SOLUTION MANUA
b ii
L
b b b b b
,TABLE OF CONTENTS
ii ii
Chapterb 1.b Today’sb Businessb Environment:b Lawb andb Ethics
Chapterb 2.b Theb Courtb Systems
Chapterb 3.b Trialsb andb Resolvingb Disputes
Chapterb 4.b Theb Constitution:b Focusb onb Applicationb tob Business
Chapterb 5.b Criminalb Lawb andb Business
Chapterb 6.b Elementsb ofb Torts
Chapterb 7.b Businessb Tortsb andb Productb Liability
Chapterb 8.b Realb andb Personalb Property
Chapterb 9.b Intellectualb Property
Chapterb 10.b Contracts
Chapterb 11.b Domesticb andb Internationalb Sales
Chapterb 12.b Businessb Organizations
Chapterb 13.b Negotiableb Instruments,b Credit,b andb Bankruptcy
Chapterb 14.b Agencyb andb theb Employmentb Relationship
Chapterb 15.b Employmentb andb Laborb Regulations
Chapterb 16.b Employmentb Discrimination
Chapterb 17.b Theb Regulatoryb Process
Chapterb 18.b Securitiesb Regulation
Chapterb 19.b Consumerb Protection
Chapterb 20.b Antitrustb Law
Chapterb 21.b Environmentalb Law
, Chapterb 22.b Theb Internationalb Legalb Environmentb ofb Business
CHAPTER 1 bb
Table of Contents
b b
Answerb tob Discussionb Question .................................................................................................................................... 1
Answersb tob Caseb Questions............................................................................................................................................. 1
Answersb tob Ethicsb andb Socialb Questions ................................................................................................................ 3
Answer to Discussion Question
b b b
Shouldb theb commonb lawb maximb “Ignoranceb ofb theb lawb isb nob excuse”b applyb tob anb immigrantb whob speaksblitt
leb Englishb andb wasb notb educatedb inb theb Unitedb States?b Howb aboutb forb ab touristb whob doesb notb speakb Engli
sh?b Everyoneb knowsb criminalb actsb areb prohibited,b butb whatb aboutb subtlerb rulesb thatb differb acrossbcountriesb a
ndb sob mayb beb misunderstoodb byb foreigners?
Answer:b Itb isb generallyb trueb thatb ignoranceb ofb theb lawb isb nob excuse.b Citizensb areb deemedb tob
haveb constructiveb knowledgeb ofb theb law.b Yet,b asb wellb knownb asb thisb ruleb is,b itb isb surpri
singb howb oftenb itb isb profferedb asb anb excuse.b (Ab Westlawb searchb casesb findsb hundredsbofb
examples).b Examplesb include:b Delucob v.b Dezib (Conn.b Super)b (lackb ofb knowledgeb regardingbth
eb state‘sb usuryb lawsb isb nob excuseb forb theb inclusionb ofb anb illegalb interestb rateb inb ab salesb
contract);b andb Plumleeb v.b Paddockb (ignoranceb ofb theiifactb thatb theb subjectb matterb ofb thebcont
ractb wasb illegalb wasb notb excuse).b Theb courtsb haveb providedb ab smallb exceptionb tob thebrule
b whenb itb comesb tob peopleb inb lackb ofb Englishb languageb skills.b Considerb Flaneryb v.b Kuska,b(d
efendantb didb notb speakb Englishb wasb advisedb byb ab friendb thatb anb answerb tob ab complaintb
wasb notb required);b Ramonb v.b Dept.b ofb Transportation,b (nob Englishb andb anb inabilityb tobunders
tandb theb lawb requiredb forb anb excuse);b Yurechkob v.b Countyb ofb Allegheny,b (Ignoranceb andbwithb
theb factb thatb theb municipalityb sufferedb nob hardshipb inb lateb lawsuitb filingb wasb anbexcuse).
Answers to Case Questions b b b
1. Factsb fromb anb Englishb judge’sb decisionb inb 1884:b “Theb crewb ofb anb Englishb yacht......bwereb castb awayb inba
b stormb onb theb highb seasb .b .b .b andb wereb compelled b tob putb intob anb openb boat.....bTheyb hadb nob supplybof
b waterb andb nob supplyb ofb food.b .b .b .b Thatb onb theb eighteenthb dayb .b .b .b they.bsuggestedb thatb one
shouldb beb sacrificedb tob saveb theb rest.b .b .b .b Thatb nextb dayb .b .b .b theyb .b .b .b wentb tob theb boy
putb ab knifeb
intob hisb throatb andb killedb himb .b .b .b theb threeb menb fedb uponb theb bodyb.bofb theb boyb forb fourb days;b [then]
theb boatb wasb pickedb upb byb ab passingb vessel,b andb [they]b wereb rescued.b .b .b .b andb committedb forb trial.b .b .
.
ifb theb menb hadb notb fedb uponb theb bodyb ofb theb boyb theyb wouldb probablyb notb haveb survivedb tob bebsoiipick
edb upb andb rescued,b butb wouldb...haveb diedb ofb famine.b Theb boy,b beingb inb ab muchb weakerbcondition,b wasb
likelyb tob haveb diedb beforeb them.........Theb realb questionb inb thisb caseb [is]b whetherb killingbunderb theb conditi
onsb setb forthb.......bbeb orb beb notb murder.”b Dob youb considerb theb actsb tob beb immoral?b[Reginab v.b Dudleyb
andb Stephens,b 14b Queensb Benchb Divisionb 273b (1884)]
, Answer:b Thisb pointsb outb thatb theb legalb systemb hasb limits.b Itsb acceptabilityb isb dictatedb byb legalbcult
ure--
whichdeterminesb whetherb lawb willb beb enforced,b obeyed,b avoided,b orb abused.b Itb isblimitedb by
b theb informalb rulesb ofb theb society--
itsb customsb andb values.b Oneb limitb isb theb extentb tob whichb societyb willb allowb theb formalb rules
b tob beb imposedb whenb ab crimeb isb committedb inboddb circumstances.b Hereb thereb wasb anb inten
tionalb murder.b Doesb theb motiveb forb theb murder,btheb effortb tob saveb severalb livesb byb sacrificin
gb one
b ii
L
b b b b b
,TABLE OF CONTENTS
ii ii
Chapterb 1.b Today’sb Businessb Environment:b Lawb andb Ethics
Chapterb 2.b Theb Courtb Systems
Chapterb 3.b Trialsb andb Resolvingb Disputes
Chapterb 4.b Theb Constitution:b Focusb onb Applicationb tob Business
Chapterb 5.b Criminalb Lawb andb Business
Chapterb 6.b Elementsb ofb Torts
Chapterb 7.b Businessb Tortsb andb Productb Liability
Chapterb 8.b Realb andb Personalb Property
Chapterb 9.b Intellectualb Property
Chapterb 10.b Contracts
Chapterb 11.b Domesticb andb Internationalb Sales
Chapterb 12.b Businessb Organizations
Chapterb 13.b Negotiableb Instruments,b Credit,b andb Bankruptcy
Chapterb 14.b Agencyb andb theb Employmentb Relationship
Chapterb 15.b Employmentb andb Laborb Regulations
Chapterb 16.b Employmentb Discrimination
Chapterb 17.b Theb Regulatoryb Process
Chapterb 18.b Securitiesb Regulation
Chapterb 19.b Consumerb Protection
Chapterb 20.b Antitrustb Law
Chapterb 21.b Environmentalb Law
, Chapterb 22.b Theb Internationalb Legalb Environmentb ofb Business
CHAPTER 1 bb
Table of Contents
b b
Answerb tob Discussionb Question .................................................................................................................................... 1
Answersb tob Caseb Questions............................................................................................................................................. 1
Answersb tob Ethicsb andb Socialb Questions ................................................................................................................ 3
Answer to Discussion Question
b b b
Shouldb theb commonb lawb maximb “Ignoranceb ofb theb lawb isb nob excuse”b applyb tob anb immigrantb whob speaksblitt
leb Englishb andb wasb notb educatedb inb theb Unitedb States?b Howb aboutb forb ab touristb whob doesb notb speakb Engli
sh?b Everyoneb knowsb criminalb actsb areb prohibited,b butb whatb aboutb subtlerb rulesb thatb differb acrossbcountriesb a
ndb sob mayb beb misunderstoodb byb foreigners?
Answer:b Itb isb generallyb trueb thatb ignoranceb ofb theb lawb isb nob excuse.b Citizensb areb deemedb tob
haveb constructiveb knowledgeb ofb theb law.b Yet,b asb wellb knownb asb thisb ruleb is,b itb isb surpri
singb howb oftenb itb isb profferedb asb anb excuse.b (Ab Westlawb searchb casesb findsb hundredsbofb
examples).b Examplesb include:b Delucob v.b Dezib (Conn.b Super)b (lackb ofb knowledgeb regardingbth
eb state‘sb usuryb lawsb isb nob excuseb forb theb inclusionb ofb anb illegalb interestb rateb inb ab salesb
contract);b andb Plumleeb v.b Paddockb (ignoranceb ofb theiifactb thatb theb subjectb matterb ofb thebcont
ractb wasb illegalb wasb notb excuse).b Theb courtsb haveb providedb ab smallb exceptionb tob thebrule
b whenb itb comesb tob peopleb inb lackb ofb Englishb languageb skills.b Considerb Flaneryb v.b Kuska,b(d
efendantb didb notb speakb Englishb wasb advisedb byb ab friendb thatb anb answerb tob ab complaintb
wasb notb required);b Ramonb v.b Dept.b ofb Transportation,b (nob Englishb andb anb inabilityb tobunders
tandb theb lawb requiredb forb anb excuse);b Yurechkob v.b Countyb ofb Allegheny,b (Ignoranceb andbwithb
theb factb thatb theb municipalityb sufferedb nob hardshipb inb lateb lawsuitb filingb wasb anbexcuse).
Answers to Case Questions b b b
1. Factsb fromb anb Englishb judge’sb decisionb inb 1884:b “Theb crewb ofb anb Englishb yacht......bwereb castb awayb inba
b stormb onb theb highb seasb .b .b .b andb wereb compelled b tob putb intob anb openb boat.....bTheyb hadb nob supplybof
b waterb andb nob supplyb ofb food.b .b .b .b Thatb onb theb eighteenthb dayb .b .b .b they.bsuggestedb thatb one
shouldb beb sacrificedb tob saveb theb rest.b .b .b .b Thatb nextb dayb .b .b .b theyb .b .b .b wentb tob theb boy
putb ab knifeb
intob hisb throatb andb killedb himb .b .b .b theb threeb menb fedb uponb theb bodyb.bofb theb boyb forb fourb days;b [then]
theb boatb wasb pickedb upb byb ab passingb vessel,b andb [they]b wereb rescued.b .b .b .b andb committedb forb trial.b .b .
.
ifb theb menb hadb notb fedb uponb theb bodyb ofb theb boyb theyb wouldb probablyb notb haveb survivedb tob bebsoiipick
edb upb andb rescued,b butb wouldb...haveb diedb ofb famine.b Theb boy,b beingb inb ab muchb weakerbcondition,b wasb
likelyb tob haveb diedb beforeb them.........Theb realb questionb inb thisb caseb [is]b whetherb killingbunderb theb conditi
onsb setb forthb.......bbeb orb beb notb murder.”b Dob youb considerb theb actsb tob beb immoral?b[Reginab v.b Dudleyb
andb Stephens,b 14b Queensb Benchb Divisionb 273b (1884)]
, Answer:b Thisb pointsb outb thatb theb legalb systemb hasb limits.b Itsb acceptabilityb isb dictatedb byb legalbcult
ure--
whichdeterminesb whetherb lawb willb beb enforced,b obeyed,b avoided,b orb abused.b Itb isblimitedb by
b theb informalb rulesb ofb theb society--
itsb customsb andb values.b Oneb limitb isb theb extentb tob whichb societyb willb allowb theb formalb rules
b tob beb imposedb whenb ab crimeb isb committedb inboddb circumstances.b Hereb thereb wasb anb inten
tionalb murder.b Doesb theb motiveb forb theb murder,btheb effortb tob saveb severalb livesb byb sacrificin
gb one
