SOLUTION MANUAL
Business Law Today: The Essentials
, Business Law Today - The Essentials Text & Summarized Cases, Cengage, 13th Edition, Roger
Leroy Miller, Chapters 1 - 25, Complete
Table Of Contents
Chapter 1: Legal And Constitutional Foundations Of Business
—Appendix To Chapter 1: Finding And Analyzing The
Law Chapter 2: Courts And Alternative Dispute Re
Solution Chapter 3: Ethics In Business
—Appendix To Chapter 3: Code Of Ethics Example
Chapter 4: Tort Law
Chapter 5: Intellectual Property Rights
Chapter 6: Internet Law, Social Media, And Privacy
Chapter 7: Criminal Law And Cyber Crime
Chapter 8: Agreement And Consideration In Contracts
Chapter 9: Capacity, Legality, And Enforceability
Chapter 10: Contract Performance, Breach, And Remedies
Chapter 11: Sales And Lease Contracts
Chapter 12: Performance And Breach In Sales And Lease Contracts
Chapter 13: Negotiable Instruments
Chapter 14: Banking
Chapter 15: Creditors’ Rights And Bankruptcy
Chapter 16: Agency Relationships In Business
Chapter 17: Employment Law
Chapter 18: The Entrepreneur’s Options
Chapter 19: Corporations
Chapter 20: Investor Protection, Insider Trading, And Corporate Governance
Chapter 21: Antitrust Law And Promoting Competition
Chapter 22: Consumer Law
Chapter 23: Personal Property, Bailments, And Insurance
Chapter 24: Real Property And Environmental Law
Chapter 25: International And Space Law
, 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
Practice And Review ............................................................................................................................. 4
Practice And Review: Debate This..................................................................................................... 5
Issue Spotters......................................................................................................................................... 5
Business Scenarios And Case Problems ........................................................................................... 5
Critical Thinking And Writing Assignments ................................................................................. 10
Critical Thinking Questions In Appendix Exhibit 1a–3....................................................................11
Exhibit 1a–3 ........................................................................................................................................... 11
,Chapter 1: Legal And Constitutional Foundations Of Business
Critical Thinking Questions In Features
Adapting The Law To The Online Environment
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 Thenegative 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.
1. Tim Cook, Apple‘S Chief Operating Officer, Has Suggested That The United
States Congress Shouldpass 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?
, 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 Fortheir 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 Citizensand Visitors.
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, Andoversight 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 Ordinancesmore
Specifically:
• The City Is Geographically Small And Crowded And Is Being Besieged By
Inexperienced Scooter Drivers Seeking Amusement And Driving In A
Dangerous
, Manner.
• 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 Improperuse 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.
, 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 Tobe 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 Banon 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 Notbe ―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, Wouldthe Result Have Been The Same? Why Or Why
Not?
Solution
It Is Not Likely That The Result In This Case Would Have Been Different Even If
The Facts Had Involveda Small, Private Retail Business That Did Not Advertise
Nationally. The Intended Impact Of The Decision In Heart Of Atlanta Was To
Uphold The Constitutionality Of The Civil Rights Act Of 1964 Andthe 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.
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 Otherweb 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 Haveoccurred 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 Badfrog 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.
, 2. If Bad Frog Had Sought To Use The Offensive Label To Market Toys Instead Of
Beer, Would Thecourt‘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, Suedthe 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.
1. Why Does This Statute Raise Equal Protection Issues Instead Of Substantive
Due Process Concerns?
Solution
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, Itraises Equal Protection Issues.
2. What Are The Three Levels Of Scrutiny That The Courts Use In Determining
Whether A Law Violatesthe Equal Protection Clause?
Solution
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
Business Law Today: The Essentials
, Business Law Today - The Essentials Text & Summarized Cases, Cengage, 13th Edition, Roger
Leroy Miller, Chapters 1 - 25, Complete
Table Of Contents
Chapter 1: Legal And Constitutional Foundations Of Business
—Appendix To Chapter 1: Finding And Analyzing The
Law Chapter 2: Courts And Alternative Dispute Re
Solution Chapter 3: Ethics In Business
—Appendix To Chapter 3: Code Of Ethics Example
Chapter 4: Tort Law
Chapter 5: Intellectual Property Rights
Chapter 6: Internet Law, Social Media, And Privacy
Chapter 7: Criminal Law And Cyber Crime
Chapter 8: Agreement And Consideration In Contracts
Chapter 9: Capacity, Legality, And Enforceability
Chapter 10: Contract Performance, Breach, And Remedies
Chapter 11: Sales And Lease Contracts
Chapter 12: Performance And Breach In Sales And Lease Contracts
Chapter 13: Negotiable Instruments
Chapter 14: Banking
Chapter 15: Creditors’ Rights And Bankruptcy
Chapter 16: Agency Relationships In Business
Chapter 17: Employment Law
Chapter 18: The Entrepreneur’s Options
Chapter 19: Corporations
Chapter 20: Investor Protection, Insider Trading, And Corporate Governance
Chapter 21: Antitrust Law And Promoting Competition
Chapter 22: Consumer Law
Chapter 23: Personal Property, Bailments, And Insurance
Chapter 24: Real Property And Environmental Law
Chapter 25: International And Space Law
, 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
Practice And Review ............................................................................................................................. 4
Practice And Review: Debate This..................................................................................................... 5
Issue Spotters......................................................................................................................................... 5
Business Scenarios And Case Problems ........................................................................................... 5
Critical Thinking And Writing Assignments ................................................................................. 10
Critical Thinking Questions In Appendix Exhibit 1a–3....................................................................11
Exhibit 1a–3 ........................................................................................................................................... 11
,Chapter 1: Legal And Constitutional Foundations Of Business
Critical Thinking Questions In Features
Adapting The Law To The Online Environment
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 Thenegative 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.
1. Tim Cook, Apple‘S Chief Operating Officer, Has Suggested That The United
States Congress Shouldpass 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?
, 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 Fortheir 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 Citizensand Visitors.
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, Andoversight 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 Ordinancesmore
Specifically:
• The City Is Geographically Small And Crowded And Is Being Besieged By
Inexperienced Scooter Drivers Seeking Amusement And Driving In A
Dangerous
, Manner.
• 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 Improperuse 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.
, 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 Tobe 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 Banon 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 Notbe ―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, Wouldthe Result Have Been The Same? Why Or Why
Not?
Solution
It Is Not Likely That The Result In This Case Would Have Been Different Even If
The Facts Had Involveda Small, Private Retail Business That Did Not Advertise
Nationally. The Intended Impact Of The Decision In Heart Of Atlanta Was To
Uphold The Constitutionality Of The Civil Rights Act Of 1964 Andthe 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.
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 Otherweb 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 Haveoccurred 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 Badfrog 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.
, 2. If Bad Frog Had Sought To Use The Offensive Label To Market Toys Instead Of
Beer, Would Thecourt‘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, Suedthe 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.
1. Why Does This Statute Raise Equal Protection Issues Instead Of Substantive
Due Process Concerns?
Solution
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, Itraises Equal Protection Issues.
2. What Are The Three Levels Of Scrutiny That The Courts Use In Determining
Whether A Law Violatesthe Equal Protection Clause?
Solution
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
