Chapter 34
Employment
Discrimination
TRUE/FALSE QUESTIONS
A1. An
employer’s discrimination against job applicants or employees on certain bases
may violate both federal and state laws.
ANSWER: T PAGE: 696 TYPE: N
NAT: AACSB Analytic AICPA Legal
B1. An
employer with fewer than fifteen employees is automatically shielded from
federal employment discrimination laws.
answer: F PAGE: 696 TYPE: N
NAT: AACSB Analytic AICPA Legal
A2. The
Civil Rights Act of 1964 does not
prohibit job
discrimination on the basis of experience.
ANSWER: T PAGE: 696 TYPE: =
NAT: AACSB Analytic AICPA Legal
B2. All
employers in the United
States
ANSWER: F PAGE: 696 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A
victim of alleged discrimination must bring a suit against an employer before filing a claim with the
Equal Employment Opportunity Commission.
answer: F PAGE: 698 TYPE: =
NAT: AACSB Analytic AICPA Legal
B3. To
establish a prima facie
case of discrimination
under Title VII, a plaintiff must show that discriminatory intent motivated an
employer’s decision.
ANSWER: F PAGE: 698 TYPE: =
NAT: AACSB Analytic AICPA Legal
A4. To
bring an action against an employer based on intentional discrimination, a
person must show that he or she is a member of a protected class.
answer: T PAGE: 698 TYPE: =
NAT: AACSB Analytic AICPA Legal
B4. Lack
of discriminatory intent is a complete defense to a charge of unlawful
employment discrimination.
ANSWER: F PAGE: 699 TYPE: N
NAT: AACSB Analytic AICPA Legal
A5. Job
requirements that relate to job performance cannot violate employment
discrimination laws.
ANSWER: F PAGE: 699 TYPE: N
NAT: AACSB Analytic AICPA Legal
B5. Disparate-impact
discrimination occurs when an employer intentionally discriminates against an
employee who is a member of a protected class.
ANSWER: F PAGE: 699 TYPE: =
NAT: AACSB Analytic AICPA Legal
A6. If an employee
can prove discrimination in the formation or enforcement of an employment
contract, he or she may obtain a larger damages award.
ANSWER: T PAGE: 700 TYPE: N
NAT: AACSB Analytic AICPA Legal
B6. Under
the Equal Pay Act of 1963, all of the women on an employer’s staff must be paid
the same as all of the men.
ANSWER: F PAGE: 700 TYPE: =
NAT: AACSB Analytic AICPA Legal
A7. Gender can be a determining factor in
an employer’s decision to hire, fire, or promote an employee.
answer: F PAGE: 700 TYPE: N
NAT: AACSB Analytic AICPA Legal
B7. An
employer is not liable for the sexual harassment of an employee by the
employee’s supervisor.
ANSWER: F PAGE: 702 TYPE: +
NAT: AACSB Analytic AICPA Legal
A8. A
small difference in job content can justify higher pay for one gender.
ANSWER: F PAGE: 700 TYPE: =
NAT: AACSB Analytic AICPA Legal
B8. It
is not unlawful for an employer to retaliate against an employee who has
opposed a discriminatory employment practice.
ANSWER: F PAGE: 702 TYPE: N
NAT: AACSB Analytic AICPA Legal
A9. An
employer is not liable for the sexual harassment of an
employee by a co-worker who is not the employee’s supervisor.
ANSWER: F PAGE: 704 TYPE: +
NAT: AACSB Analytic AICPA Legal
B9. An
employer can be liable for an employee’s sexual harassment of a member of the
same gender.
ANSWER: T PAGE: 704 TYPE: N
NAT: AACSB Analytic AICPA Legal
A10. Title
VII does not cover employees’ online activities.
ANSWER: F PAGE: 705 TYPE: =
NAT: AACSB Technology AICPA Legal
B10. Compensatory
damages are only available for victims of intentional employment discrimination.
ANSWER: F PAGE: 705 TYPE: N
NAT: AACSB Analytic AICPA Legal
A11. Damages
are available for victims of intentional employment discrimination based on
gender, religion, age, or disability.
ANSWER: T PAGE: 705 TYPE: =
NAT: AACSB Analytic AICPA Legal
B11. The
Age Discrimination in Employment Act of 1967 prohibits employment discrimination
on the basis of age against persons over twenty-one years old.
ANSWER: F PAGE: 705 TYPE: =
NAT: AACSB Analytic AICPA Legal
A12. The
Americans with Disabilities Act of 1990 defines disabled persons as persons
impaired mentally or physically “in any way.”
ANSWER: F PAGE: 710 TYPE: =
NAT: AACSB Analytic AICPA Legal
B12. To
establish a prima facie
case of discrimination
under the Americans with Disabilities Act of 1990, a plaintiff must show that
discriminatory intent motivated an employer’s decision.
ANSWER: F PAGE: 706 TYPE: =
NAT: AACSB Analytic AICPA Legal
A13. Many
of the same remedies available under Title VII are available under the
Americans with Disabilities Act of 1990.
ANSWER: T PAGE: 710 TYPE: =
NAT: AACSB Analytic AICPA Legal
B13. An
employer must hire a disabled applicant even if he or she lacks necessary job
qualifications.
ANSWER: F PAGE: 709 TYPE: =
NAT: AACSB Analytic AICPA Legal
A14. Under
the Americans with Disabilities Act of 1990, disabled employees are entitled to
“reasonable accommodation.”
ANSWER: T PAGE: 711 TYPE: =
NAT: AACSB Analytic AICPA Legal
B14. Under
the Americans with Disabilities Act of 1990, a person with a physical impairment that “substantially limits” everyday activities
is disabled.
ANSWER: T PAGE: 710 TYPE: =
NAT: AACSB Analytic AICPA Legal
A15. Under
the Americans with Disabilities Act of 1990, disabled job applicants are not entitled to “reasonable accommodation.”
ANSWER: F PAGE: 711 TYPE: =
NAT: AACSB Analytic AICPA Legal
B15. Under
the Americans with Disabilities Act of 1990, a person with a mental impairment that “substantially limits” everyday activities
is not disabled.
ANSWER: F PAGE: 710 TYPE: =
NAT: AACSB Analytic AICPA Legal
A16. An
employer must modify its job-application process so that those with
disabilities can compete for jobs with those who do not have disabilities.
ANSWER: T PAGE: 711 TYPE: N
NAT: AACSB Analytic AICPA Legal
B16. Terminating
an employee who uses drugs violates the Americans with Disabilities Act of
1990.
ANSWER: F PAGE: 712 TYPE: =
NAT: AACSB Analytic AICPA Legal
A17. A
good business reason for a practice that has a discriminatory effect may permit
an employer to avoid liability for discrimination.
ANSWER: T PAGE: 712 TYPE: =
NAT: AACSB Analytic AICPA Legal
B17. An
employer who hires and fires workers according to a fair seniority system
may have a good defense to an employment discrimination suit.
ANSWER: T PAGE: 713 TYPE: =
NAT: AACSB Analytic AICPA Legal
A18. Race
can be a bona fide occupational qualification.
ANSWER: F PAGE: 712 TYPE: =
NAT: AACSB Analytic AICPA Legal
B18. An
employer who discovers an employee’s misconduct after discharging the employee may have a good defense to an
employment discrimination suit.
ANSWER: F PAGE: 713 TYPE: =
NAT: AACSB Analytic AICPA Legal
A19. Under
current law, an employer cannot adopt an affirmative action plan.
ANSWER: F PAGE: 713 TYPE: =
NAT: AACSB Analytic AICPA Legal
B19. Under
current law, an employer cannot adopt an affirmative action plan.
ANSWER: F PAGE: 713 TYPE: =
NAT: AACSB Analytic AICPA Legal
A20. After-acquired
evidence of an employee’s wrongdoing can shield an employer entirely from
liability for employment discrimination.
ANSWER: F PAGE: 713 TYPE: N
NAT: AACSB Analytic AICPA Legal
B20. At
least one court has held that an affirmative action program violated the U.S.
Constitution.
ANSWER: T PAGE: 714 TYPE: =
NAT: AACSB Analytic AICPA Legal
MULTIPLE CHOICE QUESTIONS
A1. Personnel Staffing Corporation meets all
of the requirements to be subject to the federal employment discrimination
laws. Among these, the most important 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.
ANSWER: D PAGE: 696 TYPE: N
NAT: AACSB Reflective AICPA Legal
B1. Hu believes that he is a victim of a form
of employment discrimination that falls under Title VII of the Civil Rights
Act. 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.
d. the
Equal Employment Opportunities Commission.
ANSWER: D PAGE: 698 TYPE: N
NAT: AACSB Reflective AICPA
Legal
A2. Jake is a U.S.
citizen working abroad for Kettle Corporation, which is a U.S. U.S.
a. Jake
also works in the United
States
b. Kettle
agrees to comply.
c. there is no such law in the country in
which Jake works.
d. this does not violate the law of the country in which Jake
works.
ANSWER: D PAGE: 696 TYPE: N
NAT: AACSB Reflective AICPA Legal
B2. Lew, a member of a protected class,
applies for a job with Mit-E Construction Company, but fails Mit-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.
ANSWER: B PAGE: 699 TYPE: N
NAT: AACSB Reflective AICPA
Legal
A3. Lee
is seventy years old and Mira is gay. Based on this information, members of protected
classes include
a. Lee
and Mira.
b. Lee
only.
c. Mira
only.
d. neither
Lee nor Mira.
ANSWER: B PAGE: 696 TYPE: =
NAT: AACSB Reflective AICPA Legal
B3. Riki
files an employment, gender-based discrimination suit against Superior
Corporation under Title VII, on a disparate-impact theory. To succeed, Riki
must show that Superior
a. qualified
women in the local labor market.
b. qualified
women in the United States
c. women
in Superior
d. women
who apply to Imperial for work.
ANSWER: A PAGE: 699 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A4. Cody
believes that Delta Corporation has discriminated against him on the basis of
gender. Cody files a suit against Delta under Title VII. To establish a prima facie
case of employment
discrimination, Cody must show that
a. Cody
is a member of a protected class.
b. Delta
has no legal defenses against the claim.
c. discriminatory
intent motivated Delta’s act.
d. other
firms in Delta’s industry have committed discriminatory acts.
ANSWER: A PAGE: 698 TYPE: =
NAT: AACSB Reflective AICPA Legal
B4. Gail
is an employee of Home Appliances, Inc., but is unable to perform her job
because of her pregnancy. Gail is
a. entitled
to disability leave only if Home treats other temporarily disabled employees
similarly.
b. entitled
to disability leave under any circumstances.
c. not
entitled to disability leave because she cannot perform her job.
d. not
entitled to disability leave under any circumstances.
ANSWER: A PAGE: 700 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A5. Olly applies for a job with Petro Company.
Petro does not hire Olly because of his ethnicity, or national origin. This is
a. desperate-measure discrimination.
b. disparate-impact
discrimination.
c. disparate-treatment
discrimination.
d. not discrimination.
ANSWER: C PAGE: 698 TYPE: N
NAT: AACSB Reflective AICPA Legal
B5. Research Statistics Corporation uses a
merit system to pay its employees according to their job performance. Suki, a
female, and Troy Troy
a. disparate-impact
discrimination.
b. gender discrimination.
c. not discrimination.
d. reverse discrimination.
ANSWER: C PAGE: 700 TYPE: N
NAT: AACSB Reflective AICPA
Legal
Fact Pattern 34-1A (Questions A6-A7
apply)
Fay works for General Construction
Contractors (GCC) but is the only woman on her shift. The male workers often
play minor pranks on each other. Fay attempts a prank. Hank, her supervisor,
fires her, because “GCC doesn’t hold with pranks.”
A6. Refer
to Fact Pattern 34-1A. Fay files a suit against GCC 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 GCC.
c. only a pretext for Fay’s discharge.
d. unofficial GCC policy.
answer: C PAGE: 698 TYPE: =
NAT: AACSB Reflective AICPA Legal
B6. 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.
ANSWER: D PAGE: 700 TYPE: =
NAT: AACSB Reflective AICPA
Legal
Fact Pattern 34-1A (Questions A6-A7
apply)
Fay works for General Construction
Contractors (GCC) but is the only woman on her shift. The male workers often
play minor pranks on each other. Fay attempts a prank. Hank, her supervisor,
fires her, because “GCC doesn’t hold with pranks.”
A7. Refer
to Fact Pattern 34-1A. To successfully defend itself in Fay’s suit, GCC must
show that Hank’s statement was
a. a legitimate, nondiscriminatory reason
for Fay’s discharge.
b. not Fay’s feeling about pranks at GCC.
c. only a pretext for Fay’s discharge.
d. unofficial GCC policy.
ANSWER: A PAGE: 698 TYPE: =
NAT: AACSB Reflective AICPA Legal
B7. Rona is Stu’s administrative assistant and
both work for TriCounty Labor Inc. 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.
b. hostile-environment
harassment.
c. not harassment.
d. quid
pro quo harassment.
ANSWER: D PAGE: 701 TYPE: N
NAT: AACSB Reflective AICPA
Legal
A8. 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.
ANSWER: B PAGE: 700 TYPE: =
NAT: AACSB Reflective AICPA Legal
Fact Pattern 34-1B (Questions B8–B9
apply)
Kit, manager of Long-Term Care
Company’s office in Metro
City
B8. Refer
to Fact Pattern 34-1B. 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.
ANSWER: D PAGE: 701 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A9. Greta is the only female employee in the
maintenance department of 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.
ANSWER: A PAGE: 701 TYPE: N
NAT: AACSB Reflective AICPA Legal
Fact Pattern 34-1B (Questions B8–B9
apply)
Kit, manager of Long-Term Care
Company’s office in Metro
City
B9. Refer
to Fact Pattern 34-1B. Liability for Kit’s conduct most likely rests with
a. Long-Term Care male employees, who
should have acted themselves.
b. Long-Term Care, which should have
known, and Kit, who acted.
c. Nia, who did not cooperate.
d. no one, because no law was violated.
ANSWER: B PAGE: 701 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A10. Fix-It
Repair Shop does not take any action to prevent sexual harassment of its
employees. Fix-It Repair may be liable for such harassment by
a. a
customer only.
b. a
customer or an employee.
c. an
employee only.
d. not
a customer or an employee.
ANSWER: B PAGE: 704 TYPE: =
NAT: AACSB Reflective AICPA Legal
B10. 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.
ANSWER: B PAGE: 702 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A11. Kyla
is a salesperson for Liberty Financial Corporation. Micky is also a Liberty Liberty Liberty
a. Micky
only.
b. Micky,
Neil, or Owen.
c. Micky
or Neil only.
d. Neil
only.
ANSWER: B PAGE: 704 TYPE: =
NAT: AACSB Reflective AICPA Legal
B11. 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
a. age.
b. disability.
c. gender.
d. race.
ANSWER: A PAGE: 705 TYPE: N
NAT: AACSB Reflective AICPA
Legal
A12. 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.
ANSWER: A PAGE: 705 TYPE: N
NAT: AACSB Reflective AICPA Legal
B12. 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.
ANSWER: A PAGE: 705 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A13. 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
or punitive damages.
c. neither
compensatory nor punitive damages.
d. punitive
damages only.
ANSWER: B PAGE: 705 TYPE: =
NAT: AACSB Reflective AICPA Legal
Fact Pattern 34-2B (Questions B13–B14
apply)
Lita replaces Manny in his job at
Neighborly Business Corporation (NBC).
B13. Refer
to Fact Pattern 34-2B. Manny believes that he has been discriminated against on
the basis of his age. For the Age Discrimination in Employment Act of 1967 to
apply
a. all
parties must be forty years of age or younger.
b. Lita
must be forty years of age or older.
c. Manny
must be forty years of age or older.
d. NBC
must have been in existence for at least forty years.
ANSWER: C PAGE: 705 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A14. 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 or job reinstatement.
c. job reinstatement only.
d. neither damages or job reinstatement.
answer: B PAGE: 705 TYPE: =
NAT: AACSB Reflective AICPA Legal
Fact Pattern 34-2B (Questions B13–B14
apply)
Lita replaces Manny in his job at
Neighborly Business Corporation (NBC).
B14. Refer
to Fact Pattern 34-2B. To succeed with an age-discrimination claim against CBC,
Manny will have to show that
a. Lita
is not qualified for Manny’s job.
b. Manny
is qualified for his job.
c. NBC’s
qualifications for Manny’s job are too high.
d. no
one could do Manny’s job as well as he could.
ANSWER: B PAGE: 706 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A15. 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. 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.
ANSWER: D PAGE: 706 TYPE: =
NAT: AACSB Reflective AICPA Legal
B15. Dan
has AIDS, Eve is blind, and both work for First National Bank. Considered
disabled under the Americans with Disabilities Act
a. are
Dan and Eve.
b. is
Dan only.
c. is
Eve only.
d. is
neither Dan nor Eve.
ANSWER: A PAGE: 710 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A16. Hi-Flite
Corporation requires its pilots to have 20/20 vision without glasses. Neither
Inez, an African-American female, nor Jock, a fifty-year-old male, can satisfy
this requirement. Relief under the Americans with Disabilities Act is available
to
a. Inez
and Jock.
b. Inez
only.
c. Jock
only.
d. neither
Inez nor Jock.
ANSWER: D PAGE: 710 TYPE: =
NAT: AACSB Reflective AICPA Legal
B16. Dick
is easily embarrassed, Elin is easily sunburned, and both work for First City
Bank. Considered disabled under the Americans with Disabilities Act
a. are
Dick and Elin.
b. is
Dick only.
c. is
Elin only.
d. is
neither Dick nor Elin.
ANSWER: D PAGE: 710 TYPE: =
NAT: AACSB Reflective AICPA
Legal
Fact Pattern 34-2A (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 impossible 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 34-2A. 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.
ANSWER: B PAGE: 711 TYPE: =
NAT: AACSB Reflective AICPA Legal
Fact Pattern 34-2A (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 impossible to get in and out. For
repeatedly failing to be on time, COC replaces Beth with Dian, who does not
have a disability.
B17. Paolo
has cerebral palsy, Quincy
a. are
Paolo and Quincy.
b. is
Paolo only.
c. is
Quincy
d. is
neither Paolo nor Quincy.
ANSWER: B PAGE: 710 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A18. Refer
to Fact Pattern 34-2A. 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.
ANSWER: B PAGE: 711 TYPE: =
NAT: AACSB Reflective AICPA Legal
B18. Flynn
is an alcoholic. Gert is morbidly obese. Both work for Helpful Credit Company.
Considered disabled 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.
ANSWER: A PAGE: 712 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A19. 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, 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.
ANSWER: B PAGE: 712 TYPE: =
NAT: AACSB Reflective AICPA Legal
B19. Machine
Corporation requires its employees to have a high school diploma, claiming a
definite connection between a high school education and job performance. In a
suit against Machine Corporation under Title VII, 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.
ANSWER: C PAGE: 712 TYPE: =
NAT: AACSB Reflective AICPA
Legal
A20. Eton sues Funds Investment Company for employment
discrimination under a state law. When compared to federal law, state law may
provide
a. less
damages only.
b. more
damages.
c. no
damages.
d. the
same damages only.
ANSWER: B PAGE: 715 TYPE: =
NAT: AACSB Analytic AICPA Legal
B20. Chris
sues Delta, 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.
ANSWER: A PAGE: 715 TYPE: =
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 system.
The firm signs licensing contracts with several computer manufacturers, but
needs to double the number of its employees to fulfill those contracts. Is
Pacific subject to federal antidiscrimination laws? If so, what should it
consider in hiring new employees?
ANSWER: Pacific is subject to Title VII of the Civil
Rights Act of 1964 and the Americans with Disabilities Act of 1990, each of
which applies to employers affecting interstate commerce and having fifteen or
more employees. Pacific is also subject to the Age Discrimination in
Employment Act of 1967, which applies to employers with twenty or more
employees. Under these laws, in hiring new employees, Pacific cannot
discriminate against any applicant on the basis of race, religion, national
origin, gender, age, or disability. A class of persons defined by one or more
of these criteria is a protected class. Generally, Pacific's work force should
reflect the diversity of the community in which Pacific is located. Pacific may
exclude members of protected classes who are qualified applicants only if it
has a reason that is genuinely related to an important job interest and only if
no reasonable accommodation is possible. For most positions, such a claim would
be hard to substantiate.
PAGES: 696–698, 705–709 & 710–711 type: =
NAT: AACSB Reflective AICPA Decision Modeling
B1. For twenty years, Ozzie works for
Players Paradise, a destination for vacationers from across the United States
ANSWER: The Age Discrimination in Employment Act
(ADEA) 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.
PAGES: 705–709 type: N
NAT: AACSB Reflective AICPA
Decision Modeling
A2. Beth, 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, Don, 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 Beth suspend him without pay for two
weeks?
ANSWER: Probably not. Under the American with
Disabilities Act (ADA), employers cannot legally discriminate against employees
who are alcoholics. Alcoholism is considered a disability. If Don 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 protect him from the effects of that discipline.
PAGES: 712 type: =
NAT: AACSB Reflective AICPA Decision Modeling
B2. Sara is a repairperson for
Telecommunications Company (TC). The job requires driving to remote areas to
make repairs under any conditions. Sara
has had the job longer than other employees. Sara applies for a promotion to a
supervisory position that requires constant communication with others in the
field. TC rejects the application on the ground that Sara is hearing impaired.
TC acknowledges that Sara is otherwise qualified, but asserts that it “needs
someone who does not have a hearing disability.” Sara files a suit against TC
under the Americans with Disabilities Act of 1990. What is the issue in this
problem, and what are the relevant considerations on which its resolution
depends?
ANSWER: The issue is whether hiring a sign
interpreter is a reasonable accommodation for an employee or an undue hardship
for the employer. The Americans with
Disabilities Act (ADA) prohibits employers from refusing to hire (or promote)
disabled persons who are otherwise qualified for a particular position. An employer may have to make reasonable
accommodations for a disabled applicant, but that will not cause the applicant
to be considered unqualified.
Reasonable accommodations might include creating new job assignments,
and creating or improving training materials and procedures. Employers who do not wish to make such
accommodations must demonstrate that the accommodations will cause “undue hardship.” The law offers no uniform standards for
identifying what is an undue hardship, but there are limits to the employer’s
obligation to accommodate an employee under the ADA .
Accommodation cannot impose a “significant difficulty or expense” on
the employer. Also, if a disabled
employee can perform the essentials of his or her job without accommodation,
then no violation of the ADA
has occurred. Besides hiring a sign interpreter to accompany a deaf
employee, in some cases a company could train an employee’s co-workers in
American Sign Language. The basics of
sign language can be learned in just a few hours, so the expense to the company
would be minimal.
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NAT: AACSB Reflective AICPA
Decision Modeling
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