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SOLUTION MANUAL The Legal Environment of Business, 14th Edition by Roger E. Meiners, Verified Chapters 1 - 22, Complete

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SOLUTION MANUAL
The Legal Environment of Business, 14th Edition
by Roger E. Meiners, Chapters 1 - 22, Complete

,TABLE OF CONTENTS
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➢ Chapter 1. Today’s Business Environment: Law and Ethics
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➢ Chapter 2. The Court Systems
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➢ Chapter 3. Trials and Resolving Disputes
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➢ Chapter 4. The Constitution: Focus on Application to Business
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➢ Chapter 5. Criminal Law and Business
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➢ Chapter 6. Elements of Torts
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➢ Chapter 7. Business Torts and Product Liability
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➢ Chapter 8. Real and Personal Property
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➢ Chapter 9. Intellectual Property
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➢ Chapter 10. Contracts
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➢ Chapter 11. Domestic and International Sales
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➢ Chapter 12. Business Organizations
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➢ Chapter 13. Negotiable Instruments, Credit, and Bankruptcy
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➢ Chapter 14. Agency and the Employment Relationship
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➢ Chapter 15. Employment and Labor Regulations
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➢ Chapter 16. Employment Discrimination
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➢ Chapter 17. The Regulatory Process
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➢ Chapter 18. Securities Regulation
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➢ Chapter 19. Consumer Protection
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➢ Chapter 20. Antitrust Law
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➢ Chapter 21. Environmental Law
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➢ Chapter 22. The International Legal Environment of Business
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,CHAPTER 1 HU




Table of Contents HU HU




Answer to Discussion Question .................................................................................................................... 1
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Answers to Case Questions .......................................................................................................................... 1
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Answers to Ethics and Social Questions ....................................................................................................... 3
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Answer to Discussion Question HU HU HU




Should the common law maxim “Ignorance of the law is no excuse” apply to an immigrant who speakslittle English
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and was not educated in the United States? How about for a tourist who does not speak English? Everyone know
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s criminal acts are prohibited, but what about subtler rules that differ across countries and so may be misunderst
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ood by foreigners?
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Answer: It is generally true that ignorance of the law is no excuse. Citizens are deemed to have constructive kno
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wledge of the law. Yet, as well known as this rule is, it is surprising how often it is proffered as an excuse. (
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A Westlaw search cases finds hundreds of examples). Examples include: Deluco v. Dezi (Conn. Super) (lack o
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f knowledge regarding the state‘s usury laws is no excuse for the inclusion of an illegal interest rate in a sale
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s contract); and Plumlee v. Paddock (ignorance of thefact that the subject matter of the contract was illegal
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was not excuse). The courts have provided a small exception to the rule when it comes to people in lack of
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English language skills. Consider Flanery v. Kuska, (defendant did not speak English was advised by a friend
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that an answer to a complaint was not required); Ramon v. Dept. of Transportation, (no English and an inab
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ility to understand the law required for an excuse); Yurechko v. County of Allegheny, (Ignorance and with th
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e fact that the municipality suffered no hardship in late lawsuit filing was an excuse).
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Answers to Case Questions HU HU HU




1. Facts from an English judge’s decision in 1884: “The crew of an English yacht.....................were cast away in
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a storm on the high seas . . . and were compelled to put into an open boat. ................. They had no supply
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of water and no supply of food. . . . That on the eighteenth day . . . they ................ suggested that one
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should be sacrificed to save the rest. . . . That next day . . . they . . . went to the boy ................... put a knife
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into his throat and killed him . . . the three men fed upon the body ...............of the boy for four days; [then]
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the boat was picked up by a passing vessel, and [they] were rescued. . . . and committed for trial. . . .
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if the men had not fed upon the body of the boy they would probably not have survived to be sopicked
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up and rescued, but would ....................... have died of famine. The boy, being in a much weaker
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condition, was likely to have died before them ............. The real question in this case [is] whether killing
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under the conditions set forth .......... be or be not murder.” Do you consider the acts to be immoral?
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[Regina v. Dudley and Stephens, 14 Queens Bench Division 273 (1884)]
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Answer: This points out that the legal system has limits. Its acceptability is dictated by legal culture--
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whichdetermines whether law will be enforced, obeyed, avoided, or abused. It is limited by the informal rul
H
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es of the society-- HU HU HU




its customs and values. One limit is the extent to which society will allow the formal rules to be imposed wh
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en a crime is committed in odd circumstances. Here there was an intentional murder. Does the motive for t
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he murder, the effort to save several lives by sacrificing one
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, life, make it a crime that should be punished? Not all crimes are treated the same. It also raisesquestions abo
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ut the desirability of not giving judges flexibility in sentencing.
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There was a precedent for a light sentence in this case in U.S. law: U.S. v. Holmes, 20 F. Cas. 360 (No. 15383)
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(C.C.E.D. Pa. 1842). The case involved a sinking ocean liner. Several passengers madeit to the only lifeboat,
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which was far too overcrowded. The captain decided to save the women and children and threw several me
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n overboard. The lifeboat was rescued. The grand jury refused to indict the captain from murder, only for
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manslaughter. He got a six month sentence. HU HU HU HU HU HU




The British judge in the case here imposed the death penalty upon the person who survived. Thejudge f
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ound it difficult to rule that every man on board had the right to make law by his own hand.The Crown r
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educed the sentence to six months. HU HU HU HU HU




2. Smoking is a serious health hazard. Cigarettes are legal. Should cigarette manufacturers be liable for the ser
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ious illnesses and untimely deaths caused by their unavoidably dangerous products, eventhough they post a
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warning on the package and consumers voluntarily assume the health risks by smoking? [Cipollone v. Ligget
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t Group, Inc., 505 U.S. 504 (1992)]
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Answer: The general rule that exists now is that since the government has ordered the posting of warninglabels
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on cigarettes, and since the dangers of smoking are well known, consumers have been warned and are not
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due compensation if they kill themselves by smoking. The Cippoline case, since reviewed by the Supreme Co
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urt, appears to be of limited impact since the victim was adjudged to have become addicted to cigarettes b
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efore the warning label was ordered in 1964. If cigarette makers were held responsible for all health proble
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ms associated with cigarettes, then, like alcohol and other dangerous products, the damages would likely b
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e so high it would effectively ban the products. Presumably, in a free society if adults are clearly informed o
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f the risks of products that cannot be made safe, they accept the risk. Tobacco and alcohol producers canno
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t take the dangers out of the products except at the margin by encouraging responsible drinking and the lik
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e. Are drugs like cocaine different?
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3. Two eight-year-old boys were seriously injured when riding Honda mini-
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trail bikes. The boys were riding on public streets, ran a stop sign, and were hit by a truck. The bikes had clea
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r warning labels on the front stating they were only for off-
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road use. The manual stated the bikes were not to be usedon public streets. The parents sued Honda. The su
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preme court of Washington said one basic issue existed: “Is a manufacturer liable when children are injured
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while riding one of its mini- HU HU HU HU HU




trail bikes on apublic road in violation of manufacturer and parental warnings?” Is it unethical to make prod
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ucts like mini- HU HU




trail bikes children will use when we know accidents like this will happen? [Baughn v. Honda Motor Co., 727
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P.2d 655 Sup. Ct, Wash., (1986)]
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Answer: The court found no liability for the manufacturers. There was no defect; the product was safe for intend
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ed use. Safety instructions were clear; the parents let the boys ride the bikes. Anything can bedangerous--
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baseballs are dangerous when they hit the head, swings are dangerous when kids jumpout of them; there is
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only so much that can be done to make the government the ―national nanny‖ asthe Washington Post onc
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e said about excessive consumer protection. Parents must accept a high degree of responsible for their ow
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n children.
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4. Johnson Controls adopted a “fetal protection policy” that women of childbearing age could not work in the
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battery-
making division of the company. Exposure to lead in the battery operation could causeharm to unborn babie
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s. The company was concerned about possible legal liability for injury sufferedby babies of mothers who had
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worked in the battery division. The Supreme Court held the companypolicy was illegal. It was an “excuse for
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denying women equal employment opportunities.” Is the Court forcing the company to be unethical by allo
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wing pregnant women who ignore the warnings to expose their babies to the lead? [United Auto Workers v.
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Johnson Controls, 499 U.S. 187 (1991)]
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Answer: The Court held it a form of sex discrimination to prevent women of child-
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