SOLUTIONS MANUAL
** All Chapters included
** Answers to Questions
** Answers to Case Problems
** Answers to Taking Sides
,Table of Contents are given below
Chapter 1. Introduction to Law
Chapter 2. Business Ethics and the Social Responsibility of Business
Chapter 3. Civil Dispute Resolution
Chapter 4. Constitutional Law
Chapter 5. Administrative Law
Chapter 6. Criminal Law
Chapter 7. Intentional Torts
Chapter 8. Negligence and Strict Liability
Chapter 9. Introduction to Contracts
Chapter 10. Mutual Assent
Chapter 11. Conduct Invalidating Assent
Chapter 12. Consideration
Chapter 13. Illegal Bargains
Chapter 14. Contractual Capacity
Chapter 15. Contracts in Writing
Chapter 16. Third Parties to Contracts
Chapter 17. Performance, Breach, and Discharge
Chapter 18. Contract Remedies
Chapter 19. Relationship of Principal and Agent
Chapter 20. Relationship with Third Parties
Chapter 21. Introduction to Sales and Leases
Chapter 22. Performance
Chapter 23. Transfer of Title and Risk of Loss
Chapter 24. Products Liability: Warranties and Strict Liability in Tort
Chapter 25. Sales Remedies
Chapter 26. Form and Content
Chapter 27. Transfer and Holder in Due Course
Chapter 28. Liability of Parties
Chapter 29. Bank Deposits, Collections, and Funds Transfer
Chapter 30. Formation and Internal Relations of General Partnerships
Chapter 31. Operation and Dissolution of General Partnerships
Chapter 32. Limited Partnerships and Limited Liability Companies
Chapter 33. Nature, Formation, and Powers
Chapter 34. Financial Structure
Chapter 35. Management Structure
Chapter 36. Fundamental Changes
Chapter 37. Secured Transactions and Suretyship
Chapter 38. Bankruptcy
Chapter 39. Protection of Intellectual Property
Chapter 40. Antitrust
Chapter 41. Consumer Protection
Chapter 42. Employment Law
Chapter 43. Securities Regulation
Chapter 44. Accountants’ Legal Liability
Chapter 45. Environmental Law
Chapter 46. International Business Law
Chapter 47. Introduction to Property, Property Insurance, Bailments, and Documents of Title
Chapter 48. Interests in Real Property
Chapter 49. Transfer and Control of Real Property
Chapter 50. Trusts and Decedents’ Estates
, Solution and Answer Guide
MANN/ROBERTS, S MITH & ROBERSON’S BUSINESS LAW, 19E, 9798214054377;
CHAPTER 2: BUSINESS ETHICS AND THE SOCIAL RESPONSIBILITY OF BUSINESS
TABLE OF CONTENTS
Answers to Problems .......................................................................................................................................... 1
ANSWERS TO PROBLEMS
1. You have an employee who has a chemical imbalance in the brain that causes him to be severely emotionally
unstable. The medication that is available to treat this schizophrenic condition is extremely powerful and
decreases the taker's life span by one to two years for every year that the user takes it. You know that his
doctors and family believe that it is in his best interest to take the medication. What course of action should
you follow?
Answer:
Arguments Against Social Responsibility. This question illustrates one scenario where arguments against corporate
social responsibility could come into play. If you take the “anti-social responsibility” position that a corporation has—as
its primary objective—a fundamental responsibility to maximize profits, the employer could make the medication a
requirement for the employee to remain in the workforce. It could be argued that this decision may also decrease the
possibility of injury or deterioration in working conditions for other employees. The other side of the argument, however,
is that this type of decision is too personal for a corporation to make. The ultimate determination should reside with the
employee, and it should be his free decision to take or not take the medication. This puts the responsibility back where it
belongs, on the employee and his family.
2. You have a very shy employee who is from another country. After a time, you notice that the quality of her
performance is deteriorating. You find an appropriate time to speak with her and determine that she is
extremely distraught. She informs you that her family has arranged a marriage for her and that she refuses to
obey their contract. She further informs you that she is contemplating suicide. Two weeks later, with her poor
performance continuing, you determine that she is on the verge of a nervous breakdown; once again she
informs you that she is going to commit suicide. What should you do? Consider further that you can petition a
court to have her involuntarily committed to a mental hospital. You know, however, that her family would
consider such a commitment an extreme insult and that they might seek retribution. Does this prospect alter
your decision? Explain.
Answer:
Arguments For Social Responsibility. A good, responsible manager would be hard-pressed to demand that the employee
either improve her on-the-job performance or face dismissal. However, initiating an involuntary committal to a mental
hospital could constitute an improper invasion of rights with many legal repercussions. An interim step of providing
appropriate psychological social counseling (perhaps at company expense) would seem to best fit into the concept of
good corporate management. This would benefit not only the individual, but the corporation may be able to keep a
valued employee. The cost of counseling is likely to be less expensive than hiring and training a new employee.
1
, 3. You receive a telephone call from a company that you never do business with requesting a reference on one of
your employees, Mary Sunshine. You believe that Mary is generally incompetent and would be delighted to
see her take another job. You give her a glowing reference. Is this right? Explain.
Answer:
Utilitarianism. Pawning off an incompetent employee would certainly help the profitability of an employer. However,
relatively accurate referrals are expected, and good corporate citizenship would impose a moral responsibility to act
properly. The employer would be better advised to give a more accurate, but not overly negative, description of Mary’s
job performance (while staying within the conditional privilege of avoiding a defamation action), rather than generate
animosity and gain a reputation as a liar among other businesses in the area.
4. You have just received a report suggesting that a chemical your company uses in its manufacturing process is
very dangerous. You have not read the report, but you are generally aware of its contents. You believe that
the chemical can be replaced fairly easily but that if word gets out, panic may set in among employees and
community members. A reporter asks if you have seen the report, and you say no. Is your behavior right or
wrong? Explain.
Answer:
Utilitarianism. Weighing the arguments for profitability to shareholders and fairness to shareholders and employees
against the arguments for good corporate citizenship and long-run profits, an appropriate response might be that you are
aware of the report but haven’t thoroughly read or studied it. Proceeding with a course that acknowledges (at least
internally) past dangerous practices, while immediately correcting the current problems, and correcting future problems
in a timely manner, may be an appropriate legal as well as moral response to this problem. This is one of the reasons
many corporations have a corporate spokesperson to give appropriate and consistent responses.
5. You and Joe Jones, your neighbor and friend, bought lottery tickets at the corner drugstore. While watching
the lottery drawing on television with you that night, Joe leaps from the couch, waves his lottery ticket, and
shouts, “I've got the winning number!” Suddenly, he clutches his chest, keels over, and dies on the spot. You
are the only living person who knows that Joe, not you, bought the winning ticket. If you substitute his ticket
for yours, no one will know of the switch, and you will be $10 million richer. Joe's only living relative is a
rich aunt whom he despised. Will you switch his ticket for yours? Explain.
Answer:
Fundamentalism. Perhaps an advocate of utilitarianism or social egalitarianism might feel that switching the ticket
would be morally appropriate on the premise that it maximized pleasure and was an appropriate distribution of wealth.
However, such a moral rationalization would demonstrate the flaws in both theories. There is no escaping the fact that
switching the tickets would be improper under the law and most moral theories.
6. Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13
to $15 million. Omega owns three aluminum plants, which are profitable, and one plastics plant, which is
losing $4 million a year. The plastics plant shows no sign of ever becoming profitable, because of its very
high operating costs, and there is no evidence that the plant and the underlying real estate will increase in
value. Omega decides to sell the plastics plant. The only bidder for the plant is Gold, who intends to use the
plant for a new purpose, to introduce automation, and to replace all current employees. Would it be ethical
for Omega to turn down Gold's bid and keep the plastics plant operating indefinitely for the purpose of
preserving the employees' jobs? Explain.
2
** All Chapters included
** Answers to Questions
** Answers to Case Problems
** Answers to Taking Sides
,Table of Contents are given below
Chapter 1. Introduction to Law
Chapter 2. Business Ethics and the Social Responsibility of Business
Chapter 3. Civil Dispute Resolution
Chapter 4. Constitutional Law
Chapter 5. Administrative Law
Chapter 6. Criminal Law
Chapter 7. Intentional Torts
Chapter 8. Negligence and Strict Liability
Chapter 9. Introduction to Contracts
Chapter 10. Mutual Assent
Chapter 11. Conduct Invalidating Assent
Chapter 12. Consideration
Chapter 13. Illegal Bargains
Chapter 14. Contractual Capacity
Chapter 15. Contracts in Writing
Chapter 16. Third Parties to Contracts
Chapter 17. Performance, Breach, and Discharge
Chapter 18. Contract Remedies
Chapter 19. Relationship of Principal and Agent
Chapter 20. Relationship with Third Parties
Chapter 21. Introduction to Sales and Leases
Chapter 22. Performance
Chapter 23. Transfer of Title and Risk of Loss
Chapter 24. Products Liability: Warranties and Strict Liability in Tort
Chapter 25. Sales Remedies
Chapter 26. Form and Content
Chapter 27. Transfer and Holder in Due Course
Chapter 28. Liability of Parties
Chapter 29. Bank Deposits, Collections, and Funds Transfer
Chapter 30. Formation and Internal Relations of General Partnerships
Chapter 31. Operation and Dissolution of General Partnerships
Chapter 32. Limited Partnerships and Limited Liability Companies
Chapter 33. Nature, Formation, and Powers
Chapter 34. Financial Structure
Chapter 35. Management Structure
Chapter 36. Fundamental Changes
Chapter 37. Secured Transactions and Suretyship
Chapter 38. Bankruptcy
Chapter 39. Protection of Intellectual Property
Chapter 40. Antitrust
Chapter 41. Consumer Protection
Chapter 42. Employment Law
Chapter 43. Securities Regulation
Chapter 44. Accountants’ Legal Liability
Chapter 45. Environmental Law
Chapter 46. International Business Law
Chapter 47. Introduction to Property, Property Insurance, Bailments, and Documents of Title
Chapter 48. Interests in Real Property
Chapter 49. Transfer and Control of Real Property
Chapter 50. Trusts and Decedents’ Estates
, Solution and Answer Guide
MANN/ROBERTS, S MITH & ROBERSON’S BUSINESS LAW, 19E, 9798214054377;
CHAPTER 2: BUSINESS ETHICS AND THE SOCIAL RESPONSIBILITY OF BUSINESS
TABLE OF CONTENTS
Answers to Problems .......................................................................................................................................... 1
ANSWERS TO PROBLEMS
1. You have an employee who has a chemical imbalance in the brain that causes him to be severely emotionally
unstable. The medication that is available to treat this schizophrenic condition is extremely powerful and
decreases the taker's life span by one to two years for every year that the user takes it. You know that his
doctors and family believe that it is in his best interest to take the medication. What course of action should
you follow?
Answer:
Arguments Against Social Responsibility. This question illustrates one scenario where arguments against corporate
social responsibility could come into play. If you take the “anti-social responsibility” position that a corporation has—as
its primary objective—a fundamental responsibility to maximize profits, the employer could make the medication a
requirement for the employee to remain in the workforce. It could be argued that this decision may also decrease the
possibility of injury or deterioration in working conditions for other employees. The other side of the argument, however,
is that this type of decision is too personal for a corporation to make. The ultimate determination should reside with the
employee, and it should be his free decision to take or not take the medication. This puts the responsibility back where it
belongs, on the employee and his family.
2. You have a very shy employee who is from another country. After a time, you notice that the quality of her
performance is deteriorating. You find an appropriate time to speak with her and determine that she is
extremely distraught. She informs you that her family has arranged a marriage for her and that she refuses to
obey their contract. She further informs you that she is contemplating suicide. Two weeks later, with her poor
performance continuing, you determine that she is on the verge of a nervous breakdown; once again she
informs you that she is going to commit suicide. What should you do? Consider further that you can petition a
court to have her involuntarily committed to a mental hospital. You know, however, that her family would
consider such a commitment an extreme insult and that they might seek retribution. Does this prospect alter
your decision? Explain.
Answer:
Arguments For Social Responsibility. A good, responsible manager would be hard-pressed to demand that the employee
either improve her on-the-job performance or face dismissal. However, initiating an involuntary committal to a mental
hospital could constitute an improper invasion of rights with many legal repercussions. An interim step of providing
appropriate psychological social counseling (perhaps at company expense) would seem to best fit into the concept of
good corporate management. This would benefit not only the individual, but the corporation may be able to keep a
valued employee. The cost of counseling is likely to be less expensive than hiring and training a new employee.
1
, 3. You receive a telephone call from a company that you never do business with requesting a reference on one of
your employees, Mary Sunshine. You believe that Mary is generally incompetent and would be delighted to
see her take another job. You give her a glowing reference. Is this right? Explain.
Answer:
Utilitarianism. Pawning off an incompetent employee would certainly help the profitability of an employer. However,
relatively accurate referrals are expected, and good corporate citizenship would impose a moral responsibility to act
properly. The employer would be better advised to give a more accurate, but not overly negative, description of Mary’s
job performance (while staying within the conditional privilege of avoiding a defamation action), rather than generate
animosity and gain a reputation as a liar among other businesses in the area.
4. You have just received a report suggesting that a chemical your company uses in its manufacturing process is
very dangerous. You have not read the report, but you are generally aware of its contents. You believe that
the chemical can be replaced fairly easily but that if word gets out, panic may set in among employees and
community members. A reporter asks if you have seen the report, and you say no. Is your behavior right or
wrong? Explain.
Answer:
Utilitarianism. Weighing the arguments for profitability to shareholders and fairness to shareholders and employees
against the arguments for good corporate citizenship and long-run profits, an appropriate response might be that you are
aware of the report but haven’t thoroughly read or studied it. Proceeding with a course that acknowledges (at least
internally) past dangerous practices, while immediately correcting the current problems, and correcting future problems
in a timely manner, may be an appropriate legal as well as moral response to this problem. This is one of the reasons
many corporations have a corporate spokesperson to give appropriate and consistent responses.
5. You and Joe Jones, your neighbor and friend, bought lottery tickets at the corner drugstore. While watching
the lottery drawing on television with you that night, Joe leaps from the couch, waves his lottery ticket, and
shouts, “I've got the winning number!” Suddenly, he clutches his chest, keels over, and dies on the spot. You
are the only living person who knows that Joe, not you, bought the winning ticket. If you substitute his ticket
for yours, no one will know of the switch, and you will be $10 million richer. Joe's only living relative is a
rich aunt whom he despised. Will you switch his ticket for yours? Explain.
Answer:
Fundamentalism. Perhaps an advocate of utilitarianism or social egalitarianism might feel that switching the ticket
would be morally appropriate on the premise that it maximized pleasure and was an appropriate distribution of wealth.
However, such a moral rationalization would demonstrate the flaws in both theories. There is no escaping the fact that
switching the tickets would be improper under the law and most moral theories.
6. Omega, Inc., a publicly held corporation, has assets of $100 million and annual earnings in the range of $13
to $15 million. Omega owns three aluminum plants, which are profitable, and one plastics plant, which is
losing $4 million a year. The plastics plant shows no sign of ever becoming profitable, because of its very
high operating costs, and there is no evidence that the plant and the underlying real estate will increase in
value. Omega decides to sell the plastics plant. The only bidder for the plant is Gold, who intends to use the
plant for a new purpose, to introduce automation, and to replace all current employees. Would it be ethical
for Omega to turn down Gold's bid and keep the plastics plant operating indefinitely for the purpose of
preserving the employees' jobs? Explain.
2
