Homework answers / question archive / Chapter 13 Employee Benefits 1)One of the reasons for giving to employees for retirement planning and other benefit decisions is to increase their understanding of such benefits

Chapter 13 Employee Benefits 1)One of the reasons for giving to employees for retirement planning and other benefit decisions is to increase their understanding of such benefits

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Chapter 13 Employee Benefits
1)One of the reasons for giving to employees for retirement planning and other benefit decisions is to increase their understanding of such benefits.
True False
2. Insurance risks can be more easily pooled in smaller groups.
True False
3. Social Security retirement benefits are no longer subject to an earnings test once retirement age is reached.
True False
4. The unemployment insurance program is financed through federal and state taxes on both employees and employers.
True False
5. Unemployment benefits are typically about 50 percent of an eligible individual's previous earnings and last for 52 weeks.
True False
6. Surveys indicate that pension programs are the most important benefit to the average person.
True False
7. Beneficiaries (whether the employee, spouse, or dependent) are entitled to free medical insurance coverage.
True False
8. The two types of disability insurance are short-term disability plans and long-term disability plans.
True False
9. Private pension income represents the largest single component of an elderly person's overall retirement income.
True False
10. Defined contribution retirement plans insulate employees from investment risks, which are instead borne by the company.
True False
11. Unlike a cash balance plan, with a 401(k), all the contributions come from the employer.
True False
12. Contributions to a cash balance plan come from the employee and the employer.
True False
13. ERISA specifies a number of reporting and disclosure requirements involving the IRS, the Department of Labor, and employees.
True False
14. Increased employee mobility will reinforce the continued trend toward defined contribution plans like 401(k)s.
True False
15. Despite passage of the Family and Medical Leave Act, the United States still offers significantly less unpaid leave than most western European countries.
True False
16. Employers who do not meet their employees' expectations run the risk of violating an "implicit contract".
True False
17. In terms of cost control, the larger the cost of a benefit category, the greater the opportunity for savings.
True False
18. To control health-care costs, employers have been increasingly shifting costs to employees through the use of deductibles, coinsurance, exclusions and limitations, and maximum benefits.
True False
19. Fitness facility programs have two central goals: raising awareness levels of health-related issues and informing people on health-related topics.
True False
20. Part-time employees receive about the same benefits as full-time employees when adjusted for hours worked.
True False
21. Research clearly shows that current employees, unlike job applicants, have a good idea of what benefits are in place and the cost or market value of these benefits.
True False
22. Flexible benefit plans (also known as cafeteria-style plans) permit employees to choose the types and amounts of benefits they want for themselves.
True False
23. The federal tax code requires flexible spending account funds to be earmarked in advance and spent during the plan year, with any remaining funds reverting to the employee.
True False
24. Investment returns on qualified retirement funds are taxed.
True False
25. Surveys indicate that some companies are ending retiree health care benefits altogether.

True False
 

Multiple Choice Questions
26. Which of the following is true about the aspects of benefits?
A. There is no question of legal compliance.
B. They have become institutionalized.
C. They are less liquid than wages and salaries.
D. They are less complex than other forms of compensation.
E. It is very common to find employers not offering medical benefits.
27. Which of the following is a major reason for giving more responsibility to employees for retirement planning?
A. To increase the return on the employers' investments
B. To discourage potential applicants
C. To retain existing talent
D. To achieve favorable tax treatment
E. To increase the employees' understanding of the value of such benefits
28. The _____ tax rate is the percentage of additional earnings that goes to taxes.
A. marginal
B. net
C. gross
D. incremental
E. resulting
29. Which one of the following has been an underlying reason for the growth in benefits over time?
A. The tax treatment of benefits programs is favorable for employers than the tax treatment of wages and salaries.
B. The similarity in benefits provided to all employees to avoid differentiation.
C. The fall of organized labor from the 1930s through the 1950s.
D. The range of benefits change in correspondence to change in wage and price controls.
E. The cost advantage that groups typically receive over individuals.
30. Which of the following is true about benefits programs?
A. Public group insurance is one of the categories of benefits programs.
B. The percentage of employees covered by benefits programs falls with increase in establishment size.
C. The prevalence of benefits programs in establishments is not very high.
D. The number of employees covered by benefits programs account for a low percentage amongst the largest employers.
E. Total compensation costs increase with establishments.
31. Which of the following was an amendment to the Social Security Act of 1935?
A. Descendant's insurance
B. Inability insurance
C. Estate insurance
D. Hospital insurance
E. Posterity insurance
32. Which of the following is true about the coverage of OASDHI program?
A. Only about fifty percent U.S. employees are covered by the program.
B. Federal, state, and local government employees account for a high percentage of employees covered under this program.
C. There are no eligibility requirements to be met by an individual to receive benefits.
D. Old-age insurance benefits for fully insured workers begin at the age of 50.
E. High earners help subsidize benefit payments to low earners.
33. _____ increases are provided as a part of social security benefits for each year that the consumer price index increases.
A. Real estate
B. Cost-of-living
C. Healthcare
D. Cost of education
E. Accidental
34. Which of the following is true about Social Security retirement benefits?
A. Benefits are subject to federal income tax.
B. An earnings test exists for those beneficiaries aged 50 and under.
C. Eligibility rules do not exist to receive benefits.
D. Benefits are entirely free from state income tax.
E. The earnings test increases a person's incentive to retire.
35. Which one of the following is a major objective of the unemployment insurance program?
A. To offset lost income during voluntary unemployment
B. To motivate workers by providing income during long work hours
C. To provide an incentive for employees to stabilize employment
D. To make up for the lost income during a labor dispute
E. To enable contracting of existing labors to outside firms
36. The unemployment insurance program is financed largely through federal and state taxes on _____.
A. employees
B. employers
C. retired personnel
D. all taxpayers
E. employment agencies
37. Workers are eligible for unemployment benefits if they:
A. voluntarily quit a job.
B. are out of work due to labor dispute.
C. were discharged for cause.
D. have been working for at least one year.
E. have not registered at the unemployment office.
38. Which of the following is a major category of workers' compensation?
A. Inability income
B. Death of spouse benefits
C. Rehabilitative services
D. Housing care
E. Pension services
39. Which one of the following is true about workers' compensation?
A. Employees are covered under the "no-fault" provision regardless of their behavior.
B. Only about 50 percent of all U.S. workers are covered by the system.
C. Benefits fall into four major categories: inability income, housing care, death of spouse benefits, and pension services.
D. Self-funding by employers is restricted in most states.
E. The system allowing employers to purchase coverage from private insurance companies.
40. The workers' compensation cost to an employer is based on:
A. the type of competition faced.
B. the employer's profitability.
C. the industry in which the establishment functions.
D. the employer's experience rating.
E. the employee's experience rating.
41. Which of the following is true about private group insurance?
A. Individuals spread fixed costs over more people.
B. Insurance risks are pooled in small groups.
C. ERISA rules provide favorable tax treatment for large groups.
D. Individuals have more bargaining power when negotiating over prices.
E. Concern for employee security helps explain the prevalence of employer-sponsored insurance plans.
42. The _____ requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff.
A. SEC
B. ADA
C. ERISA
D. COBRA
E. EEOC
43. Which of the following is the largest single component of the elderly's overall retirement income?
A. Social Security
B. Private pensions
C. Earnings from assets
D. Disability insurance
E. Medical insurance
44. Which of the following acts increased the fiduciary responsibilities of pension plan trustees, established vesting rights and portability provisions?
A. ERISA
B. ADA
C. COBRA
D. FAS 106
E. EEOC
45. Which of the following is a factor used to determine retirement benefit levels of employees under a defined benefit retirement plan?
A. Income level
B. Number of dependents
C. Marital status
D. Number of promotions during the service
E. Age
46. Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC)?
A. It was created by the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985.
B. It provides a complete benefit replacement.
C. It guarantees healthcare benefits.
D. It is funded by a monthly contribution from each plan participant.
E. It does not allow payouts to be adjusted for cost-of-living changes.
47. Which of the following is a defined contribution pension plan?
A. Supplemental benefit scheme
B. Profit sharing plan
C. Gainsharing plan
D. State-sponsored retirement plan
E. State second pension scheme
48. Which of the following is true about defined contribution plans?
A. They shift the investment risk to the employer.
B. They present greater administrative challenges to employers.
C. They require annual premium payments to the PBGC.
D. They are more prevalent in smaller than larger companies.
E. They are becoming less common.
49. _____ plans do not promise a specific benefit level for employees upon retirement. Rather, an individual account is set up for each employee with a guaranteed size of contribution.
A. Defined benefit
B. Term benefit
C. Defined contribution
D. Unspecified contribution
E. Cash balance
50. A _____ plan permits employees to defer compensation on a pretax basis.
A. supplemental benefit
B. section 401(k)
C. money purchase
D. specified retirement benefit
E. profit sharing
51. Under 401(k) plans, who is responsible to invest wisely?
A. The employee
B. The SEC
C. ERISA rules specify how investments must be made
D. The U.S. Department of Labor
E. The employer
52. Which of the following affects the amount of income that will be available to an employee upon retirement?
A. The number of times jobs changed
B. The need for power
C. The need for motivation
D. The level of job performance
E. The age at which investments are made
53. The _____ requires defined contribution plans holding publicly traded securities to provide employees with at least three investment options other than employer securities.
A. Pensions Act of 2008
B. Health Insurance Portability and Accountability Act of 1996
C. Consolidated Omnibus Budget Reconciliation Act of 1985
D. Employee Retirement Income Security Act of 1974
E. Pension Protection Act of 2006
54. A cash balance plan:
A. requires contributions from the employer and the employee.
B. does not permit rolling over of balance into an individual retirement account in case an employee changes jobs.
C. earns interest according to a predetermined rate.
D. is most generous to older employees.
E. does not guarantee the rate of interest.
55. The right of an employee to a pension upon retirement is known as ______.
A. vesting right
B. portability fund
C. transfer of fund
D. fiduciary responsibility
E. funding right
56. According to ERISA, a summary plan description (SPD) must provide descriptions of the plan's:
A. budget.
B. nominations.
C. risks.
D. benefit levels.
E. tenure.
57. Which of the following is true about vesting rights?
A. The right to a pension prior to retirement age
B. Vesting taking place under one of the two minimum vesting schedules
C. The right to a pension only if the vested employee remains with the employer until retirement
D. The guarantee that the employer will not terminate the pension plan
E. Employee contributions being only partly vested
58. Which of the following is true about mobility across employers?
A. The pension system's incentives should not be modified regardless of the mobility.
B. Reduced mobility reinforces the trend toward defined contribution plans.
C. Ease of transfer of funds will tighten with increase in mobility.
D. Increased mobility will bring down portability across the employees.
E. Penalties for mobility may require modification with mobility across employers becoming desirable.
59. Which one of the following is a characteristic of sick leave programs?
A. They are based on a no-accumulation policy.
B. They provide fractional salary replacement.
C. The amount of leave is often based on the pay of the employee.
D. They extend for a limited period of time, usually not exceeding 26 weeks.
E. Sick leave programs followed across countries are similar.
60. Which of the following is true about pay for time not worked?
A. Although the employee is paid for time not spent working, the employer receives a tangible production value in return.
B. The advantages from paying employees for time not spent working are direct.
C. There is a legal minimum of 18 days of vacation in the United States.
D. Leave programs provide only partial salary replacement.
E. Differences in paid leave programs across countries contribute to differences in labor costs.
61. Which of the following is true about family-friendly policies?
A. Organizations implement the policies to ease conflicts amongst the employees.
B. Defined benefit plan is a classic example of this policy.
C. Increased organizational performance resulting from loyalty may be expected from implementing these policies.
D. These policies have no spillover effects on other employees.
E. These policies cause a fall in quality management practices.
62. The Family and Medical Leave Act of 1993 provides for:
A. up to 18 weeks of paid leave after childbirth or adoption.
B. the same or a comparable job to the individual upon his return.
C. up to 18 weeks of paid leave to care for a seriously ill parent, spouse, or child.
D. maintenance of all benefits, including vacations and pensions.
E. covering employees with less than one year of service.
63. To take unpaid family leave under the provisions of the Family and Medical Leave Act, employees must:
A. have worked for an employer with 150 or more employees within a 25-mile radius.
B. have worked at least 15 hours per week.
C. have worked for the employer for one year or more.
D. be among the top 10 percent of highest paid executives.
E. apply for at least 15 weeks of unpaid leave.
64. The Pregnancy Discrimination Act of 1978 requires employers:
A. to offer disability plans with pregnancy-related coverage.
B. that offer disability plans to treat pregnancy as they would any other disability.
C. to provide up to eight weeks of paid leave to the parent upon the birth of a child.
D. to provide up to six weeks of unpaid leave to the parent upon the birth of a child.
E. to bear all the medical expenses related to the birth of their employee's child.
65. The highest level of child care provision is:
A. providing vouchers or discounts for employees to use at existing child care facilities.
B. providing child care at or near the worksite.
C. supplying information about the cost of available child care.
D. referring employees to websites and phone numbers of child care facilities in the area.
E. helping employees collect information about quality of available child care.
66. Survey information on competitors' benefits packages and information on benefits costs are available through _____.
A. public consultants
B. PBGC
C. BLS
D. EEOC
E. unemployment offices
67. Which of the following benefits is the most likely target for cost control by employees?
A. Life insurance benefits
B. Medical benefits
C. Unemployment insurance benefits
D. Social Security benefits
E. Private group insurance benefits
68. Which of the following is a characteristic of a health maintenance organization (HMO)?
A. A focus on curable medicine
B. Provision of benefits on a reimbursement basis
C. Employee selection of preferred physicians
D. Payment of physicians on a fee-for-service basis
E. Physicians paid depending on the number of patients seen
69. Which of the following managed-care efforts includes employer use of increased deductibles, coinsurance payments, policy exclusions and limitations, and establishment of maximum benefits?
A. Alternative funding methods
B. Plan design
C. Claims review
D. External cost control systems
E. Alternative providers
70. In which of the following ways do PPOs differ from HMOs?
A. PPOs provide benefits on a prepaid basis.
B. Employees are required to use preselected plan service providers.
C. PPOs are generally less expensive plans.
D. PPOs have less in common with traditional fee-for-service plans.
E. Physicians are paid on a salary basis.
71. Which of the following is a characteristic of employee wellness programs?
A. The programs aim in providing ailment to needy employees.
B. The programs manage health-care costs by helping employees in need.
C. The programs are relatively less expensive.
D. The programs target every health risks.
E. The programs focus on changing behaviors both on and off work time.
72. Active employee wellness programs:
A. concentrate on physical exercise rather than awareness issues.
B. are health education programs designed to raise awareness levels of health-related issues and to inform employees on health-related topics.
C. are the most common form of employee wellness program.
D. assume that behavior change requires not only awareness and opportunity, but support and reinforcement.
E. include a center for physical fitness equipped with aerobic and muscle-building exercise machines.
73. Which one of the following is an active wellness program?
A. Raising awareness of health-related issues.
B. Counselors providing tailored programs.
C. Center for physical fitness.
D. Athletic trainers present in company gyms.
E. Informing people on health-related topics.
74. Which of the following is better in reducing the risk factors associated with cardiovascular disease?
A. Counselors providing tailored programs to obtain baseline measures
B. Raising awareness levels of cardiovascular disease
C. A physical fitness facility in the company
D. Lunchtime lecturer conducting class on preventing cardiovascular disease
E. Presence of athletic trainers in the company gym
75. Which of the following is an obstruction in cost control efforts?
A. Implementing piecemeal programs not working well
B. A large percentage of employees being responsible for generating the majority of health care costs
C. Employees sticking on to specific programs in spite of cost control efforts on account of the administrative issues
D. Employees willing to aid in cost cutting efforts by not making unnecessary claims
E. Laying excess emphasis on cost control than monitoring health care quality
76. In which of the following ways may staffing practices change in response to benefit cost controls?
A. Benefits cost per hour increased by having employees work more hours with fixed benefits costs.
B. Organizations having their employees classified as exempt whenever possible.
C. Growth in the number of full-time workers.
D. Rehiring previously laid off employees.
E. Giving temporary workers pay for time not spent working.
77. Which of the following benefits is most likely to attract a workforce with a high percentage of women of childbearing age?
A. Pensions
B. Life insurance
C. Medical coverage
D. Disability leave
E. Private group insurance
78. Which of the following statements is true with regard to communicating the nature and value of benefits to employees?
A. Current employees and job applicants often have a clear idea of the benefits provisions already in place.
B. Employees often overestimate both the cost and market value of their medical benefits.
C. Use of traditional approaches can have a large effect on employee awareness.
D. Most organizations spend large sums of money in order to communicate information about benefits.
E. Increased employee knowledge of benefits will always have a positive effect.
79. Which of the following media would be used in order to provide information on benefits and related changes to remote employees?
A. Meetings
B. Intranet
C. Enrollment packages
D. Teleconference messaging
E. E-mail alerts
80. A company would like to provide benefit-related compliance information to all of its employees. Which of the following media should it use?
A. Meetings
B. Webcasts
C. Teleconference messaging
D. Summary plan descriptions
E. Paycheck attachments
81. Benefit plans that permit employees to choose the types and amounts of benefits they want are called _____.
A. preferred provider plans
B. cafeteria-style plans
C. pay or play benefits plans
D. flexible spending accounts
E. choose and apply accounts
82. Which of the following is an advantage to employers who implement flexible benefits plans?
A. Low initial design costs
B. Low administrative costs
C. Control over size of the contribution
D. Low adverse selection
E. Simplicity in estimating the benefits costs
83. Adverse selection can be controlled by:
A. implementing cafeteria-style plan.
B. removing the limitations on coverage amounts.
C. pricing certain benefits options lower.
D. providing better benefits package options.
E. limiting coverage amounts.
84. Which of the following statements is true about flexible spending accounts?
A. They can only be used for dependent-care expenses.
B. They restrict pretax employee contributions.
C. They are regulated under the state tax code.
D. Funds must be used by the plan's year end or they revert to the employer.
E. These accounts cause a reduction in the take-home pay.
85. The major advantage of a flexible spending account is:
A. that dependent care expenses are covered through the same account.
B. the increases in employees' take-home pay.
C. that unused funds revert to the employee.
D. that the account covers unpredictable expenses.
E. that it is regulated by the state tax code.
86. To be a qualified benefits plan, a benefit cannot discriminate in favor of _____ employees.
A. part-time
B. older
C. highly compensated
D. disabled
E. retired
87. In the 1978 Manhart ruling, the Supreme Court declared it illegal for employers to require:
A. physical examinations as a precondition for employment offers.
B. employees to accept health insurance coverage.
C. employees to retire at age 65.
D. women to contribute more than men to a defined benefit plan.
E. employees to attend health benefits programs.
88. The _____ specifies that employees with disabilities must have equal access to whatever health insurance coverage the employer provides other employees.
A. ADA
B. ADEA
C. FLSA
D. ERISA
E. COBRA
89. Which type of retiree benefits plan is excluded from the rules issued under Financial Accounting Statement 106?
A. Health care
B. Pensions
C. Life insurance
D. Stock ownership
E. Disability insurance
90. Financial Accounting Statement 106 requires that any benefits provided after retirement must be paid on a(n) _____ basis.
A. pay-as-you-go
B. accrual
C. annual
D. subtraction
E. monthly

 

Chapter 14 Collective Bargaining and Labor Relations

 

True / False Questions
1. According to John Dunlop, the three participants of the industrial relations system must have a common ideology and must accept the roles of the other participants. This acceptance always translates into convergence of interests.
True False

2. According to Katz and Kochan, contract negotiations and union organizing occur at the strategic level.
True False

3. A critical factor in determining the success of a strike (actual or threatened) is the size of union membership.
True False

4. A craft union's bargaining power depends greatly on the control it can exercise over the supply of its workers.
True False

5. The right-to-work laws make union shops, maintenance of membership, and agency shops legal.
True False

6. Unionized workers receive, on average, 10 to 15 percent higher pay (excluding benefits) than their nonunion counterparts.
True False

7. The United States generally has more regulations and higher levels of union membership than the western European countries.
True False

8. Employee groups and economic sectors with the fastest growth rates tend to have the highest rates of unionization.
True False

9. Enforcement of the National Labor Relations Act rests with Federal Mediation and Conciliation Service.
True False

10. The National Labor Relations Board's two major functions are to conduct and certify representation elections and prevent unfair labor practices.
True False

 

11. The National Labor Relations Board holds a union representation election if at least 30% of employees in the bargaining unit sign authorization cards.
True False

12. Associate union membership is linked to an employee's workplace and provides representation in collective bargaining.
True False

13. A neutrality provision is an agreement that if a certain percentage—by law, at least a majority—of employees sign an authorization card, the employer will recognize their union representation.
True False

14. Intraorganizational bargaining is a part of the labor-management negotiation process that has a win-win focus, as it seeks solutions beneficial to both sides.
True False

15. Generally, more people are present during the later stages of a negotiation than at the initial stages.
True False

16. Management is less able to afford a strike when products are of a non-perishable nature.
True False

17. Mediation is the most formal and least used impasse resolution procedure.
True False

18. The duty of fair representation is mandated by the National Labor Relations Act.
True False

19. In 1994, the Dunlop Commission recommended that Congress give employers more freedom to use employee involvement programs without risking legal challenges.
True False

20. The traditional approach to labor relations was characterized by better conflict resolution and greater worker autonomy and feedback in decision making.
True False

21. On average, union members have higher wages, benefits, and job satisfaction.
True False

22. The union pay advantage causes employers to use more labor and less capital per worker than they would otherwise, which increases efficiency across society.
True False

23. The United States has a strong history of deep class-based divisions in society.
True False

24. Codetermination is more common in the United States than in western European countries.
True False

25. Much of the public-sector union growth has occurred in the service industry and among white-collar employees.
True False

Multiple Choice Questions
26. Which of the following is true of John Dunlop's industrial relations system?
A. According to Dunlop, for the industrial relations system to operate properly, all the participants should have a common ideology.
B. According to Dunlop, a successful industrial relations system consists of five elements.
C. According to Dunlop, the industrial relations system is independent of the environmental context.
D. According to Dunlop, acceptance always translates into convergence of interests.
E. According to Dunlop, an effective industrial relations system completely eliminates conflict.

27. According to the Katz and Kochan, at which level does the management make basic choices such as whether to work with its unions or to devote its efforts to developing nonunion operations?
A. Strategic level
B. Corporate level
C. Functional level
D. Production level
E. Business unit level

28. In human resource management, the process of resolving disputes through discussion is known as:
A. benchmarking.
B. delayering.
C. downsizing.
D. collective bargaining.
E. exempting.

29. Which of the following acts sought to provide an environment conducive to collective bargaining?
A. Norris-La Guardia Act
B. Adamson Act
C. Davis-Bacon Act
D. Erdman Act
E. National Labor Relations Act

30. Which of the following is an example of a craft union employee?
A. A steelworker
B. An autoworker
C. A carpenter
D. A flight attendant
E. A mineworker

31. Which of the following is true of craft unions?
A. Typically, the members of a craft union represent many different occupations.
B. Membership in the union is a result of working for a particular employer in the industry.
C. Changing employers is very common.
D. All the members of a craft union have a particular skill or occupation.
E. All the members of a craft union are linked by their work in a particular industry.

32. Which of the following is an example of an industrial union employee?
A. A carpenter
B. A plasterer
C. A painter
D. A shoemaker
E. A steelworker

33. Which of the following is a characteristic of an industrial union?
A. All the members of an industrial union have a particular occupation.
B. An industrial union restricts the number of its members in order to maintain high wages.
C. The members an industrial union are linked by their work in a particular industry.
D. The members of industrial unions change employers more frequently compared to other types of
unions.
E. All the members of an industrial union have a particular skill.

34. Which of the following is true of local unions?
A. The local of an industrial-based union covers a city or a region.
B. In a craft-oriented union, the local corresponds to a single large facility or to a number of small
facilities.
C. Typically the local union provides assistance, like background data about other settlements and
technical advice, etc.
D. The bulk of day-to-day interaction between labor and management takes place at the local union level.
E. Administration of the collective bargaining contract is largely carried out at the national union level.

35. The shop steward:
A. is also known as the arbitrator.
B. represents the management in contract grievances.
C. represents employees in contract grievances.
D. is a neutral party who assists in negotiations and conflict resolution.
E. is the person who reports on the reasons for the labor-management dispute.

36. Under a(n) _____, the employer, on behalf of the union, automatically deducts union dues from employees' paychecks.
A. union shop
B. agency shop
C. fair share provision
D. checkoff provision
E. closed shop

37. The strongest union security arrangement is a(n) _____, under which a person must be a union member
(and thus pay dues) before being hired.
A. agency shop
B. checkoff provision
C. fair share provision
D. union shop
E. closed shop

38. Under which of the following acts is a closed shop held to be illegal?
A. National Labor Relations Act
B. Adamson Act
C. Davis-Bacon Act
D. Erdman Act
E. Norris-La Guardia Act

39. What type of union security arrangement requires a person to join the union within a certain amount of time after beginning employment?
A. Agency shop
B. Maintenance of membership
C. Open shop
D. Union shop
E. Closed shop

40. A(n) _____ is a union security provision that requires an employee to pay union membership dues, but not to join the union.
A. checkoff provision
B. closed shop
C. agency shop
D. open shop
E. union shop

41. _____ rules do not require union membership but do require that employees who choose to join must remain members for a certain period of time.
A. Agency shop
B. Maintenance of membership
C. Closed shop
D. Union shop
E. Checkoff provision

42. Which of the following Acts allows states to pass the right-to-work laws?
A. Labor Standards Act
B. Walsh-Healey Act
C. Smith-Connally Act
D. Taft-Hartley Act
E. Norris-La Guardia Act

43. Which of the following union security arrangements are illegal under the Taft-Hartley Act?
A. Union shops and checkoff provisions
B. Maintenance of memberships and checkoff provisions
C. Agency shops and checkoff provisions
D. Fair share provisions and checkoff provisions
E. Union shops and agency shops

44. From the union perspective, free riders refers to the:
A. employees who benefit from union activities without belonging to a union.
B. persons who act as facilitators in the negotiation processes.
C. management's representatives in the contract grievance processes.
D. neutral parties who assist in negotiations and conflict resolution.
E. persons who report on the reasons for the labor-management dispute.

 

 

45. Which of the following is true of union membership and bargaining power?
A. Unions have traditionally been stronger in urban workplaces that employ women and youth.
B. Employers are actively resisting unionization in an attempt to control costs and maintain their flexibility.
C. Since the 1950s, union membership has consistently increased as a percentage of employment.
D. Unions have successfully organized the women and youth in the private sectors.
E. Competitive threats have contributed to decreased employer resistance to union organizing.

46. Section 8(a)(3) of the National Labor Relations Act prohibits employers from:
A. retaliating against employees who file unfair-labor practices.
B. refusing to bargain in good faith with union representatives.
C. firing employees for union organizing.
D. interfering with union activities.
E. bribing union representatives.

47. Over half of all unfair labor practice cases against employers are based on the charge that the employer:
A. refused to bargain.
B. retaliated against employees who filed unfair-labor practices charges.
C. interfered with union activities.
D. bribed the union negotiators.
E. fired employees for union organizing.

48. Which of the following is true of union membership and bargaining power?
A. Unions have perfectly adapted themselves to recent changes in the economic structure.
B. For nonunion employers, union avoidance is an important employee relations objective.
C. Since the 1960s, regulation of many employment areas has decreased.
D. Western European countries generally have lesser regulations and lower levels of union membership
than the United States.
E. The absence in the United States of a history of feudalism has contributed to a more class-conscious
unionism.

49. Which of the following is true of union activities?
A. Employee groups and economic sectors with the fastest growth rates tend to have the highest rates of unionization.
B. Unions have perfectly adapted themselves to recent changes in the economic structure.
C. One reason for the smaller union presence in southern states is the existence of right-to-work laws.
D. Nonmanufacturing industries such as finance, insurance, and real estate have a higher union representation than manufacturing industries.
E. Women and men have equal representation in unions.

50. The National Labor Relations Act is also known as the:
A. Landrum-Griffin Act.
B. Davis-Bacon Act.
C. Walsh-Healey Act.
D. Wagner Act.
E. Taft-Hartley Act.

51. The Wagner Act:
A. banned yellow-dog contracts.
B. barred federal courts from issuing injunctions against nonviolent labor disputes.
C. created a positive right of noninterference by employers against workers joining trade unions.
D. established an eight-hour workday, with additional pay for overtime work.
E. actively supported collective bargaining.

52. The _____ enshrined the collective bargaining as the preferred mechanism for settling labor-management disputes.
A. Adamson Act
B. National Labor Relations Act
C. Davis-Bacon Act
D. Landrum-Griffin Act
E. Walsh-Healey Act

53. Section 7 of the National Labor Relations Act:
A. prohibits employers to discriminate against employees who file charges.
B. permits employers to refuse to bargain collectively with union representatives.
C. permits employees to form, join, or assist labor organizations and to bargain collectively.
D. prohibits employers from dominating the formation of any labor organization.
E. prohibits employers from discriminating against employees who support a labor organization.

54. Which of the following is true of Section 8(a) (1) of the National Labor Relations Act?
A. It prohibits discrimination against employees for providing testimony relevant to enforcement of the
act.
B. It prohibits employer domination of or interference with the formation or activities of a labor union.
C. It prohibits discrimination in any aspect of employment that attempts to encourage or discourage
union-related activity.
D. It prohibits employers from restraining employees in exercising their rights to join a labor organization.
E. It prohibits employers from refusing to bargain collectively with a labor organization that has standing
under the act.

55. Section 8(a) (2) of the National Labor Relations Act prohibits:
A. employers from restraining employees in exercising their rights to join a labor organization.
B. employers from refusing to bargain collectively with a labor organization that has standing under the
act.
C. discrimination in any aspect of employment that attempts to encourage or discourage union-related
activity.
D. discrimination against employees for providing testimony relevant to enforcement of the NLRA act.
E. employer domination of or interference with the formation or activities of a labor union.

56. Which of the following is true of Section 8(a) (3) of the National Labor Relations Act?
A. It prohibits discrimination in any aspect of employment that attempts to encourage or discourage union-related activity.
B. It prohibits employer domination of or interference with the formation or activities of a labor union.
C. It prohibits employers from restraining employees in exercising their rights to join a labor organization.
D. It prohibits discrimination against employees for providing testimony relevant to enforcement of the
act.
E. It prohibits employers from refusing to bargain collectively with a labor organization that has standing
under the act.

 

57. Section 8(a) (4) of the National Labor Relations Act prohibits:
A. employers from restraining employees in exercising their rights to join a labor organization.
B. discrimination against employees for providing testimony relevant to enforcement of the act.
C. discrimination in any aspect of employment that attempts to encourage or discourage union-related activity.
D. employer domination of or interference with the formation or activities of a labor union.
E. employers from refusing to bargain collectively with a labor organization that has standing under the act.

58. Which of the following is true of Section 8(a) (5) of the National Labor Relations Act?
A. It prohibits employers from restraining employees in exercising their rights to join a labor organization.
B. It prohibits employer domination of or interference with the formation or activities of a labor union.
C. It prohibits employers from refusing to bargain collectively with a labor organization that has standing
under the act.
D. It prohibits discrimination against employees for providing testimony relevant to enforcement of the act.
E. It prohibits discrimination in any aspect of employment that attempts to encourage or discourage union-related activity.

59. Which of the following is an unfair labor practice by the employer?
A. Fining or expelling members for crossing a picket line that is unlawful.
B. Threatening to close down a plant if organized by a union.
C. Mass picketing in such numbers that nonstriking employees are physically barred from entering the plant.
D. Acts of force or violence on the picket line or in connection with a strike.
E. Threats to employees of bodily injury or that they will lose their jobs unless they support the union's activities.

60. The Taft-Hartley Act:
A. actively supports collective bargaining rather than impeding it.
B. prohibits certain activities by both employers and labor unions.
C. prohibits discrimination in any aspect of employment that attempts to encourage or discourage unionrelated activity.
D. outlaws unfair union labor practices.
E. prohibits employers from interfering with, restraining, or coercing employees in exercising their rights to join or assist a labor organization.

61. Which of the following acts was an addition to the Taft-Hartley Act that further regulated unions' actions and their internal affairs like financial disclosure and conduct of elections?
A. Taylor Act
B. Chamberlain-Ferris Act
C. Keating-Owen Act
D. Bagley-Keene Act
E. Landrum-Griffin Act

62. Section 8(b)(1)(a) of the NLRA:
A. states that a labor organization is not to "restrain or coerce employees in the exercise of the rights guaranteed in section 7."
B. states that employees shall have the right to self-organization and to form, join, or assist labor organizations.
C. protects employees who take part in grievances, on-the-job protests, picketing, and strikes.
D. provides that unions, if certified or recognized, are the exclusive representatives of bargaining unit members.
E. prohibits the adjustment of employee grievances unless a union representative is given an opportunity to be present.

63. Which of the following is true of the National Labor Relations Board?
A. It is composed of a nine-member board, the general counsel, and 40 regional offices.
B. It covers retail businesses that have more than $100,000 in annual business.
C. Its jurisdiction is limited to employers whose operations affect commerce generally.
D. In practice, only purely local firms fall within its jurisdiction.
E. It not only responds to requests for actions but also initiates actions.

64. Which of the following is a union unfair labor practice?
A. Taking an active part in organizing a union or committee to represent employees.
B. Insisting on the inclusion of illegal provisions in a contract.
C. Announcing a wage increase without consulting the employees' representative.
D. Failing to bargain about the effects of a decision to close one of employer's plants.
E. Refusing to meet with employees' representatives because the employees are on strike.

65. Which of the following is true of the National Law Relations Board's process and legal framework of organizing?
A. The National Law Relations Board holds a union representation election if at least 10% of employees in the bargaining unit sign authorization cards.
B. If more than 30% of the employees sign authorization cards, the union may request that the employer voluntarily recognize it.
C. If more than one union appears on the ballot and neither gains a simple majority, a runoff election is held.
D. If the employer recognizes the union voluntarily, the National Law Relations Board conducts a secretballot election.
E. If more than 30% of employees vote for the union, the union is certified by the National Law Relations Board as the exclusive representative of employees.

66. Which of the following acts gave the union members' the right to vote an existing union out—that is, to decertify it?
A. Bagley-Keene Act
B. Chamberlain-Ferris Act
C. Keating-Owen Act
D. Taft-Hartley Act
E. Taylor Act

67. Which of the following allows a union to receive dues in exchange for services (e.g., health insurance, credit cards) but does not provide any representation in collective bargaining?
A. Arbitration
B. Associate union membership
C. Corporate campaigns
D. Distributive bargaining
E. Mediation

68. Union activity designed to exert public, financial, or political pressure on employers during the unionorganizing process is known as:
A. arbitration.
B. checkoff provision.
C. corporate campaign.
D. integrative bargaining.
E. mediation.

69. What can supervisors do to stay union-free?
A. They can report any direct or indirect signs of union activity to a core management group.
B. They can impose with harsher terms and conditions of employment.
C. They can interrogate employees about pro-union or anti-union sentiments that they have.
D. They can promise employees that they will receive favorable terms of employment if they forgo union activity.
E. They can spy on employees known to be engaged in pro-union activities.

70. Which of the following activities should the supervisors avoid if they want to stay union-free?
A. They should avoid accommodating special circumstances, even where appropriate.
B. They should not spy on employees who are suspected of being engaged in pro-union activities.
C. They should not report any direct or indirect signs of union activity to a core management group.
D. They should not inform the employees about the company's response to pro-union arguments.
E. They should avoid providing employees business-related information.

71. Under a _____, the employer pledges not to oppose organizing attempts elsewhere in the company.
A. fair share provision
B. union shop provision
C. neutrality provision
D. card-check provision
E. checkoff provision

72. The part of the labor-management negotiation process that focuses on dividing a fixed economic "pie" is known as:
A. attitudinal structuring.
B. intraorganizational bargaining.
C. mediation.
D. distributive bargaining.
E. integrative bargaining.

73. Integrative bargaining is the part of the labor-management negotiation process that:
A. refers to the relationship and level of trust between the negotiators.
B. focuses on the conflicting objectives of factions within labor and management.
C. focuses on dividing a fixed economic "pie."
D. allows a person with no formal authority to act as a facilitator in the negotiations.
E. seeks solutions beneficial to both sides.

 

74. The aspect of the labor-management negotiation process that refers to the relationship and level of trust between the negotiators is known as:
A. attitudinal structuring.
B. distributive bargaining.
C. integrative bargaining.
D. intraorganizational bargaining.
E. mediation.

75. Intraorganizational bargaining is the part of the labor-management negotiation process that:
A. focuses on dividing a fixed economic "pie."
B. focuses on the conflicting objectives of factions within labor and management.
C. allows a person with no formal authority to act as a facilitator in the negotiations.
D. refers to the relationship and level of trust between the negotiators.
E. seeks solutions beneficial to both sides.

76. Which of the following is true of the various stages in negotiations?
A. Less people are present in the early stages of negotiations whereas more people join in at the later stages.
B. Union negotiators often present an extensive list of proposals during the middle stages of the negotiations.
C. In the final stages, negotiators and neutral third parties enter the process.
D. During the final stages, each side must make a series of decisions, even though the outcome is uncertain.
E. In the initial stage, negotiators from each side may have one-on-one meetings or small-group meetings where public relations pressures are reduced.

77. The ability of one party to achieve its goals when faced with opposition from some other party to the bargaining process is known as the:
A. inequality of bargaining power.
B. reverse bargaining power.
C. conditional bargaining power.
D. relative bargaining power of each party.
E. collective bargaining power of each party.

78. Management is less able to afford a strike when the:
A. product is non-perishable in nature.
B. organization is capital intensive.
C. replacement workers are scarce.
D. company has a single production site.
E. demand for its product is strong.

79. Which of the following is true of a mediator?
A. She has no formal authority but, rather, acts as a facilitator and go-between in negotiations.
B. She provides inside information about the employees to the management.
C. She provides a solution that is binding on the parties.
D. She is responsible for ensuring that the terms of the collective bargaining are enforced.
E. She represents the management during the collective bargaining procedure.
 

80. A person who reports on the reasons for the labor-management dispute, the views and arguments of both sides, and a nonbinding recommendation for settling the dispute is known as the _____.
A. mediator.
B. fact finder.
C. arbitrator.
D. shop steward.
E. associate union member.

81. Which of the following is true of an arbitrator?
A. She represents the employees during the collective bargaining process.
B. She provides inside information about the management to the employees.
C. She actually chooses the solution to the dispute.
D. She has no formal authority.
E. She is a part of the collective bargaining process.

82. Arbitrating the enforcement or interpretation of contract terms is known as:
A. contract arbitration.
B. bracketed arbitration.
C. pendulum arbitration.
D. rights arbitration.
E. interest arbitration.

83. The _____ requires that all bargaining unit members, whether union members or not, have equal access to and representation by the union in the grievance procedure.
A. checkoff provision
B. right-to-work law
C. abstention doctrine
D. clear statement rule
E. duty of fair representation

84. The duty of fair representation is mandated by the:
A. National Labor Relations Act.
B. Bagley-Keene Act.
C. Chamberlain-Ferris Act.
D. Keating-Owen Act.
E. Taylor Act.

85. Which of the following is the first step in a typical employee-initiated grievance procedure?
A. Steward and management representative meet and discuss grievance.
B. Employee discusses grievance or problem orally with supervisor.
C. Grievance is put in writing and submitted to production superintendent.
D. Grievance is appealed to top line management and industrial relations staff representatives.
E. Grievance is appealed to arbitration for binding decision.

 

86. When compared to traditional labor relations, transformational labor relations lead to:
A. lower productivity.
B. lower employee participation.
C. lower organizational effectiveness.
D. lower costs.
E. lower product quality.

87. Unions usually support:
A. achievement-based pay.
B. merit-based pay.
C. conduct-based pay.
D. seniority-based pay.
E. performance-based pay.

88. When an employee simply leaves the company to work for a better employer, she is following a(n):
A. checkoff mechanism.
B. closed shop mechanism.
C. neutrality mechanism.
D. exit mechanism.
E. voice mechanism.

89. Which of the following is true regarding the current trends in union membership and coverage?
A. Joint labor-management decision-making institutions at the enterprise level are widely prevalent in the United States.
B. Codetermination is an integral part of the labor-management relationship in the United States.
C. The United States' strong history of deep class-based divisions in society, has contributed to the increasing unionization.
D. The labor movement in the United States is broader than that in western Europe.
E. In the United States, union membership and coverage is declining in the private sector.

90. Which of the following is true of labor relations in the public sector?
A. Much of the public sector union growth has occurred in the service industry and among white-collared employees.
B. Union membership in the public sector has constantly declined since the 1960s.
C. Executive Order 10988 outlaws unfair union labor practices.
D. The Civil Service Reform Act of 1978, Title VII established the Federal Mediation Board.
E. Strikes are legal at the federal level of the public sector and in all states.