SOLUTION MANUAL FOR . .
Business.Its.Legal,.Ethical,.and.Global.Environment,.12th.Edition.Chapte
r.1-20
Chapter.1
Table of Contents
. .
Consider… .................................................................................................................................................... 1
Consider….1.2............................................................................................................................................. 1
Consider….1.3............................................................................................................................................. 2
Case.Problems ................................................................................................................................................................... 2
Case.1.1 ...................................................................................................................................................... 2
For.the.Manager’s.Desk................................................................................................................................ 4
The.Cover-up.versus.the.Crime,.page.11 ...................................................................................................... 4
Ethical.Issues ...................................................................................................................................................................... 4
Case.1.1,.page.10 ........................................................................................................................................ 4
Business.Strategy.............................................................................................................................................................. 5
COVID-19.Lockouts.and.Business.Civil.Disobedience.................................................................................... 5
Chapter.Review ................................................................................................................................................................. 6
Answers.to.Chapter.Questions.and.Problems .............................................................................................. 6
Economics,.Ethics,.&.the.Law:.The.Cost.of.Corporate.Wrongdoing ..................................................................12
Consider…
Consider….1.2
After.he.enrolled.in.the.University.of.California.at.Los.Angeles.(UCLA),.Damon.Thompson.experienced.a
uditory.hallucinations..He.believed.other.students.in.the.classroom.and.dormitory.were.criticizing.him..
School.administrators.eventually.learned.of.Thompson’s.delusions.and.attempted.to.provide.mental.h
ealth.treatment..However,.one.morning.Thompson.stabbed.fellow.student.Katherine.Rosen.during.a.ch
emistry.lab..Rosen.sued.the.university.and.several.of.its.employees.for.negligence,.arguing.they.failed.to.
protect.her.from.Thompson’s.foreseeable.violent.conduct.
UCLA.is.a.state.educational.institution..Based.on.the.decision.in.the.Avila.case,.what.should.the.court.de
cide?.Consider.whether.UCLA.has.a.duty.to.protect.students.from.injury.on.the.campus.and,.if.so,.what.t
ypes.of.injuries..Be.sure.to.consider.what.is.different.in.this.factual.pattern.from.the
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 1
website,.in.whole.or.in.part.
,facts.in.Avila..What.will.the.impact.be.on.students,.faculty,.and.administrators.pending.on.which.way.th
e.court.decides.on.the.issues.of.liability.and.duty?.Be.sure.to.consider.the.purposes.and.characteristics.
of.law.in.evaluating.the.claim.Ms..Rosen.for.injuries..[Regents.of.the.University.of.California.v.Superior.C
ourt,.413.P.3d.656.(Cal,2018)]
Solution
The.trial.court.denied.UCLA.summary.judgment..UCLA.filed.a.petition.for.writ.of.mandate,.requesting.an.orde
r.directing.trial.court.to.enter.summary.judgment.in.its.favor..The.Court.of.Appeal.granted.the.petition..The.S
upreme.Court.granted.review,.superseding.the.opinion.of.the.Court.of.Appeal.
The.Supreme.Court.held.that.the.university.had.duty.of.care.to.protect.students.from.foreseeable.violence.d
uring.the.chemistry.lab,.reversing.a.long.line.of.precedent.
This.case.is.different.from.the.Avila.case.in.that.UCLA.had.knowledge.of.the.potential.harm.that.the.student.c
ould.do..In.the.Avila.case,.the.conduct.was.such.that.it.could.not.be.anticipated.except.perhaps.the.possibility.
that.players.have.disobeyed.the.rules.of.the.game,.but.there.was.no.direct.knowledge.about.the.pitcher’s.te
ndencies.to.bean.batters..In.this.case,.UCLA.was.aware.of.the.problems.the.student.had.and.was.working.wit
h.the.student..The.case.was.a.warning.to.universities.about.the.importance.of.curbing.the.behaviors.of.stude
nts.and.then,.when.necessary.removing.them.from.the.campus.as.a.danger.to.themselves.and.other.student
s..The.court.noted.that.the.scope.of.the.duty.is.based.on.the.extent.of.the.relationship.the.student.had.with.t
he.university.
The.immunity.of.government.entities.was.curbed.in.Avila.and.now.the.courts.are.simply.dealing.with.the.co
ncept.of.duty..What.is.the.duty.of.government.entities?.How.far.does.it.extend?.What.actions.must.they.tak
e?. [Regents.of.the.University.of.California.v.Superior.Court,.413.P.3d.656.(Cal..2018)]
Consider….1.3
Every.state,.county,.and.city.has.laws.that.regulate.the.maximum.speed.for.their.roadways..Yet,.surv
eys.indicate.that.nearly.100%.of.us.admit.to.driving.above.the.speed.limit..What.philosophy.of.law.
do.we.follow.when.we.decide.which.laws.to.obey,.how.closely.we.follow.those.laws,.and.when.we.
will.follow.them?.Is.there.a.risk.to.society.when.we.make.our.own.decisions.about.following.the.la
w?
Solution
Speeding.is.an.example.of.the.norm.shifting..That.is,.there.is.a.law,.but.few.people.follow.the.law.and.the.res
ult.is.that.the.law.becomes.meaningless..Some.philosophers.fear.that.disregard.of.the.law.on.an.individual.b
asis.could.mean.that.we.are.introducing.anarchy—
the.law.has.no.effect..Others.would.follow.the.normative.standard.of.doing.what.is.acceptable.to.others.
Case Problems
.
Case.1.1
1. Outline.the.case.history—what.each.of.the.courts.decided.in.the.case.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 2
website,.in.whole.or.in.part.
, Solution
Lower.court.held.that.the.community.colleges.were.immune,.so.it.never.reached.the.duty.issue..The.
court.of.appeal.held.that.the.community.colleges.were.not.immune.and.found.that.they.had.breach
ed.their.duty.to.Jose.
2. Explain.the.standard.now.for.the.liability.of.government.entities.
Solution
Although.there.is.immunity.for.government.entities.for.injuries.from.recreational.activities.(hazar
dous.and.otherwise),.the.court.held.that.government.entities.still.have.duties.toward.those.who.ar
e.using.their.facilities.
3. What.interests.is.the.court.balancing?
Solution
The.court.is.balancing.the.longstanding.protection.of.government.entities.from.tort.liability.with.the.
injuries.that.can.result.when.there.is.no.supervision.of.those.involved.in.government-
.sponsored.activities..There.was.also.the.longstanding.precedent.that.is.being.changed.
Government.entities.will.need.new.insurance.levels.and.will.need.to.change.their.involvement.and.s
upervision.requirements.
4. Does.the.court.change.the.previous.standard.for.liability.of.government.entities?.Why.or.why.not
?.What.effect.will.the.decision.have.on.government.entities?
Solution
See.answer.to.above—
the.holding.is.a.fundamental.change.in.the.liability.and.responsibilities.of.government.entities.
5. Why.was.there.no.breach.of.duty.by.the.community.colleges?
Solution
Because.being.“beaned”.is.a.risk.in.the.game.and.one.that.the.colleges.could.not.prevent..Also,.Jose.
was.still.able.to.walk.and.got.the.attention.that.he.needed.
6. Does.it.matter.that.“beaning”.a.batter.violates.the.rules.of.the.game?
Solution
The.court.takes.note.that.professional.baseball.prohibits.beaning,.but.beaning.happens.and.that.it.h
appens.is.not.the.result.of.any.actions.by.sponsors.but.individual.choices.by.players.
However,.sanctions.for.beaning.could.deter.such.activities—something.the.court.does.not.discuss.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 3
website,.in.whole.or.in.part.
, For the Manager’s Desk
. . .
The.Cover-up.versus.the.Crime,.page.11
The.decisions.in.the.Avila.and.UCLA.cases.are.part.of.a.nationwide.trend.that.has.expanded.liability.
and.imposed.additional.duties.on.those.who.own.and.run.facilities.where.the.public.is.present..The.
scope.of.that.duty.requires,.at.least.in.most.cases,.that.business.owners.and.public.entities.take.ap
propriate.steps.to.ensure.safety.once.they.become.aware.of.the.danger..That.duty.is.difficult.for.uni
versities.that.are.working.with.students.such.as.the.one.in.the.UCLA.case.or.employees.who.have.be
come.aggressive.in.the.workplace.
In.both.situations,.administrators.are.trying.to.balance.the.rights.of.the.student.or.employees.with.the.n
eed.to.protect.other.students.and.employees.in.the.situation..Both.students.and.employees.have.rights.
to.be.at.school.or.work..If.those.rights.are.to.be.taken.away,.the.administrators.must.build.a.record.to.est
ablish.the.need.for.their.removal..The.rights.issues.are.covered.in.Chapter.5,.the.duty.issues.are.covered.in
.more.detail.in.Chapter.9,.and.the.employee.rights.issues.are.covered.in.Chapters.16,.19,.and.20.
Solution
The.challenges.in.dealing.with.problem.students.are.great.because.there.are.due.process.rights.that.the.stud
ents.hold..Expulsion.and.suspension.are.actions.that.deprive.them.of.a.property.right—
to.be.there.for.obtaining.an.education..At.the.same.time,.administrators.have.to.worry.about.the.safety.of.ot
her.students.when.there.are.behaviors.that.endanger.them..Administrators.have.to.carefully.keep.reports.of.
incidents.and.be.sure.to.coordinate.all.information.that.is.coming.in.about.problem.students.
Administrators.should.also.keep.careful.records.and.conduct.oversight.of.areas.where.there.are.any.student.i
njuries..Taking.steps.to.prevent.the.injuries.is.also.important.
Ethical Issues
.
Case.1.1,.page.10
Discuss.the.ethics.of.the.pitcher’s.deliberate.“beaning”.of.Jose..Are.the.standards.of.ethics.diff
erent.in.sporting.competitions?.If.an.action.cannot.penalize.what.happens.in.the.game,.what.a
re.the.effects.on.players’.behaviors.during.the.game?
Solution
Ethics.is.conduct.that.goes.beyond.the.rules,.but.it.certainly.includes.the.obligation.to.follow.the.rules.. As.the.c
ourt.notes,.“beaning”.or.other.intentional.injuries.to.other.players.is.prohibited.in.baseball.
However,.one.of.the.problems.is.that.the.lack.of.enforcement.(no.sanction.for.violating.those.rules).shifts.the.n
orms.of.behavior.during.the.game.away.from.the.rule.to.an.accepted.or.tolerated.level.of.behavior..However,.
as.the.case.illustrates,.there.can.be.serious.injuries.resulting.from.the.conduct.
One.of.the.difficulties.with.the.rule.is.in.establishing.that.the.conduct.was.intentional..Being.hit.by.a.base
ball.is.a.risk.assumed.in.baseball..Umpires.have.difficulty.proving.that.the.intentional.hits.were.intentio
nal.
The.bottom.line.is.that.we.are.dependent.on.the.honor.of.those.playing.the.games.to.not.violate.the.rules.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 4
website,.in.whole.or.in.part.
Business.Its.Legal,.Ethical,.and.Global.Environment,.12th.Edition.Chapte
r.1-20
Chapter.1
Table of Contents
. .
Consider… .................................................................................................................................................... 1
Consider….1.2............................................................................................................................................. 1
Consider….1.3............................................................................................................................................. 2
Case.Problems ................................................................................................................................................................... 2
Case.1.1 ...................................................................................................................................................... 2
For.the.Manager’s.Desk................................................................................................................................ 4
The.Cover-up.versus.the.Crime,.page.11 ...................................................................................................... 4
Ethical.Issues ...................................................................................................................................................................... 4
Case.1.1,.page.10 ........................................................................................................................................ 4
Business.Strategy.............................................................................................................................................................. 5
COVID-19.Lockouts.and.Business.Civil.Disobedience.................................................................................... 5
Chapter.Review ................................................................................................................................................................. 6
Answers.to.Chapter.Questions.and.Problems .............................................................................................. 6
Economics,.Ethics,.&.the.Law:.The.Cost.of.Corporate.Wrongdoing ..................................................................12
Consider…
Consider….1.2
After.he.enrolled.in.the.University.of.California.at.Los.Angeles.(UCLA),.Damon.Thompson.experienced.a
uditory.hallucinations..He.believed.other.students.in.the.classroom.and.dormitory.were.criticizing.him..
School.administrators.eventually.learned.of.Thompson’s.delusions.and.attempted.to.provide.mental.h
ealth.treatment..However,.one.morning.Thompson.stabbed.fellow.student.Katherine.Rosen.during.a.ch
emistry.lab..Rosen.sued.the.university.and.several.of.its.employees.for.negligence,.arguing.they.failed.to.
protect.her.from.Thompson’s.foreseeable.violent.conduct.
UCLA.is.a.state.educational.institution..Based.on.the.decision.in.the.Avila.case,.what.should.the.court.de
cide?.Consider.whether.UCLA.has.a.duty.to.protect.students.from.injury.on.the.campus.and,.if.so,.what.t
ypes.of.injuries..Be.sure.to.consider.what.is.different.in.this.factual.pattern.from.the
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 1
website,.in.whole.or.in.part.
,facts.in.Avila..What.will.the.impact.be.on.students,.faculty,.and.administrators.pending.on.which.way.th
e.court.decides.on.the.issues.of.liability.and.duty?.Be.sure.to.consider.the.purposes.and.characteristics.
of.law.in.evaluating.the.claim.Ms..Rosen.for.injuries..[Regents.of.the.University.of.California.v.Superior.C
ourt,.413.P.3d.656.(Cal,2018)]
Solution
The.trial.court.denied.UCLA.summary.judgment..UCLA.filed.a.petition.for.writ.of.mandate,.requesting.an.orde
r.directing.trial.court.to.enter.summary.judgment.in.its.favor..The.Court.of.Appeal.granted.the.petition..The.S
upreme.Court.granted.review,.superseding.the.opinion.of.the.Court.of.Appeal.
The.Supreme.Court.held.that.the.university.had.duty.of.care.to.protect.students.from.foreseeable.violence.d
uring.the.chemistry.lab,.reversing.a.long.line.of.precedent.
This.case.is.different.from.the.Avila.case.in.that.UCLA.had.knowledge.of.the.potential.harm.that.the.student.c
ould.do..In.the.Avila.case,.the.conduct.was.such.that.it.could.not.be.anticipated.except.perhaps.the.possibility.
that.players.have.disobeyed.the.rules.of.the.game,.but.there.was.no.direct.knowledge.about.the.pitcher’s.te
ndencies.to.bean.batters..In.this.case,.UCLA.was.aware.of.the.problems.the.student.had.and.was.working.wit
h.the.student..The.case.was.a.warning.to.universities.about.the.importance.of.curbing.the.behaviors.of.stude
nts.and.then,.when.necessary.removing.them.from.the.campus.as.a.danger.to.themselves.and.other.student
s..The.court.noted.that.the.scope.of.the.duty.is.based.on.the.extent.of.the.relationship.the.student.had.with.t
he.university.
The.immunity.of.government.entities.was.curbed.in.Avila.and.now.the.courts.are.simply.dealing.with.the.co
ncept.of.duty..What.is.the.duty.of.government.entities?.How.far.does.it.extend?.What.actions.must.they.tak
e?. [Regents.of.the.University.of.California.v.Superior.Court,.413.P.3d.656.(Cal..2018)]
Consider….1.3
Every.state,.county,.and.city.has.laws.that.regulate.the.maximum.speed.for.their.roadways..Yet,.surv
eys.indicate.that.nearly.100%.of.us.admit.to.driving.above.the.speed.limit..What.philosophy.of.law.
do.we.follow.when.we.decide.which.laws.to.obey,.how.closely.we.follow.those.laws,.and.when.we.
will.follow.them?.Is.there.a.risk.to.society.when.we.make.our.own.decisions.about.following.the.la
w?
Solution
Speeding.is.an.example.of.the.norm.shifting..That.is,.there.is.a.law,.but.few.people.follow.the.law.and.the.res
ult.is.that.the.law.becomes.meaningless..Some.philosophers.fear.that.disregard.of.the.law.on.an.individual.b
asis.could.mean.that.we.are.introducing.anarchy—
the.law.has.no.effect..Others.would.follow.the.normative.standard.of.doing.what.is.acceptable.to.others.
Case Problems
.
Case.1.1
1. Outline.the.case.history—what.each.of.the.courts.decided.in.the.case.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 2
website,.in.whole.or.in.part.
, Solution
Lower.court.held.that.the.community.colleges.were.immune,.so.it.never.reached.the.duty.issue..The.
court.of.appeal.held.that.the.community.colleges.were.not.immune.and.found.that.they.had.breach
ed.their.duty.to.Jose.
2. Explain.the.standard.now.for.the.liability.of.government.entities.
Solution
Although.there.is.immunity.for.government.entities.for.injuries.from.recreational.activities.(hazar
dous.and.otherwise),.the.court.held.that.government.entities.still.have.duties.toward.those.who.ar
e.using.their.facilities.
3. What.interests.is.the.court.balancing?
Solution
The.court.is.balancing.the.longstanding.protection.of.government.entities.from.tort.liability.with.the.
injuries.that.can.result.when.there.is.no.supervision.of.those.involved.in.government-
.sponsored.activities..There.was.also.the.longstanding.precedent.that.is.being.changed.
Government.entities.will.need.new.insurance.levels.and.will.need.to.change.their.involvement.and.s
upervision.requirements.
4. Does.the.court.change.the.previous.standard.for.liability.of.government.entities?.Why.or.why.not
?.What.effect.will.the.decision.have.on.government.entities?
Solution
See.answer.to.above—
the.holding.is.a.fundamental.change.in.the.liability.and.responsibilities.of.government.entities.
5. Why.was.there.no.breach.of.duty.by.the.community.colleges?
Solution
Because.being.“beaned”.is.a.risk.in.the.game.and.one.that.the.colleges.could.not.prevent..Also,.Jose.
was.still.able.to.walk.and.got.the.attention.that.he.needed.
6. Does.it.matter.that.“beaning”.a.batter.violates.the.rules.of.the.game?
Solution
The.court.takes.note.that.professional.baseball.prohibits.beaning,.but.beaning.happens.and.that.it.h
appens.is.not.the.result.of.any.actions.by.sponsors.but.individual.choices.by.players.
However,.sanctions.for.beaning.could.deter.such.activities—something.the.court.does.not.discuss.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 3
website,.in.whole.or.in.part.
, For the Manager’s Desk
. . .
The.Cover-up.versus.the.Crime,.page.11
The.decisions.in.the.Avila.and.UCLA.cases.are.part.of.a.nationwide.trend.that.has.expanded.liability.
and.imposed.additional.duties.on.those.who.own.and.run.facilities.where.the.public.is.present..The.
scope.of.that.duty.requires,.at.least.in.most.cases,.that.business.owners.and.public.entities.take.ap
propriate.steps.to.ensure.safety.once.they.become.aware.of.the.danger..That.duty.is.difficult.for.uni
versities.that.are.working.with.students.such.as.the.one.in.the.UCLA.case.or.employees.who.have.be
come.aggressive.in.the.workplace.
In.both.situations,.administrators.are.trying.to.balance.the.rights.of.the.student.or.employees.with.the.n
eed.to.protect.other.students.and.employees.in.the.situation..Both.students.and.employees.have.rights.
to.be.at.school.or.work..If.those.rights.are.to.be.taken.away,.the.administrators.must.build.a.record.to.est
ablish.the.need.for.their.removal..The.rights.issues.are.covered.in.Chapter.5,.the.duty.issues.are.covered.in
.more.detail.in.Chapter.9,.and.the.employee.rights.issues.are.covered.in.Chapters.16,.19,.and.20.
Solution
The.challenges.in.dealing.with.problem.students.are.great.because.there.are.due.process.rights.that.the.stud
ents.hold..Expulsion.and.suspension.are.actions.that.deprive.them.of.a.property.right—
to.be.there.for.obtaining.an.education..At.the.same.time,.administrators.have.to.worry.about.the.safety.of.ot
her.students.when.there.are.behaviors.that.endanger.them..Administrators.have.to.carefully.keep.reports.of.
incidents.and.be.sure.to.coordinate.all.information.that.is.coming.in.about.problem.students.
Administrators.should.also.keep.careful.records.and.conduct.oversight.of.areas.where.there.are.any.student.i
njuries..Taking.steps.to.prevent.the.injuries.is.also.important.
Ethical Issues
.
Case.1.1,.page.10
Discuss.the.ethics.of.the.pitcher’s.deliberate.“beaning”.of.Jose..Are.the.standards.of.ethics.diff
erent.in.sporting.competitions?.If.an.action.cannot.penalize.what.happens.in.the.game,.what.a
re.the.effects.on.players’.behaviors.during.the.game?
Solution
Ethics.is.conduct.that.goes.beyond.the.rules,.but.it.certainly.includes.the.obligation.to.follow.the.rules.. As.the.c
ourt.notes,.“beaning”.or.other.intentional.injuries.to.other.players.is.prohibited.in.baseball.
However,.one.of.the.problems.is.that.the.lack.of.enforcement.(no.sanction.for.violating.those.rules).shifts.the.n
orms.of.behavior.during.the.game.away.from.the.rule.to.an.accepted.or.tolerated.level.of.behavior..However,.
as.the.case.illustrates,.there.can.be.serious.injuries.resulting.from.the.conduct.
One.of.the.difficulties.with.the.rule.is.in.establishing.that.the.conduct.was.intentional..Being.hit.by.a.base
ball.is.a.risk.assumed.in.baseball..Umpires.have.difficulty.proving.that.the.intentional.hits.were.intentio
nal.
The.bottom.line.is.that.we.are.dependent.on.the.honor.of.those.playing.the.games.to.not.violate.the.rules.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 4
website,.in.whole.or.in.part.
