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Match the key issues to the major selection court cases.
a.Company must insure that all parts of a multiple-step selection program have no disparate impact
b.Company's burden of proof against adverse impact diminishes as human risk increases
c.Selection test must be job-related if disparate impact results
d.Validation must reflect selection decision practices
e.In disability cases, organization must prove that individual cannot perform job
f.Company's moral concerns about health of future children is not sufficient to bar women from employment
g.Cases focusing on subjective selection devices (e.g., interviews and judgments) could be heard as disparate impact cases
-OFCCP v.Ozark Air Lines (1986)
Externalities
Costs or benefits that affect a party who did not choose to incur that cost or benefit, often leading to market failure if not corrected by government intervention.
Marginal Cost
The boost in expenditure due to producing an additional unit of a product or service.
Coase Theorem
A principle that suggests that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.
Private Parties
Individuals or entities that operate privately, not part of or affiliated with government organisations.
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