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SOLUTIONMANUALTheLegalEnvironmentofBusiness, 1
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4thEditionbyRogerE.Meiners,VerifiedChapters1-
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22, Complete
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TheuLegaluEnvironmentuofuBusiness,u14thuEdition
, The Legal Environmentof Business,14th Edition
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TABLE OF CONTENTS
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Chapteru1.uToday’suBusinessuEnvironment:uLawuanduEthics
Chapteru2.uTheuCourtuSystems
Chapteru3.uTrialsuanduResolvinguDisputes
Chapteru4.uTheuConstitution:uFocusuonuApplicationutouBusiness
Chapteru5.uCriminaluLawuanduBusiness
Chapteru6.uElementsuofuTorts
Chapteru7.uBusinessuTortsuanduProductuLiability
Chapteru8.uRealuanduPersonaluProperty
Chapteru9.uIntellectualuProperty
Chapteru10.uContracts
Chapteru11.uDomesticuanduInternationaluSales
Chapteru12.uBusinessuOrganizations
Chapteru13.uNegotiableuInstruments,uCredit,uanduBankruptcy
Chapteru14.uAgencyuandutheuEmploymentuRelationship
Chapteru15.uEmploymentuanduLaboruRegulations
Chapteru16.uEmploymentuDiscrimination
Chapteru17.uTheuRegulatoryuProcess
Chapteru18.uSecuritiesuRegulation
Chapteru19.uConsumeruProtection
Chapteru20.uAntitrustuLaw
Chapteru21.uEnvironmentaluLaw
Chapteru22.uTheuInternationaluLegaluEnvironmentuofuBusiness
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CHAPTER 1 u
Table of Contents
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AnswerutouDiscussionuQuestion ............................................................................................................................... 1
AnswersutouCaseuQuestions.................................................................................................................................... 1
AnswersutouEthicsuanduSocialuQuestions ................................................................................................................. 3
Answer to Discussion Question
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Shouldutheucommonulawumaximu“Ignoranceuofutheulawuisunouexcuse”uapplyutouanuimmigrantuwhouspeakslittleuEnglishuanduu wasun
otueducateduinutheuUniteduStates?uHowuaboutuforuautouristuwhoudoesunotuspeakuEnglish?uEveryoneuknowsucriminaluu u actsuareupr
ohibited,ubutuwhatuaboutusubtlerurulesuthatudifferuacrossucountriesuandusoumayubeumisunderstoodubyuforeigners?
Answer:uItuisugenerallyutrueuthatuignoranceuofutheu lawuisunouexcuse.uCitizensuareudeemedutouhaveuconstructiveu knowledg
euofutheulaw.uYet,uasuwelluknownu asuthisuruleuis,uituisusurprisinguhowuoftenuituisuproffereduasuanuexcuse.u (AuWestlawus
earchucasesufindsuhundredsuofuexamples).uExamplesuinclude:uDelucouv.uDeziu(Conn.uSuper)u(lackuofu knowledgeureg
ardingutheustate‘suusuryulawsuisunouexcuseuforutheuinclusionuofuanuillegaluinteresturateuinuausalesu contract);uanduPluml
eeuv.uPaddocku(ignoranceuofuthefactuthatutheusubjectumatteruofutheucontractuwasuillegaluwasu notuexcuse).uTheucourt
suhaveuprovideduausmalluexceptionutoutheuruleuwhenuitucomesutoupeopleuinulackuofuEnglishu languageuskills.uConsider
uFlaneryuv.uKuska,u(defendantudidunotuspeaku Englishuwasuadvisedubyuaufriendu thatuanu answerutouaucomplaintuwasu
noturequired);uRamonuv.uDept.uofuTransportation,u(nouEnglishuanduanuinabilityutou understandutheulawurequireduforua
nuexcuse);u Yurechkouv.uCountyuofuAllegheny,u(Ignoranceuandu withutheufactuthatu theumunicipalityusufferedunouhardshi
puinulateulawsuitu filinguwasuanuexcuse).
Answers to Case Questions
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1. FactsufromuanuEnglishujudge’sudecisionuinu1884:u“TheucrewuofuanuEnglishuyachtu..............................wereucastuawayuinu
austormuonutheuhighuseasu.u.u.uanduwereucompelledutouputuintouanuopenuboat.u............................uTheyuhadunousupplyuu ofu
wateruandunousupplyuofufood.u.u.u.uThatuonutheueighteenthudayu.u.u.uthey..........................suggesteduthatuoneuu u shouldube
usacrificedutousaveutheurest.u.u.u.uThatunextudayu.u.u.utheyu.u.u.uwentutoutheuboy...............................uputuau knifeu intouhisuthro
atuandukilleduhimu.u.u.utheuthreeumenufeduuponutheubodyu.........................uofutheuboyuforufourudays;u[then]u theuboatuwasu
pickeduupubyuaupassinguvessel,uandu[they]uwereurescued.u.u.u.uanducommitteduforutrial.u.u.u.
ifutheumenuhadunotufeduuponutheubodyuofutheuboyutheyuwoulduprobablyunotuhaveusurvivedutoubeusopickeduupu an
durescued,ubutuwouldu....................................haveudieduofufamine.uTheuboy,ubeinguinuaumuchuweakeru condition,uw
asulikelyutouhaveudiedubeforeuthem.....................uTheurealuquestionuinuthisucaseu[is]uwhetherukillingu underutheucond
itionsusetuforthu................ubeuorubeunotumurder.”uDouyouuconsiderutheuactsutoubeuimmoral?u [Reginauv.uDudleyuan
duStephens,u14uQueensuBenchuDivisionu273u(1884)]
Answer:uThisupointsuoututhatutheulegalusystemuhasulimits.uItsuacceptabilityuisudictatedubyulegaluculture--
whichdeterminesu whetherulawuwillubeuenforced,uobeyed,uavoided,uoruabused.uItuisulimitedubyutheuinformalurulesuo
futheusociety--
itsu customsuanduvalues.uOneulimituisutheuextentutouwhichusocietyuwilluallowutheuformalurulesutoubeuimposeduwhenuau c
rimeuisucommitteduinuodducircumstances.uHereuthereuwasuanuintentionalumurder.uDoesutheumotiveuforutheumurder,u th
eueffortutousaveuseveralulivesubyusacrificinguone
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life,umakeuituaucrimeuthatushouldubeupunished?uNotuallucrimesuareutreatedutheusame.uItualsouraisesquestionsuaboutu t
heu desirabilityuofunotugivingujudgesuflexibilityuinusentencing.
ThereuwasuauprecedentuforuaulightusentenceuinuthisucaseuinuU.S.ulaw:u U.S.uv.uHolmes,u20uF.u Cas.u360u(No.u15383)u (C
.C.E.D.uPa.u1842).uTheucaseuinvolveduausinkingu oceanuliner.uSeveralupassengersumadeitutoutheuonlyulifeboat,u whichu
wasufarutoouovercrowded.uTheucaptainudecidedutousaveutheu womenuanduchildrenuanduthrewuseveralu menu overbo
ard.uTheu lifeboatuwasu rescued.u Theu grandu juryurefusedutouindictutheucaptainufromumurder,uonlyuforu manslaughter.
u Heugotuausixumonthusentence.
TheuBritishujudgeuinutheucaseuhereuimposedutheudeathupenaltyuuponutheupersonuwhousurvived.uThejudgeufoundu itu
difficultutou ruleuthatueveryu manuonuboardu hadutheu rightutou makeu lawu byu hisu ownu hand.Theu Crownu reducedu theus
entenceutousixumonths.
2. Smokinguisuauseriousuhealthuhazard.uCigarettesuareulegal.uShoulducigaretteumanufacturersubeuliableuforutheuseriousu illn
essesuanduuntimelyudeathsucausedubyutheiru unavoidablyudangerousuproducts,ueventhoughutheyupostuauwarninguonu theup
ackageuanduconsumersuvoluntarilyuassumeutheuhealthurisksubyusmoking?u[Cipolloneu v.uLiggettuGroup,uInc.,u505u U.S.u
504u(1992)]
Answer:uTheugeneraluruleuthatuexistsunowuisuthatusinceutheugovernmentuhasuorderedutheupostinguofuwarninglabelsuonu cig
arettes,uandusinceutheudangersuofusmokinguareuwelluknown,uconsumersuhaveubeenuwarneduanduareunotudueu compe
nsationuifutheyukilluthemselvesubyusmoking.uTheu Cippolineucase,usinceureviewedubyutheuSupremeuCourt,u appearsutou
beuofulimiteduimpactusinceutheu victimuwasuadjudgedutouhaveubecomeuaddictedutoucigarettesubeforeu theuwarningul
abeluwasuordereduinu1964.uIfucigaretteumakersuwereuhelduresponsibleuforualluhealthuproblemsu associateduwithuci
garettes,uthen,ulikeualcoholuanduotherudangerousuproducts,utheudamagesuwouldulikelyubeusou highuituwouldueffectiv
elyubanutheuproducts.uPresumably,uinuaufreeusocietyuifuadultsuareuclearlyuinformeduofutheu risksuofuproductsuthatucan
notubeumadeusafe,utheyuacceptutheurisk.uTobaccouandualcoholuproducersucannotutakeu theudangersuoutuofutheuprod
uctsuexceptuatutheumarginubyuencouraginguresponsibleudrinkinguandutheulike.uAreu drugsulikeucocaineu different?
3. Twoueight-year-olduboysuwereuseriouslyuinjureduwhenuridinguHondaumini-
trailubikes.uTheuboysuwereuridinguonupublicu streets,uranuaustopusign,uanduwereuhitubyuautruck.uTheubikesuhaduclearuwarnin
gulabelsuonutheufrontustatingutheyuwereu onlyuforuoff-
roaduuse.uTheumanualustatedutheubikesuwereunotutoubeuusedonupublicustreets.uTheuparentsusueduHonda.u Theusupremeucou
rtuofuWashingtonusaiduoneubasicuissueuexisted:u“Isuaumanufactureruliableuwhenuchildrenuareuinjuredu whileuridinguoneuofu
itsumini-
trailubikesuonuapublicuroaduinuviolationuofumanufactureruanduparentaluwarnings?”uIsuitu unethicalutoumakeuproductsulikeu
mini-
trailubikesuchildrenuwilluuseuwhenuweuknowuaccidentsulikeuthisuwilluhappen?u [Baughnuv.uHondauMotoruCo.,u727uP.2du6
55uSup.uCt,uWash.,u(1986)]
Answer:uTheucourtufoundunouliabilityuforutheumanufacturers.uThereuwasunoudefect;utheuproductuwasusafeuforuintendedu use
.uSafetyuinstructionsuwereuclear;utheuparentsuletutheuboysurideutheubikes.uAnythingucanubedangerous--
u baseballsuareudangerousuwhenutheyuhitutheuhead,uswingsuareudangerousuwhenukidsujumpoutuofuthem;uthereuisuu onl
yusoumuchuthatucanubeudoneutoumakeutheugovernmentutheu―nationalunanny‖uastheuWashingtonuPostuonceusaidu abo
utuexcessiveuconsumeruprotection.uParentsumustuacceptuauhighudegreeuofuresponsibleuforutheiruownuchildren.
4. JohnsonuControlsuadopteduau“fetaluprotectionupolicy”uthatuwomenuofuchildbearinguageucouldunotuworkuinutheu battery-
makingudivisionuofutheucompany.uExposureutouleaduinutheubatteryuoperationucoulducauseharmutouunbornu babies.uTheuco
mpanyuwasuconcerneduaboutupossibleulegaluliabilityuforuinjuryusufferedbyubabiesuofumothersuwhouhadu workeduinutheub
atteryudivision.uTheuSupremeuCourtuheldutheucompanypolicyuwasuillegal.uItuwasuanu“excuseuforu denyinguwomenuequalue
mploymentuopportunities.”uIsutheuCourtuforcingutheucompanyutoubeuunethicalubyuallowingu pregnantuwomenuwhouignoreu
theuwarningsutouexposeutheirubabiesutoutheulead?u[UniteduAutouWorkersuv.uJohnsonu Controls,u499uU.S.u187u(1991)]
Answer:uTheuCourtuhelduituauformuofusexudiscriminationutoupreventu womenuofuchild-
bearinguageufromuholdingutheu moreudangerousujobs.uTheucompanyuargueduthatuitudiduthisutouprotectuitselfufromu p
ossibleliabilityuinucaseuofu damageutoubabiesuanduthatutheudecisionuwasuethical.uTheureplacementsuforutheseuwork
ersuwereuoftenumenuoru moreusenioruwomen,uwhoutendedutoubeuhigheruincomeuworkers,usouthis
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