,TABLE OF CONTENTS
o o o
Chaptero1.oToday’soBusinessoEnvironment:oLawoandoEthics
Chaptero2.oTheoCourtoSystems
Chaptero3.oTrialsoandoResolvingoDisputes
Chaptero4.oTheoConstitution:oFocusoonoApplicationotooBusiness
Chaptero5.oCriminaloLawoandoBusiness
Chaptero6.oElementsoofoTorts
Chaptero7.oBusinessoTortsoandoProductoLiability
Chaptero8.oRealoandoPersonaloProperty
Chaptero9.oIntellectualoProperty
Chaptero10.oContracts
Chaptero11.oDomesticoandoInternationaloSales
Chaptero12.oBusinessoOrganizations
Chaptero13.oNegotiableoInstruments,oCredit,oandoBankruptcy
Chaptero14.oAgencyoandotheoEmploymentoRelationship
Chaptero15.oEmploymentoandoLaboroRegulations
Chaptero16.oEmploymentoDiscrimination
Chaptero17.oTheoRegulatoryoProcess
Chaptero18.oSecuritiesoRegulation
Chaptero19.oConsumeroProtection
Chaptero20.oAntitrustoLaw
Chaptero21.oEnvironmentaloLaw
Chaptero22.oTheoInternationaloLegaloEnvironmentoofoBusiness
,CHAPTER 1 o
Table of Contents
o o
AnswerotooDiscussionoQuestion.................................................................................................................... 1
AnswersotooCaseoQuestions .......................................................................................................................... 1
AnswersotooEthicsoandoSocialoQuestions ...................................................................................................... 3
Answer to Discussion Question
o o o
Shouldotheocommonolawomaximo“Ignoranceoofotheolawoisonooexcuse”oapplyotooanoimmigrantowhoospeaksolittleoEngl
ishoandowasonotoeducatedoinotheoUnitedoStates?oHowoaboutoforoaotouristowhoodoesonotospeakoEnglish?oEveryoneo
knowsocriminaloactsoareoprohibited,obutowhatoaboutosubtlerorulesothatodifferoacrossocountriesoandosoomayobeomis
understoodobyoforeigners?
Answer:oItoisogenerallyotrueothatoignoranceoofotheo lawoisonooexcuse.oCitizensoareodeemedotoohaveoconstructiveok
nowledgeoofotheolaw.oYet,oasowelloknownoasothisoruleois,oitoisosurprisingohowooftenoitoisoprofferedoasoanoexc
use.o(AoWestlawosearchocasesofindsohundredsoofoexamples).oExamplesoinclude:oDelucoov.oDezio(Conn.oSuper
)o(lackoofoknowledgeoregardingotheostate‘sousuryolawsoisonooexcuseoforotheoinclusionoofoanoillegalointerestora
teoinoaosalesocontract);oandoPlumleeov.oPaddocko(ignoranceoofotheofactothatotheosubjectomatteroofotheocontr
actowasoillegalowasonotoexcuse).oTheocourtsohaveoprovidedoaosmalloexceptionotootheoruleowhenoitocomesotoo
peopleoinolackoofoEnglisholanguageoskills.oConsideroFlaneryov.oKuska,o(defendantodidonotospeakoEnglishowaso
advisedobyoaofriendothatoanoanswerotooaocomplaintowasonotorequired);oRamonov.oDept.oofoTransportation,o(
nooEnglishoandoanoinabilityotoounderstandotheolaworequiredoforoanoexcuse);o Yurechkoov.oCountyoofoAlleghen
y,o(Ignoranceoandowithotheofactothatotheomunicipalityosufferedonoohardshipoinolateolawsuitofilingowasoanoexc
use).
Answers to Case Questions
o o o
1. FactsofromoanoEnglishojudge’sodecisionoino1884:o“TheocrewoofoanoEnglishoyacht .................wereocastoawayoin
aostormoonotheohighoseaso.o.o.oandowereocompelledotooputointooanoopenoboat. ............. Theyohadonoosupply
ofowateroandonoosupplyoofofood.o.o.o.oThatoonotheoeighteenthodayo.o.o.othey ............ suggestedothatoone
shouldobeosacrificedotoosaveotheorest.o.o.o.oThatonextodayo.o.o.otheyo.o.o.owentotootheoboy ............. putoaoknife
intoohisothroatoandokilledohimo.o.o.otheothreeomenofedouponotheobody ...........ofotheoboyoforofourodays;o[then]
theoboatowasopickedoupobyoaopassingovessel,oando[they]owereorescued.o.o.o.oandocommittedoforotrial.o.o.o.
ifotheomenohadonotofedouponotheobodyoofotheoboyotheyowouldoprobablyonotohaveosurvivedotoobeosoopick
edoupoandorescued,obutowould................. haveodiedoofofamine.oTheoboy,obeingoinoaomuchoweaker
condition,owasolikelyotoohaveodiedobeforeothem............ Theorealoquestionoinothisocaseo[is]owhetherokilling
underotheoconditionsosetoforth ......... beoorobeonotomurder.”oDooyouoconsiderotheoactsotoobeoimmoral?
[Reginaov.oDudleyoandoStephens,o14oQueensoBenchoDivisiono273o(1884)]
Answer:oThisopointsooutothatotheolegalosystemohasolimits.oItsoacceptabilityoisodictatedobyolegaloculture--
whichodeterminesowhetherolawowillobeoenforced,oobeyed,oavoided,ooroabused.oItoisolimitedobyotheoinformalor
ulesoofotheosociety--
itsocustomsoandovalues.oOneolimitoisotheoextentotoowhichosocietyowilloallowotheoformalorulesotoobeoimposedo
whenoaocrimeoisocommittedoinooddocircumstances.oHereothereowasoanointentionalomurder.oDoesotheomotive
oforotheomurder,otheoeffort otoosaveoseveralolivesobyosacrificingoone
, life,omakeoitoaocrimeothatoshouldobeopunished?oNotoallocrimesoareotreatedotheosame.o Itoalsooraisesoquestionsoa
boutotheodesirabilityoofonotogivingojudgesoflexibilityoinosentencing.
ThereowasoaoprecedentoforoaolightosentenceoinothisocaseoinoU.S.olaw:o U.S.ov.oHolmes,o20oF.oCas.o360o(No.o153
83)o(C.C.E.D.oPa.o1842).oTheocaseoinvolvedoaosinkingooceanoliner.oSeveralopassengersomadeoitotootheoonlyolife
boat,owhichowasofarotoooovercrowded.oTheocaptainodecidedotoosaveotheowomenoandochildrenoandothrewo se
veralo menooverboard.o Theolifeboato waso rescued.o Theo grando juryorefusedotooindictotheocaptainofromomurder
,oonlyoforomanslaughter.oHeogotoaosixomonthosentence.
TheoBritishojudgeoinotheocaseohereoimposedotheodeathopenaltyouponotheopersonowhoosurvived.oTheojudg
eofoundoitodifficultotooruleothatoeveryomanoonoboardohadotheorightotoomakeolawobyohisoownohand.oTheoC
rownoreducedotheosentenceotoosixomonths.
2. Smokingoisoaoseriousohealthohazard.oCigarettesoareolegal.oShouldocigaretteomanufacturersobeoliableoforotheos
eriousoillnessesoandountimelyodeathsocausedobyotheirounavoidablyodangerousoproducts,oevenothoughotheyopo
stoaowarningoonotheopackageoandoconsumersovoluntarilyoassumeotheohealthorisksobyosmoking?o[Cipolloneo v.
oLiggettoGroup,oInc.,o505oU.S.o504o(1992)]
Answer:oTheogeneraloruleothatoexistsonowoisothatosinceotheogovernmentohasoorderedotheopostingoofowarningolabel
soonocigarettes,oandosinceotheodangersoofosmokingoareowelloknown,oconsumersohaveobeenowarnedoandoareo
notodueocompensationoifotheyokillothemselvesobyosmoking.oTheo Cippolineocase,osinceoreviewedobyotheoSupre
meoCourt,oappearsotoobeoofolimitedoimpactosinceotheo victimowasoadjudgedotoohaveobecomeoaddictedotoocig
arettesobeforeotheowarningolabelowasoorderedoino1964.oIfocigaretteomakersowereoheldoresponsibleoforoalloh
ealthoproblemsoassociatedowithocigarettes,othen,olikeoalcoholoandootherodangerousoproducts,otheodamageso
wouldolikelyobeosoohighoitowouldoeffectivelyobanotheoproducts.oPresumably,oinoaofreeosocietyoifoadultsoareocl
earlyoinformedoofotheorisksoofoproductsothatocannotobeomadeosafe,otheyoacceptotheorisk.oTobaccooandoalcoh
oloproducersocannototakeotheodangersooutoofotheoproductsoexceptoatotheomarginobyoencouragingoresponsibl
eodrinkingoandotheolike.oAreodrugsolikeococaineodifferent?
3. Twooeight-year-oldoboysowereoseriouslyoinjuredowhenoridingoHondaomini-
trailobikes.oTheoboysowereoridingoonopublicostreets,oranoaostoposign,oandowereohitobyoaotruck.oTheobikesohadoc
learowarningolabelsoonotheofrontostatingotheyowereoonlyoforooff-
roadouse.oTheomanualostatedotheobikesowereonototoobeousedoonopublicostreets.oTheoparentsosuedoHonda.oTheo
supremeocourtoofoWashingtonosaidooneobasicoissueoexisted:o“Isoaomanufactureroliableowhenochildrenoareoinju
redowhileoridingooneoofoitsomini-
trailobikesoonoaopublicoroadoinoviolationoofomanufactureroandoparentalowarnings?”oIsoitounethicalotoomakeopr
oductsolikeomini-
trailobikesochildrenowillouseowhenoweoknowoaccidentsolikeothisowillohappen?o[Baughnov.oHondaoMotoroCo.,o7
27oP.2do655oSup.oCt,oWash.,o(1986)]
Answer:oTheocourtofoundonooliabilityoforotheomanufacturers.oThereowasonoodefect;otheoproductowasosafeoforointe
ndedouse.oSafetyoinstructionsowereoclear;otheoparentsoletotheoboysorideotheobikes.oAnythingocanobeodangero
us--
baseballsoareodangerousowhenotheyohitotheohead,oswingsoareodangerousowhenokidsojumpooutoofothem;other
eoisoonlyosoomuchothatocanobeodoneotoomakeotheogovernmentotheo―nationalonanny‖oasotheoWashingtonoPo
stoonceosaidoaboutoexcessiveoconsumeroprotection.oParentsomustoacceptoaohighodegreeooforesponsibleoforot
heiroownochildren.
4. JohnsonoControlsoadoptedoao“fetaloprotectionopolicy”othatowomenoofochildbearingoageocouldonotoworkoinoth
eobattery-
makingodivisionoofotheocompany.oExposureotooleadoinotheobatteryooperationocouldocauseoharmotoounbornoba
bies.oTheocompanyowasoconcernedoaboutopossibleolegaloliabilityoforoinjuryosufferedobyobabiesoofomothersowh
oohadoworkedoinotheobatteryodivision.oTheoSupremeoCourtoheldotheocompanyopolicyowasoillegal.oItowasoano“e
xcuseoforodenyingowomenoequaloemploymentoopportunities.”oIsotheoCourtoforcingotheocompanyotoobeounethi
calobyoallowingopregnantowomenowhooignoreotheowarningsotooexposeotheirobabiesotootheolead?o[UnitedoAut
ooWorkersov.oJohnsonoControls,o499oU.S.o187o(1991)]
