BusinessVItsVLegal,VEthical,VandVGlobalVEnvironment,V12thVEditionV
ChapterV1-20
ChapterV1
TableVofVContents
Consider… .................................................................................................................................................... 1
Consider…V1.2 ........................................................................................................................................... 1
Consider…V1.3 ........................................................................................................................................... 2
CaseVProblems ................................................................................................................................................................. 2
CaseV1.1..................................................................................................................................................... 2
ForVtheVManager’sVDesk ........................................................................................................................... 4
TheVCover-upVversusVtheVCrime,VpageV11 ............................................................................................... 4
EthicalVIssues..................................................................................................................................................................... 4
CaseV1.1,VpageV10..................................................................................................................................... 4
BusinessVStrategy ............................................................................................................................................................ 5
COVID-19VLockoutsVandVBusinessVCivilVDisobedience.............................................................................. 5
ChapterVReview................................................................................................................................................................ 6
AnswersVtoVChapterVQuestionsVandVProblems ........................................................................................ 6
Economics,VEthics,V&VtheVLaw:VTheVCostVofVCorporateVWrongdoing ...................................................12
Consider…
Consider…V1.2
AfterVheVenrolledVinVtheVUniversityVofVCaliforniaVatVLosVAngelesV(UCLA),VDamonVThompsonVexp
eriencedVauditoryVhallucinations.VHeVbelievedVotherVstudentsVinVtheVclassroomVandVdormitoryV
wereVcriticizingVhim.VSchoolVadministratorsVeventuallyVlearnedVofVThompson’sVdelusionsVandVatt
emptedVtoVprovideVmentalVhealthVtreatment.VHowever,VoneVmorningVThompsonVstabbedVfellow
VstudentVKatherineVRosenVduringVaVchemistryVlab.VRosenVsuedVtheVuniversityVandVseveralVofVits
VemployeesVforVnegligence,VarguingVtheyVfailedVtoVprotectVherVfromVThompson’sVforeseeableVvi
olentVconduct.
UCLAVisVaVstateVeducationalVinstitution.VBasedVonVtheVdecisionVinVtheVAvilaVcase,VwhatVshouldV
theVcourtVdecide?VConsiderVwhetherVUCLAVhasVaVdutyVtoVprotectVstudentsVfromVinjuryVonVtheV
campusVand,VifVso,VwhatVtypesVofVinjuries.VBeVsureVtoVconsiderVwhatVisVdifferentVinVthisVfactualV
patternVfromVthe
©V2022VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,VcopiedVorVduplicated,VorVpostedVtoVaVpubl 1
iclyVaccessible
website,VinVwholeVorVinVpart.
,factsVinVAvila.VWhatVwillVtheVimpactVbeVonVstudents,Vfaculty,VandVadministratorsVpendingVonVw
hichVwayVtheVcourtVdecidesVonVtheVissuesVofVliabilityVandVduty?VBeVsureVtoVconsiderVtheVpurp
osesVandVcharacteristicsVofVlawVinVevaluatingVtheVclaimVMs.VRosenVforVinjuries.V[RegentsVofVthe
VUniversityVofVCaliforniaVvVSuperiorVCourt,V413VP.3dV656V(Cal,2018)]
Solution
TheVtrialVcourtVdeniedVUCLAVsummaryVjudgment.VUCLAVfiledVaVpetitionVforVwritVofVmandate,Vreques
tingVanVorderVdirectingVtrialVcourtVtoVenterVsummaryVjudgmentVinVitsVfavor.VTheVCourtVofVAppealVgr
antedVtheVpetition.VTheVSupremeVCourtVgrantedVreview,VsupersedingVtheVopinionVofVtheVCourtVofVA
ppeal.
TheVSupremeVCourtVheldVthatVtheVuniversityVhadVdutyVofVcareVtoVprotectVstudentsVfromVforeseeable
VviolenceVduringVtheVchemistryVlab,VreversingVaVlongVlineVofVprecedent.
ThisVcaseVisVdifferentVfromVtheVAvilaVcaseVinVthatVUCLAVhadVknowledgeVofVtheVpotentialVharmVthatV
theVstudentVcouldVdo.VInVtheVAvilaVcase,VtheVconductVwasVsuchVthatVitVcouldVnotVbeVanticipatedVexc
eptVperhapsVtheVpossibilityVthatVplayersVhaveVdisobeyedVtheVrulesVofVtheVgame,VbutVthereVwasVnoV
directVknowledgeVaboutVtheVpitcher’sVtendenciesVtoVbeanVbatters.VInVthisVcase,VUCLAVwasVawareVof
VtheVproblemsVtheVstudentVhadVandVwasVworkingVwithVtheVstudent.VTheVcaseVwasVaVwarningVtoVuni
versitiesVaboutVtheVimportanceVofVcurbingVtheVbehaviorsVofVstudentsVandVthen,VwhenVnecessaryVre
movingVthemVfromVtheVcampusVasVaVdangerVtoVthemselvesVandVotherVstudents.VTheVcourtVnotedVth
atVtheVscopeVofVtheVdutyVisVbasedVonVtheVextentVofVtheVrelationshipVtheVstudentVhadVwithVtheVuniv
ersity.
TheVimmunityVofVgovernmentVentitiesVwasVcurbedVinVAvilaVandVnowVtheVcourtsVareVsimplyVdealing
VwithVtheVconceptVofVduty.VWhatVisVtheVdutyVofVgovernmentVentities?VHowVfarVdoesVitVextend?VW
hatVactionsVmustVtheyVtake?V [RegentsVofVtheVUniversityVofVCaliforniaVvVSuperiorVCourt,V413VP.3dV6
56V(Cal.V2018)]
Consider…V1.3
EveryVstate,Vcounty,VandVcityVhasVlawsVthatVregulateVtheVmaximumVspeedVforVtheirVroadwa
ys.VYet,VsurveysVindicateVthatVnearlyV100%VofVusVadmitVtoVdrivingVaboveVtheVspeedVlimit.V
WhatVphilosophyVofVlawVdoVweVfollowVwhenVweVdecideVwhichVlawsVtoVobey,VhowVcloselyV
weVfollowVthoseVlaws,VandVwhenVweVwillVfollowVthem?VIsVthereVaVriskVtoVsocietyVwhenVwe
VmakeVourVownVdecisionsVaboutVfollowingVtheVlaw?
Solution
SpeedingVisVanVexampleVofVtheVnormVshifting.VThatVis,VthereVisVaVlaw,VbutVfewVpeopleVfollowVtheVl
awVandVtheVresultVisVthatVtheVlawVbecomesVmeaningless.VSomeVphilosophersVfearVthatVdisregardVof
VtheVlawVonVanVindividualVbasisVcouldVmeanVthatVweVareVintroducingVanarchy—
theVlawVhasVnoVeffect.VOthersVwouldVfollowVtheVnormativeVstandardVofVdoingVwhatVisVacceptableVt
oVothers.
CaseVProblems
CaseV1.1
1. OutlineVtheVcaseVhistory—whatVeachVofVtheVcourtsVdecidedVinVtheVcase.
©V2022VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,VcopiedVorVduplicated,VorVpostedVtoVaVpubl 2
iclyVaccessible
website,VinVwholeVorVinVpart.
, Solution
LowerVcourtVheldVthatVtheVcommunityVcollegesVwereVimmune,VsoVitVneverVreachedVtheVduty
Vissue.VTheVcourtVofVappealVheldVthatVtheVcommunityVcollegesVwereVnotVimmuneVandVfoun
dVthatVtheyVhadVbreachedVtheirVdutyVtoVJose.
2. ExplainVtheVstandardVnowVforVtheVliabilityVofVgovernmentVentities.
Solution
AlthoughVthereVisVimmunityVforVgovernmentVentitiesVforVinjuriesVfromVrecreationalVactivitie
sV(hazardousVandVotherwise),VtheVcourtVheldVthatVgovernmentVentitiesVstillVhaveVdutiesVto
wardVthoseVwhoVareVusingVtheirVfacilities.
3. WhatVinterestsVisVtheVcourtVbalancing?
Solution
TheVcourtVisVbalancingVtheVlongstandingVprotectionVofVgovernmentVentitiesVfromVtortVliability
VwithVtheVinjuriesVthatVcanVresultVwhenVthereVisVnoVsupervisionVofVthoseVinvolvedVinVgovern
ment-
VsponsoredVactivities.VThereVwasValsoVtheVlongstandingVprecedentVthatVisVbeingVchanged.
GovernmentVentitiesVwillVneedVnewVinsuranceVlevelsVandVwillVneedVtoVchangeVtheirVinvolvem
entVandVsupervisionVrequirements.
4. DoesVtheVcourtVchangeVtheVpreviousVstandardVforVliabilityVofVgovernmentVentities?VWhyVo
rVwhyVnot?VWhatVeffectVwillVtheVdecisionVhaveVonVgovernmentVentities?
Solution
SeeVanswerVtoVabove—
theVholdingVisVaVfundamentalVchangeVinVtheVliabilityVandVresponsibilitiesVofVgovernmentVenti
ties.
5. WhyVwasVthereVnoVbreachVofVdutyVbyVtheVcommunityVcolleges?
Solution
BecauseVbeingV“beaned”VisVaVriskVinVtheVgameVandVoneVthatVtheVcollegesVcouldVnotVprevent
.VAlso,VJoseVwasVstillVableVtoVwalkVandVgotVtheVattentionVthatVheVneeded.
6. DoesVitVmatterVthatV“beaning”VaVbatterVviolatesVtheVrulesVofVtheVgame?
Solution
TheVcourtVtakesVnoteVthatVprofessionalVbaseballVprohibitsVbeaning,VbutVbeaningVhappensVan
dVthatVitVhappensVisVnotVtheVresultVofVanyVactionsVbyVsponsorsVbutVindividualVchoicesVbyVpl
ayers.
However,VsanctionsVforVbeaningVcouldVdeterVsuchVactivities—
somethingVtheVcourtVdoesVnotVdiscuss.
©V2022VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,VcopiedVorVduplicated,VorVpostedVtoVaVpubl 3
iclyVaccessible
website,VinVwholeVorVinVpart.
, ForVtheVManager’sVDesk
TheVCover-upVversusVtheVCrime,VpageV11
TheVdecisionsVinVtheVAvilaVandVUCLAVcasesVareVpartVofVaVnationwideVtrendVthatVhasVexpan
dedVliabilityVandVimposedVadditionalVdutiesVonVthoseVwhoVownVandVrunVfacilitiesVwhereVth
eVpublicVisVpresent.VTheVscopeVofVthatVdutyVrequires,VatVleastVinVmostVcases,VthatVbusiness
VownersVandVpublicVentitiesVtakeVappropriateVstepsVtoVensureVsafetyVonceVtheyVbecomeVa
wareVofVtheVdanger.VThatVdutyVisVdifficultVforVuniversitiesVthatVareVworkingVwithVstudentsVs
uchVasVtheVoneVinVtheVUCLAVcaseVorVemployeesVwhoVhaveVbecomeVaggressiveVinVtheVwork
place.
InVbothVsituations,VadministratorsVareVtryingVtoVbalanceVtheVrightsVofVtheVstudentVorVemployees
VwithVtheVneedVtoVprotectVotherVstudentsVandVemployeesVinVtheVsituation.VBothVstudentsVandV
employeesVhaveVrightsVtoVbeVatVschoolVorVwork.VIfVthoseVrightsVareVtoVbeVtakenVaway,VtheVad
ministratorsVmustVbuildVaVrecordVtoVestablishVtheVneedVforVtheirVremoval.VTheVrightsVissuesVareVc
overedVinVChapterV5,VtheVdutyVissuesVareVcoveredVinVmoreVdetailVinVChapterV9,VandVtheVemploy
eeVrightsVissuesVareVcoveredVinVChaptersV16,V19,VandV20.
Solution
TheVchallengesVinVdealingVwithVproblemVstudentsVareVgreatVbecauseVthereVareVdueVprocessVrightsVt
hatVtheVstudentsVhold.VExpulsionVandVsuspensionVareVactionsVthatVdepriveVthemVofVaVpropertyVright
—
toVbeVthereVforVobtainingVanVeducation.VAtVtheVsameVtime,VadministratorsVhaveVtoVworryVaboutVthe
VsafetyVofVotherVstudentsVwhenVthereVareVbehaviorsVthatVendangerVthem.VAdministratorsVhaveVtoVc
arefullyVkeepVreportsVofVincidentsVandVbeVsureVtoVcoordinateVallVinformationVthatVisVcomingVinVabou
tVproblemVstudents.
AdministratorsVshouldValsoVkeepVcarefulVrecordsVandVconductVoversightVofVareasVwhereVthereVareVa
nyVstudentVinjuries.VTakingVstepsVtoVpreventVtheVinjuriesVisValsoVimportant.
EthicalVIssues
CaseV1.1,VpageV10
DiscussVtheVethicsVofVtheVpitcher’sVdeliberateV“beaning”VofVJose.VAreVtheVstandardsVofV
ethicsVdifferentVinVsportingVcompetitions?VIfVanVactionVcannotVpenalizeVwhatVhappensVi
nVtheVgame,VwhatVareVtheVeffectsVonVplayers’VbehaviorsVduringVtheVgame?
Solution
EthicsVisVconductVthatVgoesVbeyondVtheVrules,VbutVitVcertainlyVincludesVtheVobligationVtoVfollowVtheVr
ules.V AsVtheVcourtVnotes,V“beaning”VorVotherVintentionalVinjuriesVtoVotherVplayersVisVprohibitedVinVb
aseball.
However,VoneVofVtheVproblemsVisVthatVtheVlackVofVenforcementV(noVsanctionVforVviolatingVthoseVrule
s)VshiftsVtheVnormsVofVbehaviorVduringVtheVgameVawayVfromVtheVruleVtoVanVacceptedVorVtoleratedVl
evelVofVbehavior.VHowever,VasVtheVcaseVillustrates,VthereVcanVbeVseriousVinjuriesVresultingVfromVthe
Vconduct.
OneVofVtheVdifficultiesVwithVtheVruleVisVinVestablishingVthatVtheVconductVwasVintentional.VBeingV
hitVbyVaVbaseballVisVaVriskVassumedVinVbaseball.VUmpiresVhaveVdifficultyVprovingVthatVtheVinten
tionalVhitsVwereVintentional.
TheVbottomVlineVisVthatVweVareVdependentVonVtheVhonorVofVthoseVplayingVtheVgamesVtoVnotVvi
©V2022VCengage.VAllVRightsVReserved.VMayVnotVbeVscanned,VcopiedVorVduplicated,VorVpostedVtoVaVpubl 4
iclyVaccessible
website,VinVwholeVorVinVpart.