The Legal Environment of Business, 14th Edition
by Roger E. Meiners, Chapters 1 - 22, Complete
,TABLE OF CONTENTS
O O O
ChapterO1.OToday’sOBusinessOEnvironment:OLawOandOEthics
ChapterO2.OTheOCourtOSystems
ChapterO3.OTrialsOandOResolvingODisputes
ChapterO4.OTheOConstitution:OFocusOonOApplicationOtoOBusiness
ChapterO5.OCriminalOLawOandOBusiness
ChapterO6.OElementsOofOTorts
ChapterO7.OBusinessOTortsOandOProductOLiability
ChapterO8.ORealOandOPersonalOProperty
ChapterO9.OIntellectualOProperty
ChapterO10.OContracts
ChapterO11.ODomesticOandOInternationalOSales
ChapterO12.OBusinessOOrganizations
ChapterO13.ONegotiableOInstruments,OCredit,OandOBankruptcy
ChapterO14.OAgencyOandOtheOEmploymentORelationship
ChapterO15.OEmploymentOandOLaborORegulations
ChapterO16.OEmploymentODiscrimination
ChapterO17.OTheORegulatoryOProcess
ChapterO18.OSecuritiesORegulation
ChapterO19.OConsumerOProtection
ChapterO20.OAntitrustOLaw
ChapterO21.OEnvironmentalOLaw
ChapterO22.OTheOInternationalOLegalOEnvironmentOofOBusiness
,CHAPTER 1 O
Table of Contents
O O
AnswerOtoODiscussionOQuestion ................................................................................................................... 1
AnswersOtoOCaseOQuestions .......................................................................................................................... 1
AnswersOtoOEthicsOandOSocialOQuestions ...................................................................................................... 3
Answer to Discussion Question
O O O
ShouldOtheOcommonOlawOmaximO“IgnoranceOofOtheOlawOisOnoOexcuse”OapplyOtoOanOimmigrantOwhoOspeaksOlittleOEn
glishOandOwasOnotOeducatedOinOtheOUnitedOStates?OHowOaboutOforOaOtouristOwhoOdoesOnotOspeakOEnglish?OEveryo
neOknowsOcriminalOactsOareOprohibited,ObutOwhatOaboutOsubtlerOrulesOthatOdifferOacrossOcountriesOandOsoOmayObeO
misunderstoodObyOforeigners?
Answer:OItOisOgenerallyOtrueOthatOignoranceOofOtheO lawOisOnoOexcuse.OCitizensOareOdeemedOtoOhaveOconstructiveO
knowledgeOofOtheOlaw.OYet,OasOwellOknownOasOthisOruleOis,OitOisOsurprisingOhowOoftenOitOisOprofferedOasOanOe
xcuse.O(AOWestlawOsearchOcasesOfindsOhundredsOofOexamples).OExamplesOinclude:ODelucoOv.ODeziO(Conn.OSup
er)O(lackOofOknowledgeOregardingOtheOstate‘sOusuryOlawsOisOnoOexcuseOforOtheOinclusionOofOanOillegalOinterest
OrateOinOaOsalesOcontract);OandOPlumleeOv.OPaddockO(ignoranceOofOtheOfactOthatOtheOsubjectOmatterOofOtheOco
ntractOwasOillegalOwasOnotOexcuse).OTheOcourtsOhaveOprovidedOaOsmallOexceptionOtoOtheOruleOwhenOitOcomes
OtoOpeopleOinOlackOofOEnglishOlanguageOskills.OConsiderOFlaneryOv.OKuska,O(defendantOdidOnotOspeakOEnglishO
wasOadvisedObyOaOfriendOthatOanOanswerOtoOaOcomplaintOwasOnotOrequired);ORamonOv.ODept.OofOTransportati
on,O(noOEnglishOandOanOinabilityOtoOunderstandOtheOlawOrequiredOforOanOexcuse);OYurechkoOv.OCountyOofOAlle
gheny,O(IgnoranceOandOwithOtheOfactOthatOtheOmunicipalityOsufferedOnoOhardshipOinOlateOlawsuitOfilingOwasO
anOexcuse).
Answers to Case Questions
O O O
1. FactsOfromOanOEnglishOjudge’sOdecisionOinO1884:O“TheOcrewOofOanOEnglishOyacht ................wereOcastOawayOin
aOstormOonOtheOhighOseasO.O.O.OandOwereOcompelledOtoOputOintoOanOopenOboat. ............ TheyOhadOnoOsupply
ofOwaterOandOnoOsupplyOofOfood.O.O.O.OThatOonOtheOeighteenthOdayO.O.O.Othey........... suggestedOthatOone
shouldObeOsacrificedOtoOsaveOtheOrest.O.O.O.OThatOnextOdayO.O.O.OtheyO.O.O.OwentOtoOtheOboy ........... putOaOknife
intoOhisOthroatOandOkilledOhimO.O.O.OtheOthreeOmenOfedOuponOtheObody ..........ofOtheOboyOforOfourOdays;O[then]
theOboatOwasOpickedOupObyOaOpassingOvessel,OandO[they]OwereOrescued.O.O.O.OandOcommittedOforOtrial.O.O.O.
ifOtheOmenOhadOnotOfedOuponOtheObodyOofOtheOboyOtheyOwouldOprobablyOnotOhaveOsurvivedOtoObeOsoOpic
kedOupOandOrescued,ObutOwould .............. haveOdiedOofOfamine.OTheOboy,ObeingOinOaOmuchOweaker
condition,OwasOlikelyOtoOhaveOdiedObeforeOthem ........... TheOrealOquestionOinOthisOcaseO[is]OwhetherOkilling
underOtheOconditionsOsetOforth......... beOorObeOnotOmurder.”ODoOyouOconsiderOtheOactsOtoObeOimmoral?
[ReginaOv.ODudleyOandOStephens,O14OQueensOBenchODivisionO273O(1884)]
Answer:OThisOpointsOoutOthatOtheOlegalOsystemOhasOlimits.OItsOacceptabilityOisOdictatedObyOlegalOculture--
whichOdeterminesOwhetherOlawOwillObeOenforced,Oobeyed,Oavoided,OorOabused.OItOisOlimitedObyOtheOinformalO
rulesOofOtheOsociety--
itsOcustomsOandOvalues.OOneOlimitOisOtheOextentOtoOwhichOsocietyOwillOallowOtheOformalOrulesOtoObeOimposed
OwhenOaOcrimeOisOcommittedOinOoddOcircumstances.OHereOthereOwasOanOintentionalOmurder.ODoesOtheOmotiv
eOforOtheOmurder,OtheOeffortOtoOsaveOseveralOlivesObyOsacrificingOone
, life,OmakeOitOaOcrimeOthatOshouldObeOpunished?ONotOallOcrimesOareOtreatedOtheOsame.O ItOalsoOraisesOquestionsO
aboutOtheOdesirabilityOofOnotOgivingOjudgesOflexibilityOinOsentencing.
ThereOwasOaOprecedentOforOaOlightOsentenceOinOthisOcaseOinOU.S.Olaw:O U.S.Ov.OHolmes,O20OF.OCas.O360O(No.O15
383)O(C.C.E.D.OPa.O1842).OTheOcaseOinvolvedOaOsinkingOoceanOliner.OSeveralOpassengersOmadeOitOtoOtheOonlyOlif
eboat,OwhichOwasOfarOtooOovercrowded.OTheOcaptainOdecidedOtoOsaveOtheOwomenOandOchildrenOandOthrewOs
everalO menOoverboard.OTheOlifeboatO wasOrescued.OTheO grandO juryOrefusedOtoOindictOtheOcaptainOfromOmurd
er,OonlyOforOmanslaughter.OHeOgotOaOsixOmonthOsentence.
TheOBritishOjudgeOinOtheOcaseOhereOimposedOtheOdeathOpenaltyOuponOtheOpersonOwhoOsurvived.OTheOjudg
eOfoundOitOdifficultOtoOruleOthatOeveryOmanOonOboardOhadOtheOrightOtoOmakeOlawObyOhisOownOhand.OTheO
CrownOreducedOtheOsentenceOtoOsixOmonths.
2. SmokingOisOaOseriousOhealthOhazard.OCigarettesOareOlegal.OShouldOcigaretteOmanufacturersObeOliableOforOtheO
seriousOillnessesOandOuntimelyOdeathsOcausedObyOtheirOunavoidablyOdangerousOproducts,OevenOthoughOtheyOp
ostOaOwarningOonOtheOpackageOandOconsumersOvoluntarilyOassumeOtheOhealthOrisksObyOsmoking?O[CipolloneO
v.OLiggettOGroup,OInc.,O505OU.S.O504O(1992)]
Answer:OTheOgeneralOruleOthatOexistsOnowOisOthatOsinceOtheOgovernmentOhasOorderedOtheOpostingOofOwarningOlab
elsOonOcigarettes,OandOsinceOtheOdangersOofOsmokingOareOwellOknown,OconsumersOhaveObeenOwarnedOandOa
reOnotOdueOcompensationOifOtheyOkillOthemselvesObyOsmoking.OTheO CippolineOcase,OsinceOreviewedObyOtheOS
upremeOCourt,OappearsOtoObeOofOlimitedOimpactOsinceOtheO victimOwasOadjudgedOtoOhaveObecomeOaddictedOt
oOcigarettesObeforeOtheOwarningOlabelOwasOorderedOinO1964.OIfOcigaretteOmakersOwereOheldOresponsibleOforO
allOhealthOproblemsOassociatedOwithOcigarettes,Othen,OlikeOalcoholOandOotherOdangerousOproducts,OtheOdam
agesOwouldOlikelyObeOsoOhighOitOwouldOeffectivelyObanOtheOproducts.OPresumably,OinOaOfreeOsocietyOifOadultsO
areOclearlyOinformedOofOtheOrisksOofOproductsOthatOcannotObeOmadeOsafe,OtheyOacceptOtheOrisk.OTobaccoOan
dOalcoholOproducersOcannotOtakeOtheOdangersOoutOofOtheOproductsOexceptOatOtheOmarginObyOencouragingOre
sponsibleOdrinkingOandOtheOlike.OAreOdrugsOlikeOcocaineOdifferent?
3. TwoOeight-year-oldOboysOwereOseriouslyOinjuredOwhenOridingOHondaOmini-
trailObikes.OTheOboysOwereOridingOonOpublicOstreets,OranOaOstopOsign,OandOwereOhitObyOaOtruck.OTheObikesOhadO
clearOwarningOlabelsOonOtheOfrontOstatingOtheyOwereOonlyOforOoff-
roadOuse.OTheOmanualOstatedOtheObikesOwereOnotOtoObeOusedOonOpublicOstreets.OTheOparentsOsuedOHonda.OThe
OsupremeOcourtOofOWashingtonOsaidOoneObasicOissueOexisted:O“IsOaOmanufacturerOliableOwhenOchildrenOareOinj
uredOwhileOridingOoneOofOitsOmini-
trailObikesOonOaOpublicOroadOinOviolationOofOmanufacturerOandOparentalOwarnings?”OIsOitOunethicalOtoOmakeOpr
oductsOlikeOmini-
trailObikesOchildrenOwillOuseOwhenOweOknowOaccidentsOlikeOthisOwillOhappen?O[BaughnOv.OHondaOMotorOCo.,O7
27OP.2dO655OSup.OCt,OWash.,O(1986)]
Answer:OTheOcourtOfoundOnoOliabilityOforOtheOmanufacturers.OThereOwasOnoOdefect;OtheOproductOwasOsafeOforOint
endedOuse.OSafetyOinstructionsOwereOclear;OtheOparentsOletOtheOboysOrideOtheObikes.OAnythingOcanObeOdange
rous--
baseballsOareOdangerousOwhenOtheyOhitOtheOhead,OswingsOareOdangerousOwhenOkidsOjumpOoutOofOthem;Other
eOisOonlyOsoOmuchOthatOcanObeOdoneOtoOmakeOtheOgovernmentOtheO―nationalOnanny‖OasOtheOWashingtonOP
ostOonceOsaidOaboutOexcessiveOconsumerOprotection.OParentsOmustOacceptOaOhighOdegreeOofOresponsibleOfo
rOtheirOownOchildren.
4. JohnsonOControlsOadoptedOaO“fetalOprotectionOpolicy”OthatOwomenOofOchildbearingOageOcouldOnotOworkOinOth
eObattery-
makingOdivisionOofOtheOcompany.OExposureOtoOleadOinOtheObatteryOoperationOcouldOcauseOharmOtoOunbornOba
bies.OTheOcompanyOwasOconcernedOaboutOpossibleOlegalOliabilityOforOinjuryOsufferedObyObabiesOofOmothersOwh
oOhadOworkedOinOtheObatteryOdivision.OTheOSupremeOCourtOheldOtheOcompanyOpolicyOwasOillegal.OItOwasOanO“e
xcuseOforOdenyingOwomenOequalOemploymentOopportunities.”OIsOtheOCourtOforcingOtheOcompanyOtoObeOuneth
icalObyOallowingOpregnantOwomenOwhoOignoreOtheOwarningsOtoOexposeOtheirObabiesOtoOtheOlead?O[UnitedOAu
toOWorkersOv.OJohnsonOControls,O499OU.S.O187O(1991)]