Chapter 41 Employment Discrimination 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 1. An employer’s discrimination against job applicants or employees on certain bases may violate both federal and state laws. ANSWER: T PAGE: 983 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal 2. The Civil Rights Act of 1964 prohibits job discrimination on the basis of experience. ANSWER: F PAGE: 984 TYPE: + NAT: AACSB Analytic LOC: AICPA Legal 647
Transcript
Chapter 41
Employment Discrimination
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
1. An employer’s discrimination against job applicants or employees on certain bases may violate both federal and state laws.
3. To establish a prima facie case of discrimination under Title VII, a plaintiff must show that discriminatory intent motivated an em-ployer’s decision.
4. A victim of alleged employment discrimination must file a claim with the Equal Employment Opportunity Commission before bringing a suit against the employer.
20. The Age Discrimination in Employment Act of 1967 prohibits employ-ment discrimination on the basis of age against persons forty years of age and older.
26. Under the Americans with Disabilities Act of 1990, a person with a physical impairment that “substantially limits” everyday activities has a disability.
27. Under the Americans with Disabilities Act of 1990, a person with a mental impairment that “substantially limits” everyday activities does not have a disability.
30. An employer may avoid liability for unintentional discrimination by asserting that a practice with a discriminatory effect is a business necessity.
1. Personnel Staffing Corporation meets all of the requirements to be subject to the federal employment discrimination laws. The most important federal statute prohibiting discrimination against members of protected classes is
a. the Age Discrimination in Employment Act of 1967.b. the Americans with Disabilities Act of 1990.c. the Pregnancy Discrimination Act of 1978.d. Title VII of the Civil Rights Act of 1964.
Fact Pattern 41-1 (Questions 3-4 apply)Fay works for Geo Excavation Contracting, Inc., but is the only woman on her shift. The male workers often play minor pranks on each other. Fay at-tempts a prank. Hank, her supervisor, fires her, because “Geo doesn’t hold with pranks.”
3. Refer to Fact Pattern 41-1. Fay files a suit against Geo under Title VII. To succeed, Fay must show that Hank’s statement was
a. a legitimate, nondiscriminatory reason for Fay’s discharge.b. also Fay’s feeling about pranks at Geo.c. only a pretext for Fay’s discharge.d. unofficial Geo policy.
4. Refer to Fact Pattern 41-1. To successfully defend itself in Fay’s suit, Geo must show that Hank’s statement was
a. a legitimate, nondiscriminatory reason for Fay’s discharge.b. not Fay’s feeling about pranks at Geo.c. only a pretext for Fay’s discharge.d. unofficial Geo policy.
5. Cody believes that Dockside Shipping Corporation has intentionally discriminated against him on the basis of gender. Cody files a suit against Dockside under Title VII of the Civil Rights Act of 1964. To es-tablish a prima facie case of employment discrimination, Cody must show, among other things, that
a. Cody is a member of a protected class.b. Dockside has no legal defenses against the claim.c. discriminatory intent motivated Dockside’s act.d. other firms in the industry have committed discriminatory acts.
7. Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act of 1964. Compliance with this statute is monitored by
a. employees and job applicants, not an administrative agency.b. employers and businesses, not an administrative agency.c. the courts and Congress, not an administrative agency.
8. Lew, a member of a protected class, applies for a job with Myt-E Construction Company, but fails Myt-E’s employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
a. desperate-measure discrimination.b. disparate-impact discrimination.c. disparate-treatment discrimination.d. not discrimination.
9. Ruthie files an employment, gender-based discrimination suit against Superiore Corporation under Title VII, on a disparate-impact theory. To succeed, Ruthie must show that Superiore hires fewer women than the percentage of
a. qualified women in the local labor market.b. qualified women in the United States.c. women in Superiore’s state.d. women who apply to Imperial for work.
10. United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is
a. a bona fide occupational practice.b. a business necessity.c. constructive discharge.d. reverse discrimination.
12. Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suni, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suni is paid more than Troy. This is
a. disparate-impact discrimination.b. gender discrimination.c. not discrimination.d. reverse discrimination.
13. Lloyd and Milly are employees of NuTech Corporation. They have the same job. Under the Equal Pay Act, NuTech can legitimately pay Lloyd more than Milly on the basis of
a. Lloyd’s greater production only.b. Lloyd’s greater production or seniority.c. Lloyd’s greater seniority only.d. neither Lloyd’s greater production nor his greater seniority.
14. Greta is the only female employee in the maintenance department of Hartmann 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.
15. Rona is Stu’s administrative assistant and both work for TriCounty Credit Corporation. Stu tells Rona that for sexual favors, he will give her an excellent performance review and recommend a raise. This is
a. harassment on the basis of sexual orientation.
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b. hostile-environment harassment.c. not harassment.d. quid pro quo harassment.
Fact Pattern 41-2 (Questions 16–17 apply)Kit, manager of Long-Term Care Company’s office in Metro City, decides to replace the office’s male employees with females. Nia, an assistant manager transferred from a different Long-Term Care office, refuses to cooperate. Kit retaliates against Nia, who quits. Within a year, the male employees also quit.
16. Refer to Fact Pattern 41-2. Kit’s conduct is most likely a violation of
a. no law.b. the Age Discrimination in Employment Act.c. the Americans with Disabilities Act.d. Title VII of the Civil Rights Act.
18. Marie, an employee of Nickel Tool Company, files a sexual-harassment suit against Owen, her supervisor. Marie wins. Nickel may also be liable if it had effective harassment policies and complaint procedures, and
a. Marie failed to follow them.b. Marie followed them.c. Owen failed to follow them.d. Owen followed them.
20. Kyla is a salesperson for Liberty Financial Corporation. Micky is also a Liberty salesperson. Neil is Kyla and Micky’s supervisor. Owen is a Liberty customer. Liberty may be liable for sexual harassment to Kyla by
a. Micky only.b. Micky, Neil, or Owen.c. Micky or Neil only.d. Neil only.
21. Mona files an employment discrimination suit against Nationwide Corporation (NC) under Title VII. If Mona shows that NC acted with malice or reckless indifference, she may recover
a. compensatory damages only.b. compensatory and punitive damages.c. neither compensatory nor punitive damages.d. punitive damages only.
22. Piku files an employment discrimination suit against Quotient Accounting, Inc., under Title VII, based on its discharge of Piku. In these circumstances, possible relief under Title VII includes
a. damages only.b. damages and job reinstatement.
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c. job reinstatement only.d. neither damages or job reinstatement.
23. Mold & Dye Corporation is a private employer involved in a Title VII employment discrimination suit. Punitive damages may be recovered against Mold & Dye only if the employer
a. acted with malice or reckless indifference.b. can easily afford to pay the amount.c. has one hundred or more employees.d. none of the choices.
24. Svetlana, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on
Fact Pattern 41-3 (Questions 25–26 apply)Lita replaces Manny in his job at Neighborly Business Corporation (NBC).
25. Refer to Fact Pattern 41-3. Manny believes that he has been discriminated against on the basis of his age. For the Age Dis-crimination in Employment Act of 1967 to apply
a. both Lita and Manny must be forty years of age or older.b. Lita must be forty years of age or younger.c. Manny must be forty years of age or older.d. NBC must have been in existence for at least forty years.
Fact Pattern 41-4 (Questions 27–28 apply)Beth, who has a disability, is an employee of Cubicle Office Company (COC). After the installation of new doors on COC’s building, Beth finds it nearly impossible to get in and out. When Beth repeatedly fails to be on time, COC replaces her with Dian, who does not have a disability.
27. Refer to Fact Pattern 41-4. To succeed with a claim against COC under the Americans with Disabilities Act of 1990, 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.
30. Paolo has cerebral palsy, Quincy has kleptomania, and both work for Reality Insurance Company. Considered to have a disability 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.
31. Flynn is an alcoholic. Gert is morbidly obese. Both work for Helpful Credit Company. Considered to have a disability under the Americans with Disabilities Act
a. are Flynn and Gert.b. is Flynn only.c. is Gert only.d. is neither Flynn nor Gert.
32. Lake City Machine Corporation can demonstrate that there is a definite connection between a high school education and job performance and thus requires each employee to have a high school diploma. In a suit against Lake City Machine under Title VII of the Civil Rights Act, this requirement is shown to have a discriminatory effect. The employer has
a. an affirmative action defense.b. a bona fide occupational qualification defense.c. a business necessity defense.d. no defense.
33. Sophisticates, a women’s clothing store, employs female attendants to assist customers in the dressing rooms. Tod, a forty-one-year-old male, applies for an attendant’s job, but is not hired. In Tod’s suit against Sophisticates for employment discrimination under Title VII of the Civil Rights Act, the store has
a. an after-acquired evidence defense.b. a bona fide occupational qualification defense.c. a business necessity defense.d. a seniority systems defense.
35. Chris sues Darn Rite Clothiers, Inc., for employment discrimination under a state law. When compared to federal law, state law may apply to firms with
a. fewer employees.b. more employees only.c. no employees.d. the same number of employees only.
1. For twenty years, Ozzie works in golf-cart maintenance for Players Paradise, a destination for vacationers from across the United
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States. After a steady stream of positive job evaluations and merit pay raises, Ozzie is promoted to the position of supervisor of golf-cart maintenance at three of Players’ courses. Five years later, a new employee, Quentin, is hired to oversee operations at all ten of Players’ courses. Quentin demotes Ozzie, who is now over the age of forty, to running only one of the three cart facilities and freezes his salary. Quentin demotes five other employees over the age of forty and places one of Ozzie’s former facilities under the supervision of Richie, who is twenty-three. Ozzie overhears Richie say, “We’re going to have to do away with these old, senile men.” Less than a year later, Quentin consolidates the operations of the three cart facilities under Richie’s supervision. Ozzie quits and files a suit against Players for employment discrimination. Should he prevail? Explain.
ANSWER: The Age Discrimination in Employment Act (ADEA) of 1967 prohibits discrimination in employment on the basis of age against individuals forty years of age or older. For the ADEA to apply, an employer must have twenty or more employees, and interstate commerce must be affected by the employer’s business activities. Ozzie worked at Players Paradise, which with ten golf courses most likely employed more than twenty persons. The court would also probably find that Players’s activities affected interstate commerce because it is a vacation destination with visitors from many states. Ozzie could likely establish the rest of a prima facie case. Because Ozzie was not demoted due to any apparent job-performance problems, the fact that he was replaced by a person approximately half his age, coupled with Richie’s statement about getting rid of all the “old, senile men,” would be enough to shift the burden to Players to show that it was not discriminating on the basis of age. Ultimately, based on the facts in the question, Ozzie would probably prevail.
2. Bette, managing editor of the City News, has a lenient policy concerning employee tardiness. She would prefer that employees be to work by 9 A.M., but does not usually enforce this policy. One week, Durwood, who had spent the previous month in an alcohol-abuse rehabilitation program, was late three days in a row. Given his appearance, it was obvious that he had been drinking. Can Bette suspend him without pay for two weeks?
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ANSWER: Probably not. Under the American with Disabilities Act (ADA) of 1990, employers cannot legally discriminate against employees who are alcoholics. Alcoholism is considered a disability. If Durwood can prove that because of his alcoholism, he was disciplined more harshly than his colleagues would have been under similar circumstances (arriving late without providing an excuse), as would appear to be the case when a lateness policy is not usually enforced, the ADA would provide a defense against the effects of that discipline.
