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Test Bank For Employment Law for Business, 10th Edition, Dawn Bennett-Alexander Chapter 1-16 Answers are at the End of Each Chapter Chapter 01: Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Agency law, based on the traditional law called master and servant, governs employment relationships. ⊚ true ⊚ false 2) In an employment-agency relationship, if an agent acts beyond his or her authority, the principal may be liable for any resulting loss to a third party. ⊚ true ⊚ false 3) Myra provides accounting services as an independent contractor for Great Northern. Because of this relationship, Great Northern is responsible for withholding and paying Myra's employment taxes, including federal unemployment compensation (FUTA), Social Security (FICA) and FICA excise tax. ⊚ true ⊚ false 4) Employers are not liable for most torts committed by an independent contractor within the scope of the working relationship. ⊚ true ⊚ false 5) There is a single commonly accepted definition of "employee" used by courts, employers, and the government.