Unit 5 of 5
Study guide for CLEP CLEP Introductory Business Law — Unit 5: Employment Law & Ethics. Practice questions, key concepts, and exam tips.
33
Practice Questions
11
Flashcards
4
Key Topics
Try these 5 questions from this unit. Sign up for full access to all 33.
Maria, a manager at a retail store, has been instructed by the company's CEO to reduce employee hours to avoid providing health insurance under the Affordable Care Act. Maria is aware that this action may violate the law and could negatively impact her employees. However, she also fears that if she does not comply with the CEO's instruction, she may face retaliation. What should Maria do in this situation?
Answer: B — Maria should refuse to comply with the CEO's instruction and report the potential violation of law because it is her ethical and legal responsibility to uphold the law and protect the rights of her employees. Complying with the instruction (A) would be unethical and potentially illegal. Negotiating a compromise (C) may not be possible or effective in this situation. Resigning from her position (D) may not address the underlying issue and could leave the employees vulnerable to exploitation. Therefore, option B is the correct answer.
A company has a strict policy against workplace romances, but the CEO is currently in a relationship with a subordinate. When the subordinate files a complaint against the CEO for favoritism, the company's HR department launches an investigation. Which of the following is the most appropriate course of action for the HR department to take?
Answer: D — The correct answer is D because it is essential for the HR department to maintain its impartiality and investigate the complaint thoroughly, regardless of the CEO's involvement. This ensures that the company upholds its policies and maintains a fair work environment. Option A is incorrect because terminating the subordinate would be unfair and potentially retaliatory. Option B is incorrect because launching a separate investigation into the subordinate's work performance would be unnecessary and potentially biased. Option C is incorrect because ignoring the complaint would allow the CEO's behavior to go unchecked and potentially create a hostile work environment.
A company has a policy of promoting employees based on seniority. However, in a recent promotion, a less senior employee was chosen over a more senior one due to their exceptional performance. The more senior employee is now claiming that the company's promotion policy is discriminatory. Which of the following is the most likely defense the company can use?
Answer: A — The correct answer is A) Business necessity defense. The company can demonstrate that the promotion was based on a legitimate business need for exceptional performance, which is a valid defense against claims of discrimination. The business necessity defense requires the company to show that the promotion policy is job-related and consistent with business necessity. In this case, the company can argue that promoting the less senior employee was necessary to achieve business goals. The other options are incorrect because B) BFOQ defense is not applicable in this scenario, as seniority is not a necessary requirement for the promoted position. C) Disparate impact defense is also not applicable, as the company's promotion policy does not have a disproportionate impact on a protected group. D) Retaliation defense is not relevant, as there is no evidence of retaliation by the more senior employee.
A company has a policy of promoting employees based on seniority. However, in a recent promotion, a less senior employee was chosen over a more senior one due to their exceptional performance. The more senior employee is now claiming that the company has violated its own policy. What is the most likely outcome in this scenario?
Answer: C — The correct answer is C because companies have the discretion to make decisions based on legitimate business reasons, as long as they are not discriminatory. In this case, promoting the less senior employee due to exceptional performance is a legitimate business reason. Option A is incorrect because the company's policy is not a contract, and even if it were, the company could still make exceptions based on business needs. Option B is incorrect because demoting the newly promoted employee would not be a reasonable solution. Option D is incorrect because emotional distress is not a relevant factor in this scenario, and the company has not violated any laws or policies.
Maria, a manager at a retail store, has been asked by her supervisor to reduce staff due to financial constraints. She must decide which employees to lay off. Considering ethical employment practices, what should Maria prioritize when making this decision?
Answer: B — Maria should prioritize job performance and skills relevant to the company's current needs because this approach is fair, unbiased, and aligns with the company's interests. It ensures that the most valuable employees are retained, which is crucial for the company's continued success. Option A, while often considered in layoffs, may not always align with the company's current needs. Options C and D are inappropriate because they introduce personal biases and potential discrimination, respectively.
CLEP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, this product.