SOLUTION MANUAL FOR j j
ThejLegaljEnvironmentjofjBusiness,j14thjEditionjbyjRogerjE.jMeiners
Chapterj1-22
Chapterj1
Table of Contents
j j
AnswerjtojDiscussionjQuestion ................................................................................................... 1
AnswersjtojCasejQuestions ......................................................................................................... 1
AnswersjtojEthicsjandjSocialjQuestions ....................................................................................... 3
Answer to Discussion Question
j j j
Shouldjthejcommonjlawjmaximj“Ignorancejofjthejlawjisjnojexcuse”japplyjtojanjimmigrantjwhojspeaksjlittlejEn
glishjandjwasjnotjeducatedjinjthejUnitedjStates?jHowjaboutjforjajtouristjwhojdoesjnotjspeakjEnglish?jEveryo
nejknowsjcriminaljactsjarejprohibited,jbutjwhatjaboutjsubtlerjrulesjthatjdifferjacrossjcountriesjandjsojmayjbej
misunderstoodjbyjforeigners?
Answer:jItjisjgenerallyjtruejthatjignorancejofjthejlawjisjnojexcuse.jCitizensjarejdeemedjtojhavejconstructivejk
nowledgejofjthejlaw.jYet,jasjwelljknownjasjthisjrulejis,jitjisjsurprisingjhowjoftenjitjisjprofferedjasjanjexcus
e.j(AjWestlawjsearchjcasesjfindsjhundredsjofjexamples).jExamplesjinclude:jDelucojv.jDezij(Conn.jSup
er)j(lackjofjknowledgejregardingjthejstate‘sjusuryjlawsjisjnojexcusejforjthejinclusionjofjanjillegaljinterestj
ratejinjajsalesjcontract);jandjPlumleejv.jPaddockj(ignorancejofjthejfactjthatjthejsubjectjmatterjofjthejcont
ractjwasjillegaljwasjnotjexcuse).jThejcourtsjhavejprovidedjajsmalljexceptionjtojthejrulejwhenjitjcomesjto
jpeoplejinjlackjofjEnglishjlanguagejskills.jConsiderjFlaneryjv.jKuska,j(defendantjdidjnotjspeakjEnglishj
wasjadvisedjbyjajfriendjthatjanjanswerjtojajcomplaintjwasjnotjrequired);jRamonjv.jDept.jofjTransportati
on,j(nojEnglishjandjanjinabilityjtojunderstandjthejlawjrequiredjforjanjexcuse);jYurechkojv.jCountyjofjAll
egheny,j(Ignorancejandjwithjthejfactjthatjthejmunicipalityjsufferedjnojhardshipjinjlatejlawsuitjfilingjwasj
anjexcuse).
Answers to Case Questions
j j j
1. FactsjfromjanjEnglishjjudge’sjdecisionjinj1884:j“ThejcrewjofjanjEnglishjyacht ............... werejcastjawayjin
ajstormjonjthejhighjseasj.j.j.jandjwerejcompelledjtojputjintojanjopenjboat. ...............Theyjhadjnojsupply
ofjwaterjandjnojsupplyjofjfood.j.j.j.jThatjonjthejeighteenthjdayj.j.j.jthey ............... suggestedjthatjone
shouldjbejsacrificedjtojsavejthejrest.j.j.j.jThatjnextjdayj.j.j.jtheyj.j.j.jwentjtojthejboy .................. putjajknife
intojhisjthroatjandjkilledjhimj.j.j.jthejthreejmenjfedjuponjthejbody .............. ofjthejboyjforjfourjdays;j[then]
thejboatjwasjpickedjupjbyjajpassingjvessel,jandj[they]jwerejrescued.j.j.j.jandjcommittedjforjtrial.j.j.j.jifjthej
menjhadjnotjfedjuponjthejbodyjofjthejboyjtheyjwouldjprobablyjnotjhavejsurvivedjtojbejsojpickedjupjandjr
escued,jbutjwould ............................... havejdiedjofjfamine.jThejboy,jbeingjinjajmuchjweaker
condition,jwasjlikelyjtojhavejdiedjbeforejthem ...........Thejrealjquestionjinjthisjcasej[is]jwhetherjkilling
underjthejconditionsjsetjforth ......... bejorjbejnotjmurder.”jDojyoujconsiderjthejactsjtojbejimmoral?
[Reginajv.jDudleyjandjStephens,j14jQueensjBenchjDivisionj273j(1884)]
Answer:jThisjpointsjoutjthatjthejlegaljsystemjhasjlimits.jItsjacceptabilityjisjdictatedjbyjlegaljculture--
whichjdeterminesjwhetherjlawjwilljbejenforced,jobeyed,javoided,jorjabused.jItjisjlimitedjbyjthejinformaljr
ulesjofjthejsociety--
itsjcustomsjandjvalues.jOnejlimitjisjthejextentjtojwhichjsocietyjwilljallowjthejformaljrulesjtojbejimposedjw
henjajcrimejisjcommittedjinjoddjcircumstances.jHerejtherejwasjanjintentionaljmurder.jDoesjthejmotivejf
orjthejmurder,jthejeffortjtojsavejseveraljlivesjbyjsacrificingjone
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 1
website,jinjwholejorjinjpart.
, life,jmakejitjajcrimejthatjshouldjbejpunished?jNotjalljcrimesjarejtreatedjthejsame.jItjalsojraisesjquestion
sjaboutjthejdesirabilityjofjnotjgivingjjudgesjflexibilityjinjsentencing.
TherejwasjajprecedentjforjajlightjsentencejinjthisjcasejinjU.S.jlaw:jU.S.jv.jHolmes,j20jF.jCas.j360j(No.j1
5383)j(C.C.E.D.jPa.j1842).jThejcasejinvolvedjajsinkingjoceanjliner.jSeveraljpassengersjmadejitjtojthejo
nlyjlifeboat,jwhichjwasjfarjtoojovercrowded.jThejcaptainjdecidedjtojsavejthejwomenjandjchildrenjandjthr
ewjseveraljmenjoverboard.jThejlifeboatjwasjrescued.jThejgrandjjuryjrefusedjtoj indictjthejcaptainjfromj
murder,jonlyjforjmanslaughter.jHejgotjajsixjmonthjsentence.
ThejBritishjjudgejinjthejcasejherejimposedjthejdeathjpenaltyjuponjthejpersonjwhojsurvived.jThejjud
gejfoundjitjdifficultjtojrulejthatjeveryjmanjonjboardjhadjthejrightjtojmakejlawjbyjhisjownjhand.jThejCro
wnjreducedjthejsentencejtojsixjmonths.
2. Smokingjisjajseriousjhealthjhazard.jCigarettesjarejlegal.jShouldjcigarettejmanufacturersjbejliablejforjth
ejseriousjillnessesjandjuntimelyjdeathsjcausedjbyjtheirjunavoidablyjdangerousjproducts,jevenjthoughjt
heyjpostjajwarningjonjthejpackagejandjconsumersjvoluntarilyjassumejthejhealthjrisksjbyjsmoking?j[Cip
ollonejv.jLiggettjGroup,jInc.,j505jU.S.j504j(1992)]
Answer:jThejgeneraljrulejthatjexistsjnowjisjthatjsincejthejgovernmentjhasjorderedjthejpostingjofjwarningjlab
elsjonjcigarettes,jandjsincejthejdangersjofjsmokingjarejwelljknown,jconsumersjhavejbeenjwarnedjandj
arejnotjduejcompensationjifjtheyjkilljthemselvesjbyjsmoking.jThejCippolinejcase,jsincejreviewedjbyjthej
SupremejCourt,jappearsjtojbejofjlimitedjimpactjsincejthejvictimjwasjadjudgedjtojhavejbecomejaddictedj
tojcigarettesjbeforejthejwarningjlabeljwasjorderedjinj1964.jIfjcigarettejmakersjwerejheldjresponsiblejforj
alljhealthjproblemsjassociatedjwithjcigarettes,jthen,jlikejalcoholjandjotherjdangerousjproducts,jthejdam
agesjwouldjlikelyjbejsojhighjitjwouldjeffectivelyjbanjthejproducts.jPresumably,jinjajfreejsocietyjifjadultsj
arejclearlyjinformedjofjthejrisksjofjproductsjthatjcannotjbejmadejsafe,jtheyjacceptjthejrisk.jTobaccojandj
alcoholjproducersjcannotjtakejthejdangersjoutjofjthejproductsjexceptjatjthejmarginjbyjencouragingjresp
onsiblejdrinkingjandjthejlike.jArejdrugsjlikejcocainejdifferent?
3. Twojeight-year-oldjboysjwerejseriouslyjinjuredjwhenjridingjHondajmini-
trailjbikes.jThejboysjwerejridingjonjpublicjstreets,jranjajstopjsign,jandjwerejhitjbyjajtruck.jThejbikesjhadjc
learjwarningjlabelsjonjthejfrontjstatingjtheyjwerejonlyjforjoff-
roadjuse.jThejmanualjstatedjthejbikesjwerejnotjtojbejusedjonjpublicjstreets.jThejparentsjsuedjHonda.jT
hejsupremejcourtjofjWashingtonjsaidjonejbasicjissuejexisted:j“Isjajmanufacturerjliablejwhenjchildrenjar
ejinjuredjwhilejridingjonejofjitsjmini-
trailjbikesjonjajpublicjroadjinjviolationjofjmanufacturerjandjparentaljwarnings?”jIsjitjunethicaljtojmakejpro
ductsjlikejmini-
trailjbikesjchildrenjwilljusejwhenjwejknowjaccidentsjlikejthisjwilljhappen?j[Baughnjv.jHondajMotorjCo.,j7
27jP.2dj655jSup.jCt,jWash.,j(1986)]
Answer:jThejcourtjfoundjnojliabilityjforjthejmanufacturers.jTherejwasjnojdefect;jthejproductjwasjsafejforjinte
ndedjuse.jSafetyjinstructionsjwerejclear;jthejparentsjletjthejboysjridejthejbikes.jAnythingjcanjbejdanger
ous--
baseballsjarejdangerousjwhenjtheyjhitjthejhead,jswingsjarejdangerousjwhenjkidsjjumpjoutjofjthem;jthe
rejisjonlyjsojmuchjthatjcanjbejdonejtojmakejthejgovernmentjthej―nationaljnanny‖jasjthejWashingtonjPo
stjoncejsaidjaboutjexcessivejconsumerjprotection.jParentsjmustjacceptjajhighjdegreejofjresponsiblejfo
rjtheirjownjchildren.
4. JohnsonjControlsjadoptedjaj“fetaljprotectionjpolicy”jthatjwomenjofjchildbearingjagejcouldjnotjworkjinjth
ejbattery-
makingjdivisionjofjthejcompany.jExposurejtojleadjinjthejbatteryjoperationjcouldjcausejharmjtojunbornjb
abies.jThejcompanyjwasjconcernedjaboutjpossiblejlegaljliabilityjforjinjuryjsufferedjbyjbabiesjofjmothersj
whojhadjworkedjinjthejbatteryjdivision.jThejSupremejCourtjheldjthejcompanyjpolicyjwasjillegal.jItjwasja
nj“excusejforjdenyingjwomenjequaljemploymentjopportunities.”jIsjthejCourtjforcingjthejcompanyjtojbeju
nethicaljbyjallowingjpregnantjwomenjwhojignorejthejwarningsjtojexposejtheirjbabiesjtojthejlead?j[Unite
djAutojWorkersjv.jJohnsonjControls,j499jU.S.j187j(1991)]
Answer:jThejCourtjheldjitjajformjofjsexjdiscriminationjtojpreventjwomenjofjchild-
bearingjagejfromjholdingjthejmorejdangerousjjobs.jThejcompanyjarguedjthatjitjdidjthisjtojprotectjitselfjf
romjpossiblejliabilityjinjcasejofjdamagejtojbabiesjandjthatjthejdecisionjwasjethical.jThejreplacementsjf
orjthesejworkersjwerejoftenjmenjorjmorejseniorjwomen,jwhojtendedjtojbejhigherjincomejworkers,jsojth
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 2
website,jinjwholejorjinjpart.
, is
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 3
website,jinjwholejorjinjpart.
, wasjnotjajcurrentjcost-
savingjmove.jNotejthatjaj2002jrulingjrelatedjtojthejADAjsignificantlyjrestrictedjthisjearlierjcase.
5. McGroryjworkedjforjAppliedjSignaljTechnologyjinjajsupervisoryjposition.jHejwasjaccusedjofjviolatingjt
hejcompany’sjpoliciesjonjsexualjharassment.jAnjinternaljinvestigationjdeterminedjhejdidjnotjviolatejth
ejpolicyjbutjthatjhejwasjevasivejandjviolatedjthejcompany’sjpersonaljethicsjcode.jHejwasjfiredjandjsue
djforjwrongfuljtermination,jcontendingjthatjifjhejdidjnotjviolatejsexualjharassmentjrulesjhejshouldjnotjha
vejbeenjsubjectjtojtermination.jDojstandardsjofjlawjandjethicsjneedjtojbejthejsamejforjanjemployer?j[M
cGroryjv.jAppliedjSignaljTechnology,j152jCal.Rptr.3dj154j(2013)]
Answer:jThejappealsjcourtjaffirmedjthatjthejemployerjhadjthejrightjtojterminatejthejemployeejforjfailurejtojbej
fullyjcooperativejinjthejinvestigationjofjthejcomplaintjofjsexualjharassmentjthatjhadjbeenjfiledjagainstjhi
m.jWhilejhejwasjnotjfoundjtojhavejviolatedjthejharassmentjpolicy,jhejwasjevasivejandjuncooperative,jw
hichjviolatedjthejcompany‘sjcodejofjethics,jwhichjwasjajjustificationjforjtermination.
6. BakerjworksjasjajdocumentjclerkjforjthejMinnesotajSupremejCourt.jAfterjshejhadjworkedjtherejforj13jy
earsjthejMinnesotajjudicialjbranchjadoptedjajpolicyjconcerningjproperjInternetjusejandjstatedjthatjem
ployeesjmustjadherejtojthejhighestjethicaljstandardsjwhenjusingjthejInternet.jElevenjyearsjlater,jshejw
asjfiredjforjexcessivejsurfingjonjthejInternetjduringjworkingjhours.jShejcontendedjshejdidjnotjknowjab
outjthejpolicy.jIsjthatjanjadequatejdefensejforjher?j[Bakerjv.jMinnesotajSupremejCourt,j2016jWLj1025
13j(2016)]
Answer:jThejMinnesotajhighjcourtjheldjthatjBaker‘sjterminationjwasjproper.jShejviolatedjstandardsjexpecte
djofjemployees.jShejhadjbeenjwarnedjaboutjexcessivejpersonaljInternetjusejduringjworkjtime,jincludin
gjbuyingjandjsellingjgoodsjforjajlittlejbusinessjshejran.jThejclaimjthatjshejdidjnotjknowjaboutjthejethicsjo
fjInternetjusejwasjnotjcrediblejasjthejpolicyjwasjpostedjforjalljemployeesjwhojreceivedje-
mailsjaboutjanyjchangesjtojthejpolicy.jThejfactjthatjthejtermj―ethical‖jwasjusedjinjthejpolicyjdoesjnotjlike
lyjimpactjthisjdecision.
Answers to Ethics and Social Questions
j j j j j
1. Thejfederaljtaxjcodejisjriddledjwithjspecial-
interestjloopholes.jMostjofjthesejexistjbecausejfirmsjandjtradejassociationsjlobbyjCongressjandjprovid
ejcampaignjsupportjtojmembersjofjCongressjtojgainjspecialjfavorsjtojindividualjfirmsjorjindustries.jIsjitje
thicaljforjfirmsjtojseekjspecialjprivilege?
Answer:jThejnaturejofjourjpoliticaljsystemjforcesjfirmsjtojparticipatejinjthejpoliticaljprocess.jThosejthatjfailjtoj
dojso,jifjtheyjarejofjanyjsize,jarejmorejlikelyjtojbejsubjectjtojpoliticaljattack.jInjajsense,jfirms
―buy‖jprotectionjbyjkeepingjajflowjofjcontributionsjgoing,jespeciallyjtojincumbentjmembersjofjCongress
.jCompetitionjalsojmeansjthatjifjajfirmjdoesjnotjlobbyjforjspecialjprivilege,jthenjitjmayjsufferjifjcompetitor
sjachievejsuchjstatusjinjthejtaxjcodejorjsomejareajofjregulation.jManyjbusinessjleadersjdojnotjmuchjcar
ejforjthejWashington,jD.C.joperationsjtheirjfirmsjsupportjbutjknowjthatjitjisjajpartjofjthejmodernjlegaljenvi
ronmentjofjbusiness.
2. “Fairjtrade”jgoodsjhavejbecomejpopular,jasjsomejpeoplejarejwillingjtojpayjmorejtojknowjthejgoodsjcom
ejfromjworkersjpaidjajdecentjpricejforjtheirjefforts.jHowever,jsomejretailersjwhojselljfairjtradejgoodsjma
rkjthemjupjsubstantiallyjmorejthanjnonfairjtradejgoods.jOnejstudyjshowedjthatjcoffeejgrowersjgotjanjav
eragejofj44jcentsjajpoundjmorejforjfairjtradejcoffee,jbutjthejcoffeejatjretailjwasjmarkedjupjanjadditionalj$
3.46jperjpound.jAtjonejsupermarketjchain,jfairjtradejbananasjthatjcostjanjextraj3.6jcentsjperjpoundjwer
ejmarkedjupjfourjtimesjthejpricejofjnon-
fairjtradejbananas.jFairjtradejgoodsjarejclaimedjtojbejajformjofjsocialjresponsibility.jIsjthatjtruejifjitjjustjm
eansjhigherjprofitjmargins?
Answer:jThejhighjmarkjupjsuppressesjthejdemandjforjfairjtradejgoods,jtherebyjreducingjthejmarketjforjfairjtr
adejgoods.jIfjthejretailjpricesjreflectedjthejactualjadditionaljcost,jnotjthejprofitjmaximizingjpricejtojthejret
ailerjthatjexploitsjthejgoodwilljfromj―fairjtrade,‖jthenjitjisjhardjtojarguejthatjthejcompanyjisjbeingjparticula
rlyjsociallyjresponsible.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 4
website,jinjwholejorjinjpart.
ThejLegaljEnvironmentjofjBusiness,j14thjEditionjbyjRogerjE.jMeiners
Chapterj1-22
Chapterj1
Table of Contents
j j
AnswerjtojDiscussionjQuestion ................................................................................................... 1
AnswersjtojCasejQuestions ......................................................................................................... 1
AnswersjtojEthicsjandjSocialjQuestions ....................................................................................... 3
Answer to Discussion Question
j j j
Shouldjthejcommonjlawjmaximj“Ignorancejofjthejlawjisjnojexcuse”japplyjtojanjimmigrantjwhojspeaksjlittlejEn
glishjandjwasjnotjeducatedjinjthejUnitedjStates?jHowjaboutjforjajtouristjwhojdoesjnotjspeakjEnglish?jEveryo
nejknowsjcriminaljactsjarejprohibited,jbutjwhatjaboutjsubtlerjrulesjthatjdifferjacrossjcountriesjandjsojmayjbej
misunderstoodjbyjforeigners?
Answer:jItjisjgenerallyjtruejthatjignorancejofjthejlawjisjnojexcuse.jCitizensjarejdeemedjtojhavejconstructivejk
nowledgejofjthejlaw.jYet,jasjwelljknownjasjthisjrulejis,jitjisjsurprisingjhowjoftenjitjisjprofferedjasjanjexcus
e.j(AjWestlawjsearchjcasesjfindsjhundredsjofjexamples).jExamplesjinclude:jDelucojv.jDezij(Conn.jSup
er)j(lackjofjknowledgejregardingjthejstate‘sjusuryjlawsjisjnojexcusejforjthejinclusionjofjanjillegaljinterestj
ratejinjajsalesjcontract);jandjPlumleejv.jPaddockj(ignorancejofjthejfactjthatjthejsubjectjmatterjofjthejcont
ractjwasjillegaljwasjnotjexcuse).jThejcourtsjhavejprovidedjajsmalljexceptionjtojthejrulejwhenjitjcomesjto
jpeoplejinjlackjofjEnglishjlanguagejskills.jConsiderjFlaneryjv.jKuska,j(defendantjdidjnotjspeakjEnglishj
wasjadvisedjbyjajfriendjthatjanjanswerjtojajcomplaintjwasjnotjrequired);jRamonjv.jDept.jofjTransportati
on,j(nojEnglishjandjanjinabilityjtojunderstandjthejlawjrequiredjforjanjexcuse);jYurechkojv.jCountyjofjAll
egheny,j(Ignorancejandjwithjthejfactjthatjthejmunicipalityjsufferedjnojhardshipjinjlatejlawsuitjfilingjwasj
anjexcuse).
Answers to Case Questions
j j j
1. FactsjfromjanjEnglishjjudge’sjdecisionjinj1884:j“ThejcrewjofjanjEnglishjyacht ............... werejcastjawayjin
ajstormjonjthejhighjseasj.j.j.jandjwerejcompelledjtojputjintojanjopenjboat. ...............Theyjhadjnojsupply
ofjwaterjandjnojsupplyjofjfood.j.j.j.jThatjonjthejeighteenthjdayj.j.j.jthey ............... suggestedjthatjone
shouldjbejsacrificedjtojsavejthejrest.j.j.j.jThatjnextjdayj.j.j.jtheyj.j.j.jwentjtojthejboy .................. putjajknife
intojhisjthroatjandjkilledjhimj.j.j.jthejthreejmenjfedjuponjthejbody .............. ofjthejboyjforjfourjdays;j[then]
thejboatjwasjpickedjupjbyjajpassingjvessel,jandj[they]jwerejrescued.j.j.j.jandjcommittedjforjtrial.j.j.j.jifjthej
menjhadjnotjfedjuponjthejbodyjofjthejboyjtheyjwouldjprobablyjnotjhavejsurvivedjtojbejsojpickedjupjandjr
escued,jbutjwould ............................... havejdiedjofjfamine.jThejboy,jbeingjinjajmuchjweaker
condition,jwasjlikelyjtojhavejdiedjbeforejthem ...........Thejrealjquestionjinjthisjcasej[is]jwhetherjkilling
underjthejconditionsjsetjforth ......... bejorjbejnotjmurder.”jDojyoujconsiderjthejactsjtojbejimmoral?
[Reginajv.jDudleyjandjStephens,j14jQueensjBenchjDivisionj273j(1884)]
Answer:jThisjpointsjoutjthatjthejlegaljsystemjhasjlimits.jItsjacceptabilityjisjdictatedjbyjlegaljculture--
whichjdeterminesjwhetherjlawjwilljbejenforced,jobeyed,javoided,jorjabused.jItjisjlimitedjbyjthejinformaljr
ulesjofjthejsociety--
itsjcustomsjandjvalues.jOnejlimitjisjthejextentjtojwhichjsocietyjwilljallowjthejformaljrulesjtojbejimposedjw
henjajcrimejisjcommittedjinjoddjcircumstances.jHerejtherejwasjanjintentionaljmurder.jDoesjthejmotivejf
orjthejmurder,jthejeffortjtojsavejseveraljlivesjbyjsacrificingjone
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 1
website,jinjwholejorjinjpart.
, life,jmakejitjajcrimejthatjshouldjbejpunished?jNotjalljcrimesjarejtreatedjthejsame.jItjalsojraisesjquestion
sjaboutjthejdesirabilityjofjnotjgivingjjudgesjflexibilityjinjsentencing.
TherejwasjajprecedentjforjajlightjsentencejinjthisjcasejinjU.S.jlaw:jU.S.jv.jHolmes,j20jF.jCas.j360j(No.j1
5383)j(C.C.E.D.jPa.j1842).jThejcasejinvolvedjajsinkingjoceanjliner.jSeveraljpassengersjmadejitjtojthejo
nlyjlifeboat,jwhichjwasjfarjtoojovercrowded.jThejcaptainjdecidedjtojsavejthejwomenjandjchildrenjandjthr
ewjseveraljmenjoverboard.jThejlifeboatjwasjrescued.jThejgrandjjuryjrefusedjtoj indictjthejcaptainjfromj
murder,jonlyjforjmanslaughter.jHejgotjajsixjmonthjsentence.
ThejBritishjjudgejinjthejcasejherejimposedjthejdeathjpenaltyjuponjthejpersonjwhojsurvived.jThejjud
gejfoundjitjdifficultjtojrulejthatjeveryjmanjonjboardjhadjthejrightjtojmakejlawjbyjhisjownjhand.jThejCro
wnjreducedjthejsentencejtojsixjmonths.
2. Smokingjisjajseriousjhealthjhazard.jCigarettesjarejlegal.jShouldjcigarettejmanufacturersjbejliablejforjth
ejseriousjillnessesjandjuntimelyjdeathsjcausedjbyjtheirjunavoidablyjdangerousjproducts,jevenjthoughjt
heyjpostjajwarningjonjthejpackagejandjconsumersjvoluntarilyjassumejthejhealthjrisksjbyjsmoking?j[Cip
ollonejv.jLiggettjGroup,jInc.,j505jU.S.j504j(1992)]
Answer:jThejgeneraljrulejthatjexistsjnowjisjthatjsincejthejgovernmentjhasjorderedjthejpostingjofjwarningjlab
elsjonjcigarettes,jandjsincejthejdangersjofjsmokingjarejwelljknown,jconsumersjhavejbeenjwarnedjandj
arejnotjduejcompensationjifjtheyjkilljthemselvesjbyjsmoking.jThejCippolinejcase,jsincejreviewedjbyjthej
SupremejCourt,jappearsjtojbejofjlimitedjimpactjsincejthejvictimjwasjadjudgedjtojhavejbecomejaddictedj
tojcigarettesjbeforejthejwarningjlabeljwasjorderedjinj1964.jIfjcigarettejmakersjwerejheldjresponsiblejforj
alljhealthjproblemsjassociatedjwithjcigarettes,jthen,jlikejalcoholjandjotherjdangerousjproducts,jthejdam
agesjwouldjlikelyjbejsojhighjitjwouldjeffectivelyjbanjthejproducts.jPresumably,jinjajfreejsocietyjifjadultsj
arejclearlyjinformedjofjthejrisksjofjproductsjthatjcannotjbejmadejsafe,jtheyjacceptjthejrisk.jTobaccojandj
alcoholjproducersjcannotjtakejthejdangersjoutjofjthejproductsjexceptjatjthejmarginjbyjencouragingjresp
onsiblejdrinkingjandjthejlike.jArejdrugsjlikejcocainejdifferent?
3. Twojeight-year-oldjboysjwerejseriouslyjinjuredjwhenjridingjHondajmini-
trailjbikes.jThejboysjwerejridingjonjpublicjstreets,jranjajstopjsign,jandjwerejhitjbyjajtruck.jThejbikesjhadjc
learjwarningjlabelsjonjthejfrontjstatingjtheyjwerejonlyjforjoff-
roadjuse.jThejmanualjstatedjthejbikesjwerejnotjtojbejusedjonjpublicjstreets.jThejparentsjsuedjHonda.jT
hejsupremejcourtjofjWashingtonjsaidjonejbasicjissuejexisted:j“Isjajmanufacturerjliablejwhenjchildrenjar
ejinjuredjwhilejridingjonejofjitsjmini-
trailjbikesjonjajpublicjroadjinjviolationjofjmanufacturerjandjparentaljwarnings?”jIsjitjunethicaljtojmakejpro
ductsjlikejmini-
trailjbikesjchildrenjwilljusejwhenjwejknowjaccidentsjlikejthisjwilljhappen?j[Baughnjv.jHondajMotorjCo.,j7
27jP.2dj655jSup.jCt,jWash.,j(1986)]
Answer:jThejcourtjfoundjnojliabilityjforjthejmanufacturers.jTherejwasjnojdefect;jthejproductjwasjsafejforjinte
ndedjuse.jSafetyjinstructionsjwerejclear;jthejparentsjletjthejboysjridejthejbikes.jAnythingjcanjbejdanger
ous--
baseballsjarejdangerousjwhenjtheyjhitjthejhead,jswingsjarejdangerousjwhenjkidsjjumpjoutjofjthem;jthe
rejisjonlyjsojmuchjthatjcanjbejdonejtojmakejthejgovernmentjthej―nationaljnanny‖jasjthejWashingtonjPo
stjoncejsaidjaboutjexcessivejconsumerjprotection.jParentsjmustjacceptjajhighjdegreejofjresponsiblejfo
rjtheirjownjchildren.
4. JohnsonjControlsjadoptedjaj“fetaljprotectionjpolicy”jthatjwomenjofjchildbearingjagejcouldjnotjworkjinjth
ejbattery-
makingjdivisionjofjthejcompany.jExposurejtojleadjinjthejbatteryjoperationjcouldjcausejharmjtojunbornjb
abies.jThejcompanyjwasjconcernedjaboutjpossiblejlegaljliabilityjforjinjuryjsufferedjbyjbabiesjofjmothersj
whojhadjworkedjinjthejbatteryjdivision.jThejSupremejCourtjheldjthejcompanyjpolicyjwasjillegal.jItjwasja
nj“excusejforjdenyingjwomenjequaljemploymentjopportunities.”jIsjthejCourtjforcingjthejcompanyjtojbeju
nethicaljbyjallowingjpregnantjwomenjwhojignorejthejwarningsjtojexposejtheirjbabiesjtojthejlead?j[Unite
djAutojWorkersjv.jJohnsonjControls,j499jU.S.j187j(1991)]
Answer:jThejCourtjheldjitjajformjofjsexjdiscriminationjtojpreventjwomenjofjchild-
bearingjagejfromjholdingjthejmorejdangerousjjobs.jThejcompanyjarguedjthatjitjdidjthisjtojprotectjitselfjf
romjpossiblejliabilityjinjcasejofjdamagejtojbabiesjandjthatjthejdecisionjwasjethical.jThejreplacementsjf
orjthesejworkersjwerejoftenjmenjorjmorejseniorjwomen,jwhojtendedjtojbejhigherjincomejworkers,jsojth
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 2
website,jinjwholejorjinjpart.
, is
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 3
website,jinjwholejorjinjpart.
, wasjnotjajcurrentjcost-
savingjmove.jNotejthatjaj2002jrulingjrelatedjtojthejADAjsignificantlyjrestrictedjthisjearlierjcase.
5. McGroryjworkedjforjAppliedjSignaljTechnologyjinjajsupervisoryjposition.jHejwasjaccusedjofjviolatingjt
hejcompany’sjpoliciesjonjsexualjharassment.jAnjinternaljinvestigationjdeterminedjhejdidjnotjviolatejth
ejpolicyjbutjthatjhejwasjevasivejandjviolatedjthejcompany’sjpersonaljethicsjcode.jHejwasjfiredjandjsue
djforjwrongfuljtermination,jcontendingjthatjifjhejdidjnotjviolatejsexualjharassmentjrulesjhejshouldjnotjha
vejbeenjsubjectjtojtermination.jDojstandardsjofjlawjandjethicsjneedjtojbejthejsamejforjanjemployer?j[M
cGroryjv.jAppliedjSignaljTechnology,j152jCal.Rptr.3dj154j(2013)]
Answer:jThejappealsjcourtjaffirmedjthatjthejemployerjhadjthejrightjtojterminatejthejemployeejforjfailurejtojbej
fullyjcooperativejinjthejinvestigationjofjthejcomplaintjofjsexualjharassmentjthatjhadjbeenjfiledjagainstjhi
m.jWhilejhejwasjnotjfoundjtojhavejviolatedjthejharassmentjpolicy,jhejwasjevasivejandjuncooperative,jw
hichjviolatedjthejcompany‘sjcodejofjethics,jwhichjwasjajjustificationjforjtermination.
6. BakerjworksjasjajdocumentjclerkjforjthejMinnesotajSupremejCourt.jAfterjshejhadjworkedjtherejforj13jy
earsjthejMinnesotajjudicialjbranchjadoptedjajpolicyjconcerningjproperjInternetjusejandjstatedjthatjem
ployeesjmustjadherejtojthejhighestjethicaljstandardsjwhenjusingjthejInternet.jElevenjyearsjlater,jshejw
asjfiredjforjexcessivejsurfingjonjthejInternetjduringjworkingjhours.jShejcontendedjshejdidjnotjknowjab
outjthejpolicy.jIsjthatjanjadequatejdefensejforjher?j[Bakerjv.jMinnesotajSupremejCourt,j2016jWLj1025
13j(2016)]
Answer:jThejMinnesotajhighjcourtjheldjthatjBaker‘sjterminationjwasjproper.jShejviolatedjstandardsjexpecte
djofjemployees.jShejhadjbeenjwarnedjaboutjexcessivejpersonaljInternetjusejduringjworkjtime,jincludin
gjbuyingjandjsellingjgoodsjforjajlittlejbusinessjshejran.jThejclaimjthatjshejdidjnotjknowjaboutjthejethicsjo
fjInternetjusejwasjnotjcrediblejasjthejpolicyjwasjpostedjforjalljemployeesjwhojreceivedje-
mailsjaboutjanyjchangesjtojthejpolicy.jThejfactjthatjthejtermj―ethical‖jwasjusedjinjthejpolicyjdoesjnotjlike
lyjimpactjthisjdecision.
Answers to Ethics and Social Questions
j j j j j
1. Thejfederaljtaxjcodejisjriddledjwithjspecial-
interestjloopholes.jMostjofjthesejexistjbecausejfirmsjandjtradejassociationsjlobbyjCongressjandjprovid
ejcampaignjsupportjtojmembersjofjCongressjtojgainjspecialjfavorsjtojindividualjfirmsjorjindustries.jIsjitje
thicaljforjfirmsjtojseekjspecialjprivilege?
Answer:jThejnaturejofjourjpoliticaljsystemjforcesjfirmsjtojparticipatejinjthejpoliticaljprocess.jThosejthatjfailjtoj
dojso,jifjtheyjarejofjanyjsize,jarejmorejlikelyjtojbejsubjectjtojpoliticaljattack.jInjajsense,jfirms
―buy‖jprotectionjbyjkeepingjajflowjofjcontributionsjgoing,jespeciallyjtojincumbentjmembersjofjCongress
.jCompetitionjalsojmeansjthatjifjajfirmjdoesjnotjlobbyjforjspecialjprivilege,jthenjitjmayjsufferjifjcompetitor
sjachievejsuchjstatusjinjthejtaxjcodejorjsomejareajofjregulation.jManyjbusinessjleadersjdojnotjmuchjcar
ejforjthejWashington,jD.C.joperationsjtheirjfirmsjsupportjbutjknowjthatjitjisjajpartjofjthejmodernjlegaljenvi
ronmentjofjbusiness.
2. “Fairjtrade”jgoodsjhavejbecomejpopular,jasjsomejpeoplejarejwillingjtojpayjmorejtojknowjthejgoodsjcom
ejfromjworkersjpaidjajdecentjpricejforjtheirjefforts.jHowever,jsomejretailersjwhojselljfairjtradejgoodsjma
rkjthemjupjsubstantiallyjmorejthanjnonfairjtradejgoods.jOnejstudyjshowedjthatjcoffeejgrowersjgotjanjav
eragejofj44jcentsjajpoundjmorejforjfairjtradejcoffee,jbutjthejcoffeejatjretailjwasjmarkedjupjanjadditionalj$
3.46jperjpound.jAtjonejsupermarketjchain,jfairjtradejbananasjthatjcostjanjextraj3.6jcentsjperjpoundjwer
ejmarkedjupjfourjtimesjthejpricejofjnon-
fairjtradejbananas.jFairjtradejgoodsjarejclaimedjtojbejajformjofjsocialjresponsibility.jIsjthatjtruejifjitjjustjm
eansjhigherjprofitjmargins?
Answer:jThejhighjmarkjupjsuppressesjthejdemandjforjfairjtradejgoods,jtherebyjreducingjthejmarketjforjfairjtr
adejgoods.jIfjthejretailjpricesjreflectedjthejactualjadditionaljcost,jnotjthejprofitjmaximizingjpricejtojthejret
ailerjthatjexploitsjthejgoodwilljfromj―fairjtrade,‖jthenjitjisjhardjtojarguejthatjthejcompanyjisjbeingjparticula
rlyjsociallyjresponsible.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 4
website,jinjwholejorjinjpart.
