Question

Adverse impact is a condition that occurs when the selection rate for women and minorities is less than 80 percent of the selection rate for the majority group in hiring, promotions, transfers, demotions, or any selection decision

Answer 1

The statement above is TRUE.
Adverse impact refers to an employment practice which seems neutral but which have a discriminatory effects on protected groups such as women and minority groups. Adverse impact may occur in hiring, appraisal process, transfer, promotion, etc.