BUS 404 Governmental and Social Influences on Business - Final Exam Study Guide

Flashcards covering employment discrimination (Title VII, ADEA, ADA), Section 1981, sexual harassment liability, and consumer protection laws (FTC Act, puffery, and relevant case law).

EEOC Complaint Filing Period

The requirement for an employee to file a discrimination complaint with the EEOC within $180$ days of the incident, or $300$ days if a state filing exists.

Forced Arbitration

A confidential process some employers require instead of a court lawsuit. Under this, the EEOC can still bring a court claim on the employee's behalf even if the employee is restricted.

At Will Employee

An employment classification where an individual can generally be fired for any reason, offering fewer protections than a formal employment contract.

Disparate Treatment

Intentional discrimination where an employer treats an individual differently specifically because of a protected class status.

Disparate Impact

Unintentional discrimination involving a facially neutral policy that results in a discriminatory effect on a protected class based on statistics.

Pretext

A false reason provided by a defendant to hide the true, discriminatory motive for an employment action.

Business Necessity Defense

A defense in a Disparate Impact case where the employer proves the policy is both job-related and consistent with the needs of the business.

Title VI

A federal law governing government employment; it allows for disparate treatment claims but generally does not recognize disparate impact claims at the federal level.

Section 1981

Part of the Civil Rights Act of $1866$ that applies only to race and ethnicity discrimination, has no cap on compensatory/punitive damages, and features a $4$-year statute of limitations.

Tangible Employment Action

A significant change in employment status, such as firing, demotion, or reassignment, resulting from sexual harassment which triggers strict employer liability if committed by a supervisor.

Hostile Work Environment

Unwelcome conduct because of sex that creates an abusive environment without necessarily resulting in a tangible employment action.

Bona Fide Occupational Qualification (BFOQ)

A narrow exception allowing discrimination based on religion, sex/gender, or national origin when essential to the job; notably, BFOQ never applies to race or color.

Age Discrimination in Employment Act (ADEA)

A law protecting workers age $40$ and older at companies with $20$ or more employees.

ADEA Forced Retirement Exception

A rule allowing forced retirement for high-level executives age $65+$ who receive annual retirement benefits of at least $44,000$.

Americans with Disabilities Act (ADA)

Prohibits discrimination based on physical or mental impairment and requires reasonable accommodations for qualified individuals unless it causes undue hardship.

Undue Hardship

An ADA defense where a requested accommodation is considered unreasonable because it requires significant difficulty or expense.

FTC Two-Factor Legal Test

To violate the FTC Act, a trade practice must be (1) false or likely to mislead a reasonable consumer and (2) material to the consumer's decision-making.

Puffery

In consumer protection, expressions of opinion or inherently vague and generalized terms (e.g., 'reliable' or 'durable') that are not objective, verifiable facts.

Tudor v. Jewel

A grocery scanner case where a $44\%$ error rate was found not to be 'unfair' because accurate receipts were provided and returns were accepted, negating intent to deceive.

ALDF v. Hormel

Established that compliance with USDA labeling regulations does not automatically equate to compliance with the FTC Act's false advertising standards.

FTC v. Kraft Singles

A case where a technically true statement about using $5$ ounces of milk was a violation because it created a false impression regarding calcium content.

Williams v. Gerber

A consumer protection case ruling that accurate fine print (Nutrition Facts) cannot excuse potentially deceptive statements or images made prominently on the front of product packaging.

Social Media Disclosure Rule

FTC requirement that influencers disclose affiliations if they received something a reasonable consumer would think likely affects their opinion.

FIRAC

A structured legal analysis framework consisting of Facts, Issue, Rule, Application, and Conclusion.