Business Law II BA 304-01: N/A
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Chapter 39 - Regulation in Employment - Review

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1) Employment law is based on a combination of contract law and the law established by courts, lawmakers, and administrative agencies.

2) In older cases, the employer-employee relationship was referred to as the master-servant relationship.

3) An employee is hired to work under the control of the employer and the employer-employee relationship requires the consent of both parties.

4) Subject to statutory restrictions, parties are free to contract on any terms that they wish.

5) Under collective bargaining representatives of the employees bargain with a single employer or a group of employers for an agreement on wages, hours, and working conditions for the employees.

6) An employment contract of indefinite duration is terminable at will.

7) An employer may be justified in discharging an employee because of the employee's nonperformance of duties, incompetency, and serious misconduct.

8) When an employer has a contract with an employee for the employee to work for a set period of time, financial hardship of the employer would not justify discharging the employee financial hardship of the employer.

9) In the absence of an express or implied agreement to the contrary, the inventions of an employee belong to the employee.

10) The rights of an employee to be compensated are governed primarily by the same principles that apply to the compensation of an agent.

11) Executives are exempt from the minimum wage provisions of Fair Labor Standards Act (FLSA.

12) The primary function of the five-member National Labor Relations Board to decide unfair labor practice cases brought before it by the General Counsel.

13) Grievance procedures established in most collective-bargaining agreements provide a means by which persons claiming the contract has been violated may have their cases decided by impartial third parties.

14) If an employment contract provides that an employee can be fired only for "good cause" or "just cause," a lesser standard for discharge will not be allowed by a court.

15) The employment-at-will doctrine stands pretty much as it historically developed and has not been modified by court decisions.

16) In some states, a "service-letter" statute requires an employer on request to furnish a discharged employee with a letter stating the reason for the discharge.

17) The duties of an employee are determined primarily by the contract of employment with the employer.

18) Even without an agreement by the employee not to reveal the employer's trade secrets, an employee is prohibited from disclosing them.

19) An agreement by an employee to refrain from disclosing trade secrets is binding.

20) An employer has a "shop right" to use an invention of an employee without payment to the employee if the invention was made during working hours with the employer's material and equipment.

21) The rights of an employee with respect to compensation are governed in general by the same principles that apply to the compensation of an agent.

22) The right of employees to collectively bargain is guaranteed by the National Labor Relations Act (NLRA).

23) Benefits for already retired workers is a permissive subject of bargaining as opposed to a mandatory subject of bargaining.

24) The right of an employee to pension benefits paid into a pension plan in the employee's name by the employer is referred to by the term vesting.

25) ERISA establishes an insurance plan to protect employees when the employer goes out of business. To provide this protection, the statute creates a pension benefit guaranty corporation.

26) The Employee Retirement Income Security Act (ERISA) requires employers to make contributions to their employees' pension funds on an actuarially determined basis.

27) Any adversely affected person may challenge the validity of an Occupational Safety and Health Administration (OSHA) standard in a U.S. court of appeals.

28) Right-to-know" laws in some states guarantee employees the right to know if there are hazardous substances in their workplaces.

29) Under the common law, an employer is under a duty to furnish an employee with a sufficient number of competent fellow employees for the work involved.

30) Workers' Compensation statutes provide the exclusive remedy for employees who are covered by such statutes and who suffer job-related injuries.

31) Under the Immigration Reform and Control Act (IRCA), an employer must verify that an employee is legally entitled to work in the United States.

32) The federal-state system that provides unemployment compensation under the Social Security Act of 1935 excludes agricultural employees, domestic employees, and state and local government employees.

33) Unemployment compensation benefits probably will be denied when an employee's stealing property results in termination, to full-time students, and when an employee quits a job without cause.

34) OSHA was passed to assure every working man and woman as safe and healthful working conditions as possible and to preserve the nation's human resources.

35) An employee will be entitled to Workers' Compensation benefits for on-the-job injuries due to an injury that is the result of an employee's own negligence, injury that is the result of an employee's own gross negligence, and injury that is caused by a fellow employee, but not for an injury that is the result of an employee's intoxication.

36) Railroad workers are covered by the Federal Employer's Liability Act.

37) The IRCA sets forth criminal and civil penalties against employers who knowingly hire aliens who have illegally entered the United States.

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