BusinesshItshLegal,hEthical,handhGlobalhEnvironment,h12thhEditionhCha
pterh1-20
Chapterh1
Table of Contents
h h
Consider… .................................................................................................................................................... 1
Consider…h1.2 ............................................................................................................................................ 1
Consider…h1.3 ............................................................................................................................................ 2
CasehProblems .................................................................................................................................................................. 2
Caseh1.1 ..................................................................................................................................................... 2
ForhthehManager’shDesk.............................................................................................................................. 4
ThehCover-uphversushthehCrime,hpageh11 ................................................................................................... 4
EthicalhIssues...................................................................................................................................................................... 4
Caseh1.1,hpageh10....................................................................................................................................... 4
BusinesshStrategy ............................................................................................................................................................. 5
COVID-19hLockoutshandhBusinesshCivilhDisobedience ................................................................................. 5
ChapterhReview ................................................................................................................................................................ 6
AnswershtohChapterhQuestionshandhProblems ........................................................................................... 6
Economics,hEthics,h&hthehLaw:hThehCosthofhCorporatehWrongdoing ...........................................................12
Consider…
Consider…h1.2
AfterhhehenrolledhinhthehUniversityhofhCaliforniahathLoshAngelesh(UCLA),hDamonhThompsonhexperienc
edhauditoryhhallucinations.hHehbelievedhotherhstudentshinhthehclassroomhandhdormitoryhwerehcriticiz
inghhim.hSchoolhadministratorsheventuallyhlearnedhofhThompson’shdelusionshandhattemptedhtohprovi
dehmentalhhealthhtreatment.hHowever,honehmorninghThompsonhstabbedhfellowhstudenthKatherinehR
osenhduringhahchemistryhlab.hRosenhsuedhthehuniversityhandhseveralhofhitshemployeeshforhnegligence,
harguinghtheyhfailedhtohprotecthherhfromhThompson’shforeseeablehviolenthconduct.
UCLAhishahstateheducationalhinstitution.hBasedhonhthehdecisionhinhthehAvilahcase,hwhathshouldhthehcou
rthdecide?hConsiderhwhetherhUCLAhhashahdutyhtohprotecthstudentshfromhinjuryhonhthehcampushand,hif
hso,hwhathtypeshofhinjuries. hBehsurehtohconsiderhwhathishdifferenthinhthishfactual hpatternhfromhthe
©h2022hCengage.hAllhRightshReserved.hMayhnothbehscanned,hcopiedhorhduplicated,horhpostedhtohahpubliclyhaccess 1
ible
website,hinhwholehorhinhpart.
,factshinhAvila.hWhathwillhthehimpacthbehonhstudents,hfaculty,handhadministratorshpendinghonhwhichhw
ayhthehcourthdecideshonhthehissueshofhliabilityhandhduty?hBehsurehtohconsiderhthehpurposeshandhchar
acteristicshofhlawhinhevaluatinghthehclaimhMs.hRosenhforhinjuries.h[RegentshofhthehUniversityhofhCalifor
niahvhSuperiorhCourt,h413hP.3dh656h(Cal,2018)]
Solution
ThehtrialhcourthdeniedhUCLAhsummaryhjudgment.hUCLAhfiledhahpetitionhforhwrithofhmandate,hrequestinghan
horderhdirectinghtrialhcourthtohenterhsummaryhjudgmenthinhitshfavor.hThehCourthofhAppealhgrantedhthehpeti
tion.hThehSupremehCourthgrantedhreview,hsupersedinghthehopinionhofhthehCourthofhAppeal.
ThehSupremehCourthheldhthaththehuniversityhhadhdutyhofhcarehtohprotecthstudentshfromhforeseeablehviolen
cehduringhthehchemistryhlab,hreversinghahlonghlinehofhprecedent.
ThishcasehishdifferenthfromhthehAvilahcasehinhthathUCLAhhadhknowledgehofhthehpotentialhharmhthaththehstu
denthcouldhdo.hInhthehAvilahcase,hthehconducthwashsuchhthathithcouldhnothbehanticipatedhexcepthperhapshth
ehpossibilityhthathplayershhavehdisobeyedhthehruleshofhthehgame,hbuththerehwashnohdirecthknowledgehabo
uththehpitcher’shtendencieshtohbeanhbatters.hInhthishcase,hUCLAhwashawarehofhthehproblemshthehstudenthh
adhandhwashworkinghwithhthehstudent.hThehcasehwashahwarninghtohuniversitieshabouththehimportancehofhc
urbinghthehbehaviorshofhstudentshandhthen,hwhenhnecessaryhremovinghthemhfromhthehcampushashahdange
rhtohthemselveshandhotherhstudents.hThehcourthnotedhthaththehscopehofhthehdutyhishbasedhonhthehextentho
fhthehrelationshiphthehstudenthhadhwithhthehuniversity.
ThehimmunityhofhgovernmenthentitieshwashcurbedhinhAvilahandhnowhthehcourtsharehsimplyhdealinghwithht
hehconcepthofhduty.hWhathishthehdutyhofhgovernmenthentities?hHowhfarhdoeshithextend?hWhathactionshm
usththeyhtake?h [RegentshofhthehUniversityhofhCaliforniahvhSuperiorhCourt,h413hP.3dh656h(Cal.h2018)]
Consider…h1.3
Everyhstate,hcounty,handhcityhhashlawshthathregulatehthehmaximumhspeedhforhtheirhroadways.hYet,
hsurveyshindicatehthathnearlyh100%hofhushadmithtohdrivinghabovehthehspeedhlimit.hWhathphilosop
hyhofhlawhdohwehfollowhwhenhwehdecidehwhichhlawshtohobey,hhowhcloselyhwehfollowhthosehlaws,h
andhwhenhwehwillhfollowhthem?hIshtherehahriskhtohsocietyhwhenhwehmakehourhownhdecisionshabo
uthfollowinghthehlaw?
Solution
Speedinghishanhexamplehofhthehnormhshifting.hThathis,htherehishahlaw,hbuthfewhpeoplehfollowhthehlawhandht
hehresulthishthaththehlawhbecomeshmeaningless.hSomehphilosophershfearhthathdisregardhofhthehlawhonhanhi
ndividualhbasishcouldhmeanhthathweharehintroducinghanarchy—
thehlawhhashnoheffect.hOthershwouldhfollowhthehnormativehstandardhofhdoinghwhathishacceptablehtohothe
rs.
Case Problems
h
Caseh1.1
1. Outlinehthehcasehhistory—whatheachhofhthehcourtshdecidedhinhthehcase.
©h2022hCengage.hAllhRightshReserved.hMayhnothbehscanned,hcopiedhorhduplicated,horhpostedhtohahpubliclyhaccess 2
ible
website,hinhwholehorhinhpart.
, Solution
Lowerhcourthheldhthaththehcommunityhcollegeshwerehimmune,hsohithneverhreachedhthehdutyhissue.
hThehcourthofhappealhheldhthaththehcommunityhcollegeshwerehnothimmunehandhfoundhthaththeyhh
adhbreachedhtheirhdutyhtohJose.
2. Explainhthehstandardhnowhforhthehliabilityhofhgovernmenthentities.
Solution
Althoughhtherehishimmunityhforhgovernmenthentitieshforhinjurieshfromhrecreationalhactivitiesh(ha
zardoushandhotherwise),hthehcourthheldhthathgovernmenthentitieshstillhhavehdutieshtowardhthoseh
whoharehusinghtheirhfacilities.
3. Whathinterestshishthehcourthbalancing?
Solution
Thehcourthishbalancinghthehlongstandinghprotectionhofhgovernmenthentitieshfromhtorthliabilityhwith
hthehinjurieshthathcanhresulthwhenhtherehishnohsupervisionhofhthosehinvolvedhinhgovernment-
hsponsoredhactivities.hTherehwashalsohthehlongstandinghprecedenththathishbeinghchanged.
Governmenthentitieshwillhneedhnewhinsurancehlevelshandhwillhneedhtohchangehtheirhinvolvementha
ndhsupervisionhrequirements.
4. Doeshthehcourthchangehthehprevioushstandardhforhliabilityhofhgovernmenthentities?hWhyhorhwhy
hnot?hWhatheffecthwillhthehdecisionhhavehonhgovernmenthentities?
Solution
Seehanswerhtohabove—
thehholdinghishahfundamentalhchangehinhthehliabilityhandhresponsibilitieshofhgovernmenthentities.
5. Whyhwashtherehnohbreachhofhdutyhbyhthehcommunityhcolleges?
Solution
Becausehbeingh“beaned”hishahriskhinhthehgamehandhonehthaththehcollegeshcouldhnothprevent.hAlso,h
Josehwashstillhablehtohwalkhandhgoththehattentionhthathhehneeded.
6. Doeshithmatterhthath“beaning”hahbatterhviolateshthehruleshofhthehgame?
Solution
Thehcourthtakeshnotehthathprofessionalhbaseballhprohibitshbeaning,hbuthbeaninghhappenshandhthat
hithhappenshishnoththehresulthofhanyhactionshbyhsponsorshbuthindividualhchoiceshbyhplayers.
However,hsanctionshforhbeaninghcouldhdeterhsuchhactivities—
somethinghthehcourthdoeshnothdiscuss.
©h2022hCengage.hAllhRightshReserved.hMayhnothbehscanned,hcopiedhorhduplicated,horhpostedhtohahpubliclyhaccess 3
ible
website,hinhwholehorhinhpart.
, For the Manager’s Desk
h h h
ThehCover-uphversushthehCrime,hpageh11
ThehdecisionshinhthehAvilahandhUCLAhcasesharehparthofhahnationwidehtrendhthathhashexpandedhlia
bilityhandhimposedhadditionalhdutieshonhthosehwhohownhandhrunhfacilitieshwherehthehpublichishpr
esent.hThehscopehofhthathdutyhrequires,hathleasthinhmosthcases,hthathbusinesshownershandhpublich
entitieshtakehappropriatehstepshtohensurehsafetyhoncehtheyhbecomehawarehofhthehdanger.hThathd
utyhishdifficulthforhuniversitieshthatharehworkinghwithhstudentshsuchhashthehonehinhthehUCLAhcaseho
rhemployeeshwhohhavehbecomehaggressivehinhthehworkplace.
Inhbothhsituations,hadministratorsharehtryinghtohbalancehthehrightshofhthehstudenthorhemployeeshwithht
hehneedhtohprotecthotherhstudentshandhemployeeshinhthehsituation.hBothhstudentshandhemployeeshh
avehrightshtohbehathschoolhorhwork.hIfhthosehrightsharehtohbehtakenhaway,hthehadministratorshmusthbui
ldhahrecordhtohestablishhthehneedhforhtheirhremoval.hThehrightshissuesharehcoveredhinhChapterh5,hthehdut
yhissuesharehcoveredhinhmorehdetailhinhChapterh9,handhthehemployeehrightshissuesharehcoveredhinhCha
ptersh16,h19,handh20.
Solution
Thehchallengeshinhdealinghwithhproblemhstudentsharehgreathbecausehthereharehduehprocesshrightshthaththe
hstudentshhold.hExpulsionhandhsuspensionharehactionshthathdeprivehthemhofhahpropertyhright—
tohbehtherehforhobtaininghanheducation.hAththehsamehtime,hadministratorshhavehtohworryhabouththehsafety
hofhotherhstudentshwhenhthereharehbehaviorshthathendangerhthem.hAdministratorshhavehtohcarefullyhkeeph
reportshofhincidentshandhbehsurehtohcoordinatehallhinformationhthathishcominghinhabouthproblemhstudents.
Administratorshshouldhalsohkeephcarefulhrecordshandhconducthoversighthofhareashwherehthereharehanyhstu
denthinjuries.hTakinghstepshtohprevenththehinjurieshishalsohimportant.
Ethical Issues
h
Caseh1.1,hpageh10
Discusshthehethicshofhthehpitcher’shdeliberateh“beaning”hofhJose.hArehthehstandardshofhethics
hdifferenthinhsporting hcompetitions?hIfhanhactionhcannothpenalizehwhathhappens hinhthehgame
,hwhatharehtheheffectshonhplayers’hbehaviorshduringhthehgame?
Solution
Ethicshishconducththathgoeshbeyondhthehrules,hbuthithcertainlyhincludeshthehobligationhtohfollowhthehrules.h As
hthehcourthnotes,h“beaning”horhotherhintentionalhinjurieshtohotherhplayershishprohibitedhinhbaseball.
However,honehofhthehproblemshishthaththehlackhofhenforcementh(nohsanctionhforhviolatinghthosehrules)hshifts
hthehnormshofhbehaviorhduringhthehgamehawayhfromhthehrulehtohanhacceptedhorhtoleratedhlevelhofhbehavior
.hHowever,hashthehcasehillustrates,htherehcanhbehserioushinjurieshresultinghfromhthehconduct.
Onehofhthehdifficultieshwithhthehrulehishinhestablishinghthaththehconducthwashintentional.hBeinghhithbyh
ahbaseballhishahriskhassumedhinhbaseball.hUmpireshhavehdifficultyhprovinghthaththehintentionalhhitshwe
rehintentional.
Thehbottomhlinehishthathweharehdependenthonhthehhonorhofhthosehplayinghthehgameshtohnothviolatehth
ehrules.
©h2022hCengage.hAllhRightshReserved.hMayhnothbehscanned,hcopiedhorhduplicated,horhpostedhtohahpubliclyhaccess 4
ible
website,hinhwholehorhinhpart.