Q1. Under traditional common law rules, if you wanted to sue a partnership you had to:
a. sue each partner individually
b. sue the partnership as a group
c. sue the state on behalf of the partnership
d. have the state sue the partnership
e. wait until the partnership was incorporated to sue

Q2. Limited liability companies are guided by an operating agreement.
a. true
b. false

Q3. Shareholders in corporations and limited partners in limited partnerships have liability limited to the sum they invested in the business, even for tort liability.
a. true
b. false

Q4. The process of settling the accounts and liquidating the assets of a corporation is called:
a. termination
b. certification
c. transference
d. dissolution

Q5. If a shareholder works for the business then he:
a. will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation as any other creditor
b. will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the corporation as any other creditor
c. will be removed from the corporation
d. will be forced to sell his shares in the company
e. will become a creditor of the corporation, but will not enjoy the same rights of recovery against the corporation as any other creditor

Q6. A(n) __________is one whose shares are held by one shareholder or a small group of shareholders.
a. close corporation
b. small corporation
c. limited corporation
d. shared corporation
e. nonprofit corporation

Q7. A(n) _______________ is an artificial person, or legal entity, created under state law.
a. corporation
b. limited partnership
c. legal partnership
d. sole proprietorship
e. business

Q8. The secretary of state in most state is the official who decides if corporations will be issued charters and rejects those believed to be unsound businesses.
a. true
b. false

Q9. The New York Stock Exchange is an example of a stock exchange where:
a. the stock of sole proprietorships can be traded
b. the stock of public corporations can be traded
c. the stock of private corporations can be traded
d. the stock of public corporations cannot be traded
e. the stock of public corporations can be sold but not bought

Q10. 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

Q11. Before the Norris-La Guardia Act, federal courts:
a. could not interfere in labor-management relations
b. showed no interest in labor-management relations
c. could issue injunctions to stop labor strikes
d. refused to interfere in labor-management disputes due to the Interstate Commerce Clause

Q12. 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

Q13. An anti-raiding covenant is one in which:
a. one party promises not to sue another in case of an injury caused by a tort or some other event
b. an employee agrees not to leave and go into competition against the employer or go to work for a competitor for a certain time
c. an employee agrees not to recruit fellow employees for another company when they leave their current place of employment
d. an employee agrees not to use illegal substances

Q14. 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

Q15. The powers of the National Labor Relations Board include:
a. monitoring of unfair labor practices
b. representing the NLRB in court
c. determining if employees want to be represented by a union
d. monitoring of unfair labor practices and determining if employees want to be represented by a union
e. monitoring of unfair labor practices and determining if employees want to be represented by a union and representing the NLRB in court

Q16. A public policy exception to employment at-will gives the employee the right to sue for wrongful discharge.
a. true
b. false

Q17. 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

Q18. 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

Q19. 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

Q20. 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

Q21. Individual states:
a. may not have civil rights acts that apply to employers exempt from Title VII
b. may have civil rights acts that apply to employers exempt from Title VII
c. may not have civil rights acts that protect additional classes of employees not covered by Title VII
d. may exempt employers from any Title VII regulation

Q22. 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

Q23. The Rehabilitation Act and the Americans with Disability Act define a person with disability as one who:
a. has a physical impairment which substantially limits a major life activity
b. has a mental impairment which substantially limits a major life activity
c. has a record of having a serious physical impairment
d. has a physical impairment which substantially limits a major life activity or has a record of having a serious physical impairment
e. has a physical impairment which substantially limits a major life activity or has a record of having a serious physical impairment or has a mental impairment which substantially limits a major life activity

Q24. 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

Q25. 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

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