Chapterj01:jLegaljandjConstitutionaljFoundationsjofjBusiness
SolutionandAnswerGuide j j j
Miller,jBusinessjLawjToday,jThejEssentialsjTextj&jSummarizedjCasesj13e,j9780357635346;jChapterj
01:jLegaljandjConstitutionaljFoundationsjofjBusiness
Table of Contents
j j
CriticaljThinkingjQuestionsjinjFeatures ................................................................................... 1
AdaptingjthejLawjtojthejOnlinejEnvironment .............................................................................................. 1
CriticaljThinkingjQuestionsjinjCases ....................................................................................... 2
Casej1.1...................................................................................................................................................... 2
Casej1.2...................................................................................................................................................... 3
Casej1.3...................................................................................................................................................... 3
ChapterjReview .................................................................................................................. 4
PracticejandjReview ................................................................................................................................... 4
PracticejandjReview:jDebatejThis ............................................................................................................... 5
IssuejSpotters............................................................................................................................................. 5
BusinessjScenariosjandjCasejProblems ....................................................................................................... 5
CriticaljThinkingjandjWritingjAssignments ................................................................................................ 10
CriticaljThinkingjQuestionsjinjAppendixjExhibitj1A–3 ............................................................... 11
Exhibitj1A–3 ............................................................................................................................................. 11
Critical Thinking Questions in Features
j j j j
AdaptingjthejLawjtojthejOnlinejEnvironment
1. OnejobserverjhasjsaidjthatjthejAmericanjlegaljsystemjshouldjevaluatejsocialjmediajcompaniesjbas
edjonjhowj―theyjaffectjusjasjcitizens,jnotjonlyj[onjhow]jtheyjaffectjusjasjconsumers.‖jWhatjisjyourj
opinionjofjthisjstatement?
Solution
Thejpersonjwhojmadejthisjstatementjclearlyjseesjaj―citizen‖jasjhavingjdifferentjmotivationsjandjcon
cernsjthanjaj―consumer.‖jPresumably,jajcitizenjisjmostlyjconcernedjwithjthejgoodjofjsocietyjasjajwh
ole,jandjthereforejwouldjbejopenjtojthejideajofjgovernmentjregulationjthatjrestrictedjthejnegativejinf
luencejofjsocialjmedia,jregardlessjofjthejFirstjAmendment.jAjconsumer,jbyjcontrast,jwouldjbejprimar
ilyjconcernedjwithjhavingjajmarketplacejthatjoffersjthejwidestjpossiblejvarietiesjofjfreedomj(ofjchoic
e,jofjspeech,jetc.)jandjwouldjforjthatjreasonjbejopposedjtojgovernmentjregulationjofjsocialjmedia.jT
herejis,jhowever,janjargumentjtojbejmadejthatjthejcitizensjthatjmakejupjajsocietyjbenefitjwhenjthej
marketplacejofjideas—whetherjtheyjarejsubjectively
―positive‖jorj―negative‖—isjallowedjtojflourishjinjthejabsencejofjgovernmentjregulation.
2. TimjCook,jApple‘sjchiefjoperatingjofficer,jhasjsuggestedjthatjthejUnitedjStatesjCongressjshouldjpas
sjajlawjlimitingjthejabilityjofjApplejandjotherjtechjcountriesjtojkeepjconsumerjdatajprivate.jWhyjwo
uldjajbusinessjexecutivejmakejsuchjajrequest?
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 1
website,jinjwholejorjinjpart.
, SolutionjandjAnswerjGuide:jMiller,jBusinessjLawjToday,jThejEssentialsjTextj&jSummarizedjCasesj13e,j9780357635346;
Chapterj01:jLegaljandjConstitutionaljFoundationsjofjBusiness
Solution
CookjmayjhavejwantedjtojendjajcontroversyjthatjputsjApplejsquarelyjatjoddsjwithjthejfederaljgover
nment.jAfterjall,jlargejcompaniesjsuchjasjApplejrelyjonjfavorablejtreatmentjfromjthejgovernmentjinj
regulatoryjmatters,jinternationaljtradejagreements,jandjmanyjotherjareas.jAlso,jlargejcorporationsj
suchjasjApplejsometimesjgainjanjadvantagejoverjcompetitorsjwhenjtheirjindustriesjarejregulated.jF
orjexample,jApplejhasjsignificantjresourcesjwithjwhichjtojlobbyjCongressjforjfavorablejtreatment,ja
ndjitjisjbetterjpositionedjtojbearjthejcostsjofjregulationjthanjarejother,jsmallerjtechjcompanies.jFinall
y,jApple‘sjpositionjasjajchampionjofjconsumerjprivacyjwouldjbejdamagedjifjitj―caved‖jandjchangedj
itsjstancejwithoutjbeingjforcedjtojdojsojbyjajnewjfederaljlaw.
Critical Thinking Questions in Cases
j j j j
Casej1.1
1. Whatj―dangerousjconditions‖jmightjhavejpromptedjthejcityjtojenactjthejordinancesjatjissuejinjthis
jcase?jWhy?
Solution
Asjnotedjinjthejfactsjofjthejcase,jbothjordinancesjatjissuejincludedjanjextensivejrationalejforjtheirjad
option,jstatingjessentiallyjthatjajgeographicallyjsmalljcityjhasjthejrightjtojrestrictja
businessjfromjoperatingjwithinjthejcityjwhenjthejrestrictionjisjforjthejsafetyjofjthejcity‘sjcitizensjandjvi
sitors.
Thejappellatejcourtjreferredjtoj―thejdangerousjconditions‖jcreatedjbyjthejirresponsiblejdrivingjbeh
aviorjofjscooterjrenters,jespeciallyjatjnight,jamplifiedjbyjthejlackjofjtraining,jsupervision,jandjoversig
htjpracticedjbyjthejrentaljscooterjbusinessesjthatj―existedjthroughoutjthejentirejcity‖jasjthejbasisjfo
rjthejcity‘sjregulation.jThejcourtjparaphrasedjthejexpressivejclausesjinjthejordinancesjmorejspecifical
ly:
• ThejCityjisjgeographicallyjsmalljandjcrowdedjandjisjbeingjbesiegedjbyjinexperiencedjscooterjdriv
ersjseekingjamusementjandjdrivingjinjajdangerousjmanner.
• ThejCityjisjajtouristjdestinationjfrequentedjbyjtensjofjthousands,j andjitsjstreetsjarejcongestedjbyj
scootersjthatjarejbeingjdrivenjillegallyjandjinjareasjwherejtheyjarejnotjpermitted.
• ThejCity‘sjresidentsjandjvisitorsjarejputjinjdangerousjsituationsjasjajresultjofjthejimproperj usejofj
scooters,jespeciallyjatjnight.
• Cityjbusinessesjhavejcomplainedjaboutjnumerousjtrespassesjonjtheirjpropertyjbyjpeoplejdrivingj
scootersjwhilejbeingjdisruptive
• Cityjpolicejhavejbeenjunablejtojcopejwithjthejsituationjandjessentialjpolicejresourcesjarejbeingjdr
ained.
• ThejCityjhasjbeenjunablejtojcontroljthejsituationjthroughjlessjrestrictivejmeans.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 2
website,jinjwholejorjinjpart.
, SolutionjandjAnswerjGuide:jMiller,jBusinessjLawjToday,jThejEssentialsjTextj&jSummarizedjCasesj13e,j9780357635346;
Chapterj01:jLegaljandjConstitutionaljFoundationsjofjBusiness
2. Whatjisjthejlikelyjeconomicjimpactjofjthejordinancesjonjthejbusinessesjinjthejcity?jDiscuss.
Solution
Withjthejexceptionjofjthejscooterjrentaljbusinesses,jthejeffectjonjthejcity‘sjeconomyjisjlikelyjtojbejpo
sitivejinjlightjofjthejresultjinjthejClassyjcase.
Thejanswerjtojthejpreviousjquestionjcontainsjthejreasonsjinjsupportjofjthisjoutlook.jWithjajbanjonjm
otorizedjscooters,jthej―smalljandjcrowded‖jcityjisjnotjlikelyjtojbej―besiegedjbyjinexperiencedjscoot
erjdriversjseekingjamusementjandjdrivingjinjajdangerousjmanner.‖jThejstreets,jfilledjwithj―tensjofj
thousands‖jofjtouristsjwilljnotjbej―congestedjbyjscootersjthatjarejbeingjdrivenjillegallyjandjinjareasj
wherejtheyjarejnotjpermitted.‖jResidentsjandjvisitorsjwilljnotjbej―putjinjdangerousjsituationsjasjajr
esultjofjthejimproperjusejofjscooters,jespeciallyjatjnight.‖jTherejwilljbejanjendjtojthej―numerousjtre
spasses‖jonjbusinessjpropertyj―byjpeoplejdrivingjscootersjwhilejbeingjdisruptive.‖jAndj―essentialj
policejresources‖jwilljnotjbej―drained,‖jatjleastjnotjbyjirresponsiblejscooterjdriversjandjriders.jAlljofj
whichjbodesjwelljforjbusiness.
Casej1.2
1. Ifjthisjcasejhadjinvolvedjajsmall,jprivatejretailjbusinessjthatjdidjnotjadvertisejnationally,jwouldjthej
resultjhavejbeenjthejsame?jWhyjorjwhyjnot?
Solution
Itjisjnotjlikelyjthatjthejresultjinjthisjcasejwouldjhavejbeenjdifferentjevenjifjthejfactsjhadjinvolvedjajsm
all,jprivatejretailjbusinessjthatjdidjnotjadvertisejnationally.jThejintendedjimpactjofjthejdecisionjinjHe
artjofjAtlantajwasjtojupholdjthejconstitutionalityjofjthejCiviljRightsjActjofj1964jandjthejpowerjofjCong
ressjtojregulatejinterstatejcommercejtojstopjlocaljdiscriminatoryjpractices.jInjthejSupremejCourt‘sjo
pinion,j―ThejpowerjofjCongressjtojpromotejinterstatejcommercejalsojincludesjthejpowerjtojregulat
ejthejlocaljincidentsjthereof,jincludingjlocaljactivitiesjinjbothjthejStatesjofjoriginjandjdestination,jwhi
chjmightjhavejajsubstantialjandjharmfuljeffectjuponjthat
commerce.‖
Thus,jifjthejcasejhadjinvolvedjajsmall,jlocaljretailjbusiness,jthejCourtjwouldjhavejfoundjparticipationji
njinterstatejcommercejbasedjonjthejusejofjajphone,jorjajFacebookjpagej(orjotherjWebjpresence),jorj
salesjtojcustomersjwhojtraveledjacrossjstatejlines—or,jasjinjWickardjv.
Filburn,jparticipationjmightjhavejbeenjbasedjonjanyjtransactionjthatjmightjotherwisejhavejoccurredji
njinterstatejcommerce.
Casej1.3
1. Whosejinterestsjarejadvancedjbyjthejbanningjofjcertainjtypesjofjadvertising?
Solution
Thejgovernment‘sjinterestsjarejadvancedjwhenjcertainjadsjarejbanned.jForjexample,jinjthejBadjFrog
jcase,jthejcourtjacknowledged,jbyjadvisingjthejstatejtojrestrictjthejlocationsjwherejcertainjadsjcouldj
bejdisplayed,jthatjbanningjofj―vulgarjandjprofane‖jadvertisingjfromjchildren‘sjsight
arguablyjadvancedjthejstate‘sjinterestjinjprotectingjchildrenjfromjthosejads.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 3
website,jinjwholejorjinjpart.
, SolutionjandjAnswerjGuide:jMiller,jBusinessjLawjToday,jThejEssentialsjTextj&jSummarizedjCasesj13e,j9780357635346;
Chapterj01:jLegaljandjConstitutionaljFoundationsjofjBusiness
2. IfjBadjFrogjhadjsoughtjtojusejthejoffensivejlabeljtojmarketjtoysjinsteadjofjbeer,jwouldjthejcour
t‘sjrulingjlikelyjhavejbeenjthejsame?jExplainjyourjanswer.
Solution
Probablyjnot.jThejreasoningjunderlyingjthejcourt‘sjdecisionjinjthejcasejwas,jinjpart,jthatj―thejState‘sj
prohibitionjofjthejlabelsj.j.j.jdoesjnotjmateriallyjadvancejitsjassertedjinterestsjinjinsulatingjchildrenjfr
omjvulgarityj.j.j.jandjisjnotjnarrowlyjtailoredjtojthejinterestjconcerning
children.‖jThejcourt‘sjreasoningjwasjsupportedjinjpartjbyjthejfactjthatjchildrenjcannotjbuyjbeer.jIfjt
hejlabelsjadvertisedjtoys,jhowever,jthejcourt‘sjreasoningjmightjhavejbeenjdifferent.
Chapter Review j
PracticejandjReview
Ajstatejlegislaturejenactedjajstatutejthatjrequiredjanyjmotorcyclejoperatorjorjpassengerjonjthejstate
‘sjhighwaysjtojwearjajprotectivejhelmet.jJimjAlderman,jajlicensedjmotorcyclejoperator,jsuedjthejstat
ejtojblockjenforcementjofjthejlaw.jAldermanjassertedjthatjthejstatutejviolatedjthejequaljprotectionjcl
ausejbecausejitjplacedjrequirementsjonjmotorcyclistsjthatjwerejnotjimposedjonjotherjmotorists.jUsi
ngjthejinformationjpresentedjinjthejchapter,janswerjthejfollowingjquestions.
1. Whyjdoesjthisjstatutejraisejequaljprotectionjissuesjinsteadjofjsubstantivejduejprocessjconcerns?
Solution
Whenjajlawjorjactionjlimitsjthejlibertyjofjsomejpersonsjbutjnotjothers,jitjmayjviolatejthejequaljprotec
tionjclause.jHere,jbecausejthejlawjappliesjonlyjtojmotorcyclejoperatorsjandjpassengers,jitjraisesjequ
aljprotectionjissues.
2. Whatjarejthejthreejlevelsjofjscrutinyjthatjthejcourtsjusejinjdeterminingjwhetherjajlawjviolatesjthej
equaljprotectionjclause?
Solution
Thejthreejlevelsjofjscrutinyjthatjcourtsjapplyjtojdeterminejwhetherjthejlawjorjactionjviolatesjequaljpr
otectionjarej(1)jstrictjscrutinyj(ifjfundamentaljrightsjarejatjstake),j(2)jintermediate
scrutinyj(injcasesjinvolvingjdiscriminationjbasedjonjgenderjorjlegitimacy),jandj(3)jthej―rationaljbasis‖
jtestj(injmattersjofjeconomicjorjsocialjwelfare).
3. Whichjleveljofjscrutinyjorjtestjwouldjapplyjtojthisjsituation?jWhy?
Solution
Thejcourtjwouldjlikelyjapplyjthejrationaljbasisjtest,jbecausejthejstatutejregulatesjajmatterjofjsocialj
welfarejbyjrequiringjhelmets.jSimilarjtojseat-
beltjlawsjandjspeedjlimits,jajhelmetjstatutejinvolvesjthejstate‘sjattemptjtojprotectjthejwelfarejofjitsj
citizens.jThus,jthejcourtjwouldjconsiderjitjajmatterjajsocialjwelfarejandjrequirejthatjitjbejrationallyjr
elatedjtojajlegitimatejgovernmentjobjective.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 4
website,jinjwholejorjinjpart.