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# Historically, relations between workers and employers in the United...

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Historically, relations between workers and employers in the United... [#permalink]

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Updated on: 18 Jan 2018, 10:07
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46% (01:19) correct 54% (01:01) wrong based on 366

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69% (00:14) correct 31% (00:17) wrong based on 334

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79% (00:39) correct 21% (00:29) wrong based on 316

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Historically, relations between workers and employers in the United States have often been characterized by the employment-at-will doctrine, according to which the duration of employment is determined by the employer and the grounds for termination are limited only by the provisions of contracts and specific statutes. Many state courts and legislatures have reevaluated this doctrine and have modified it by expanding the concept of wrongful termination, thereby increasing employer liability. Some economic theorists suggest that such changes tend to reduce employment in states that enact them, because protecting workers against wrongful termination raises the cost of labor to employers: firms will tend to spend more time and money screening potential employees, be reluctant to terminate less-productive workers, and incur greater legal expenses. In a study that took into account differences among states, researchers Dertouzos and Karoly concluded that states with wrongful-termination laws experienced a two percent to five percent drop in their employment rate as a result of adopting these laws. They also found that the impact on employment appears to be smallest in manufacturing, where unions have already institutionalized similar protection, and in small firms, perhaps because those firms' lesser ability to pay damages makes it less profitable for employees to file wrongful-termination lawsuits against them.

1)The passage suggests which of the following regarding wrongful-termination lawsuits?

A)States that do not implement wrongful-termination laws will probably see an increase in wrongful-termination lawsuits.
B)It is less profitable to file wrongful-termination lawsuits against unionized companies than against companies without unions.
C)A wrongful-termination lawsuit is less costly to a company than continuing the employment of an unproductive worker.
D)Obtaining financial compensation is an important motivation for filing wrongful-termination lawsuits.
E)Those who file wrongful-termination lawsuits are likely to be awarded larger settlements under the employment-at-will doctrine than under wrongful-termination laws.

2)The primary purpose of the passage is to
A)explore the legal consequences of terminating a worker's employment
B)define the employment-at-will doctrine and chronicle its historical evolution
C)examine reasons underlying a trend away from the employment-at-will doctrine
D)advocate increased protection for workers against wrongful termination by employers
E)discuss a possible drawback of state laws intended to protect workers against wrongful termination

3)Which of the following best describes the organization of the passage?
A)An idea is proposed and arguments against it are examined and then refuted.
B)A doctrine is defined and reasons for favoring its adoption are listed.
C)A doctrine is criticized, several possible alternatives are outlined, and one is endorsed.
D)An idea is described, its antithesis is presented, and a synthesis of the two is proposed.
E)A doctrine is defined, a revision to it is described, and the implications of that revision are discussed.

Originally posted by DensetsuNo on 01 Aug 2016, 02:24.
Last edited by Gnpth on 18 Jan 2018, 10:07, edited 3 times in total.
Edited the question.
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01 Aug 2016, 11:58
DensetsuNo wrote:

my choices:
C
E
E

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01 Aug 2016, 12:05
1
robu wrote:
DensetsuNo wrote:

my choices:
C
E
E

Open the "spoilers" and you can find the answers $$;)$$
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16 Nov 2016, 02:41
I was stumped by the 1st question. Between B and D, I chose B.

Now come to think of it, B does not find justice from the information given in the passage while option D is more of an implied statement from the last line of the passage.

Experts please validate if the line of thinking is correct here?
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25 Nov 2016, 03:55
1
Top Contributor
2
Q1.

A - cannot be inferred. All we can infer from the passage is that states that implement wrongful termination laws will probably see a decline in unemployment rates. We cannot infer anything about states that do not implement such laws.
B - cannot be inferred.
All we know is that unions probably provide the same level of protection as wrongful termination laws do.
Secondly, the passage talks about only one industry sector (manufacturing) that is unionized.
C - opposite answer.
the passage clearly states - "firms will be reluctant to terminate less productive workers". this implies terminating the employment of those workers would become more costly than wrongful termination lawsuit.
D - correct answer. look at the last sentence -
"...perhaps because of those firms' lesser ability to pay damages makes it less profitable for employees to file wrongful termination lawsuits against them".
E - opposite answer. The passage makes it adequately clear that the new laws are more costly to companies.

Q2.
A - the passage discusses the economic consequences not legal.
B - the passage is not about employment at will but about wrongful termination. The passage does not chronicle (as in give a timeline).
C - the passage does not give reasons for adopting wrongful termination and neither is that the main theme of the passage.
D - the passage is descriptive and does not advocate any position.
E - correct answer. drawback = reduction in employment rate.

Q3.
organization -
employment at will (Doctrine)
wrongful termination (revision)
economic consequences of wrongful termination

E is the correct answer.
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04 Oct 2017, 07:57
1
Great passage. Took 6 min to solve. All correct.
Ques 1: B and D look close. But we are not sure if unions will provide the same protection as wrongful termination law do. Hence cannot be inferred.
D is correct since it is given that the firms' lesser ability to pay damages makes it less profitable for employees to file wrongful termination lawsuits against them.

Ques 2: The passage states the wrongful termination law and discuss the possible drawback of it. Hence E.

Ques 3: First the author describes the employment-at-will doctrine. Next, it describes a revision to it(wrongful termination) and finally the drawbacks of wrongful termination. Hence E.

Kudos if it helps
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10 Dec 2017, 05:55
devanshu92 wrote:
Great passage. Took 6 min to solve. All correct.
Ques 1: B and D look close. But we are not sure if unions will provide the same protection as wrongful termination law do. Hence cannot be inferred.
D is correct since it is given that the firms' lesser ability to pay damages makes it less profitable for employees to file wrongful termination lawsuits against them.

Ques 2: The passage states the wrongful termination law and discuss the possible drawback of it. Hence E.

Ques 3: First the author describes the employment-at-will doctrine. Next, it describes a revision to it(wrongful termination) and finally the drawbacks of wrongful termination. Hence E.

Kudos if it helps

Hi devanshu92 and all

I agree with Q1 and Q2, but I don´t understand Q1. How did you get to that conclusion. I couldn´t infer from the passage that "obtaining financial compensation is an important motivation for filing wrongful termination lawsuits". Only because in the last sentences of the text metions the profitability...??
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16 Dec 2017, 13:01
Thank you for the explanations. Is this really a 700 level passage? I got this today in my GMAT PREP 6 and I believe that this should be a 500 or a 600 kind. Please confirm!
CrackVerbalGMAT wrote:
Q1.

A - cannot be inferred. All we can infer from the passage is that states that implement wrongful termination laws will probably see a decline in unemployment rates. We cannot infer anything about states that do not implement such laws.
B - cannot be inferred.
All we know is that unions probably provide the same level of protection as wrongful termination laws do.
Secondly, the passage talks about only one industry sector (manufacturing) that is unionized.
C - opposite answer.
the passage clearly states - "firms will be reluctant to terminate less productive workers". this implies terminating the employment of those workers would become more costly than wrongful termination lawsuit.
D - correct answer. look at the last sentence -
"...perhaps because of those firms' lesser ability to pay damages makes it less profitable for employees to file wrongful termination lawsuits against them".
E - opposite answer. The passage makes it adequately clear that the new laws are more costly to companies.

Q2.
A - the passage discusses the economic consequences not legal.
B - the passage is not about employment at will but about wrongful termination. The passage does not chronicle (as in give a timeline).
C - the passage does not give reasons for adopting wrongful termination and neither is that the main theme of the passage.
D - the passage is descriptive and does not advocate any position.
E - correct answer. drawback = reduction in employment rate.

Q3.
organization -
employment at will (Doctrine)
wrongful termination (revision)
economic consequences of wrongful termination

E is the correct answer.
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30 Dec 2017, 07:21
its an awesome passage
1-D
2-E
3-E
the last line of the passage gives the answer for first question
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17 Jan 2018, 20:55
HI broall, Gnpth

I've converted JPG to word can you pls modify the original Post acordingly

Historically, relations between workers and employers in the United States have often been characterized by the employment-at-will doctrine, according to which the duration of employment is determined by the employer and the grounds for termination are limited only by the provisions of contracts and specific statutes. Many state courts and legislatures have reevaluated this doctrine and have modified it by expanding the concept of wrongful termination, thereby increasing employer liability. Some economic theorists suggest that such changes tend to reduce employment in states that enact them, because protecting workers against wrongful termination raises the cost of labor to employers: firms will tend to spend more time and money screening potential employees, be reluctant to terminate less-productive workers, and incur greater legal expenses. In a study that took into account differences among states, researchers Dertouzos and Karoly concluded that states with wrongful-termination laws experienced a two percent to five percent drop in their employment rate as a result of adopting these laws. They also found that the impact on employment appears to be smallest in manufacturing, where unions have already institutionalized similar protection, and in small firms, perhaps because those firms' lesser ability to pay damages makes it less profitable for employees to file wrongful-termination lawsuits against them.

1)The passage suggests which of the following regarding wrongful-termination lawsuits?

A)States that do not implement wrongful-termination laws will probably see an increase in wrongful-termination lawsuits.
B)It is less profitable to file wrongful-termination lawsuits against unionized companies than against companies without unions.
C)A wrongful-termination lawsuit is less costly to a company than continuing the employment of an unproductive worker.
D)Obtaining financial compensation is an important motivation for filing wrongful-termination lawsuits.
E)Those who file wrongful-termination lawsuits are likely to be awarded larger settlements under the employment-at-will doctrine than under wrongful-termination laws.

2)The primary purpose of the passage is to
A)explore the legal consequences of terminating a worker's employment
B)define the employment-at-will doctrine and chronicle its historical evolution
C)examine reasons underlying a trend away from the employment-at-will doctrine
D)advocate increased protection for workers against wrongful termination by employers
E)discuss a possible drawback of state laws intended to protect workers against wrongful termination

3)Which of the following best describes the organization of the passage?
A)An idea is proposed and arguments against it are examined and then refuted.
B)A doctrine is defined and reasons for favoring its adoption are listed.
C)A doctrine is criticized, several possible alternatives are outlined, and one is endorsed.
D)An idea is described, its antithesis is presented, and a synthesis of the two is proposed.
E)A doctrine is defined, a revision to it is described, and the implications of that revision are discussed.
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18 Jan 2018, 10:08
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NandishSS Thank you. I have edited the questions. Going forward. Please refer the below rules for posting in RC forum.

https://gmatclub.com/forum/rc-forum-rul ... 55874.html
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Re: Historically, relations between workers and employers in the United...   [#permalink] 18 Jan 2018, 10:08
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# Historically, relations between workers and employers in the United...

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