James Helton, an African-American, Was Hired as a Dock Worker

question 46

Multiple Choice

James Helton, an African-American, was hired as a dock worker with Coastal Distributing Company. As a full time employee, he was eligible for health insurance benefits if he met certain criteria. His pre-employment physical indicated that he suffered from hypertension or high blood pressure. The company's health insurance plan excluded employees that had that condition. Hypertension is a condition that is common among African-Americans and affects that race at a much higher percentage than any other race.

• A) Coastal Distributing Company's policy is not discriminatory because it applies to all employees, regardless of race.
• B) Coastal Distributing Company's policy is discriminatory because more African-Americans will be denied health insurance than employees who are not African-American.
• C) Coastal Distributing Company's policy is not subject to Title VII because it involves employee benefits, not hiring, promotion or termination.
• D) Coastal Distributing Company's policy is discriminatory because it treats some employees differently (African Americans) than other similarly situated employees.

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Definitions:

Resource Driver

A factor that causes a change in the consumption of resources in the production of a product or service.

Activity Management

The process of planning, controlling, and monitoring resources and tasks to achieve specific business goals.

Overhead Activities

Tasks or operations that incur indirect costs, which are not directly attributable to a specific product or service.

Activity Cost

The cost associated with a specific activity or process in the production or delivery of goods and services.