Solution and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
Solution and Answer Guide
Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
Your text here 1
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 Review ................................................................................................................. 4
M
Practice and Review .................................................................................................................................. 4
Practice and Review: Debate This ............................................................................................................. 5
Issue Spotters ............................................................................................................................................ 5
W
Business Scenarios and Case Problems ..................................................................................................... 5
Critical Thinking and Writing Assignments .............................................................................................. 10
Critical Thinking Questions in Appendix Exhibit 1A–3 ............................................................11
M
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?
Your text here 2
© 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.
, Solution and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
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
M
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.
W
The appellate court referred to ―the dangerous conditions‖ created by the irresponsible driving
behavior of scooter renters, especially at night, amplified by the lack of training, supervision, and
oversight practiced by the rental scooter businesses that ―existed throughout the entire city‖ as
the basis for the city‘s regulation. The court paraphrased the expressive clauses in the ordinances
more specifically:
•
•
drivers seeking amusement and driving in a dangerous manner.
M
The City is geographically small and crowded and is being besieged by inexperienced scooter
The City is a tourist destination frequented by tens of thousands, and its streets are
congested by scooters that are being driven illegally and in areas where they are not
permitted.
• The City‘s residents and visitors are put in dangerous situations as a result of the improper
use of scooters, especially at night.
• City businesses have complained about numerous trespasses on their property by people
driving scooters while being disruptive
• City police have been unable to cope with the situation and essential police resources are
being drained.
• The City has been unable to control the situation through less restrictive means.
© 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 and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
2. What is the likely economic impact of the ordinances on the businesses in the city? Discuss.
Solution
With the exception of the scooter rental businesses, the effect on the city‘s economy is likely to
be positive in light of the result in the Classy case.
The answer to the previous question contains the reasons in support of this outlook. With a ban
on motorized scooters, the ―small and crowded‖ city is not likely to be ―besieged by
inexperienced scooter drivers seeking amusement and driving in a dangerous manner.‖ The
streets, filled with ―tens of thousands‖ of tourists will not be ―congested by scooters that are
being driven illegally and in areas where they are not permitted.‖ Residents and visitors will not
be ―put in dangerous situations as a result of the improper use of scooters, especially at night.‖
There will be an end to the ―numerous trespasses‖ on business property ―by people driving
scooters while being disruptive.‖ And ―essential police resources‖ will not be ―drained,‖ at least
not by irresponsible scooter drivers and riders. All of which bodes well for business.
Case 1.2
1. If this case had involved a small, private retail business that did not advertise nationally, would
the result have been the same? Why or why not?
M
Solution
It is not likely that the result in this case would have been different even if the facts had involved
a small, private retail business that did not advertise nationally. The intended impact of the
W
decision in Heart of Atlanta was to uphold the constitutionality of the Civil Rights Act of 1964 and
the power of Congress to regulate interstate commerce to stop local discriminatory practices. In
the Supreme Court‘s opinion, ―The power of Congress to promote interstate commerce also
includes the power to regulate the local incidents thereof, including local activities in both the
States of origin and destination, which might have a substantial and harmful effect upon that
commerce.‖ M
Thus, if the case had involved a small, local retail business, the Court would have found
participation in interstate commerce based on the use of a phone, or a Facebook page (or other
Web presence), or sales to customers who traveled across state lines—or, as in Wickard v.
Filburn, participation might have been based on any transaction that might otherwise have
occurred in interstate commerce.
Case 1.3
1. Whose interests are advanced by the banning of certain types of advertising?
Solution
The government‘s interests are advanced when certain ads are banned. For example, in the Bad
Frog case, the court acknowledged, by advising the state to restrict the locations where certain
ads could be displayed, that banning of ―vulgar and profane‖ advertising from children‘s sight
arguably advanced the state‘s interest in protecting children from those ads.
© 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.
, Solution and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
2. If Bad Frog had sought to use the offensive label to market toys instead of beer, would the
court‘s ruling likely have been the same? Explain your answer.
Solution
Probably not. The reasoning underlying the court‘s decision in the case was, in part, that ―the
State‘s prohibition of the labels . . . does not materially advance its asserted interests in
insulating children from vulgarity . . . and is not narrowly tailored to the interest concerning
children.‖ The court‘s reasoning was supported in part by the fact that children cannot buy beer.
If the labels advertised toys, however, the court‘s reasoning might have been different.
Chapter Review
Practice and Review
A state legislature enacted a statute that required any motorcycle operator or passenger on the
state‘s highways to wear a protective helmet. Jim Alderman, a licensed motorcycle operator, sued
the state to block enforcement of the law. Alderman asserted that the statute violated the equal
protection clause because it placed requirements on motorcyclists that were not imposed on
other motorists. Using the information presented in the chapter, answer the following questions.
Solution
M
1. Why does this statute raise equal protection issues instead of substantive due process concerns?
When a law or action limits the liberty of some persons but not others, it may violate the equal
protection clause. Here, because the law applies only to motorcycle operators and passengers, it
raises equal protection issues. W
2. What are the three levels of scrutiny that the courts use in determining whether a law violates
the equal protection clause?
Solution
M
The three levels of scrutiny that courts apply to determine whether the law or action violates
equal protection are (1) strict scrutiny (if fundamental rights are at stake), (2) intermediate
scrutiny (in cases involving discrimination based on gender or legitimacy), and (3) the ―rational
basis‖ test (in matters of economic or social welfare).
3. Which level of scrutiny or test would apply to this situation? Why?
Solution
The court would likely apply the rational basis test, because the statute regulates a matter of
social welfare by requiring helmets. Similar to seat-belt laws and speed limits, a helmet statute
involves the state‘s attempt to protect the welfare of its citizens. Thus, the court would consider
it a matter a social welfare and require that it be rationally related to a legitimate government
objective.
© 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.
Chapter 01: Legal and Constitutional Foundations of Business
Solution and Answer Guide
Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
Your text here 1
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 Review ................................................................................................................. 4
M
Practice and Review .................................................................................................................................. 4
Practice and Review: Debate This ............................................................................................................. 5
Issue Spotters ............................................................................................................................................ 5
W
Business Scenarios and Case Problems ..................................................................................................... 5
Critical Thinking and Writing Assignments .............................................................................................. 10
Critical Thinking Questions in Appendix Exhibit 1A–3 ............................................................11
M
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?
Your text here 2
© 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.
, Solution and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
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
M
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.
W
The appellate court referred to ―the dangerous conditions‖ created by the irresponsible driving
behavior of scooter renters, especially at night, amplified by the lack of training, supervision, and
oversight practiced by the rental scooter businesses that ―existed throughout the entire city‖ as
the basis for the city‘s regulation. The court paraphrased the expressive clauses in the ordinances
more specifically:
•
•
drivers seeking amusement and driving in a dangerous manner.
M
The City is geographically small and crowded and is being besieged by inexperienced scooter
The City is a tourist destination frequented by tens of thousands, and its streets are
congested by scooters that are being driven illegally and in areas where they are not
permitted.
• The City‘s residents and visitors are put in dangerous situations as a result of the improper
use of scooters, especially at night.
• City businesses have complained about numerous trespasses on their property by people
driving scooters while being disruptive
• City police have been unable to cope with the situation and essential police resources are
being drained.
• The City has been unable to control the situation through less restrictive means.
© 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 and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
2. What is the likely economic impact of the ordinances on the businesses in the city? Discuss.
Solution
With the exception of the scooter rental businesses, the effect on the city‘s economy is likely to
be positive in light of the result in the Classy case.
The answer to the previous question contains the reasons in support of this outlook. With a ban
on motorized scooters, the ―small and crowded‖ city is not likely to be ―besieged by
inexperienced scooter drivers seeking amusement and driving in a dangerous manner.‖ The
streets, filled with ―tens of thousands‖ of tourists will not be ―congested by scooters that are
being driven illegally and in areas where they are not permitted.‖ Residents and visitors will not
be ―put in dangerous situations as a result of the improper use of scooters, especially at night.‖
There will be an end to the ―numerous trespasses‖ on business property ―by people driving
scooters while being disruptive.‖ And ―essential police resources‖ will not be ―drained,‖ at least
not by irresponsible scooter drivers and riders. All of which bodes well for business.
Case 1.2
1. If this case had involved a small, private retail business that did not advertise nationally, would
the result have been the same? Why or why not?
M
Solution
It is not likely that the result in this case would have been different even if the facts had involved
a small, private retail business that did not advertise nationally. The intended impact of the
W
decision in Heart of Atlanta was to uphold the constitutionality of the Civil Rights Act of 1964 and
the power of Congress to regulate interstate commerce to stop local discriminatory practices. In
the Supreme Court‘s opinion, ―The power of Congress to promote interstate commerce also
includes the power to regulate the local incidents thereof, including local activities in both the
States of origin and destination, which might have a substantial and harmful effect upon that
commerce.‖ M
Thus, if the case had involved a small, local retail business, the Court would have found
participation in interstate commerce based on the use of a phone, or a Facebook page (or other
Web presence), or sales to customers who traveled across state lines—or, as in Wickard v.
Filburn, participation might have been based on any transaction that might otherwise have
occurred in interstate commerce.
Case 1.3
1. Whose interests are advanced by the banning of certain types of advertising?
Solution
The government‘s interests are advanced when certain ads are banned. For example, in the Bad
Frog case, the court acknowledged, by advising the state to restrict the locations where certain
ads could be displayed, that banning of ―vulgar and profane‖ advertising from children‘s sight
arguably advanced the state‘s interest in protecting children from those ads.
© 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.
, Solution and Answer Guide: Miller, Business Law Today, The Essentials Text & Summarized Cases 13e, 9780357635346;
Chapter 01: Legal and Constitutional Foundations of Business
2. If Bad Frog had sought to use the offensive label to market toys instead of beer, would the
court‘s ruling likely have been the same? Explain your answer.
Solution
Probably not. The reasoning underlying the court‘s decision in the case was, in part, that ―the
State‘s prohibition of the labels . . . does not materially advance its asserted interests in
insulating children from vulgarity . . . and is not narrowly tailored to the interest concerning
children.‖ The court‘s reasoning was supported in part by the fact that children cannot buy beer.
If the labels advertised toys, however, the court‘s reasoning might have been different.
Chapter Review
Practice and Review
A state legislature enacted a statute that required any motorcycle operator or passenger on the
state‘s highways to wear a protective helmet. Jim Alderman, a licensed motorcycle operator, sued
the state to block enforcement of the law. Alderman asserted that the statute violated the equal
protection clause because it placed requirements on motorcyclists that were not imposed on
other motorists. Using the information presented in the chapter, answer the following questions.
Solution
M
1. Why does this statute raise equal protection issues instead of substantive due process concerns?
When a law or action limits the liberty of some persons but not others, it may violate the equal
protection clause. Here, because the law applies only to motorcycle operators and passengers, it
raises equal protection issues. W
2. What are the three levels of scrutiny that the courts use in determining whether a law violates
the equal protection clause?
Solution
M
The three levels of scrutiny that courts apply to determine whether the law or action violates
equal protection are (1) strict scrutiny (if fundamental rights are at stake), (2) intermediate
scrutiny (in cases involving discrimination based on gender or legitimacy), and (3) the ―rational
basis‖ test (in matters of economic or social welfare).
3. Which level of scrutiny or test would apply to this situation? Why?
Solution
The court would likely apply the rational basis test, because the statute regulates a matter of
social welfare by requiring helmets. Similar to seat-belt laws and speed limits, a helmet statute
involves the state‘s attempt to protect the welfare of its citizens. Thus, the court would consider
it a matter a social welfare and require that it be rationally related to a legitimate government
objective.
© 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.
