Future Business Leaders of America (FBLA) Business Law Practice Exam

What term describes a policy that results in unequal treatment despite neutral practices?

1. Disparate impact

2. Discriminatory intent

3. Institutional bias

4. Systemic inequality

The correct answer is: Disparate impact

The term that best describes a policy resulting in unequal treatment despite neutral practices is "disparate impact." This concept comes from employment law and anti-discrimination statutes, where a policy or practice may appear neutral on its face but disproportionately affects individuals of a particular group. Disparate impact focuses on the outcomes of the policies rather than the intent behind them. For example, a hiring practice requiring a certain high school diploma could seem neutral, but if it disproportionately excludes candidates from certain demographic groups who may not have had equal access to education, it can be deemed as having a disparate impact on those groups. This highlights the importance of examining the consequences of policies, ensuring that they do not inadvertently lead to discrimination against protected classes. Other concepts, such as discriminatory intent, refer specifically to the purpose behind a practice or policy meant to discriminate, which differs from the focus on effects found in disparate impact. Similarly, institutional bias and systemic inequality involve broader patterns of disadvantage within systems and structures, rather than the narrow context of individual neutral policies contributing to unequal outcomes.