Future Business Leaders of America (FBLA) Business Management Practice Test

The National Labor Relations Act primarily regulates the relationship between businesses and?

1. the government

2. unions

3. employment agencies

4. the IRS

The correct answer is: unions

The National Labor Relations Act (NLRA) primarily regulates the relationship between businesses and unions because its main purpose is to protect the rights of employees to organize, engage in collective bargaining, and take part in concerted activities for their mutual aid and protection. The Act establishes the National Labor Relations Board (NLRB), which oversees the enforcement of labor laws related to unionization and collective bargaining. By providing a legal framework, the NLRA encourages the formation of unions and allows for negotiations between employers and these unions regarding working conditions, wages, and other employment terms. This relationship is pivotal to the functioning of labor markets in the United States, giving unions a platform to advocate for workers' rights effectively. In contrast, while the government does establish labor laws and regulations, it is not the focus of the NLRA. Employment agencies serve a different purpose, primarily related to job placement and recruitment, and the Internal Revenue Service (IRS) is concerned with federal tax laws rather than labor relations. Thus, the connection between businesses and unions is central to the NLRA's role in labor relations.