The Legal Environment of Business, 14th Edition The Legal Environment of Business, 14th Edition SOLUTION MANUAL The Legal Environment of Business, 14th Edition by Roger E. Meiners , Verified Chapters 1 - 22, Complete The Legal Environment of Business, 14th Edition The Legal Environment of Business, 14th Edition TABLE OF CONTENTS Chapter 1. Today’s Business Environment: Law and Ethics Chapter 2. The Court Systems Chapter 3. Trials and Resolving Disputes Chapter 4. The Constitution: Focus on Application to Business Chapter 5. Criminal Law and Business Chapter 6. Elements of Torts Chapter 7. Business Torts and Product Liability Chapter 8. Real and Personal Property Chapter 9. Intellectual Property Chapter 10. Contracts Chapter 11. Domestic and International Sales Chapter 12. Business Organizations Chapter 13. Negotiable Instruments, Credit, and Bankruptcy Chapter 14. Ag ency and the Employment Relationship Chapter 15. Employment and Labor Regulations Chapter 16. Employment Discrimination Chapter 17. The Regulatory Process Chapter 18. Securities Regulation Chapter 19. Consumer Protection Chapter 20. Antitrust Law Chapter 2 1. Environmental Law Chapter 22. The International Legal Environment of Business The Legal Environment of Business, 14th Edition The Legal Environment of Business, 14th Edition CHAPTER 1 Table of Contents Answer to Discussion Question ................................ ................................ .............................. 1 Answers to Case Questions ................................ ................................ ................................ ... 1 Answers to Ethics and Social Questions ................................ ................................ ................. 3 Answer to Discussion Question Should the common law maxim “Ignorance of the law is no excuse” apply to an immigrant who speaks little English and was not educated in the United States? How about for a tourist who does not speak English? Everyone knows criminal acts are prohibited, but what about subtler rules that differ across countries and so may be misunderstood by foreigners? Answer: It is generally true that ignorance of the law is no excuse. Citizens are deemed to have constructive knowledge of the law. Yet, as well known as this rule is, it is surprising how often it is proffered as an excuse. (A Westlaw search cases finds hundreds of examples). Examples include: Deluco v. Dezi (Conn. Super) (lack of knowledge regarding the state‘s usury laws is no excuse for the inclusion of an illegal interest rate in a sales contract); and Plumlee v. Paddock (ignorance of the fact that the subject matter of the contract was illegal was not excuse). The courts have provided a small exception to the rule when it comes to people in lack of English language skills. Consider Flanery v. Kuska, (defendant did not speak English was advised by a friend that an answer to a complaint was not required); Ramon v. Dept. of Transportation, (no English and an inability to understand the law required for an excuse); Yurechko v. County of Allegheny, (Ignorance and with the fact that the municipality suffered no hardship in late lawsuit filing was an excuse). Answers to Case Questions 1. Facts from an English judge’s decision in 1884: “The crew of an English yacht ........ were cast away in a storm on the high seas . . . and were compelled to put into an open boat. ...... They had no supply of water and no supply of food. . . . That on the eighteenth day . . . they.......suggested that one should be sacrificed to save the rest. . . . That next day . . . they . . . went to the boy ...... put a knife into his throat and killed him . . . the three men fed upon the body ...... of the boy for four days; [then] the boat was picked up by a passing vessel, and [they] were rescued. . . . and committed for trial. . . . if the men had not fed upon the body of the boy they would probably not have survived to be so picked up and rescued, but would ......have died of famine. The boy, being in a much weaker condition, was likely to have died before them ....... The real question in this case [is] whether killing under the conditions set forth ........be or be not murder.” Do you consider the acts to be immoral? [Regina v. Dudley and Stephens , 14 Queens Bench Division 273 (1884)] Answer: This points out that the legal system has limits. Its acceptability is dictated by legal culture --which determines whether law will be enforced, obeyed, avoided, or abused. It is limited by the informal rules of the society --its customs and values. One limit is the extent to which society will allow the formal rules to be imposed when a crime is committed in odd circumstances. Here there was an intentional murder. Does the motive for the murder, the effort to save several lives by sacrificing one The Legal Environment of Business, 14th Edition The Legal Environment of Business, 14th Edition life, make it a crime that should be punished? Not all crimes are treated the same. It also raises questions about the desirability of not giving judges flexibility in sentencing. There was a precedent for a light sentence in this case in U.S. law: U.S. v. Holmes, 20 F. Cas. 360 (No. 15383) (C.C.E.D. Pa. 1842). The case involved a sinking ocean liner. Several passengers made it to the only lifeboat, which was far too overcrowded. The captain decided to save the women and children and threw several men overboard. The lifeboat was rescued. The grand jury refused to indict the captain from murder, only for manslaughter. He got a six month sentence. The British judge in the case here imposed the death penalty upon the person who survived. The judge found it difficult to rule that every man on board had the right to make law by his own hand. The Crown reduced the sentence to six months. 2. Smoking is a serious health hazard. Cigarettes are legal. Should cigarette manufacturers be liable for the serious illnesses and untimely deaths caused by their unavoidably dangerous products, even though they post a warning on the package and consumers voluntarily assume the health risks by smoking? [Cipollone v. Liggett Group, Inc., 505 U.S. 504 (1992)] Answer: The general rule that exists now is that since the government has ordered the posting of warning labels on cigarettes, and since the dangers of smoking are well known, consumers have been warned and are not due compensation if they kill themselves by smoking. The Cippoline case, since reviewed by the Supreme Court, appears to be of limited impact since the victim was adjudged to have become addicted to cigarettes before the warning label was ordered in 1964. If cigarette makers were held responsible for all health problems associated with cigarettes, then, like alcohol and other dangerous products, the damages would likely be so high it would effectively ban the products. Presumably, in a free society if adults are clearly informed of the risks of products that cannot be made safe, they accept the risk. Tobacco and alcohol producers cannot take the dange rs out of the products except at the margin by encouraging responsible drinking and the like. Are drugs like cocaine different? 3. Two eight -year-old boys were seriously injured when riding Honda mini -trail bikes. The boys were riding on public streets, ran a stop sign, and were hit by a truck. The bikes had clear warning labels on the front stating they were only for off -road use. The manual stated the bikes were not to be used on public streets. The parents sued Honda. The supreme court of Washington said o ne basic issue existed: “Is a manufacturer liable when children are injured while riding one of its mini-trail bikes on a public road in violation of manufacturer and parental warnings?” Is it unethical to make products like mini-trail bikes children will use when we know accidents like this will happen? [ Baughn v. Honda Motor Co., 727 P.2d 655 Sup. Ct, Wash., (1986)] Answer: The court found no liability for the manufacturers. There was no defect; the product was safe for intended use. Safety instructions were clear; the parents let the boys ride the bikes. Anything can be dangerous --baseballs are dangerous when they hit the head, swings are dangerous when kids jump out of them; there is only so much that can be done to make the government the ―national nan ny‖ as the Washington Post once said about excessive consumer protection. Parents must accept a high degree of responsible for their own children. 4. Johnson Controls adopted a “fetal protection policy” that women of childbearing age could not work in the battery -making division of the company. Exposure to lead in the battery operation could cause harm to unborn babies. The company was concerned about possible legal liability for injury suffered by babies of mothers who had worked in the battery division. T he Supreme Court held the company policy was illegal. It was an “excuse for denying women equal employment opportunities.” Is the Court forcing the company to be unethical by allowing pregnant women who ignore the warnings to expose their babies to the lea d? [United Auto Workers v. Johnson Controls , 499 U.S. 187 (1991)] Answer: The Court held it a form of sex discrimination to prevent women of child -bearing age from holding the more dangerous jobs. The company argued that it did this to protect itself from possible liability in case of damage to babies and that the decision was ethical. The replacements for these workers were often men or more senior women, who tended to be higher income workers, so this
