Unit 1:

Question 1

Best Accounting, Inc. is a full-service accounting practice that does work for businesses and individuals and, during the months of January through June, consults with clients and prepares their tax returns. Best Accounting has two owners who are accountants, three staff accountants, and five administrative assistants. At the end of 2012, the owners of Best Accounting realized that the volume of tax returns that it expected to have to prepare during the 2013 tax season exceeded the ability of its staff to do the work. However, the owners of Best Accounting also realized that the business did not have enough work during the rest of the year to justify hiring another full time employee. To address this situation, Best Accounting hired T. J. Moody, an experienced tax return preparer, for the six months from January to June, 2013.

T.J. Moody worked from his home office, using his own computer, but the returns that he prepared were prepared on software owned by Best Accounting and maintained on servers owned by Best Accounting. The tax returns were assigned by Best Accounting to T. J., and T. J. was expected to complete eight tax returns per week. Depending on the complexity of the tax return, T. J. was paid between $150 and $500 per tax return.

Was T. J. Moody an employee or an independent contractor of Best Accounting? What factors should be considered in making that determination? What do each of those factors suggest as to whether T. J. Moody was an employee or an independent contractor? What difference does it make to Best Accounting whether T. J. Moody is an employee or an independent contractor? What difference does it make to T. J. Moody

Question 2

Tiny Software Company creates software security applications intended to protect point-of-sale terminals in retail stores from being hacked. While Tiny Software hires talented and experienced employees, it provides a significant amount of training for those employees. There are two other companies that produce similar software and that compete with Tiny Software, and there are often rumors of other companies that are being formed to compete with Tiny Software.

Should Tiny Software have its employees sign non-compete agreements? Can Tiny Software require that current employees sign non-compete agreements, or will Tiny Software only be able to require that new employees sign non-compete agreements? What should the terms of the non-compete agreements be so that they will be enforceable?

Question 3

The Fair Credit Reporting Act requires that employers obtain permission from an employee before the employer hires a third party to conduct a background check on the employee, but it does not require the employer to get the employee's permission if the employer is going to conduct the background investigation? Why does the employer need the employee's permission to hire someone to conduct the background investigation but not need that permission if the employer conducts the investigation? Whose rights are being protected by the Fair Credit Reporting Act?

Question 4

The employment-at-will doctrine allows employees to quit at any time for any reason and employers to fire employees at any time for any legal reason. How does an employment contract change the relationship between employers and employees from the relationship established under the employment-at-will doctrine? Is an employment contract better for employees than the employment-at-will situation? Is it better for employers?

Unit II

Question 1

Robert was the assistant dean of administration at a small college. Several months ago, Robert was called as a witness to testify in a sexual harassment suit filed by a former employee of the college, against the college and the dean of administration at the college. Robert testified truthfully about an incident that he observed involving the former employee who filed the sexual harassment suit and the dean of administration. The result of the sexual harassment suit was that the former employee who filed the suit was awarded $1,000,000 in damages against the dean of administration and the college. Shortly after the damage award was entered, Robert was called into the dean of administration's office and fired. When Robert asked what he had done to justify the firing, the dean of administration responded that Robert was an employee-at-will and could be fired without reason. Does Robert have any claim against the college? What bases might Robert use to pursue an action against the college?

Question 2

Quick Software, Inc. is a software development company that annually hires a large number of software engineers, mathematicians, and administrative personnel. Each of these classifications of employees requires different qualifications. Software engineers need to have a background in computers and engineering principles, mathematicians need to have extensive course work in mathematics, and administrative personnel need a variety of skills, ranging from accounting to marketing to management. To fill these positions, Quick periodically conducts interview sessions at State University of Science and Engineering, which has a national reputation for producing quality engineers and scientists. Approximately, 80% of the graduates from State University are male. Are there potential issues with the way that Quick recruits new employees? What steps might Quick take to remedy issues with its recruiting practices?

Question 3

Taylor is applying for a position as a teller at First Bank and Trust Company of Tinseltown. He submits a resume and attends an interview with the human resources department and, a few days later, gets a call from the human resources department telling him that he has moved to the next level of consideration that involves him taking a polygraph test. Does the requirement that Taylor take a polygraph test to be further considered for this position violate any law? Why, or why not? What law is involved?

Question 4

Rachel, a female, is 5'2", weighs 110 pounds, and is in good health. She wants to be a firefighter with the Middlebury Fire Department. In response to an ad in the local newspaper, Rachel submitted an application for a firefighter position with the Middlebury Fire Department, but her application was rejected by the Fire Department because she did not meet the Fire Department's minimum physical standards that require applicants to be at least 5'4' and weigh at least 120 pounds. Was the Fire Department's rejection of Rachel's application proper? How might the Middlebury Fire Department modify its standards to avoid this issue?