Solution Manual For The Legal And Regulatory
Environment Of Business, 19th Edition By
Marisa Pagnattaro, Daniel Cahoy, Julie
Manning Magid, Peter Shedd
,introduction
why law and regulations are fundamental foundations for business (lo 1-1)
emphasize:
that by studying the legal and regulatory environment of business, students will gain an
understanding of basic legal vocabulary and gain the ability to identify problematic situations
that could result in liability.
that because of the positive role lawyers can play, they are increasingly being asked to join
corporate boards.
sidebar 1.1 titled ‗sustainability and integrity: cautionary tales of legal liability.‘
law, the rule of law, and property
law
emphasize:
the simple definition of law. it can be elaborated by observing that law is a rule-based, state-
enforced formal ordering system with moral elements.
that adequate law and legal institutes promote the certainty and trust necessary for complex,
long-term business arrangements. in an economic sense, they lower the costs of transacting
business.
additional matters for discussion:
discuss that law formalizes values and traditions and that law is more needed in a large,
heterogeneous modern nation than in a smaller, homogeneous nation. compare the u.s. and
japan.
it is not too early in this chapter to ask students whether or not lack of law and strict regulation
facilitated the economic crash and recession that began in 2008.
ask students to comment on how mistrust of law and lawmakers precipitated the
―occupy wall street‖ and other ―occupy…‖ movements that arosein 2011.
discuss how the law impacts the covid 19 restrictions on businesses opening in 2020.
the rule of law
emphasize:
that under a rule of law, laws are generally and equallyapplicable.
that lack of the rule of law internationallyhas produced hundreds of calls for it in the
,last several years by business and political leaders. get students to search for rule-of- lawreferences in
computer databases.
that the complete rule of law is an ideal rather than a fact in even the most democratic societies.
additional matters for discussion:
get students to discuss why the managing director of j.p. morgan and co. called the rule of law ―a
cornerstone of free trade.‖
ask students why the rule of law tends to produce rules that benefit everyone. answer: because
laws apply generally and equallyto everyone, the only waylawmakers can benefit themselves is
by benefitting everyone. this answer is theoretical, of course. lawmakers are often benefited
individuallyfor makinglaws that favor special interests.
ask students to imagine how society would be with no laws. what if the governor of one‘s state
announced that tomorrow would be no-law day and that nothing would be
penalized or enforced, no police would be present and no penalties would result from anyone‘s actions.
what would the students do? one is likely to find that after a few fleeting and whimsical thoughts, they
would agree that they would primarily act to protect their real and personal property.
property (lo 1-2)
emphasize:
the two meanings of property.
that propertyis not the resource or thing itself. it is a right (or series of rights).
that the propertyright gives a major incentive to develop resources.
that the exclusionary right of propertyprovides a basis for the private market and
modernbusiness.
additional matters for discussion:
ask students to discuss the incentive to grow and prosper and the incentive to innovate and
progress under a system with a right to private property ownership and a communist
system where private ownership of propertyis greatly diminished for most. would they even be in school if
accumulation of propertyrights were not attainable?
property in its broadest sense
emphasize:
howinitsbroadestsense―property‖isthecentral conceptofwesternlegalsystems.
how property can be thought of as the hub of a wheel and the various legal topics studied in the
text as spokes of the wheel. law and the rule of law provide the unifying
, rim of the wheel. (refer to figure 1.1)
that for madison and other constitutional framers, propertyprotected not onlyphysical resources
like land but also human rights like freedom of speech, freedom of religion, and freedom from
unreasonable intrusion bythe government.
additional matters for discussion:
askstudentsto discussthestatement:―bill gatesand yourprofessorhave equal
q q q q
property.‖thepoint istoexaminetheconfusionbetween―resources‖and ―property.‖ arguably,
q q
although bill gates and the student may have vastlydifferent amounts of resources, he and the
student have exactlythe same right to these respective resources, thus the same ―property.‖
infederalist paper10,madison wrote:―property…in its particularapplicationmeans that
q q q q
‗domination which one man claims and exercises over the external things of the world, in
exclusion of every other individual.‘ in its larger and juster meaning, it embraces everything to
which a man may attach a value and have a right; and which leaves to everyone else a like
advantage. in the former sense, a man‘s land, or merchandise, or money is called his property. in
the latter sense, a man has property in his opinions and the free communication of them. he has a
property of peculiar value in his religious opinions, and in the profession and practice dictated by
them. he has property very dear to him in the safety and liberty of his person. he has an equal
property in the free use of his faculties and free choice of the objects on which to employ them. in
a word, as a man is said to have a right to his property, he may be equallysaid to have a
propertyin his rights.‖
madison‘s―largerand justermeaning‖ofpropertyopensup allsortsofopportunities for
q
discussion with students. note that although a system of property is basic to private business in the modern
nation, it does not preclude redistribution of resources for education, health, and relief of poverty and
adversity, etc. even as the american
revolutionariesm aintained―notaxation(ofourindividualresources)without
q
representation,‖ they appreciated the necessityof appropriate taxation (of one‘s resources) with democratic
q
representation.
the importance of the broader sense of private propertyin the common law grows out of the
magna carta. from the 13th through the 18th centuries, the importance of private propertycreated
constitutional tension between the english monarchs and their subjects.
the monarchs often claimed in essence that they owned the nation, its land, and its produce, yet in
opposition to this there was a growing sense that people owned things privately and could be taxed on this
private ownership only through their own representative consent. thus, the british colonists in the new
world claimed they could not be taxed without representation. the sons of liberty, one of the first
revolutionary groups,hadas theirslogan ―liberty,property, and nostamps.‖
q
Environment Of Business, 19th Edition By
Marisa Pagnattaro, Daniel Cahoy, Julie
Manning Magid, Peter Shedd
,introduction
why law and regulations are fundamental foundations for business (lo 1-1)
emphasize:
that by studying the legal and regulatory environment of business, students will gain an
understanding of basic legal vocabulary and gain the ability to identify problematic situations
that could result in liability.
that because of the positive role lawyers can play, they are increasingly being asked to join
corporate boards.
sidebar 1.1 titled ‗sustainability and integrity: cautionary tales of legal liability.‘
law, the rule of law, and property
law
emphasize:
the simple definition of law. it can be elaborated by observing that law is a rule-based, state-
enforced formal ordering system with moral elements.
that adequate law and legal institutes promote the certainty and trust necessary for complex,
long-term business arrangements. in an economic sense, they lower the costs of transacting
business.
additional matters for discussion:
discuss that law formalizes values and traditions and that law is more needed in a large,
heterogeneous modern nation than in a smaller, homogeneous nation. compare the u.s. and
japan.
it is not too early in this chapter to ask students whether or not lack of law and strict regulation
facilitated the economic crash and recession that began in 2008.
ask students to comment on how mistrust of law and lawmakers precipitated the
―occupy wall street‖ and other ―occupy…‖ movements that arosein 2011.
discuss how the law impacts the covid 19 restrictions on businesses opening in 2020.
the rule of law
emphasize:
that under a rule of law, laws are generally and equallyapplicable.
that lack of the rule of law internationallyhas produced hundreds of calls for it in the
,last several years by business and political leaders. get students to search for rule-of- lawreferences in
computer databases.
that the complete rule of law is an ideal rather than a fact in even the most democratic societies.
additional matters for discussion:
get students to discuss why the managing director of j.p. morgan and co. called the rule of law ―a
cornerstone of free trade.‖
ask students why the rule of law tends to produce rules that benefit everyone. answer: because
laws apply generally and equallyto everyone, the only waylawmakers can benefit themselves is
by benefitting everyone. this answer is theoretical, of course. lawmakers are often benefited
individuallyfor makinglaws that favor special interests.
ask students to imagine how society would be with no laws. what if the governor of one‘s state
announced that tomorrow would be no-law day and that nothing would be
penalized or enforced, no police would be present and no penalties would result from anyone‘s actions.
what would the students do? one is likely to find that after a few fleeting and whimsical thoughts, they
would agree that they would primarily act to protect their real and personal property.
property (lo 1-2)
emphasize:
the two meanings of property.
that propertyis not the resource or thing itself. it is a right (or series of rights).
that the propertyright gives a major incentive to develop resources.
that the exclusionary right of propertyprovides a basis for the private market and
modernbusiness.
additional matters for discussion:
ask students to discuss the incentive to grow and prosper and the incentive to innovate and
progress under a system with a right to private property ownership and a communist
system where private ownership of propertyis greatly diminished for most. would they even be in school if
accumulation of propertyrights were not attainable?
property in its broadest sense
emphasize:
howinitsbroadestsense―property‖isthecentral conceptofwesternlegalsystems.
how property can be thought of as the hub of a wheel and the various legal topics studied in the
text as spokes of the wheel. law and the rule of law provide the unifying
, rim of the wheel. (refer to figure 1.1)
that for madison and other constitutional framers, propertyprotected not onlyphysical resources
like land but also human rights like freedom of speech, freedom of religion, and freedom from
unreasonable intrusion bythe government.
additional matters for discussion:
askstudentsto discussthestatement:―bill gatesand yourprofessorhave equal
q q q q
property.‖thepoint istoexaminetheconfusionbetween―resources‖and ―property.‖ arguably,
q q
although bill gates and the student may have vastlydifferent amounts of resources, he and the
student have exactlythe same right to these respective resources, thus the same ―property.‖
infederalist paper10,madison wrote:―property…in its particularapplicationmeans that
q q q q
‗domination which one man claims and exercises over the external things of the world, in
exclusion of every other individual.‘ in its larger and juster meaning, it embraces everything to
which a man may attach a value and have a right; and which leaves to everyone else a like
advantage. in the former sense, a man‘s land, or merchandise, or money is called his property. in
the latter sense, a man has property in his opinions and the free communication of them. he has a
property of peculiar value in his religious opinions, and in the profession and practice dictated by
them. he has property very dear to him in the safety and liberty of his person. he has an equal
property in the free use of his faculties and free choice of the objects on which to employ them. in
a word, as a man is said to have a right to his property, he may be equallysaid to have a
propertyin his rights.‖
madison‘s―largerand justermeaning‖ofpropertyopensup allsortsofopportunities for
q
discussion with students. note that although a system of property is basic to private business in the modern
nation, it does not preclude redistribution of resources for education, health, and relief of poverty and
adversity, etc. even as the american
revolutionariesm aintained―notaxation(ofourindividualresources)without
q
representation,‖ they appreciated the necessityof appropriate taxation (of one‘s resources) with democratic
q
representation.
the importance of the broader sense of private propertyin the common law grows out of the
magna carta. from the 13th through the 18th centuries, the importance of private propertycreated
constitutional tension between the english monarchs and their subjects.
the monarchs often claimed in essence that they owned the nation, its land, and its produce, yet in
opposition to this there was a growing sense that people owned things privately and could be taxed on this
private ownership only through their own representative consent. thus, the british colonists in the new
world claimed they could not be taxed without representation. the sons of liberty, one of the first
revolutionary groups,hadas theirslogan ―liberty,property, and nostamps.‖
q
