SOLUTIONS MANUAL
Business Law and the Legal Environment:
ST
Standard Edition
Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril
UV
────────────────────────────────────────────────────
10th Edition
IA
?_
AP
PR
OV
SOLUTIONS
ED
??
MANUAL
, Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition 10e, ©2026,
9798214045207; Chapter 1: Introduction to Law
Solution and Answer Guide
ST
Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition
10e, ©2026, 9798214045207; Chapter 1: Introduction to Law
TABLE OF CONTENTS
UV
Multiple Choice Questions ............................................................................... 1
Additional Exam Strategy Questions .................................................................. 2
Case Questions ..............................................................................................3
IA
Discussion Questions .................................................................................... 4
MULTIPLE CHOICE QUESTIONS
?_
1. The United States Constitution is among the finest legal accomplishments in the
history of the world. Which of the following influenced Ben Franklin, Thomas
Jefferson, and the rest of the Founding Fathers?
AP
I. English common-law principles
II. The Iroquois system of federalism
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II
PR
Answer: C.
2. Which of the following parts of the modern legal system are “borrowed” from medieval
England?
a. Jury trials
OV
b. Special rules for selling land
c. Following precedent
d. All of these
Answer: D
3. Union organizers at a hospital wanted to distribute leaflets to potential union
ED
members, but hospital rules prohibited leafleting in areas of patient care, hallways,
cafeterias, and any areas open to the public. The National Labor Relations Board
(NLRB), a government agency, ruled that these restrictions violated the law and
ordered the hospital to permit the activities in the cafeteria and coffee shop. What
kind of law was NLRB creating?
a. A statute
??
b. Common law
c. A constitutional amendment
d. Administrative regulation
© 2026CengageLearning, Inc. 1
, Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition 10e, ©2026,
9798214045207; Chapter 1: Introduction to Law
Answer: D. The NLRB, as an agency, creates regulations. Congress creates statutes,
and judges shape the common law.
ST
4. For a statute to become law, Congress must pass it by a:
I. Majority vote in the House
II. Majority vote in the Senate
III. Two-thirds vote in the House, but only if the president has first vetoed it
UV
IV. Two-thirds vote in the Senate, but only if the president has first vetoed it
a. Just I and II
b. Just III and IV
c. All of these
d. None of these
Answer: C
IA
5. Dr. Martin Luther King, Jr., wrote “An unjust law is no law at all.” As such, “One has ...
a moral responsibility to disobey unjust laws.” Dr. King’s view is an example of:
a. legal realism.
b. jurisprudence.
?_
c. legal positivism.
d. natural law.
Answer: D
AP
ADDITIONAL EXAM STRATEGY QUESTIONS
1. The stock market crash of 1929 and the Great Depression that followed were caused,
in part, because so many investors blindly put their money into stocks they knew
nothing about. During the 1920s, it was often impossible for an investor to find out
PR
what a corporation was planning to do with its money, who was running the
corporation, and many other vital things. Congress responded by passing the Securities
Act of 1933, which required a corporation to divulge more information about itself
before it could seek money for a new stock issue. What kind of law did Congress
create?
OV
Strategy: What is the question seeking? The question asks you which type of law
Congress created when it passed the 1933 Securities Act. What are the primary kinds
of law? Administrative law consists of rules passed by agencies. Congress is not a
federal agency. Common law is the body of cases decided by judges. Congress is not a
judge. Statutes are laws passed by legislatures. Congress is a legislature.
Solution: The Securities Act of 1933 is a statute.
ED
2. Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water.
Bill meets a stranger who introduces herself as Katrina. Bill sells a kilo of cocaine to
Katrina, who then flashes a badge and mentions how much she enjoys her job at the
Drug Enforcement Agency. Diane, heading back to camp with the water, meets Freddy,
a motorist whose car has overheated. Freddy is late for a meeting where he expects to
??
make a $30 million profit; he’s desperate for water for his car. He promises to pay
Diane $500 tomorrow if she will give him the pail of water, which she does. The next
day, Bill is in jail and Freddy refuses to pay for Diane’s water. Explain the criminal
©2026CengageLearning,Inc. 2
, Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition 10e, ©2026,
9798214045207; Chapter 1: Introduction to Law
law/civil law distinction and what it means to Bill and Diane. Who will do what to
whom, with what results?
ST
Strategy: You are asked to distinguish between criminal and civil law. What is the
difference? Criminal law concerns behavior that threatens society and is therefore
outlawed. The government prosecutes the defendant. Civil law deals with the rights
and duties between parties. One party files a suit against the other. Apply those
different standards to these facts.
UV
Solution: The government will prosecute Bill for dealing in drugs. If convicted, he
will go to prison. The government will take no interest in Diane’s dispute. However,
if she chooses, she may sue Freddy for $500, the amount he promised her for the
water. In that civil lawsuit, a court will decide whether Freddy must pay what he
promised; however, even if Freddy loses, he will not go to jail.
IA
CASE QUESTIONS
?_
1. Lance, a hacker, stole 15,000 credit card numbers and sold them on the dark web,
making millions. Police caught Lance, and two legal actions followed, one civil and one
criminal. Who will be responsible for bringing the civil case? What will be the outcome
if the jury believes that Lance was responsible for identity thefts? Who will be
responsible for bringing the criminal case? What will be the outcome if the jury
believes that Lance stole the numbers?
AP
Solution: The civil cases will be brought by the victims of identity theft, and the
outcome of a successful case against Lance would be some type of monetary
award for damages suffered. The criminal case will be brought by state
prosecutors and the outcome would be imprisonment for Lance.
PR
2. As The Oculist’s Case indicates, the medical profession has faced many lawsuits for
centuries. In Texas, a law provides that, so long as a doctor was not reckless and did
not intentionally harm a patient, recovery for “pain and suffering” is limited to
$250,000. In many other states, no such limit exists. If a patient will suffer a lifetime
of pain after a botched operation, for example, they might recover millions in
OV
compensation. Which rule seems more sensible to you—the Texas rule or the
alternative?
Solution: Answers may include the following:
Some students may focus on the patients, saying that $250,000 is not
enough for some patients who are destined to live their entire lives in
ED
pain and unable to accomplish many of their personal and professional
goals because of poor health.
Other students, however, may focus on the larger healthcare system,
noting that unchecked awards could have an adverse effect on the
public as a whole. For example, if patients are routinely awarded
??
millions for pain and suffering, doctors will more comprehensive
malpractice insurance coverage, and these expenses will be passed
along to the public through higher healthcare costs.
©2026CengageLearning,Inc. 3
Business Law and the Legal Environment:
ST
Standard Edition
Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril
UV
────────────────────────────────────────────────────
10th Edition
IA
?_
AP
PR
OV
SOLUTIONS
ED
??
MANUAL
, Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition 10e, ©2026,
9798214045207; Chapter 1: Introduction to Law
Solution and Answer Guide
ST
Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition
10e, ©2026, 9798214045207; Chapter 1: Introduction to Law
TABLE OF CONTENTS
UV
Multiple Choice Questions ............................................................................... 1
Additional Exam Strategy Questions .................................................................. 2
Case Questions ..............................................................................................3
IA
Discussion Questions .................................................................................... 4
MULTIPLE CHOICE QUESTIONS
?_
1. The United States Constitution is among the finest legal accomplishments in the
history of the world. Which of the following influenced Ben Franklin, Thomas
Jefferson, and the rest of the Founding Fathers?
AP
I. English common-law principles
II. The Iroquois system of federalism
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II
PR
Answer: C.
2. Which of the following parts of the modern legal system are “borrowed” from medieval
England?
a. Jury trials
OV
b. Special rules for selling land
c. Following precedent
d. All of these
Answer: D
3. Union organizers at a hospital wanted to distribute leaflets to potential union
ED
members, but hospital rules prohibited leafleting in areas of patient care, hallways,
cafeterias, and any areas open to the public. The National Labor Relations Board
(NLRB), a government agency, ruled that these restrictions violated the law and
ordered the hospital to permit the activities in the cafeteria and coffee shop. What
kind of law was NLRB creating?
a. A statute
??
b. Common law
c. A constitutional amendment
d. Administrative regulation
© 2026CengageLearning, Inc. 1
, Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition 10e, ©2026,
9798214045207; Chapter 1: Introduction to Law
Answer: D. The NLRB, as an agency, creates regulations. Congress creates statutes,
and judges shape the common law.
ST
4. For a statute to become law, Congress must pass it by a:
I. Majority vote in the House
II. Majority vote in the Senate
III. Two-thirds vote in the House, but only if the president has first vetoed it
UV
IV. Two-thirds vote in the Senate, but only if the president has first vetoed it
a. Just I and II
b. Just III and IV
c. All of these
d. None of these
Answer: C
IA
5. Dr. Martin Luther King, Jr., wrote “An unjust law is no law at all.” As such, “One has ...
a moral responsibility to disobey unjust laws.” Dr. King’s view is an example of:
a. legal realism.
b. jurisprudence.
?_
c. legal positivism.
d. natural law.
Answer: D
AP
ADDITIONAL EXAM STRATEGY QUESTIONS
1. The stock market crash of 1929 and the Great Depression that followed were caused,
in part, because so many investors blindly put their money into stocks they knew
nothing about. During the 1920s, it was often impossible for an investor to find out
PR
what a corporation was planning to do with its money, who was running the
corporation, and many other vital things. Congress responded by passing the Securities
Act of 1933, which required a corporation to divulge more information about itself
before it could seek money for a new stock issue. What kind of law did Congress
create?
OV
Strategy: What is the question seeking? The question asks you which type of law
Congress created when it passed the 1933 Securities Act. What are the primary kinds
of law? Administrative law consists of rules passed by agencies. Congress is not a
federal agency. Common law is the body of cases decided by judges. Congress is not a
judge. Statutes are laws passed by legislatures. Congress is a legislature.
Solution: The Securities Act of 1933 is a statute.
ED
2. Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water.
Bill meets a stranger who introduces herself as Katrina. Bill sells a kilo of cocaine to
Katrina, who then flashes a badge and mentions how much she enjoys her job at the
Drug Enforcement Agency. Diane, heading back to camp with the water, meets Freddy,
a motorist whose car has overheated. Freddy is late for a meeting where he expects to
??
make a $30 million profit; he’s desperate for water for his car. He promises to pay
Diane $500 tomorrow if she will give him the pail of water, which she does. The next
day, Bill is in jail and Freddy refuses to pay for Diane’s water. Explain the criminal
©2026CengageLearning,Inc. 2
, Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment - Standard Edition 10e, ©2026,
9798214045207; Chapter 1: Introduction to Law
law/civil law distinction and what it means to Bill and Diane. Who will do what to
whom, with what results?
ST
Strategy: You are asked to distinguish between criminal and civil law. What is the
difference? Criminal law concerns behavior that threatens society and is therefore
outlawed. The government prosecutes the defendant. Civil law deals with the rights
and duties between parties. One party files a suit against the other. Apply those
different standards to these facts.
UV
Solution: The government will prosecute Bill for dealing in drugs. If convicted, he
will go to prison. The government will take no interest in Diane’s dispute. However,
if she chooses, she may sue Freddy for $500, the amount he promised her for the
water. In that civil lawsuit, a court will decide whether Freddy must pay what he
promised; however, even if Freddy loses, he will not go to jail.
IA
CASE QUESTIONS
?_
1. Lance, a hacker, stole 15,000 credit card numbers and sold them on the dark web,
making millions. Police caught Lance, and two legal actions followed, one civil and one
criminal. Who will be responsible for bringing the civil case? What will be the outcome
if the jury believes that Lance was responsible for identity thefts? Who will be
responsible for bringing the criminal case? What will be the outcome if the jury
believes that Lance stole the numbers?
AP
Solution: The civil cases will be brought by the victims of identity theft, and the
outcome of a successful case against Lance would be some type of monetary
award for damages suffered. The criminal case will be brought by state
prosecutors and the outcome would be imprisonment for Lance.
PR
2. As The Oculist’s Case indicates, the medical profession has faced many lawsuits for
centuries. In Texas, a law provides that, so long as a doctor was not reckless and did
not intentionally harm a patient, recovery for “pain and suffering” is limited to
$250,000. In many other states, no such limit exists. If a patient will suffer a lifetime
of pain after a botched operation, for example, they might recover millions in
OV
compensation. Which rule seems more sensible to you—the Texas rule or the
alternative?
Solution: Answers may include the following:
Some students may focus on the patients, saying that $250,000 is not
enough for some patients who are destined to live their entire lives in
ED
pain and unable to accomplish many of their personal and professional
goals because of poor health.
Other students, however, may focus on the larger healthcare system,
noting that unchecked awards could have an adverse effect on the
public as a whole. For example, if patients are routinely awarded
??
millions for pain and suffering, doctors will more comprehensive
malpractice insurance coverage, and these expenses will be passed
along to the public through higher healthcare costs.
©2026CengageLearning,Inc. 3
