LAW & ETHICS IN THE BUSINESS ENVIRONMENT 8e
Instructor’s Manual
CHAPTER ONE
LAW, ETHICS, BUSINESS: AN INTRODUCTION
MAIN CONCEPTS
Freedom versus responsibility / Duty to rescue
Ethical decision making
Ethical theories:
Free market ethics
Utilitarianism
Deontology
Virtue ethics
Ethic of care
Corporate governance
Corporations, public policy and money
Corporate social responsibility
Benefit corporations
,INTRODUCTORY TIPS
Try this hypothetical: If you were walking down the street and saw an infant lying face
down in a puddle of water, flailing its little arms and clearly about to drown, would you
have to rescue her? Students are invariably surprised and disgusted to learn that
bystanders have no legal duty to help others in emergency situations, even when it would
be easy for them to do so without risk. Discussion from here could follow two tacks:
(1) Noting the divergence between law and ethics, between what is required by the law
and what most people would think is the right thing to do.
(2) Asking why the legal requirement is so minimal. (Traditional distinction between
"misfeasance v. nonfeasance;" high value placed upon allowing maximum free choice to
each person; the difficulty of implementing a rescue requirement.) This should lead into
one of the themes of this chapter (and of the book): individual freedom vs. duty to others;
individual independence vs. our interdependence within families, corporations, and
communities.
Consider also the economic power of large corporations. For example, as noted in the
text, Royal Dutch/Shell, Exxon, Mobil, Walmart, BP and Sinopec generated more income
in 2011 than nine countries including Denmark and Greece. Discuss the effect that such
economic power has on citizens of this country and citizens of other countries in which
multinational corporations operate. What about political contributions? Do large
corporations have too much power? What about large-scale advertising and the power of
corporations to sway public opinion?
Another issue for discussion would involve the duty of large multinational corporations
to citizens of countries in which they operate. For example, if corporations are reaping
large profits because of the availability of cheap labor in third world countries, should the
corporations recognize a duty to improve conditions there or should the corporations
recognize a duty only to stockholders? What does it mean to humanize capitalism? How
can multinational corporations avoid exploitation? Discuss the need for adequate safety
measures and environmental protection even in countries where laws on such matters
may be lax.
, *****
FREEDOM VERSUS RESPONSIBILITY: A DUTY TO RESCUE?
The chapter questions that immediately follow the Yania casebook materials require
critical engagement with the readings. Students will present with varying experiences
with the law and different skill sets to synthesize the content for their formulating
responses. A “case” brief is a tool familiar to individuals studying law --- undergraduate
students, law students, lawyers, and the judiciary. Appendix A includes an illustration
brief of Yania v. Bigan. For further guidance, an excellent resource of “How to Brief a
Case” can be found at John Jay College of Criminal Justice, Lloyd Sealy Library site,
http://www.lib.jjay.cuny.edu/research/brief.html. These materials supplement Appendix
A and offer further information, sample briefs and identify the relationship between care
briefing and legal writing.
Yania v. Bigan, Case Questions, p. 4
1. What happened in this case? If Yania couldn’t swim, then why did he jump?
Yania was on his friend Bigan’s property, was asked to help with the pump. The
widow apparently contends that Bigan dared (or convinced) Yania to jump across the
trench, and Yania must have decided to try, even though he couldn’t swim. Explain the
pre-trial dismissal that leaves us with only the widow’s version of the facts. Discuss
the fact that the judge considered only the widow’s version of the facts because he was
considering whether to dismiss the case without a trial. The judge determined that
even if everything the widow alleged in the complaint were true, there was no basis
upon which she could win and that the case should, therefore, be dismissed without a
trial.
2. Identify each of the arguments made by Yania's widow. For each, explain how
the judge dealt with it.
, Bigan caused Yania to jump by either persuasion or by teasing and taunting
him. The judge explains that although a child or a mentally deficient person
might have had their will overcome by an adult, "an adult in full possession of
his mental faculties" should not have been induced to jump in such a
dangerous situation.
Bigan, as landowner, had an obligation to warn Yania of any dangerous
conditions on his property. The facts established that Yania was a coal strip-
mine operator and would have been aware of dangers in the water-filled
trench. This is an opportunity to explain to the students that landowners owe a
duty of care to those on their property in most states according to an ascending
series of categories, from trespasser to licensee (Yania here) to invitee.
Additionally, an employee who is injured on the job generally receives
workers’ compensation payments even if the employee’s own negligence
caused the injury. Accordingly, if Yania had been an employee of Bigan,
compensation would have been available.
Bigan owed a duty to rescue Yania. Yania chose to jump into the trench ("he
voluntarily placed himself in the way of danger"). Although Bigan might
have a moral obligation to go to Yania’s aid, he had no legal obligation to do
so. It may be worth asking students why Bigan did not jump in to save Yania.
Could it be that there was potential risk of harm or death to Bigan? Could it
be that the death occurred so quickly that there was no opportunity to save
Yania?
3. According to the judge, Bigan would have been liable in this case under certain
circumstances that did not apply here. What are those circumstances?
Bigan would have been liable if Yania was a child or mentally deficient, or if he had
failed to warn Yania of a danger of which Yania was unaware.
Instructor’s Manual
CHAPTER ONE
LAW, ETHICS, BUSINESS: AN INTRODUCTION
MAIN CONCEPTS
Freedom versus responsibility / Duty to rescue
Ethical decision making
Ethical theories:
Free market ethics
Utilitarianism
Deontology
Virtue ethics
Ethic of care
Corporate governance
Corporations, public policy and money
Corporate social responsibility
Benefit corporations
,INTRODUCTORY TIPS
Try this hypothetical: If you were walking down the street and saw an infant lying face
down in a puddle of water, flailing its little arms and clearly about to drown, would you
have to rescue her? Students are invariably surprised and disgusted to learn that
bystanders have no legal duty to help others in emergency situations, even when it would
be easy for them to do so without risk. Discussion from here could follow two tacks:
(1) Noting the divergence between law and ethics, between what is required by the law
and what most people would think is the right thing to do.
(2) Asking why the legal requirement is so minimal. (Traditional distinction between
"misfeasance v. nonfeasance;" high value placed upon allowing maximum free choice to
each person; the difficulty of implementing a rescue requirement.) This should lead into
one of the themes of this chapter (and of the book): individual freedom vs. duty to others;
individual independence vs. our interdependence within families, corporations, and
communities.
Consider also the economic power of large corporations. For example, as noted in the
text, Royal Dutch/Shell, Exxon, Mobil, Walmart, BP and Sinopec generated more income
in 2011 than nine countries including Denmark and Greece. Discuss the effect that such
economic power has on citizens of this country and citizens of other countries in which
multinational corporations operate. What about political contributions? Do large
corporations have too much power? What about large-scale advertising and the power of
corporations to sway public opinion?
Another issue for discussion would involve the duty of large multinational corporations
to citizens of countries in which they operate. For example, if corporations are reaping
large profits because of the availability of cheap labor in third world countries, should the
corporations recognize a duty to improve conditions there or should the corporations
recognize a duty only to stockholders? What does it mean to humanize capitalism? How
can multinational corporations avoid exploitation? Discuss the need for adequate safety
measures and environmental protection even in countries where laws on such matters
may be lax.
, *****
FREEDOM VERSUS RESPONSIBILITY: A DUTY TO RESCUE?
The chapter questions that immediately follow the Yania casebook materials require
critical engagement with the readings. Students will present with varying experiences
with the law and different skill sets to synthesize the content for their formulating
responses. A “case” brief is a tool familiar to individuals studying law --- undergraduate
students, law students, lawyers, and the judiciary. Appendix A includes an illustration
brief of Yania v. Bigan. For further guidance, an excellent resource of “How to Brief a
Case” can be found at John Jay College of Criminal Justice, Lloyd Sealy Library site,
http://www.lib.jjay.cuny.edu/research/brief.html. These materials supplement Appendix
A and offer further information, sample briefs and identify the relationship between care
briefing and legal writing.
Yania v. Bigan, Case Questions, p. 4
1. What happened in this case? If Yania couldn’t swim, then why did he jump?
Yania was on his friend Bigan’s property, was asked to help with the pump. The
widow apparently contends that Bigan dared (or convinced) Yania to jump across the
trench, and Yania must have decided to try, even though he couldn’t swim. Explain the
pre-trial dismissal that leaves us with only the widow’s version of the facts. Discuss
the fact that the judge considered only the widow’s version of the facts because he was
considering whether to dismiss the case without a trial. The judge determined that
even if everything the widow alleged in the complaint were true, there was no basis
upon which she could win and that the case should, therefore, be dismissed without a
trial.
2. Identify each of the arguments made by Yania's widow. For each, explain how
the judge dealt with it.
, Bigan caused Yania to jump by either persuasion or by teasing and taunting
him. The judge explains that although a child or a mentally deficient person
might have had their will overcome by an adult, "an adult in full possession of
his mental faculties" should not have been induced to jump in such a
dangerous situation.
Bigan, as landowner, had an obligation to warn Yania of any dangerous
conditions on his property. The facts established that Yania was a coal strip-
mine operator and would have been aware of dangers in the water-filled
trench. This is an opportunity to explain to the students that landowners owe a
duty of care to those on their property in most states according to an ascending
series of categories, from trespasser to licensee (Yania here) to invitee.
Additionally, an employee who is injured on the job generally receives
workers’ compensation payments even if the employee’s own negligence
caused the injury. Accordingly, if Yania had been an employee of Bigan,
compensation would have been available.
Bigan owed a duty to rescue Yania. Yania chose to jump into the trench ("he
voluntarily placed himself in the way of danger"). Although Bigan might
have a moral obligation to go to Yania’s aid, he had no legal obligation to do
so. It may be worth asking students why Bigan did not jump in to save Yania.
Could it be that there was potential risk of harm or death to Bigan? Could it
be that the death occurred so quickly that there was no opportunity to save
Yania?
3. According to the judge, Bigan would have been liable in this case under certain
circumstances that did not apply here. What are those circumstances?
Bigan would have been liable if Yania was a child or mentally deficient, or if he had
failed to warn Yania of a danger of which Yania was unaware.
