12) Let's say I have an individual employment contract to work for Starbucks for four years at a salary of $90,000 a year

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12) Let's say I have an individual employment contract to work for Starbucks for four years at a salary of $90,000 a year. I decide I want to leave in my second year and start up my own coffee shop on Temple's campus - The Super Caffeinated Owl, or "SCOwl" for short. I break my contract.  Can Starbucks sue me?

a.      Yes, for breach of contract

b.     Yes, for tort

c.      Yes, for violation of employment laws

d.     Yes, in a criminal action if the district attorney agrees

e.      No, because I was an employee at will

 

13. I open up the SCOwl (see previous question) right in the middle of Temple's main campus and it's a huge hit! I have five full-time employees working at SCOwl. When Pam, a barista for SCOwl, is sweeping the front sidewalk, she slips and falls on ice because Temple (the landlord) and I (the employer) haven't cleared the walk yet. Who can Pam sue for negligence?

 

a. SCOwl (me), her employer, for sending her in to dangerous conditions

b. Temple University, for injuries she sustained on Temple's sidewalk

c. Both of these (SCOwl and Temple)

d. Neither of these (neither SCOwl nor Temple)

e. Negligent and Grumpy Cat

 

 

 

Wheels-to-Go, Pittsburgh, PA

 

Wheels-to-Go is a car and bike rental company headquartered in Pittsburgh, Pennsylvania with twenty locations throughout the state. They rent only hybrid vehicles and bicycles, as part of their mission is to care for the planet. They are a relatively new company (about three years old with fifty-five employees throughout Pennsylvania) and hope to grow rapidly and expand into other geographic regions. 

 

Once in a while (but not very often), a renter will tip an employee a couple of dollars for bringing their bike or car around - this has resulted in up to an extra ten dollars a month for those lucky employees. Full-time employees also get the free use of any rental cars or bikes that are not currently reserved to customers. Everyone that works there is an employee (no independent contractors), no one has a contract of employment and there is no union representing any of the workers. 

 

14. Wheels-to-Go is hiring people over 21 for their full-time "Bike Bringer" positions because their insurance rates are lower if they implement this age restriction. If they are paid per hour, what is the legal minimum according to federal law?

a. $2.13

b. $4.25

c. $7.25

d. $10.10

e. There is no federal minimum wage restriction that applies here

 

15. Can the state of Pennsylvania impose a minimum wage if there is a federal minimum wage that applies to the employees of Wheels-to-Go?

 

a. No, if there is a federal minimum wage that applies then the state cannot legislate one; federal law supersedes state law

 

b. No, the Fair Labor Standards Act and the U.S. Department of Labor forbids state interference in all matters of wage and hours by individual states

 

c. Yes, it can impose a higher minimum wage. If the state passes a lower minimum wage, the federal (higher) minimum wage will apply.

 

d. Yes, it can impose a lower minimum wage for jobs that take place within its state borders; the federal minimum wage will not apply.

 

e. It depends on whether the state has an unemployment insurance system approved by the federal government; if it does, it can set the state minimum wage and overrule the federal one.

 

 

 

16. Candace, a 25 year old Temple University Fox School of Business graduate, accepts a full-time marketing position with Wheels-to-Go. In her orientation, she learns that she is required to clock in when she gets to the office, just like all the other workers. She is surprised, because she is being paid a yearly salary instead of an hourly rate. Stan, her manager, tells her not to worry about it - just to do it because it is company policy and to fit in, but they will never dock her salary for being just a little bit late. Stan tells Candace the company will only dock her salary if she is two hours late or more, so not to worry. What would you advise Wheels-to-Go about their clocking-in policy?

 

a. This is a good policy because it makes the hourly workers and the salaried workers feel more equal (since everyone is clocking in and out) and encouraged by the FLSA

 

b. This is a good policy because it signals to all workers how important it is to be on time for work (consistent with the FLSA)

 

c. This is a risky policy because it may jeopardize Candace's exempt status (under the FLSA)

 

d. This would have been a risky policy (under the FLSA) but if it is company policy across the board for all workers, it will not jeopardize Candace's exempt status (under the FLSA)

 

e. This is a risky policy because it treats exempt workers differently from non-exempt workers and that could be illegal discrimination

 

17. Andrew is an hourly worker who travels a lot - his job is to pick up the one-way vehicle rentals that have been driven to Florida and return them to Pennsylvania. He loves his job - he loves Florida and he likes the freedom of being away from an office. He also loves to drive and he is a good driver! Unfortunately, in his latest trip home from Palm Beach, he got into an accident with a big truck on the highway entrance ramp. The police reports are not clear who was at fault, but Andrew is vehement that it was the truck driver's fault! Andrew suffered severe whiplash, two broken bones in his wrist, three broken ribs, a concussion, and bruising from the air bags. The Wheels-to-Go vehicle was totaled. What benefits can Andrew collect to help him with his medical co-pays and to pay for the time he will be missing work while he heals?

 

a. Unemployment insurance and workers compensation

b. Intentional interference and unemployment compensation

c. OSHA benefits and tort lawsuit compensation

d. Unemployment compensation only

e. Workers compensation only

 

18. If true, what fact below would MOST JEOPARDIZE Andrew's claim for unemployment benefits? (See previous question for facts of Andrew's situation.)

 

a. Wheels-to-Go didn't fire him after the accident

b. Wheels-to-Go did fire him after the accident

c. The accident was only 10% the truck driver's fault; it was mostly Andrew's fault

d. Andrew was drinking alcohol while driving the Wheels-to-Go vehicle and that may have caused the accident

e. Andrew wasn't on his way back to Wheels-to-Go with the vehicle; he was off to bet on the racetrack first and that's when the accident happened

 

19. If true, what fact below would MOST JEOPARDIZE Andrew's claim for workers compensation benefits? (See previous question for facts of Andrew's situation.)

 

a. Wheels-to-Go didn't fire him after the accident

b. Wheels-to-Go did fire him after the accident

c. The accident was only 10% the truck driver's fault; it was mostly Andrew's fault

d. Andrew was drinking alcohol while driving the Wheels-to-Go vehicle and that may have caused the accident

e. Andrew wasn't on his way back to Wheels-to-Go with the vehicle; he was off to bet on the racetrack first and that's when the accident happened

20. Knowing what you know about Andrew and his duties (see question 17), is he properly classified as an exempt or a non-exempt employee?

a. Exempt

b. Non-exempt