N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question inc
...
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. An employer’s discrimination against job applicants or employees on cer¬tain grounds may violate federal law.
T PAGE: 681 TYPE: +
NAT: AACSB Analytic AICPA Legal
A2. The Civil Rights Act of 1964 does not prohibit job discrimination in the hiring process.
F PAGE: 681 TYPE: N
NAT: AACSB Analytic AICPA Legal
A3. Disparate-impact discrimination occurs when a protected group of peo¬ple is adversely affected by an employer’s practices, even though they do not appear to be discriminatory.
T PAGE: 682 TYPE: N
NAT: AACSB Analytic AICPA Legal
A4. Making out a prima facie case of discrimination means that a plaintiff has met his or her initial burden of proof.
T PAGE: 682 TYPE: N
NAT: AACSB Analytic AICPA Legal
A5. The Civil Rights Act of 1964 does not protect against reverse discrimination.
F PAGE: 683 TYPE: N
NAT: AACSB Analytic AICPA Legal
A6. Employers can treat their employees more or less favorably based on their religious beliefs or practices.
F PAGE: 683 TYPE: N
NAT: AACSB Analytic AICPA Legal
A7. Federal law does not prohibit discrimination on the basis of gender in as-sessing an employee’s education, training, or experience.
F PAGE: 683 TYPE: N
NAT: AACSB Analytic AICPA Legal
A8. A plaintiff alleging wage discrimination must file a complaint within a certain period of time of the decision that set the discriminatory pay.
F PAGE: 684 TYPE: N
NAT: AACSB Analytic AICPA Legal
A9. An employee’s resignation must be the foreseeable result of an em¬ployer’s discriminatory action to support a showing of constructive discharge.
T PAGE: 685 TYPE: N
NAT: AACSB Analytic AICPA Legal
A10. A tangible employment action is a significant change in employment status or benefits.
T PAGE: 685 TYPE: N
NAT: AACSB Technology AICPA Legal
A11. Protection against retaliation under the Civil Rights Act of 1964 does not extend to an employee who speaks out about discrimination on his or her own initiative.
F PAGE: 686 TYPE: N
NAT: AACSB Analytic AICPA Legal
A12. When the harassment of co-workers creates a hostile working environ¬ment, an employee may have a cause of action against the employer.
T PAGE: 687 TYPE: N
NAT: AACSB Analytic AICPA Legal
A13. Protection against discrimination under the Civil Rights Act of 1964 does not extend to situations in which individuals are harassed by mem¬bers of the same gender.
F PAGE: 688 TYPE: N
NAT: AACSB Analytic AICPA Legal
A14. Under the Age Discrimination in Employment Act of 1967, the plaintiff needs to show only that the employer was motivated in part by unlawful discrimination.
F PAGE: 689 TYPE: N
NAT: AACSB Analytic AICPA Legal
A15. Under the Age Discrimination in Employment Act of 1967, a plaintiff must prove that he or she was replaced by a person “outside the pro¬tected class.”
F PAGE: 690 TYPE: N
NAT: AACSB Analytic AICPA Legal
A16. State employers are not immune from private suits brought by employ¬ees under the Age Discrimination in Employment Act of 1967.
F PAGE: 691 TYPE: N
NAT: AACSB Analytic AICPA Legal
A17. Employers can consider mitigating measures or medications when de-termining if an individual has a disability that fits the definition in the Americans with Disabilities Act of 1990.
F PAGE: 692 TYPE: N
NAT: AACSB Analytic AICPA Legal
A18. The Americans with Disabilities Act of 1990 requires that employers ac-commodate the needs of applicants or employees with disabilities who are not otherwise qualified for the work
F PAGE: 693 TYPE: N
NAT: AACSB Analytic AICPA Legal
A19. Employers who do not accommodate the needs of persons with disabili¬ties must demonstrate that the accommodations would cause undue hardship.
T PAGE: 694 TYPE: N
NAT: AACSB Analytic AICPA Legal
A20. An employer may defend against a claim of unintentional discrimination by asserting that a practice that has a discriminatory effect is a busi¬ness necessity.
T PAGE: 695 TYPE: +
NAT: AACSB Analytic AICPA Legal
MULTIPLE CHOICE QUESTIONS
A1. Origami Paper Products Corporation meets all of the requirements to be subject to the federal employment discrimination laws. These laws re¬strict the ability of employers to discriminate against workers on the basis of
a. experience.
b. gender.
c. intelligence.
d. skill.
B PAGE: 681 TYPE: N
NAT: AACSB Reflective AICPA Legal
A2. Nina is a Jew and Odell is a college student. Based on this information, members of protected classes include
a. neither Nina nor Odell.
b. Nina and Odell.
c. Nina only.
d. Odell only.
C PAGE: 681 TYPE: N
NAT: AACSB Reflective AICPA Legal
A3. Dakota believes that Credit Services Corporation (CSC) has dis¬crimi¬nated against her on the basis of gender. She files a suit against CSC under the Civil Rights Act of 1964. To es¬tablish a prima facie case of em¬ployment discrimi¬nation, Dakota must show that
a. she is a member of a protected class.
b. CSC has no legal defenses against the claim.
c. discriminatory intent motivated CSC’s act.
d. no other firm in CSC’s industry has committed a discriminatory act.
A PAGE: 682 TYPE: +
NAT: AACSB Reflective AICPA Legal
A4. Olivia applies for a job with Petro Company. Petro does not hire Olivia because of her ethnicity, or national origin. This is
a. reverse discrimination.
b. disparate-impact discrimination.
c. disparate-treatment discrimination.
d. not discrimination.
C PAGE: 682 TYPE: +
NAT: AACSB Reflective AICPA Legal
Fact Pattern 35-1A (Questions A5-A6 apply)
Erasmus applies for a job at Drain-Pro Plumbing & Repair LLC for which he is well quali¬fied. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Erasmus is rejected. Drain-Pro continues to seek applicants.
A5. Refer to Fact Pattern 35-1A. Erasmus files a suit against Drain-Pro un¬der the Civil Rights Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must show that he is a member of
a. a protected class.
b. a majority group.
c. an employers’ association.
d. a union.
B PAGE: 683 TYPE: N
NAT: AACSB Reflective AICPA Legal
A6. Refer to Fact Pattern 35-1A. To successfully defend itself against Erasmus’s suit, Drain-Pro must articulate
a. a legitimate, nondiscriminatory reason for its action.
b. a mere fear that it would be sued if it used the test results.
c. a pretext for its action.
d. a discriminatory basis for its action.
A PAGE: 683 TYPE: N
NAT: AACSB Reflective AICPA Legal
A7. Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of
a. seniority.
b. job descriptions.
c. substantial equality of skill, effort, and responsibility.
d. gender.
A PAGE: 684 TYPE: N
NAT: AACSB Reflective AICPA Legal
A8. Greta is the only female employee in the maintenance department of Hydro Hydraulics Inc. Greta’s supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is
a. a constructive discharge on the basis of gender discrimination.
b. a harassing discharge on the basis of treatment discrimination.
c. a voluntary discharge on the basis of impact discrimination.
d. not a discharge or discrimination.
A PAGE: 684 TYPE: =
NAT: AACSB Reflective AICPA Legal
A9. Ruth is a supervisor for Subs & Suds, a restaurant. Tim is a Subs em¬ployee. The owner announces that some em¬ployees will be discharged. Ruth tells Tim that if he has sex with her, he can keep his job. This is
a. harassment on the basis of sexual orientation.
b. not harassment.
c. quid pro quo harassment.
d. same-gender harassment.
C PAGE: 685 TYPE: N
NAT: AACSB Reflective AICPA Legal
A10. Fix-It Repair Shop does not take any action to prevent sexual harass¬ment of its employees. Fix-It Repair may be liable for such harassment by
a. an employee’s previous employer.
b. a customer or a co-worker.
c. an employee’s spouse.
d. none of the choices.
B PAGE: 687 TYPE: +
NAT: AACSB Reflective AICPA Legal
A11. Cora, a female, and Dom, a male, are employees of Equipment Leasing Corporation. Cora regularly e-mails sexually explicit images to Dom via Equipment Leasing’s computer network. Dom finds this offensive. This is
a. hostile-environment harassment.
b. not harassment or any form of discrimination.
c. quid pro quo harassment.
d. reverse discrimination.
A PAGE: 688 TYPE: =
NAT: AACSB Reflective AICPA Legal
A12. Mona files an employment discrimination suit against Nationwide Distribution Corporation (NDC) under the Civil Rights Act of 1964. If Mona shows that NDC acted with malice or reckless indifference, she may recover
a. an unlimited amount of compensatory and punitive damages.
b. a limited amount of compensatory and punitive damages.
c. neither compensatory nor punitive damages.
d. compensatory or punitive damages, but not both.
B PAGE: 688 TYPE: +
NAT: AACSB Reflective AICPA Legal
A13. Pikabo files an employment discrimination suit against Quantitative Analysis, Inc., under the Civil Rights Act of 1964, based on its discharge of Pikabo. Possible relief includes
a. imprisonment.
b. reinstatement.
c. fines.
d. an order to shutdown the employer’s business.
B PAGE: 688 TYPE: N
NAT: AACSB Reflective AICPA Legal
A14. United Company replaces Vera, a forty-five-year-old employee, with Wendy. Vera files a suit against United under the Age Discrimination in Employment Act of 1967. To establish a prima facie case, Vera must show, among other things, that she is
a. deserving of higher pay than Wendy.
b. generally more dependable than Wendy.
c. older than Wendy.
d. qualified for the position.
D PAGE: 689 TYPE: =
NAT: AACSB Reflective AICPA Legal
A15. Eton files a suit in a federal district court against Florida, alleging em-ployment discrimina¬tion under the Age Discrimination in Employment Act of 1967. The state asks the court to dismiss the suit. The court is most likely to rule that
a. the state is immune from the suit.
b. the suit can proceed.
c. Eton is immune from any defense the state might offer.
d. the court is immune from such request.
A PAGE: 691 TYPE: N
NAT: AACSB Analytic AICPA Legal
A16. Paolo has cerebral palsy, Quincy has kleptomania, and both work for Reality Insurance Company. Considered disabled under the Americans with Disabilities Act
a. are Paolo and Quincy.
b. is Paolo only.
c. is Quincy only.
d. is neither Paolo nor Quincy.
B PAGE: 692 TYPE: =
NAT: AACSB Reflective AICPA Legal
Fact Pattern 35-2A (Questions A17–A18 apply)
Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC’s building, Beth finds it nearly im-possible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability.
A17. Refer to Fact Pattern 35-2A. To succeed with a claim against COC under the Americans with Disabilities Act, Beth will have to show that
a. Beth consistently met the essential requirements of her job.
b. COC refused to make reasonable accommodation for Beth.
c. Dian is unqualified for Beth’s position.
d. the doors were installed as an act of intentional discrimination.
B PAGE: 693 TYPE: =
NAT: AACSB Reflective AICPA Legal
A18. Refer to Fact Pattern 35-2A. To successfully defend against Beth’s claim, COC will have to show that
a. Beth consistently failed to meet the essential requirements of her job.
b. COC cannot make changes to the doors without undue hardship.
c. Dian is qualified for Beth’s position.
d. the doors were not installed as an act of intentional discrimination.
B PAGE: 694 TYPE: =
NAT: AACSB Reflective AICPA Legal
A19. Vincenzo is a pilot for Wayfarer Airlines. Wayfarer’s policy is to restrict Vincenzo and its other pilots from flight responsibilities after a certain age. This is most likely
a. a legitimate bona fide occupational qualification.
b. discrimination on the basis of age.
c. association discrimination.
d. discrimination on the basis of disability.
A PAGE: 695 TYPE: N
NAT: AACSB Reflective AICPA Legal
A20. Jason and Katrina work on the loading dock for Longhaul Transport Company. Jason has a disability. Katrina has seniority. Jason asks for a transfer, which would represent an accommodation for his disability. Longhaul gives the transfer to Katrina on the basis of her seniority. Jason files a suit against Longhaul for discrimination on the basis of his disability. The court is most likely to rule that
a. Katrina’s seniority is a good defense.
b. Jason’s disability is a sufficient basis for relief.
c. Longhaul’s action was a business necessity.
d. Longhaul’s action was a reasonable accommodation.
A PAGE: 695 TYPE: N
NAT: AACSB Reflective AICPA Legal
ESSAY QUESTIONS
A1. With a couple of new ideas regarding software design, Carol and Ray start a partnership that, with business success, becomes Pacific Applications Company. The company grows to include a staff of twenty-one employees. Over time, Pacific develops a new computer operating sys¬tem. The firm signs licensing contracts with several computer manu¬fac¬turers, but needs to double the number of its employees to fulfill those con¬tracts. Is Pacific subject to federal antidiscrimination laws? If so, what should it consider in hiring new employees?
A2. Gelato Cheese Company, a major processor of cheese sold throughout the United States, employs one hundred workers at its principal processing plant. The plant is located in Heartland Corners, which has a population that is 50 percent white and 25 percent African American, with the bal¬ance Hispanic American, Asian American, and others. Gelato requires a high school diploma as a condition of employment for its cleaning crew. Three-fourths of the white population completed high school, compared with only one-fourth of those in the minority groups. Gelato has an all-white cleaning crew. Has Gelato violated the Civil Rights Act of 1964? Explain.
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