Test Bank
Solution Manual for Business Law:
Text and Cases –
Clarkson. Miller :16th Edition
,Table Of Content.
CHAPTER 1: Legal and Constitutional Foundations of Business
—Appendix to Chapter 1: Finding and Analyzing the Law
CHAPTER 2: Courts and Alternative Dispute Resolution
CHAPTER 3: Ethics in Business
—Appendix to Chapter 3: Code of Ethics Example
CHAPTER 4: Tort Law
CHAPTER 5: Intellectual Property Rights
CHAPTER 6: Internet Law, Social Media, and Privacy
CHAPTER 7: Criminal Law and Cyber Crime
CHAPTER 8: Agreement and Consideration in Contracts
CHAPTER 9: Capacity, Legality, and Enforceability
CHAPTER 10: Contract Performance, Breach, and Remedies
CHAPTER 11: Sales and Lease Contracts
CHAPTER 12: Performance and Breach in Sales and Lease Contracts
CHAPTER 13: Negotiable Instruments
CHAPTER 14: Banking
CHAPTER 15: Creditors’ Rights and Bankruptcy
CHAPTER 16: Agency Relationships in Business
CHAPTER 17: Employment Law
CHAPTER 18: The Entrepreneur’s Options
CHAPTER 19: Corporations
CHAPTER 20: Investor Protection, Insider Trading, and Corporate Governance
CHAPTER 21: Antitrust Law and Promoting Competition
CHAPTER 22: Consumer Law
CHAPTER 23: Personal Property, Bailments, and Insurance
CHAPTER 24: Real Property and Environmental Law
CHAPTER 25: International and Space Law
,Chapter 01: Legal and Constitutional Foundations of Business
Table of Contents
Critical Thinking Questions in Features 1 Adapting the Law to the Online Environment 1 Critical
Thinking Questions in Cases 2
Case 1.1 2
Case 1.2 3
Case 1.3 3
Chapter Review4
Practice and Review 4
Practice and Review: Debate This 5
Issue Spotters 5
Business Scenarios and Case Problems 5
Critical Thinking and Writing Assignments 10
Critical Thinking Questions in Appendix Exhibit 1A–3 11
Exhibit 1A–3 11
Critical Thinking Questions in Features Adapting the Law to the Online Environment
1. One observer has said that the American legal system should evaluate social media companies
based on how ―they affect us as citizens, not only [on how] they affect us as consumers. What is your
opinion of this statement?
Solution
, The person who made this statement clearly sees a ―citizen as having different motivations and
concerns than a ―consumer. Presumably, a citizen is mostly concerned with the good of society as a
whole, and therefore would be open to the idea of government regulation that restricted the negative
influence of social media, regardless of the First Amendment. A consumer, by contrast, would be
primarily concerned with having a marketplace that offers the widest possible varieties of freedom (of
choice, of speech, etc.) and would for that reason be opposed to government regulation of social media.
There is, however, an argument to be made that the citizens that make up a society benefit when the
marketplace of ideas— whether they are subjectively
―positive or ―negative—is allowed to flourish in the absence of government regulation.
2. Tim Cook, Apple‘s chief operating officer, has suggested that the United States Congress should
pass a law limiting the ability of Apple and other tech countries to keep consumer data private. Why
would a business executive make such a request?
Solution
Cook may have wanted to end a controversy that puts Apple squarely at odds with the federal
government. After all, large companies such as Apple rely on favorable treatment from the government
in regulatory matters, international trade agreements, and many other areas. Also, large corporations
such as Apple sometimes gain an advantage over competitors when their industries are regulated. For
example, Apple has significant resources with which to lobby Congress for favorable treatment, and it is
better positioned to bear the costs of regulation than are other, smaller tech companies. Finally, Apple‘s
position as a champion of consumer privacy would be damaged if it ―caved and changed its stance
without being forced to do so by a new federal law.
Critical Thinking Questions in Cases Case 1.1
1. What ―dangerous conditions might have prompted the city to enact the ordinances at issue in
this
case? Why? Solution
As noted in the facts of the case, both ordinances at issue included an extensive rationale for their
adoption, stating essentially that a geographically small city has the right to restrict a
business from operating within the city when the restriction is for the safety of the city‘s citizens and
visitors.
Solution Manual for Business Law:
Text and Cases –
Clarkson. Miller :16th Edition
,Table Of Content.
CHAPTER 1: Legal and Constitutional Foundations of Business
—Appendix to Chapter 1: Finding and Analyzing the Law
CHAPTER 2: Courts and Alternative Dispute Resolution
CHAPTER 3: Ethics in Business
—Appendix to Chapter 3: Code of Ethics Example
CHAPTER 4: Tort Law
CHAPTER 5: Intellectual Property Rights
CHAPTER 6: Internet Law, Social Media, and Privacy
CHAPTER 7: Criminal Law and Cyber Crime
CHAPTER 8: Agreement and Consideration in Contracts
CHAPTER 9: Capacity, Legality, and Enforceability
CHAPTER 10: Contract Performance, Breach, and Remedies
CHAPTER 11: Sales and Lease Contracts
CHAPTER 12: Performance and Breach in Sales and Lease Contracts
CHAPTER 13: Negotiable Instruments
CHAPTER 14: Banking
CHAPTER 15: Creditors’ Rights and Bankruptcy
CHAPTER 16: Agency Relationships in Business
CHAPTER 17: Employment Law
CHAPTER 18: The Entrepreneur’s Options
CHAPTER 19: Corporations
CHAPTER 20: Investor Protection, Insider Trading, and Corporate Governance
CHAPTER 21: Antitrust Law and Promoting Competition
CHAPTER 22: Consumer Law
CHAPTER 23: Personal Property, Bailments, and Insurance
CHAPTER 24: Real Property and Environmental Law
CHAPTER 25: International and Space Law
,Chapter 01: Legal and Constitutional Foundations of Business
Table of Contents
Critical Thinking Questions in Features 1 Adapting the Law to the Online Environment 1 Critical
Thinking Questions in Cases 2
Case 1.1 2
Case 1.2 3
Case 1.3 3
Chapter Review4
Practice and Review 4
Practice and Review: Debate This 5
Issue Spotters 5
Business Scenarios and Case Problems 5
Critical Thinking and Writing Assignments 10
Critical Thinking Questions in Appendix Exhibit 1A–3 11
Exhibit 1A–3 11
Critical Thinking Questions in Features Adapting the Law to the Online Environment
1. One observer has said that the American legal system should evaluate social media companies
based on how ―they affect us as citizens, not only [on how] they affect us as consumers. What is your
opinion of this statement?
Solution
, The person who made this statement clearly sees a ―citizen as having different motivations and
concerns than a ―consumer. Presumably, a citizen is mostly concerned with the good of society as a
whole, and therefore would be open to the idea of government regulation that restricted the negative
influence of social media, regardless of the First Amendment. A consumer, by contrast, would be
primarily concerned with having a marketplace that offers the widest possible varieties of freedom (of
choice, of speech, etc.) and would for that reason be opposed to government regulation of social media.
There is, however, an argument to be made that the citizens that make up a society benefit when the
marketplace of ideas— whether they are subjectively
―positive or ―negative—is allowed to flourish in the absence of government regulation.
2. Tim Cook, Apple‘s chief operating officer, has suggested that the United States Congress should
pass a law limiting the ability of Apple and other tech countries to keep consumer data private. Why
would a business executive make such a request?
Solution
Cook may have wanted to end a controversy that puts Apple squarely at odds with the federal
government. After all, large companies such as Apple rely on favorable treatment from the government
in regulatory matters, international trade agreements, and many other areas. Also, large corporations
such as Apple sometimes gain an advantage over competitors when their industries are regulated. For
example, Apple has significant resources with which to lobby Congress for favorable treatment, and it is
better positioned to bear the costs of regulation than are other, smaller tech companies. Finally, Apple‘s
position as a champion of consumer privacy would be damaged if it ―caved and changed its stance
without being forced to do so by a new federal law.
Critical Thinking Questions in Cases Case 1.1
1. What ―dangerous conditions might have prompted the city to enact the ordinances at issue in
this
case? Why? Solution
As noted in the facts of the case, both ordinances at issue included an extensive rationale for their
adoption, stating essentially that a geographically small city has the right to restrict a
business from operating within the city when the restriction is for the safety of the city‘s citizens and
visitors.
