Explanation: The McNamaraO'Hara Service Contract Act (1965) covers federal service contracts, but the Fair Labor Standards Act does not. The Fair Labor Standards Act does, however, cover minimum wage requirements, exemption conditions for employees, work conditions for children under 18, and overtime. As a result, answer choices A, B, C, and D are all incorrect.

Explanation: Employees who are terminated for gross misconduct receive no COBRA coverage. This is really the only circumstance in which employees may be denied COBRA coverage. Even when an employee becomes eligible for Social Security benefits, he still receives COBRA coverage for 18 months. An employee who is terminated for reasons other than gross misconduct also continues to receive coverage for 18 months.

Explanation: The Foreign Corrupt Practices Act (FCPA) was created specifically to prevent American businesses from bribing foreign governments. This act has nothing to do with the illegal trafficking of merchandise (answer choice A) or changing the level of imports (answer choice B). And while the larger role of the act is to maintain fair standards, answer choice C is incorrect because it is not clear about the nature of these fair standards. And answer choice E is incorrect because the FCPA is not relevant to protecting American workers overseas but rather focuses on the relationship between American businesses and foreign governments.

Explanation: The Worker Adjustment and Retraining Notification Act stipulates that employers with more than a hundred employees must provide at least sixty days notice to workers and unions before closing a factory or plant. This legislation is generally referred to as the WARN Act. Its intention was not only to alert employees, but to enable the federal government to assist in the retraining of the soontobedisplaced workers.

Explanation: ERISA (the Employee Retirement Income Security Act of 1974) mandates that employees who use graded vesting must be fully vested in a qualified plan within seven years. The original version of this act had looser vesting requirements. ERISA also asserts that employees who use cliff vesting must be fully vested in a qualified plan within five years.