The Business Necessity Defense Requires the Employer to Show

question 21

Multiple Choice

The Business Necessity Defense requires the employer to show

• A) that the challenged policy is job related and is a legitimate requirement for the job.
• B) that there is a legitimate, nondiscriminatory reason for the alleged discriminatory conduct.
• C) that the information provided by the employee is false.
• D) None of the choices are correct.

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Definitions:

Income Effect

The change in an individual’s or economy’s income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less expensive ones.

Interest-Rate Increase

A rise in the cost of borrowing money, reflected in a higher percentage charged on loans and credits.

Consumer Optimum

A state where a consumer has allocated their resources in such a way that maximizes their utility, given their budget constraint.