Charles Owns a Club Whose Patrons Are Mostly African-American

question 97

Multiple Choice

Charles owns a club whose patrons are mostly African-American. He hires only African-Americans to serve drinks and food. Li (Asian-American) applies to work. He is qualified but is turned down. If Charles were to argue that the reason he denied Li the job is because being African-American is a bona fide occupational qualification, a court would find that Charles:

• A) is wrong, based on the merit system doctrine
• B) is correct, based on the Fourteenth Amendment
• C) is correct, minority employers can take into account customer preferences as a BFOQ
• D) is correct, based on affirmative action
• E) none of the other choices

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Definitions:

Demand Shifts

Movements of the demand curve to the left or right in a market diagram, indicating a change in the amount consumers are willing and able to purchase at various prices.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount available for sale, leading to a state of equilibrium in the market.

Supply Shifts

Supply shifts refer to changes in the supply curve caused by factors other than price, such as technology, production costs, and supplier expectations, leading to different quantities being supplied at the same price.

Surplus

The situation in which the quantity of a good or service supplied exceeds the quantity demanded, often leading to lower prices.