Employment Contracts

True / False Questions

1. The three elements required for a contract to be legally binding are: offer, acceptance, and written documentation.
True False

2. It is very important for an organization to know, in advance, whether an individual will be classified as either an employee or an independent contractor.
True False

3. A third party is someone other than the employer or the offer receiver who speaks on their behalf in the establishment or modification of employment contracts.
True False

4. The law is relatively indifferent between the use of written contracts and the use of oral contracts.
True False

5. Statements in employee handbooks can be construed as employment contracts.
True False

6. The "one year rule" ensures that oral agreements for time intervals greater than one year are legally enforceable.
True False


7. If a letter of acceptance says an employee needs to work on weekends, but the employer makes an oral promise that the employee will not have to work on weekends, the oral statement could be legally binding.
True False

8. If a co-worker promises a prospective employee overtime hours while visiting the prospective employee in his/her home, this promised "term" of the employment would likely be legally enforceable.
True False

9. A disclaimer on an employment application blank stating that the employee can be terminated "with or without cause" and "with or without notice" is legally enforceable.
True False

10. It is extremely important for organizations to be sure to keep promises that they make to job applicants in order to avoid subsequent lawsuits.
True False

11. In order for "promissory estoppel" claim to apply when a job offer is made, the offer recipient must suffer a detrimental effect.
True False

Multiple Choice Questions

12. Which of the following elements are required for a contract to be legally binding and enforceable?
A. offer
B. acceptance
C. consideration
D. all of the above


13. Consideration in a contract entails __________.
A. evidence that both parties agree to the terms as offered
B. a polite exchange of information
C. the exchange of something of value between the parties to the contract
D. none of the above

14. Which of the following statements about written contracts is false?
A. The law favors written contracts over oral contracts.
B. A statement on a job application blank could be construed as a written contract.
C. Written statements in employee handbooks that are unintended as contracts cannot be construed as contracts.
D. Internal job posting notices can be construed as written job contracts.

15. Which of the following circumstances makes it less likely an oral statement about weekend work would be legally enforceable as a contract term?
A. The statement was made in the workplace.
B. The statement is not supported by a written policy.
C. The statement was made by an organizational manager.
D. The statement was a specific one.

16. Which of the following statements about disclaimers is false?
A. They can appear in almost any written documents made available to job applicants or employees.
B. They can be used to limit employee rights.
C. They are never oral.
D. Their receipt by employees should be acknowledged in some formal way.

17. In order to improve the chances of winning a law suit based on "promissory estoppel," the most important point the plaintiff must demonstrate is that ____.
A. the promise was accurate
B. the promise was made in good faith
C. the defendant reneged on the promise
D. the promise was withdrawn, resulting in a detrimental effect