THE LEGAL AND REGULATORY ENVIRONMENT
OF BUSINESS 19TH EDITION – SOLUTION
MANUAL
BY MARISA ANNE PAGNATTARO (AUTHOR), DANIEL R. CAHOY (AUTHOR), JULIE MANNING
MAGID (AUTHOR), & 1 MORE
,TABLE OF CONTENTS
PART ONE: INTRODUCTION: LEGAL FOUNDATIONS FOR BUSINESS
1: LAW AS A FOUNDATION FOR BUSINESS
2: THE ROLE OF ETHICS IN DECISION MAKING
3: UNDERSTANDING THE COURT SYSTEM
4: LITIGATION
5: ALTERNATIVE DISPUTE RESOLUTION
6: THE CONSTITUTION
PART TWO: BASIC LEGAL PRINCIPLES
7: THE PROPERTY SYSTEM
8: CONTRACT FORMATION
9: CONTRACTUAL PERFORMANCE AND BREACH
10: TORTS AFFECTING BUSINESS
11: INTELLECTUAL PROPERTY
12: GLOBAL EXPANSION AND INTERNATIONAL LAW
13: CRIMINAL LAW AND BUSINESS
14: BUSINESS ORGANIZATIONS
PART THREE: THE REGULATORY LANDSCAPE FOR BUSINESS
15: THE REGULATORY PROCESS
16: REGULATING COMPETITION—ANTITRUST LAWS
17: FINANCIAL AND SECURITIES REGULATIONS
18: PRIVACY AND CONSUMER PROTECTION
19: ENVIRONMENTAL REGULATION AND RESOURCE SUSTAINABILITY
PART FOUR: THE EMPLOYER-EMPLOYEE RELATIONSHIP
20: EMPLOYMENT DISCRIMINATION LAWS
21: EMPLOYER RESPONSIBILITIES AND EMPLOYEE RIGHTS-EMPLOYMENT LAWS
22: LABOR—MANAGEMENT RELATIONSHIP
,SOLUTION MANUAL FOR
THE LEGAL AND REGULATORY ENVIRONMENT OF BUSINESS, 19TH EDITION BY
MARISA PAGNATTARO, DANIEL CAHOY, JULIE MANNING MAGID, PETER SHEDD
CHAPTER 1-22
CHAPTER
1 LAW AS A FOUNDATION FOR
BUSINESS
LEARNING OBJECTIVES
THE PURPOSE OF THIS CHAPTER IS TO INTRODUCE THE STUDENTS TO THE SUBJECT OF
LAW AND TO SOME CLASSIFICATIONS OF ITS SUBJECT MATTER. IN ADDITION, IT IS
DESIGNED TO INSTILL IN THEM RESPECT FOR THE ROLE OF THE ―RULE OF LAW‖ IN
THE SOCIETY AND THAT THE JUDICIAL SYSTEM IS THE MOST IMPORTANT STABILIZING
FORCE IN SOCIETY. IT SHOULD CREATE AN AWARENESS THAT LAW IS A FOUNDATION
FOR THE PRIVATE MARKET AND ―PROPERTY‖ AS A LEGAL CONCEPT UNDERPINS THAT
MARKET AND CONTRIBUTES TO THE MAXIMUM WEALTH OF NATIONS THROUGH
PRODUCTIVITY. THIS CHAPTER ALSO DESCRIBES STARE DECISIS, BASIC SOURCES OF
THE AMERICAN LAW, AND SANCTIONS THAT CAN BE IMPOSED WHEN THE LAW IS NOT
FOLLOWED.
REFERENCES
BETHELL, TOM, THE NOBLEST TRIUMPH (1999).
BERNSTEIN, WILLIAM J., THE FIRST OF PLENTY. MCGRAW-HILL (2004).
DRIEGEL, BLANDINE, THE STATE AND THE RULE OF LAW. PRINCETON U. PRESS (1995).
FRIEDMAN, LAWRENCE M., AMERICAN LAW, 2D ED. NORTON (1998).
HARNETT, BERTRAM, LAW, LAWYERS AND LAYMEN: MAKING SENSE OF THE
AMERICAN LEGAL SYSTEM. SAN DIEGO: HARCOURT BRACE JOVANOVICH
(1984).
HELPMAN, ELHANAN, THE MYSTERY OF ECONOMIC GROWTH. BELKNAP PRESS (2004).
HOLMES, THE COMMON LAW. LITTLE, BROWN AND COMPANY (1922).
KELMAN, M., A GUIDE TO CRITICAL LEGAL STUDIES. HARVARD (1988).
POUND, AN INTRODUCTION TO THE PHILOSOPHY OF LAW. YALE UNIVERSITY PRESS
(1922).
REED, O. LEE, ―LAW, THE RULE OF LAW, AND PROPERTY,‖ AMERICAN BUSINESS
LAW JOURNAL, VOL. 38 (2001).
REED, O. LEE, ―NATIONBUILDING 101: REDUCTIONISM IN PROPERTY, LIBERTY, AND
CORPORATE
GOVERNANCE,‖ 36 VANDERBILT JOURNAL OF TRANSITIONAL LAW 673 (2003).
THE SPIRIT OF THE COMMON LAW. MARSHALL JONES CO. (1921).
, TEACHING OUTLINE
I. INTRODUCTION
A. 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.‘
II. LAW, THE RULE OF LAW, AND PROPERTY
A. 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 AROSE IN 2011.
DISCUSS HOW THE LAW IMPACTS THE COVID 19 RESTRICTIONS ON BUSINESSES
OPENING IN 2020.
B. THE RULE OF LAW
EMPHASIZE:
THAT UNDER A RULE OF LAW, LAWS ARE GENERALLY AND EQUALLY
OF BUSINESS 19TH EDITION – SOLUTION
MANUAL
BY MARISA ANNE PAGNATTARO (AUTHOR), DANIEL R. CAHOY (AUTHOR), JULIE MANNING
MAGID (AUTHOR), & 1 MORE
,TABLE OF CONTENTS
PART ONE: INTRODUCTION: LEGAL FOUNDATIONS FOR BUSINESS
1: LAW AS A FOUNDATION FOR BUSINESS
2: THE ROLE OF ETHICS IN DECISION MAKING
3: UNDERSTANDING THE COURT SYSTEM
4: LITIGATION
5: ALTERNATIVE DISPUTE RESOLUTION
6: THE CONSTITUTION
PART TWO: BASIC LEGAL PRINCIPLES
7: THE PROPERTY SYSTEM
8: CONTRACT FORMATION
9: CONTRACTUAL PERFORMANCE AND BREACH
10: TORTS AFFECTING BUSINESS
11: INTELLECTUAL PROPERTY
12: GLOBAL EXPANSION AND INTERNATIONAL LAW
13: CRIMINAL LAW AND BUSINESS
14: BUSINESS ORGANIZATIONS
PART THREE: THE REGULATORY LANDSCAPE FOR BUSINESS
15: THE REGULATORY PROCESS
16: REGULATING COMPETITION—ANTITRUST LAWS
17: FINANCIAL AND SECURITIES REGULATIONS
18: PRIVACY AND CONSUMER PROTECTION
19: ENVIRONMENTAL REGULATION AND RESOURCE SUSTAINABILITY
PART FOUR: THE EMPLOYER-EMPLOYEE RELATIONSHIP
20: EMPLOYMENT DISCRIMINATION LAWS
21: EMPLOYER RESPONSIBILITIES AND EMPLOYEE RIGHTS-EMPLOYMENT LAWS
22: LABOR—MANAGEMENT RELATIONSHIP
,SOLUTION MANUAL FOR
THE LEGAL AND REGULATORY ENVIRONMENT OF BUSINESS, 19TH EDITION BY
MARISA PAGNATTARO, DANIEL CAHOY, JULIE MANNING MAGID, PETER SHEDD
CHAPTER 1-22
CHAPTER
1 LAW AS A FOUNDATION FOR
BUSINESS
LEARNING OBJECTIVES
THE PURPOSE OF THIS CHAPTER IS TO INTRODUCE THE STUDENTS TO THE SUBJECT OF
LAW AND TO SOME CLASSIFICATIONS OF ITS SUBJECT MATTER. IN ADDITION, IT IS
DESIGNED TO INSTILL IN THEM RESPECT FOR THE ROLE OF THE ―RULE OF LAW‖ IN
THE SOCIETY AND THAT THE JUDICIAL SYSTEM IS THE MOST IMPORTANT STABILIZING
FORCE IN SOCIETY. IT SHOULD CREATE AN AWARENESS THAT LAW IS A FOUNDATION
FOR THE PRIVATE MARKET AND ―PROPERTY‖ AS A LEGAL CONCEPT UNDERPINS THAT
MARKET AND CONTRIBUTES TO THE MAXIMUM WEALTH OF NATIONS THROUGH
PRODUCTIVITY. THIS CHAPTER ALSO DESCRIBES STARE DECISIS, BASIC SOURCES OF
THE AMERICAN LAW, AND SANCTIONS THAT CAN BE IMPOSED WHEN THE LAW IS NOT
FOLLOWED.
REFERENCES
BETHELL, TOM, THE NOBLEST TRIUMPH (1999).
BERNSTEIN, WILLIAM J., THE FIRST OF PLENTY. MCGRAW-HILL (2004).
DRIEGEL, BLANDINE, THE STATE AND THE RULE OF LAW. PRINCETON U. PRESS (1995).
FRIEDMAN, LAWRENCE M., AMERICAN LAW, 2D ED. NORTON (1998).
HARNETT, BERTRAM, LAW, LAWYERS AND LAYMEN: MAKING SENSE OF THE
AMERICAN LEGAL SYSTEM. SAN DIEGO: HARCOURT BRACE JOVANOVICH
(1984).
HELPMAN, ELHANAN, THE MYSTERY OF ECONOMIC GROWTH. BELKNAP PRESS (2004).
HOLMES, THE COMMON LAW. LITTLE, BROWN AND COMPANY (1922).
KELMAN, M., A GUIDE TO CRITICAL LEGAL STUDIES. HARVARD (1988).
POUND, AN INTRODUCTION TO THE PHILOSOPHY OF LAW. YALE UNIVERSITY PRESS
(1922).
REED, O. LEE, ―LAW, THE RULE OF LAW, AND PROPERTY,‖ AMERICAN BUSINESS
LAW JOURNAL, VOL. 38 (2001).
REED, O. LEE, ―NATIONBUILDING 101: REDUCTIONISM IN PROPERTY, LIBERTY, AND
CORPORATE
GOVERNANCE,‖ 36 VANDERBILT JOURNAL OF TRANSITIONAL LAW 673 (2003).
THE SPIRIT OF THE COMMON LAW. MARSHALL JONES CO. (1921).
, TEACHING OUTLINE
I. INTRODUCTION
A. 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.‘
II. LAW, THE RULE OF LAW, AND PROPERTY
A. 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 AROSE IN 2011.
DISCUSS HOW THE LAW IMPACTS THE COVID 19 RESTRICTIONS ON BUSINESSES
OPENING IN 2020.
B. THE RULE OF LAW
EMPHASIZE:
THAT UNDER A RULE OF LAW, LAWS ARE GENERALLY AND EQUALLY
