The doctrine of employment at will has been eroded by federal, state, and local statutes; by
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Arbitration clauses in employment contracts are never enforceable.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.In some states, the provisions contained in an employee handbook are considered a kind of
Indicate whether each of the following statements is true or false by writing T or F in the answer column.In some states legislatures and courts have made it clear that employee handbooks are not to
Indicate whether each of the following statements is true or false by writing T or F in the answer column.A current or former employee may sue his or her employer for defamation if the employer
Identify two kinds of lawsuits brought by current or former employees that may result from a negative reference.
The GDGS Corporation adopted an arbitration policy and announced it to its employees via an e-mail. The policy stated that arbitration was the exclusive means of resolving legal disputes between
Dasey was employed as a state trooper by the Massachusetts Department of State Police. In his employment application, Dasey stated that he had not used illegal drugs during the previous fi ve years.
Wojewski, a cardiothoracic surgeon, became a member of the medical staff at Rapid City Regional Hospital. Wojewski’s staff status entitled him to admit patients, use the hospital’s facilities, a
A strike without the union’s consent.a. Title VIIb. exclusive remedyc. collective bargaining agreementd. ergonomicse. wildcat
A developing science that deals with designing workplaces to promote safety and health.a. Title VIIb. exclusive remedyc. collective bargaining agreementd. ergonomicse. wildcat
The portion of the Civil Rights Act of 1964 that deals with discrimination in employment.a. Title VIIb. exclusive remedyc. collective bargaining agreementd. ergonomicse. wildcat
A contract between a union and an employer that covers all terms and conditions of employment.a. Title VIIb. exclusive remedyc. collective bargaining agreementd. ergonomicse. wildcat
A doctrine that states that an employee who sustains a work-related injury or illness can recover damages only through workers’ compensation.a. Title VIIb. exclusive remedyc. collective bargaining
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An employee may sue a third party for a work-related injury or illness, even if the injury
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Federal law requires that employers establish employee assistance programs.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.In recent years, the number of workers’ compensation claims that have been fi led has
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Stress-related illnesses are compensable under workers’ compensation if the stress was not
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.OSHA can impose a fi ne for a health or safety violation, but does not have the authority to
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Discrimination in employment is covered in Title III of the Civil Rights Act of 1964.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The protected class created pursuant to the Age Discrimination in Employment Act is persons
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Persons who are living with AIDS are not protected by the provisions of the Americans with
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Employees who are victims of illegal discrimination may recover for lost earnings but not
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Employees who are victims of illegal discrimination may recover punitive da mages.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Improper teasing, joking, and so forth can constitute sexual harassment.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A company may terminate an employee because the employee has joined a labor union.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Under federal law, during contract negotiations, employers are required to bargain in good
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An employer has the right to be free from featherbedding.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.In the event a collective bargaining agreement between a union and an employer is not
Ryder, a police offi cer in Philadelphia, was alone in his patrol car when he received a radio call of a “man with a gun.” Ryder was the fi rst offi cer to arrive and was confronted by a suspect
Gentry, an employee of Export Packaging Company, reported directly to Broughton. Gentry alleged among other things that, during a period of approximately four months, Broughton subjected her to “40
Roll and Hold Warehouse, the employer, began circulating a new company policy relating to employee attendance. The union representing the company’s employees objected to the policy, claiming that
Using the Internet and search engines, navigate to the Web pages of the federal agencies discussed in this chapter.
A fault in a product that creates a hazardous condition that causes injury.a. product fl awb. design de fectc. strict lia bilityd. Master Settlement Agreemente. product lia bilityf. failure to warn
Liability without the necessity of proving fault.a. product fl awb. design de fectc. strict lia bilityd. Master Settlement Agreemente. product lia bilityf. failure to warn
The liability of a manufacturer or seller for injury to purchasers, users, and third parties.a. product fl awb. design de fectc. strict lia bilityd. Master Settlement Agreemente. product lia bilityf.
An abnormality or a condition that was not intended and that makes a product more dangerous than it would have been had it been as intended.a. product fl awb. design de fectc. strict lia bilityd.
The dereliction of a duty to advise purchasers and users of dangers inherent in a product.a. product fl awb. design de fectc. strict lia bilityd. Master Settlement Agreemente. product lia bilityf.
A contract in which the major cigarette manufacturers in the United States agreed not to engage in certain advertising strategies.a. product fl awb. design de fectc. strict lia bilityd. Master
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Both breach of warranty and product liability lawsuits are based on tort law, rather than
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The four elements of a product liability lawsuit are duty, breach, proximate cause, and
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.A design defect is a hazardous condition that exists throughout an entire product line.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.An alteration that a buyer makes in a product is known as a product fl aw.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Manufacturers and retailers have a duty to warn users of dangerous or hazardous
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Only manufacturers can be held liable in product liability lawsuits.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The manufacturer is in a better position than the user of a product to prevent injuries,
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.One consequence of strict liability is that companies are sometimes hesitant to introduce
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.In Phase II of the drug-testing process, the effectiveness of the drug is measured by
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.It is perfectly safe to purchase prescription drugs over the Internet.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Advertising of drugs is legal, so long as detailed information about the drug being
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The Consumer Product Safety Commission regularly conducts tests of consumer products sold
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Under the terms of the Master Settlement Agreement, cigarette packages must contain a
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The National Highway Traffi c Safety Administration has the responsibility of controlling
Merck, a major pharmaceutical company, produced a very popular painkiller called Vioxx. Despite the drug being approved by the FDA, several studies linked usage of it to cardiovascular risks relating
From the early 1950s until his death from smoking-related lung cancer in 1997, Williams smoked cigarettes, primarily the Marlboro brand, eventually developing a habit of three packs a day. At that
Grimshaw, a 13-year-old girl, was a passenger in a Ford Pinto driven by a neighbor. The Pinto stalled and, while motionless, was hit from behind by another car. Moments later, the Pinto’s fuel tank
A form of pure life insurance with no savings feature.a. malpracticeb. professionalc. term ins uranced. title insurancee. whole life insurance
A professional’s improper or immoral conduct in the performance of his or her duties through carelessness or lack of knowledge.a. malpracticeb. professionalc. term ins uranced. title insurancee.
A person who performs highly specialized work requiring special abilities, education, experience, and knowledge.a. malpracticeb. professionalc. term ins uranced. title insurancee. whole life insurance
A form of insurance that assures the buyer of real property that there are no other claims to the ownership.a. malpracticeb. professionalc. term ins uranced. title insurancee. whole life insurance
A relatively costly form of life insurance protection that includes a savings feature.a. malpracticeb. professionalc. term ins uranced. title insurancee. whole life insurance
Indicate whether each of the following statements is true or false by writing T or F in the answer column.While the term malpractice is usually applied to physicians, dentists, attorneys, and
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Only professionals such as doctors and lawyers can be charged with ne gligence.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.The four elements of a malpractice lawsuit are duty, breach, proximate cause, and damages.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.In determining whether a defendant has breached his or her duty in a malpractice lawsuit, the
Indicate whether each of the following statements is true or false by writing T or F in the answer column.A psychiatrist who learns from a patient that the patient intends to do harm to another has
Indicate whether each of the following statements is true or false by writing T or F in the answer column.A pharmacist can be sued if he or she dispenses multiple medications that, when taken
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Nurses cannot be found to be negligent because they work under the direct supervision of a
Indicate whether each of the following statements is true or false by writing T or F in the answer column.A fi nancial planner can be sued for deliberately obstructing his or her client’s desire to
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Accounting professionals have a duty only to their client.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.An accountant who deliberately falsifi es fi nancial data can be charged only with negligence.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.An insurance agent or broker can be charged with negligence only if he or she cancels a
Indicate whether each of the following statements is true or false by writing T or F in the answer column.An insurance agent or broker can be charged with negligence for failing to recommend
Indicate whether each of the following statements is true or false by writing T or F in the answer column.An architect who designs a building that is later destroyed in a windstorm cannot be charged
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Clergy cannot be charged with negligence.
Indicate whether each of the following statements is true or false by writing T or F in the answer column.Directors and offi cers of corporations can be charged with breach of their duty resulting
Smith was represented by Lewis, an attorney, in a divorce action against her husband, General Smith. General Smith was employed by the California National Guard and, as a state employee, belonged
During construction at Alma College, an inadequately reinforced wall of an excavation caved in and killed Clark, a worker employed by Beard, the general contractor. The contract between the
Mansfi eld contacted his insurance agent and asked him to obtain an automobile insurance liability policy to be effective as of February 10.On February 14, Mansfi eld was involved in an accident
Restrictions on the numbers and kinds of products that may enter into a n ation.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded. World Trade O rganizatione.
An organization that provides protection against large fl uctuations in the value of one currency versus another.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded.
A doctrine that holds that the courts of one country should refrain from deciding cases involving the acts of persons from another c ountry.a. comityb. transnational ins titutionsc. General Agreement
Organizations established contractually by several countries that agree to be legally bound by the rules of the organization.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a
Government use of legal restrictions on trade in order to achieve desired political re sults.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded. World Trade O
Agreement that provides a set of rules to ensure that there be no discrimination in trade by its signatories.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded. World
An entity established to achieve economic and political integration of member c ountries.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded. World Trade O

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