The Regulation of Employment
Your Results:
The  answer for each question is indicated by a  .

1    
If Adam hired Constance as an employee to work in his store selling oriental artifacts on his behalf, Adam would be the _____ and Constance would be his _____.
    A)
principal; agent
    B)
agent; principal
    C)
principal; bailee
    D)
bailee; principal
    

 
2    
Bill Lister contracted with Plimsoll Corporation to complete the roofing on a housing complex. A signed contract established a flat amount for the services rendered by Bill Lister. Bill is a licensed roofer and does his business under the business name, Lister Roofing. He hires his own roofers who are treated as employees for federal employment tax purposes. If there is a problem with the roofing work, Lister Roofing is responsible for paying for any repairs. Bill Lister, doing business as Lister Roofing, is a(n):
    A)
agent.
    B)
independent contractor.
    C)
bailor.
    D)
lessee.
    

 
3    
Ashton works as a driver for Valentine & Co. He is required to drive the company truck from one company plant to another and transport the goods. In the course of one such trip, he sideswipes a car belonging to Aline. Valentine & Co. was held liable to Aline. This is a case of:
    A)
trespass.
    B)
conversion.
    C)
vicarious liability.
    D)
contributory liability.
    

 
4    
The Internal Revenue Service 20-factor analysis test is commonly used by courts to:
    A)
classify employees and independent contractors.
    B)
decide whether disparate impact existed in a given situation.
    C)
resolve disputes between a principal and an agent.
    D)
determine whether a worker is economically dependent on the business.
    

 
5    
Which of the following tests is commonly used by courts to determine whether a worker qualifies as an employee?
    A)
Radioimmunoassay test
    B)
Internal Revenue Service 20-factor analysis
    C)
Four-fifths analysis
    D)
Economic realities test
    

 
6    
Helen was hired by Imprint magazine to write five articles on the changing lifestyle of New York’s women. Helen is a _____ worker.
    A)
Regular
    B)
Contingent
    C)
Legacy
    D)
Permanent
    

 
7    
George has indicated an interest in being considered for employment in Donaldson’s Inc. In this case, George is a(n):
    A)
lessor.
    B)
pledger.
    C)
applicant.
    D)
bailee.
    

 
8    
A(n) _____ usually includes prohibitions against disclosure of trade secrets or soliciting the employer’s employees or customers.
    A)
compromise agreement
    B)
yellow-dog contract
    C)
ironclad contract
    D)
noncompete agreement
    

 
9    
The _____ clause identifies the state law that will apply to any disputes that arise under the contract.
    A)
forum selection
    B)
Escalator
    C)
Omnibus
    D)
Reserve
    

 
10    
The theory under which a court may prohibit a former employee from working for an employer’s competitor if the employer can show that it is certain that the former employee will reveal a trade secret by virtue of her or his position is known as the:
    A)
estoppel principle.
    B)
inevitable disclosure theory.
    C)
abstraction principle.
    D)
blue pencil theory.