Business Services Business Services Law & Compliance 2 — Questions and Answers
Question 1: Which US federal agency enforces anti-discrimination laws in the workplace?
- Department of Labor (DOL)
- Equal Employment Opportunity Commission (EEOC) (Correct answer)
- Federal Trade Commission (FTC)
- Securities and Exchange Commission (SEC)
Correct answer: Equal Employment Opportunity Commission (EEOC)
The EEOC enforces federal laws prohibiting workplace discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.
Question 2: What is the purpose of anti-money laundering (AML) compliance in business services?
- To prevent tax evasion only
- To detect and report suspicious financial activity that may involve proceeds from illegal activities (Correct answer)
- To limit foreign currency exchange
- To audit payroll systems
Correct answer: To detect and report suspicious financial activity that may involve proceeds from illegal activities
AML compliance programs identify and report suspicious financial transactions to prevent criminals from disguising illegally obtained funds as legitimate income.
Question 3: What is a 'master service agreement' (MSA) in business services?
- A single-project contract
- A long-term framework agreement governing the overall relationship between a service provider and client (Correct answer)
- An employee handbook
- A software licensing contract
Correct answer: A long-term framework agreement governing the overall relationship between a service provider and client
An MSA establishes the general terms and conditions governing an ongoing business relationship, with specific engagements covered by separate statements of work.
Question 4: Under HIPAA, what type of business service providers must sign a Business Associate Agreement (BAA)?
- All US companies with more than 50 employees
- Third-party vendors that handle protected health information (PHI) on behalf of covered entities (Correct answer)
- Insurance agents only
- All federal government contractors
Correct answer: Third-party vendors that handle protected health information (PHI) on behalf of covered entities
HIPAA requires covered entities to obtain a BAA from any business associate that creates, receives, maintains, or transmits PHI on their behalf.
Question 5: What is intellectual property (IP) licensing in a business services context?
- Selling ownership of IP permanently
- Granting permission to use IP under specified terms while retaining ownership (Correct answer)
- Registering a trademark with the USPTO
- Filing a patent application
Correct answer: Granting permission to use IP under specified terms while retaining ownership
IP licensing grants another party the right to use intellectual property (patents, copyrights, trademarks) under defined conditions while the licensor retains ownership.
Question 6: What does 'at-will employment' mean under US law?
- Employees can only be hired with a written contract
- Either the employer or employee can terminate the relationship at any time for any lawful reason (Correct answer)
- Employees must provide 30 days' notice before leaving
- Employers must document every termination reason
Correct answer: Either the employer or employee can terminate the relationship at any time for any lawful reason
US at-will employment allows either party to end the employment relationship at any time without cause, provided the reason is not illegal.
Business Services Business Services Law & Compliance 2
Which US federal agency enforces anti-discrimination laws in the workplace?