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Employment and Labour Relations Law Quiz

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Employment and Labour Relations Law Quiz - Employment and Labour Relations Law
Employment Law Section:

1. An employer who wishes to lawfully terminate an employee:

(a) Can only terminate an employee's employment if there is just cause to support the termination.
(b) Can terminate without just cause if notice of termination or a payment in lieu of notice of termination is provided.
(c) Can terminate without notice or without any payment in lieu of notice if the employee's position becomes redundant.

2. Newly hired employees:

(a) Are automatically subject to a three month probationary period which entitles their employer to terminate employment without notice and without any payments whatsoever.
(b) Can be subject to a three month probationary period that is established by their employer prior to their date of hire, which entitles the employer to terminate employment without notice and without making any payments.
(c) Cannot be subject to a probationary period which allows their employer to terminate their employment without notice and without any payment in lieu of notice.

3. Employees can be terminated without any notice or payment for just cause. Just cause includes:

(a) Lack of work.
(b) A corporate reorganization due to a merger or amalgamation causing redundancy.
(c) Illness.
(d) Theft.

4. Employees who wish to resign from their position of employment with their employer in order to accept another employment position:

(a) Must give their current employer two weeks notice.
(b) Can leave their employment at any time without any notice if the position is no longer challenging.
(c) Must give their employer reasonable notice.
(d) Only employers are required to give notice of termination.

5. People who agree to be an independent consultant or contractor to a "client" are entitled to:

(a) No notice of termination from their "client".
(b) Notice of termination (or a payment in lieu of notice), if they are dependent on the "client" for most of their revenue.
(c) Entitlements depend upon the specific facts of each case.

6. In an application for employment, an employer can require the applicant to disclose the following information:

(a) Date of birth.
(b) A Social Insurance Number.
(c) Names of other employers that the applicant has worked for.
(d) Information relating to time spent in jail.

7.Employers can require employees to undergo a lie detector test:

(a) In the context of a reasonable investigation into a fraud or theft.
(b) On the request of the police or other government agency.
(c) As a condition of being offered employment.
(d) Where an employment agreement or collective agreement with a union permits the test.
(e) In Ontario, employers cannot require employees under any circumstances to undergo the test.

Labour Relations Law Section:

8. Employers who learn of a union organizational drive may legally:

(a) Terminate the employees who are assisting the union provided that they are given notice of termination or a payment in lieu of notice of termination.
(b) Call a meeting of employees and advise them that unionization may result in employee lay-offs or a closure of the business.
(c) Hire professional undercover investigators in order to identify the union's strategy to organize the employer's employees.
(d) Require employees to enter into an employment agreement in which they specifically agree that they will not join or support a trade union as a condition of continued employment.
(e) Communicate with employees and express their views as long as they don't say anything which could be considered to be intimidating, coercive or threatening.

9. Once a trade union obtains the right to represent a group of employees of an employer:

(a) The employer is still free to negotiate the wages and benefits with each employee.
(b) The employer must recognize the union as the employees' exclusive bargaining agent and must only negotiate employees' terms of employment with the union.
(c) The employer can simply shut down its operations and open its business under a new corporate name.
(d) The employer can simply assist employees in forming a new association of their own so that they no longer require the assistance of the union.

10.After a trade union has entered into a collective agreement with an employer:

(a) Employees cannot strike and the employer cannot lock out employees during the entire term of the collective agreement under any circumstances.
(b) The employees cannot strike but can refuse to work overtime assignments or slow down their production when they feel that their employer is not responsive to their grievances.
(c) The employees are free to strike at any time, as they have a democratic right to withdraw their services provided that they can prove that they have a legitimate reason to do so.
(d) The employer can lock out employees in order to persuade the union to grant concessions to the employer when economic times warrant such concessions.

11. Once a lawful strike has been commenced by a trade union in the Province of Ontario:

(a) The employer cannot replace striking employees under any circumstances.
(b) A striking employee may apply for reinstatement to work during the strike on terms mutually agreed upon between that employee and the employer.
(c) The employer can simply terminate the employment of all striking employees and permanently hire new employees to replace them.

12. Where a trade union representing a group of employees requires their employer to deduct union dues from wages:

(a) The employer can take the position that only union members have to pay union dues.
(b) The employer can advise the union that it is the union's responsibility to collect union dues.
(c) The collective agreement must include a term which requires the employer to deduct union dues from all employees regardless of whether or not they are union members.

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Solution Preview

The answers are based on Ontario law.

1) Answer: (B)

Explanation: Employers can terminate employment without notice and without a payment in lieu of notice if they can establish just cause. In the absence of just cause, an employer can still terminate an employee by providing reasonable notice (or the amount of notice set out in an employment agreement), or a payment in lieu of notice. Just cause does not include "redundancy".

2) Answer: (B)

Explanation: Employers can contractually establish a period of probation which entitles them to terminate an employee without notice or payments in lieu of such notice at any time during the probation period. If the probation period is longer than three months, the employee may be entitled to minimum notices under minimum Employment Standards legislation. Probation periods are not automatically created and should be specifically referred to in a contract or personnel policy manual.

3) Answer: (D)

Explanation: Redundancy, lack of work and legitimate illness do not constitute forms of just cause for dismissal. Theft, together with other forms of dishonesty that can be proven are more likely to be considered as a form of just cause which would warrant summary termination of employment.

4) Answer: (C)

Explanation: The obligation to give notice of termination is a reciprocal one. Employees are required to give their employer either reasonable notice of resignation or the amount of notice set out in a written employment agreement or personnel policy manual. The purpose of notice is to allow the employer time within which to hire and train a replacement. An employee who quits without ...

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Business Law II questions - Business Policy & Strategy

1. Concrete Construction, Inc. (CCI), uses its cement-mixing equipment as collateral for a loan from First State Bank. The bank files a financing statement with the secretary of state in the state in which CCI was chartered. CCI is hired to do some work in another state and moves its equipment there to do the work. To continue the effectiveness of its
original filing, First State Bank must

a. file a continuation statement after the expiration of the original filing.
b. file a continuation statement before the expiration of the original filing.
c. file a new financing statement in the state in which CCI is working.
d. repossess CCI's equipment.

2. Ed repays his debt, incurred to buy consumer goods, to First City Bank and immediately files a written request for a termination statement. First City

a. must comply within one month of receipt of the letter.
b. must comply within twenty days of receipt of the letter.
c. must refund $500 to Ed.
d. need not comply.

3. Mike owes $12,000 to Nora, $6,000 to Owen, and $6,000 to Pat. The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them, to be divided proportionately. This is

a. a composition agreement.
b. a guaranty agreement.
c. a judicial lien.
d. a suretyship agreement.

4. Adam's home is in a state that has a $15,000 homestead exemption. Adam defaults on a $30,000 debt that he owes to Beth. Adam's home is sold at auction for $40,000. Adam will receive

a. $15,000.
b. $25,000.
c. $30,000.
d. nothing.

5. Janet and Julie work at ABC Interiors. Janet is a designer who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, and dictates their work schedules. Julie works part-time in the evenings cleaning the offices. Julie is ABC's

a. agent but not employee.
b. employee and agent.
c. independent contractor.
d. employee or independent contractor, depending on whether ABC controls the details of her physical performance.

6. Tri-State Trucking Company employs Warren as a delivery agent. While making a delivery within the scope of employment, Warren causes an accident in which Yvonne is injured. Yvonne can recover from

a. Tri-State Trucking only.
b. Warren only.
c. Tri-State Trucking or Warren.
d. none of the above.

7. Don starts up E-Designs, a Web site design service, in a building owned by Earl. Their lease agreement provides that Don will pay Earl a base monthly rental of $250, plus 30 percent of the month's profits. The term of the lease is two years. Don and Earl are

a. partners in a partnership for the term of the lease.
b. not partners, because Earl does not have an ownership interest or management rights in Don's business.
c. not partners, because of the lease requirement that Don must pay a "base rental" in addition to a share of the profits.
d. not partners, because the term of the lease is only two years.

8. Hans, Werner, and Erwin are partners in a computer peripherals company. Werner decides that he will no longer participate in the business. Hans signed a contract with a supplier prior to Werner's decision. That contract is binding on

a. Hans and Erwin.
b. the partnership.
c. Hans only.
d. none of the above.

9. Solid Appliances, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufacturing and distributing a newly patented kitchen appliance, (2) is owned by five shareholders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Solid Appliances is

a. an S corporation.
b. a close corporation.
c. a nonprofit corporation.
d. a professional corporation.

10. Pete and Rob hold the first organizational meeting of Coastal Resorts Corporation (CRC). Probably the most important function of this meeting is
a. adopting CRC's bylaws.
b. chartering CRC.
c. drafting CRC's articles of incorporation.
d. specifying CRC nature and purpose in the articles of incorporation.

11. Eve and Fred are holders of common stock in Green Grocers, Inc. (GGI). Like other holders of common stock, they may be said to have a residual position in the overall financial structure of GGI, because they...

a. are entitled to a dividend not received by other classes of shareholders.
b. are the last to receive payment for their investment.
c. have first priority to any assets of the company if it becomes insolvent.
d. none of the above.

12. Owen and Paula are two of ten authorized directors of Quality Investments Company. The minimum number of directors that can declare a dividend on Quality stock is

a. two.
b. six.
c. ten.
d. none of the above.

13. Frosty Drinks Corporation distributes soft drinks. Frosty's board of directors can delegate some of its functions to the firm's
a. incorporators.
b. officers.
c. shareholders.
d. none of the above.

14. Nora, a shareholder of Alpha Corporation, receives a stock warrant. This is

a. a certificate served on Nora by government officials authorizing them to inspect the records of Alpha.
b. a stock certificate.
c. a transferable option to acquire a given number of shares from Alpha at a stated price.
d. Nora's right to request that a stock certificate be issued in her name.

15. First State Bank merges with Community Bank. Only First State Bank remains. Community Bank held certain rights in certain financial assets. After the merger, First State Bank

a. acquired all of the rights automatically.
b. acquired all of the rights only after completing certain statutory procedures.
c. did not acquire all of the rights unless this was part of the merger.
d. none of the above.

16. First National Bank decides to consolidate its operations with Overseas Bank to create a new firm called International Bank. Overseas Bank had certain rights in assets. After the consolidation, International Bank

a. acquired all of the rights automatically.
b. acquired all of the rights only after completing certain statutory procedures.
c. did not acquire all of the rights unless this was part of the consolidation.
d. none of the above.

17. Mega Corporation wants to gain control of MiniCo, Inc. The companies negotiate for several months, without coming to terms. Mega decides to pursue a takeover attempt. MiniCo decides to resist. MiniCo amends its bylaws to require that 80 percent of the shareholders approve a merger. This is a

a. crown jewel defense.
b. shark repellent defense.
c. poison pill defense.
d. scorched earth tactic.

18. Acme Enterprises, Inc., a corporation traded on a national stock exchange, wants to offer bonds for sale to the public. All-Rite Insurance Company, a state-regulated insurance company, wants to offer annuity contracts for sale to the public. Before any sale, registration must be made with the SEC for

a. Acme's bonds only.
b. All-Rite's annuity contracts only.
c. Acme's bonds and All-Rite's annuity contracts.
d. none of the above.

19. Jill, an accountant for U.S. Digital, Inc. (USD), learns of undisclosed company plans to market a revolutionary new desktop computer. Jill buys 1,000 shares of USD stock. She reveals the company plans to Ken, who buys 500 USD shares. Ken tells Laura, who buys 100 shares. Laura knows that Ken got his information from Jill. When USD publicly
announces its new desktop, they all sell their stock for large profits. If Ken is subject to liability, it would be because the information on which he based his purchase of USD stock was

a. about USD's future plans.
b. not material.
c. not public.
d. none of the above.

20. Mike, a director of National Foods Corporation, learns that the company has developed a new fat-free food. Mike buys 1,000 shares of National stock. One week later, the new product is announced, the price of the stock increases, and Mike sells his shares for a profit. Under SEC Rule l0b-5, Mike would not be liable if he had waited

a. a reasonable time after the product was announced to buy the stock.
b. a reasonable time after the purchase of the stock to sell it.
c. thirty days after he learned of the product to buy the stock.
d. thirty days after the purchase of the stock to sell it.

21. Interstate Trucking, LLC, is a limited liability company. Jack, an Interstate driver, is in an accident in New Jersey with Owen, a citizen of New York. Owen files a suit against Interstate in a federal district court. For purposes of federal court jurisdiction, the citizenship of Interstate is the same as the citizenship of

a. Interstate Trucking's members.
b. Jack.
c. the state of Interstate Trucking's formation.
d. none of the above.

22. Don and Elaine are limited partners in Fine Stores, a limited partnership. In terms of the firm's books, Don and Elaine are entitled to

a. access in proportion to their participation in the management of the firm.
b. access to those parts that directly relate to their capital contributions.
c. no access.
d. total access.

23. Alpha Footwear, LP, is a limited partnership. Beth, a limited partner, participates in the firm's management. Crafted Soles Corporation (CSC), is one of the firm's creditors. Based on Beth's conduct, CSC believes that she is a general partner. In terms of her liability for the firm's obligations to CSC, Beth has, in relation to the general partners,

a. some, but less, liability.
b. more liability.
c. no liability.
d. the same liability.

24. Downwind Properties Corporation and Eastern Investments Company transfer their property to Financial Management, Inc., which manages the property and distributes the profits to Downwind and Eastern. This is

a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.

25. Resource Development Company and Western Mining Corporation form a joint stock company. Like most joint stock companies, it is managed by

a. directors and officers.
b. general partners.
c. managing members.
d. trustees.

26. To enable Bob, a potential franchisee, to make an informed decision concerning the purchase of a Great Store franchise, regulations requiring Great Stores to disclose material facts were issued by

a. the Federal Trade Commission.
b. the National Conference of Commissioners on Uniform State Laws.
c. the U.S. Franchise Agency.
d. none of the above.

27. Three farm-equipment distributors control 90 percent of the market for their products in a certain geographic area. The firms agree to sell their products for the same prices. This is

a. a resale price maintenance agreement.
b. a tying arrangement.
c. price fixing.
d. none of the above.

28. USA Computer Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is

a. a per se violation of the Sherman Act.
b. a violation of the Clayton Act.
c. subject to evaluation under the rule of reason.
d. not subject to antitrust law.

29. Macro Corporation conditions the sale of its operating software on the buyer's agreement to purchase another Macro product, an Internet browser. This is

a. an exclusive-dealing contract.
b. an interlocking directorate.
c. price discrimination.
d. a tying arrangement.

30. Sue buys a car from her neighbor, Tim, for $5,000 and agrees to make monthly payments of $500 until the price is paid. This transaction is subject to

a. the Fair Credit Reporting Act.
b. the FTC's used-car dealers' "Buyer's Guide" rule.
c. the Truth-in-Lending Act.
d. none of the above.

31. Ace Payments Agency harasses Beth in an attempt to collect payment for a shipment of CDs that she returned to Central Music Company four months earlier. This is a violation of

a. the Fair Credit Reporting Act.
b. the Fair Debt Collection Practices Act.
c. the Truth-in-Lending Act.
d. none of the above.

32. General Construction Corporation wants to develop land that includes an area of wetlands, as the term is defined by the Environmental Protection Agency. To fill or dredge this area requires

a. a contribution to the Natural Resources Defense Fund.
b. a permit from the Army Corps of Engineers.
c. both a and b.
d. none of the above.

33. Alpha Telecommunications Corporation employs seven thousand workers in three states. A third of the employees are member of the National Telecommunications Workers Union. Under the Labor-Management Relations Act, the union can

a. demand that Alpha be a closed shop.
b. insist that Alpha hire more employees than necessary.
c. refuse to bargain with Alpha.
d. none of the above.

34. Beth, an employee of Midstates Manufacturing Corporation, is injured on the job and accepts workers' compensation. Beth can successfully sue Midstates

a. if the injury was caused by the employer's negligence.
b. if the injury was caused by the employer intentionally.
c. regardless of the employer's fault.
d. none of the above.

35. Mike works as an employee for International Services, Inc. To protect Mike and other employees from arbitrary discharge, courts have created exceptions to the employment-at-will doctrine based on

a. an implied contract theory only.
b. a public policy theory only.
c. implied contract and public policy theories.
d. none of the above.

36. Jane works for Butler Warehouse Company. Jane is the only woman on her work crew. The male crew often tell jokes and play minor pranks on each other. When Jane attempts a prank, the supervisor fires her, saying that "we don't tolerate horseplay at Butler." Assuming that Jane can establish the ground for a lawsuit against Butler, Butler can defend itself by showing that

a. Jane is the member of a protected class and she was qualified for the job.
b. the misconduct Jane engaged in was nearly identical to that engaged
in by an employee who is not a member of the protected class and who was not fired.
c. there was a legitimate, nondiscriminatory reason for the discharge.
d. both a and b.

37. Paul believes that American Equipment Corporation, his employer, subjected him to discrimination on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply

a. the age discrimination must have been intentional.
b. American must have at least thirty employees.
c. Paul must be forty years of age or older.
d. all of the above.

38. Dana, who has a disability, is an employee of Hersch & Company. After the installation of new entry doors, Dana finds it nearly impossible to get into and out of the Hersch building. For repeatedly failing to be on time, Hersch discharges Dana. Dana is replaced by Gert, who does not have a disability. Dana files a claim against Hersch under the Americans with Disabilities Act of 1990. To successfully defend against Dana's claim, Hersch will have to show that

a. Dana consistently failed to meet the essential requirements of her job.
b. Gert is qualified for Dana's position.
c. Hersch cannot reasonably accommodate Dana without undue hardship.
d. all of the above.

39. Ira is declared mentally incompetent. Jay, Ira's son, is named his guardian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

a. acceptance.
b. delivery.
c. donative intent.
d. donor's acknowledgment.

40. Sara, a famous pianist, is told that she will have to undergo brain surgery that could result in partial paralysis of her right arm and leg. Before she enters the hospital, Sara gives her concert piano to a good friend who is also a pianist and has the piano transported to the friend's home. The surgery is successful, and Sara suffers no postsurgical paralysis of any kind. Sara can

a. revoke her gift because it was a gift causa mortis.
b. not revoke her gift because it was a gift causa mortis.
c. revoke her gift because it was a gift inter vivos.
d. not revoke her gift because it was a gift inter vivos.

41. Jerome agrees to let Kenny store his boat behind Jerome's garage for $20 a month while Kenny is in Europe. One day, a few weeks after Kenny's departure, Jerome notices that the canvas tarp covering the boat is so cracked and worn that rainwater is collecting in the boat. Jerome replaces the tarp at a cost of $35. Given these facts a. Jerome does not have a right to collect $35 from Kenny because this was

a gratuitous bailment.
b. Jerome probably has a right to be compensated for the $35 on Kenny's return.
c. Kenny does not have to pay Jerome $35 because he did not authorize Jerome to purchase a new tarp.
d. Kenny does not have to pay Jerome $35 because no bailment existed, just a friendly arrangement.

42. Eve possesses a city block. Eve has the right to use the property, as she sees fit, subject to local zoning laws. She can lease the property, or dispose of it by selling or giving it away or letting it pass on her death to her heirs. This ownership interest is

a. a fee simple absolute.
b. a future interest.
c. a leasehold estate.
d. a life estate.

43. Irma owns land in Iowa. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses. Irma deeds her land to Jake. The deed states, "To Jake, for life, then to Kim." Irma has given Kim

a. a fee simple absolute.
b. a fee simple defeasible.
c. a life estate.
d. a remainder.

44. Ben, a football fan, transfers land, by deed, to Alpha University. The deed states, "To Alpha University, as long as the football team wins every game, then to Kappa College." Alpha's interest in the land is

a. a fee simple defeasible.
b. an executory interest.
c. a remainder.
d. a reversionary interest.

45. Earl applies for, and obtains, a life insurance policy from Federated Insurance Corporation that contains an incontestability clause. This clause provides that Federated cannot contest statements made in the application

a. after the policy has been effect for a specified period of time.
b. as soon as the policy is issued.
c. under any circumstances.
d. none of the above.

46. In her will, Jill makes a gift of stock to Kent. At the time of Jill's death, she owes $10,000 to Local Mortgage Company. The residuum of her estate consists of assets that

a. exist before taxes, expenses, and the debt to Local Mortgage are paid.
b. pay estate taxes, expenses, and debts.
c. remain after the debt to Local Mortgage is paid and the gift to Kent is made.
d. remain after taxes, expenses, and the debt to Local Mortgage is paid, but before the gift is made to Kent

47. Sophia executes a will in 1990 naming her nephew Porter as the sole beneficiary. In 1999, she executes another will, changing the beneficiary to her niece Allison, but she does not state in the 1999 will that she is revoking the earlier will. On Sophia's death

a. Porter will be the sole heir, as the 1990 will was first in time and was never effectively revoked.
b. Allison will be the sole heir because a second will automatically revokes an earlier will even if a declaration of revocation is missing from the second will.
c. Allison will be the sole heir because even when a declaration of revocation is missing from a second (later) will, if the second will is inconsistent with an earlier will, the second will controls.
d. neither Porter nor Allison will inherit because when a second will is inconsistent with an earlier will and the earlier will is not specifically revoked in the second will, the testator's property escheats to the state.

48. Egypt hires a British advertising agency to promote tourism from Europe but fails to pay for the agency's services. If the agency attempts to sue Egypt in a U.S. court, Egypt will likely be exempt from the court's jurisdiction under
a. the act of state doctrine.
b. the Convention on Contracts for the International Sale of Goods.
c. the doctrine of sovereign immunity.
d. the principle of comity.

49. New World Products, Inc., a U.S. firm, contracts with Fong, Ltd., a Hong Kong firm, allowing the foreign firm to use and profit from its patented products. This is
a. importing.
b. exporting.
c. exclusive distributing.
d. technology licensing.

50. The United States taxes each barrel of imported oil at a flat rate. This is

a. an antidumping duty.
b. a dumping duty.
c. a quota.
d. a tariff.

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