The Regulation of Employment
1: If Adam hired Constance as an employee to work in his store selling oriental artifacts on his behalf, Adam would be the _____ and Constance would be his _____.
A)principal; agent
B)agent; principal
C)principal; bailee
D)bailee; principal
2: Bill Lister contracted with Plimsoll Corporation to complete the roofing on a housing complex. A signed contract established a flat amount for the services rendered by Bill Lister. Bill is a licensed roofer and does his business under the business name, Lister Roofing. He hires his own roofers who are treated as employees for federal employment tax purposes. If there is a problem with the roofing work, Lister Roofing is responsible for paying for any repairs. Bill Lister, doing business as Lister Roofing, is a(n):
A)agent.
B)independent contractor.
C)bailor.
D)lessee.
3: Ashton works as a driver for Valentine & Co. He is required to drive the company truck from one company plant to another and transport the goods. In the course of one such trip, he sideswipes a car belonging to Aline. Valentine & Co. was held liable to Aline. This is a case of:
A)trespass.
B)conversion.
C)vicarious liability.
D)contributory liability.
4: The Internal Revenue Service 20-factor analysis test is commonly used by courts to:
A)classify employees and independent contractors.
B)decide whether disparate impact existed in a given situation.
C)resolve disputes between a principal and an agent.
D)determine whether a worker is economically dependent on the business.
5: Which of the following tests is commonly used by courts to determine whether a worker qualifies as an employee?
A)Radioimmunoassay test
B)Internal Revenue Service 20-factor analysis
C)Four-fifths analysis
D)Economic realities test
6: Helen was hired by Imprint magazine to write five articles on the changing lifestyle of New York's women. Helen is a _____ worker.
A)Regular
B)Contingent
C)Legacy
D)Permanent
7: George has indicated an interest in being considered for employment in Donaldson's Inc. In this case, George is a(n):
A)lessor.
B)pledger.
C)applicant.
D)bailee.
8: A(n) _____ usually includes prohibitions against disclosure of trade secrets or soliciting the employer's employees or customers.
A)compromise agreement
B)yellow-dog contract
C)ironclad contract
D)noncompete agreement
9: The _____ clause identifies the state law that will apply to any disputes that arise under the contract.
A)forum selection
B)Escalator
C)Omnibus
D)Reserve
10: The theory under which a court may prohibit a former employee from working for an employer's competitor if the employer can show that it is certain that the former employee will reveal a trade secret by virtue of her or his position is known as the:
A)estoppel principle.
B)inevitable disclosure theory.
C)abstraction principle.
D)blue pencil theory.