, SOLUTION MANUAL FOR
Business Law Text & Exercises 11th Edition Miller
Important Notes
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A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
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, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
Solution and Answer Guide
MILLER, BUSINESS LAW: TEXT AND EXERCISES, 11E, CORE ISBN; CHAPTER 1: INTRODUCTION
TO THE LAW
TABLE OF CONTENTS
Answers to Straight to the Point................................................................................................1
Answers to Issue Spotters ......................................................................................................... 2
Answers to Real Law .................................................................................................................. 3
Answers to Ethical Questions....................................................................................................5
Answers to Work Set .................................................................................................................. 6
True-False Questions ................................................................................................................ 6
Multiple-Choice Questions.........................................................................................................7
Answering More Legal Problems.............................................................................................10
ANSWERS TO STRAIGHT TO THE POINT
1A. Why is knowledge of business law essential for any businessperson?
Solution
Knowledge of the laws and regulations governing business is essential to the making of good
business decisions. Determining the best course of action in a given situation requires evaluating
how the law might apply.
2A. What is the common law?
Solution
The common law is a body of law developed from court decisions. These decisions reflect the
customs and traditions within the jurisdiction of the courts.
3A. When and why does a court apply the decision of another court to determine the result in a case?
Solution
In a common law system, court decisions, and the principles behind them, are applied to resolve
similar disputes in a consistent way. This is the doctrine of precedent, or stare decisis.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
4A. What are some of the remedies that a party can obtain from a court to make a wrong situation
right?
Solution
The normal remedy at law is the payment of money, or damages. If money is not enough to make
a situation right, a party might be ordered to do specifically what he or she promised. Or a
contract might be cancelled, and the contracting parties returned to the positions they held before
the deal.
5A. Which aspects of a business’s operation do the rules, orders, and decisions of administrative
agencies affect?
Solution
The rules, orders, and decisions of administrative agencies affect almost every aspect of a
business’s operation. These include a business’s capital structure and financing, hiring and firing
procedures, relations with employees and unions, and making and selling of products.
[return to top]
ANSWERS TO ISSUE SPOTTERS
1A. Under what circumstances might a judge rely on case law to determine the intent and purpose of
a statute?
Solution
Case law includes courts’ interpretations of statutes, constitutional provisions, and administrative
rules. Statutes often codify common law rules. For these reasons, a judge might rely on the
common law as a guide to the intent and purpose of a statute.
2A. The First Amendment provides protection for the free exercise of religion. A state legislature
enacts a law that outlaws all religions that do not derive from the Judeo-Christian tradition. Is this
law valid within that state? Why or why not?
Solution
No. The U.S. Constitution is the supreme law of the land and applies to all jurisdictions. A law in
violation of the Constitution (in this question, the First Amendment to the Constitution) will be
declared unconstitutional.
[return to top]
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
ANSWERS TO REAL LAW
1-1A. Stare Decisis. Orlando Garcia filed a lawsuit against Gateway Hotels contending that, in violation
of the Americans with Disabilities Act (ADA), the company’s website failed to indicate whether
any of its rooms would accommodate his disability. After a court ruled that Gateway’s website did
comply with the ADA, the company sought an award of attorney’s fees, as allowed by federal law.
Garcia countered that his case was not “frivolous” and therefore he should not be forced to cover
the hotel chain’s legal costs. Gateway pointed out that, according to a previous United States
Supreme Court ruling, attorney’s fees could be awarded in such cases even if the original lawsuit
was not frivolous. What is the doctrine of stare decisis? Applying it in this case, will the court side
with Gateway? Explain. [Garcia v. Gateway Hotel, LP, 82 F.4th 750 (9th Cir. 2023)]
Solution
The doctrine of stare decisis is the practice of deciding cases with reference to previous
decisions. This is an important principle of our judicial system. Under this doctrine, courts are
obligated to follow the precedents established within their jurisdictions. A precedent is a decision
that stands as an example or authority for deciding subsequent cases involving identical or similar
legal principles or facts.
In Brown v. Lucky Stores (2001), the U.S. Court of Appeals for the Ninth Circuit (the authority
deciding this case) ruled that ADA defendants could not recoup the legal costs of a failed
discrimination lawsuit unless the action was “frivolous, unreasonable, or groundless.” Twelve
years later, with its Marx v. General Revenue Corp. decision, the United States Supreme Court
held that a district court has the discretion to award legal fees to a defendant regardless of
whether the plaintiff’s legal action was in bad faith.
Applying the doctrine of stare decisis, the U.S. Court of Appeals for the Ninth Circuit concluded
that “our decision in Brown cannot be reconciled with the Court's decision in Marx, and therefore
it has been effectively overruled.” Therefore, in this case, at the district court’s discretion, Garcia
could be found liable for those costs that Gateway incurred in defending itself against Garcia’s
failed ADA lawsuit.
1-2A. Stare Decisis. A patent is an exclusive right granted to the creator of an invention. Under U.S.
law, a patent owner possesses that right for twenty years. The owner can allow another party to
make and market a product based on the invention in exchange for a payment of royalties on the
sales. According to the United States Supreme Court in a case known as the Brulotte decision, a
contract to pay royalties after a patent has expired is unenforceable. Stephen Kimble owned the
patent to a toy glove that could shoot foam intended to look like the web of Marvel Comics’
Spider-Man. Kimble agreed to allow Marvel Entertainment, LLC, to sell its version of the toy.
Marvel agreed to pay Kimble a royalty of 3 percent on the sales. Their contract did not specify an
end date. After the patent expired, Marvel sued to stop the payments. What is the doctrine of
stare decisis? What are the arguments for and against applying it the doctrine of stare decisis in
this case? Discuss. [Kimble v. Marvel Entertainment, LLC, 135 S.Ct. 2401, 192 L.Ed.2d 463
(2015)]
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
Solution
Stephen Kimble owned the patent to a toy glove that could shoot foam intended to look like the
web of Marvel Comics’ Spider-Man. He contracted with Marvel Entertainment, LLC to sell its
version of the toy in exchange for a royalty of 3 percent on the sales. The contract did not specify
an end date. Marvel sued to stop the payments after the patent expired.
A patent is an exclusive right granted to the creator of an invention. Under U.S. law, a patent lasts
for twenty years. According to the United States Supreme Court in a case known as the Brulotte
decision, a contract to pay royalties after a patent has expired is unenforceable.
One argument in favor of applying the doctrine of stare decisis to these facts is that a United
States Supreme Court decision is controlling until it is overruled by a subsequent decision of the
Court or changed by congressional legislation or a constitutional amendment. And the Court is
bound by principle that a precedent should not be overruled unless there is a compelling reason
to do so.
An argument against applying the doctrine in this situation is that it would interfere with the
contract the parties made. And applied generally, the Brulotte precedent would undercut the
ability of parties to make any contract that would otherwise reflect the true value of a patent.
In the actual case on which this problem is based, a majority of the Court favored the application
of the doctrine, even though they agreed that it could hinder competition and innovation.
1–3A. Role of Law. Otto May, Jr., a pipefitter for Chrysler Group, LLC, was the target of racist,
homophobic, and anti-Semitic remarks. He received death threats, his bike and car tires were
punctured, and someone poured sugar into the gas tank of his car. A dead bird was placed at his
workstation wrapped in toilet paper to look like a member of the Ku Klux Klan. Chrysler
documented and investigated the incidents. Records were checked to determine who was in the
building when the incidents occurred, the graffiti handwriting was examined, and employees were
reminded that harassment was not acceptable. What role might the law play in these
circumstances? Discuss. [May v. Chrysler Group, LLC, 716 F.3d 963 (7th Cir. 2013)]
Solution
Knowledge of the law is essential for any businessperson. To make a good decision, a
businessperson must have a basic knowledge of the law relating to that decision. And a
businessperson is expected to make a decision that is ethical as well as legal. Many different
laws may apply in a single situation. If a dispute cannot be resolved amicably, a lawsuit may
result.
In the circumstances of this case, there are employment laws that prohibit discrimination in the
workplace. Under these laws, an employer has a significant duty to take complaints of
harassment seriously. The employer has an obligation to set up clear policies and procedures
and follow those procedures when a complaint is made. If the employer does not take these
steps, a lawsuit may result, and a large penalty may be assessed.
Here, it appears that Chrysler took sufficient steps to stop and prevent the harassment against its
employee so as to avoid a penalty. The company used several strategies to stop and prevent the
harassment. These steps included documenting and investigating the incidents, analyzing the
graffiti handwriting, and reminding employees that harassment was not acceptable.
In the actual case on which this problem is based, Chrysler's actions had a positive effect—the
harassment's frequency gradually decreased and finally ceased. The harasser was never
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
discovered, however. Later, May filed a suit against Chrysler. The court issued a judgment in the
employer’s favor, and the U.S. Court of Appeals for the Seventh Circuit affirmed this judgment,
based in part on the reasons stated above.
[return to top]
ANSWERS TO ETHICAL QUESTIONS
1–4A. Anticipation of Legal Problems. Should legal problems be anticipated? Why and why not?
Solution
Legal problems should be anticipated to prevent legal liability before it arises. One method to
anticipate legal problems is to learn about legal rights and duties ahead of time.
1–5A. Constitutional Law. During the COVID-19 pandemic, the federal government required that
employees working under certain federal contracts be vaccinated against the virus. Under the
First Amendment, however, employees could be exempted from this requirement based on their
religious beliefs.
The J. M. Smucker Company, known as Smucker’s, has supplied the U.S. military with apple
butter and other food products since World War II (1941–1945). As a result, the company was
subject to the federal government’s order and mandated that its workers be vaccinated against
COVID-19 or lose their jobs. Four Smucker’s employees sought religious exemptions from the
mandate. After Smucker’s denied these exemptions, the employees sued the company for
violating their constitutional rights. Did Smucker’s behave ethically by forcing its workers to
choose between their religious beliefs and their continued employment with the company? What
should be the outcome of the employees’ lawsuit, given that the First Amendment guarantees the
“free practice of religion”? Discuss. [Ciraci v. J.M. Smucker Company, 62 F.4th 278 (6th Cir.
2023)]
Solution
Companies are often put in the position of having to balance competing ethical considerations.
Here, Smucker’s had to balance the constitutionally protected religious beliefs of a small number
of employees against the health and safety of its larger workforce. At the same time, the company
was operating under a federal order that required all of its employees to be vaccinated unless the
religious exemption applied. On ethical grounds, Smucker’s decision to deny this exemption to
the four employees was defensible, as was the employees’ decision to place their religion
principles above their employment.
Legally, the facts of the case favored Smucker’s. The four former employees brought their lawsuit
under the Free Exercise Clause, arguing that Smucker’s denial of the religious exemption
infringed on their constitutional rights as guaranteed by the First Amendment. In general,
however, plaintiffs can only sue the federal government, and not private companies, for this sort
of constitutional violation. To succeed in their lawsuit, the former employees would have to
convince a court that, in this instance, Smucker’s was behaving not as a private company but as
a “government actor.” That is, because of its contract with the U.S. military and because it was
complying with a federal law, Smucker’s could be sued as if it were a branch of the federal
government.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 5
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
The U.S. Court of Appeals for the Sixth Circuit rejected both these arguments. First, the court
found that “making jam is simply not a government function,” even if that jam is sold to the
government. Second, the court was unwilling to, in effect, punish Smucker’s for complying with
federal law. Ruling in Smucker’s favor, the court stated that “the federal government never
required Smucker's to vaccinate the claimants, for the Executive Order did not tell Smucker’s to
deny exemptions to anyone. It told Smucker’s to grant religious exemptions to those legally
entitled to them, and let Smucker's decide on its own who qualified.” As you will learn in later
chapters, the former employees could have, and perhaps should have, relied more heavily on
employment law rather than constitutional law in this matter.
[return to top]
ANSWERS TO WORK SET
TRUE-FALSE QUESTIONS
1. Ethics is the study of what constitutes right and wrong behaviors.
Answer: T
2. Stare decisis refers to the practice of deciding new cases with reference to previous decisions.
Answer: T
3. The doctrine of stare decisis illustrates how unpredictable the law can be.
Answer: F
The doctrine of stare decisis is the use of previous case law as precedents, or guides, for
deciding current cases. This doctrine emphasizes the predictable resolution of disputes.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 6
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
4. Common law is a term that normally refers to the body of law consisting of rules of law
announced in court decisions.
Answer: T
5. Statutes are a primary source of law.
Answer: T
6. Administrative rules and regulations have virtually no effect on the operation of a business.
Answer: F
Administrative regulations affect nearly every aspect of a business’s operation, from its financing
to its hiring and firing of employees, as well as its manufacturing and marketing.
7. Each state’s constitution is supreme within that state’s borders even if it conflicts with the U.S.
Constitution.
Answer: F
Each state’s constitution is supreme within each state’s borders, so long as it does not conflict
with the U.S. Constitution.
8. The Uniform Commercial Code was enacted by Congress for adoption by the states.
Answer: F
The National Conference of Commissioners on Uniform State Laws drafted the Uniform
Commercial Code and proposed it for adoption by the states.
9. In most states, the same courts can grant both legal and equitable remedies.
Answer: T
MULTIPLE-CHOICE QUESTIONS
1. The doctrine of stare decisis performs many useful functions, including
a. efficiency.
b. uniformity.
c. stability.
d. all of the above.
Answer: D
The use of precedent—the doctrine of stare decisis—permits a predictable, relatively quick, fair
resolution of a case. If the application of the law were unpredictable, there would be no consistent
rules to follow and no stability.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 7
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
2. In addition to case law, when making decisions, courts sometimes consider other sources of law,
including
a. the U.S. Constitution.
b. state constitutions.
c. administrative agency rules and regulations.
d. all of the above.
Answer: D
In addition to case law, when making decisions, courts may consider other sources of law,
including the U.S. Constitution, state constitutions, and administrative agency rules and
regulations. A court may also take into consideration the principles of other areas of study,
including science, economics, psychology, and others.
3. Which of the following is a CORRECT statement about the distinction between law and equity?
a. Equity involves remedies different from those available at law.
b. Most states maintain separate courts of law and equity.
c. Damages may be awarded only in actions in equity.
d. None of the above is correct.
Answer: A
Equity and law do provide different remedies—injunctions and specific performance, for example,
are equitable remedies, and damages is a remedy at law. Most states no longer maintain
separate courts of law and equity.
4. Under the doctrine of stare decisis, a judge compares the facts in a case with facts in
a. another case.
b. a hypothetical case.
c. the arguments of the parties involved in the case.
d. none of the above.
Answer: A
The doctrine of stare decisis attempts to harmonize the results in cases with similar facts. When
the facts are sufficiently similar, the same rule is normally applied.
5. To learn about the coverage of a statute and how the statute is applied, a person must
a. only read the statute.
b. only see how courts in their jurisdiction have interpreted the statute.
c. read the statute and see how courts in their jurisdiction have interpreted it.
d. none of the above.
Answer: C
How a court interprets a particular statute determines how that statute will be applied. To learn
what a statute says, a person needs to study it. To learn how that statute will be applied, a person
needs to see what precedents have been established in regard to it.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 8
accessible website, in whole or in part.
Business Law Text & Exercises 11th Edition Miller
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
Purchase Guarantee
If you believe you have purchased the wrong file, don’t worry. Contact us anytime and we
will gladly replace it with the correct version.
Contact Email:
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
Solution and Answer Guide
MILLER, BUSINESS LAW: TEXT AND EXERCISES, 11E, CORE ISBN; CHAPTER 1: INTRODUCTION
TO THE LAW
TABLE OF CONTENTS
Answers to Straight to the Point................................................................................................1
Answers to Issue Spotters ......................................................................................................... 2
Answers to Real Law .................................................................................................................. 3
Answers to Ethical Questions....................................................................................................5
Answers to Work Set .................................................................................................................. 6
True-False Questions ................................................................................................................ 6
Multiple-Choice Questions.........................................................................................................7
Answering More Legal Problems.............................................................................................10
ANSWERS TO STRAIGHT TO THE POINT
1A. Why is knowledge of business law essential for any businessperson?
Solution
Knowledge of the laws and regulations governing business is essential to the making of good
business decisions. Determining the best course of action in a given situation requires evaluating
how the law might apply.
2A. What is the common law?
Solution
The common law is a body of law developed from court decisions. These decisions reflect the
customs and traditions within the jurisdiction of the courts.
3A. When and why does a court apply the decision of another court to determine the result in a case?
Solution
In a common law system, court decisions, and the principles behind them, are applied to resolve
similar disputes in a consistent way. This is the doctrine of precedent, or stare decisis.
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 1
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
4A. What are some of the remedies that a party can obtain from a court to make a wrong situation
right?
Solution
The normal remedy at law is the payment of money, or damages. If money is not enough to make
a situation right, a party might be ordered to do specifically what he or she promised. Or a
contract might be cancelled, and the contracting parties returned to the positions they held before
the deal.
5A. Which aspects of a business’s operation do the rules, orders, and decisions of administrative
agencies affect?
Solution
The rules, orders, and decisions of administrative agencies affect almost every aspect of a
business’s operation. These include a business’s capital structure and financing, hiring and firing
procedures, relations with employees and unions, and making and selling of products.
[return to top]
ANSWERS TO ISSUE SPOTTERS
1A. Under what circumstances might a judge rely on case law to determine the intent and purpose of
a statute?
Solution
Case law includes courts’ interpretations of statutes, constitutional provisions, and administrative
rules. Statutes often codify common law rules. For these reasons, a judge might rely on the
common law as a guide to the intent and purpose of a statute.
2A. The First Amendment provides protection for the free exercise of religion. A state legislature
enacts a law that outlaws all religions that do not derive from the Judeo-Christian tradition. Is this
law valid within that state? Why or why not?
Solution
No. The U.S. Constitution is the supreme law of the land and applies to all jurisdictions. A law in
violation of the Constitution (in this question, the First Amendment to the Constitution) will be
declared unconstitutional.
[return to top]
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 2
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
ANSWERS TO REAL LAW
1-1A. Stare Decisis. Orlando Garcia filed a lawsuit against Gateway Hotels contending that, in violation
of the Americans with Disabilities Act (ADA), the company’s website failed to indicate whether
any of its rooms would accommodate his disability. After a court ruled that Gateway’s website did
comply with the ADA, the company sought an award of attorney’s fees, as allowed by federal law.
Garcia countered that his case was not “frivolous” and therefore he should not be forced to cover
the hotel chain’s legal costs. Gateway pointed out that, according to a previous United States
Supreme Court ruling, attorney’s fees could be awarded in such cases even if the original lawsuit
was not frivolous. What is the doctrine of stare decisis? Applying it in this case, will the court side
with Gateway? Explain. [Garcia v. Gateway Hotel, LP, 82 F.4th 750 (9th Cir. 2023)]
Solution
The doctrine of stare decisis is the practice of deciding cases with reference to previous
decisions. This is an important principle of our judicial system. Under this doctrine, courts are
obligated to follow the precedents established within their jurisdictions. A precedent is a decision
that stands as an example or authority for deciding subsequent cases involving identical or similar
legal principles or facts.
In Brown v. Lucky Stores (2001), the U.S. Court of Appeals for the Ninth Circuit (the authority
deciding this case) ruled that ADA defendants could not recoup the legal costs of a failed
discrimination lawsuit unless the action was “frivolous, unreasonable, or groundless.” Twelve
years later, with its Marx v. General Revenue Corp. decision, the United States Supreme Court
held that a district court has the discretion to award legal fees to a defendant regardless of
whether the plaintiff’s legal action was in bad faith.
Applying the doctrine of stare decisis, the U.S. Court of Appeals for the Ninth Circuit concluded
that “our decision in Brown cannot be reconciled with the Court's decision in Marx, and therefore
it has been effectively overruled.” Therefore, in this case, at the district court’s discretion, Garcia
could be found liable for those costs that Gateway incurred in defending itself against Garcia’s
failed ADA lawsuit.
1-2A. Stare Decisis. A patent is an exclusive right granted to the creator of an invention. Under U.S.
law, a patent owner possesses that right for twenty years. The owner can allow another party to
make and market a product based on the invention in exchange for a payment of royalties on the
sales. According to the United States Supreme Court in a case known as the Brulotte decision, a
contract to pay royalties after a patent has expired is unenforceable. Stephen Kimble owned the
patent to a toy glove that could shoot foam intended to look like the web of Marvel Comics’
Spider-Man. Kimble agreed to allow Marvel Entertainment, LLC, to sell its version of the toy.
Marvel agreed to pay Kimble a royalty of 3 percent on the sales. Their contract did not specify an
end date. After the patent expired, Marvel sued to stop the payments. What is the doctrine of
stare decisis? What are the arguments for and against applying it the doctrine of stare decisis in
this case? Discuss. [Kimble v. Marvel Entertainment, LLC, 135 S.Ct. 2401, 192 L.Ed.2d 463
(2015)]
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 3
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
Solution
Stephen Kimble owned the patent to a toy glove that could shoot foam intended to look like the
web of Marvel Comics’ Spider-Man. He contracted with Marvel Entertainment, LLC to sell its
version of the toy in exchange for a royalty of 3 percent on the sales. The contract did not specify
an end date. Marvel sued to stop the payments after the patent expired.
A patent is an exclusive right granted to the creator of an invention. Under U.S. law, a patent lasts
for twenty years. According to the United States Supreme Court in a case known as the Brulotte
decision, a contract to pay royalties after a patent has expired is unenforceable.
One argument in favor of applying the doctrine of stare decisis to these facts is that a United
States Supreme Court decision is controlling until it is overruled by a subsequent decision of the
Court or changed by congressional legislation or a constitutional amendment. And the Court is
bound by principle that a precedent should not be overruled unless there is a compelling reason
to do so.
An argument against applying the doctrine in this situation is that it would interfere with the
contract the parties made. And applied generally, the Brulotte precedent would undercut the
ability of parties to make any contract that would otherwise reflect the true value of a patent.
In the actual case on which this problem is based, a majority of the Court favored the application
of the doctrine, even though they agreed that it could hinder competition and innovation.
1–3A. Role of Law. Otto May, Jr., a pipefitter for Chrysler Group, LLC, was the target of racist,
homophobic, and anti-Semitic remarks. He received death threats, his bike and car tires were
punctured, and someone poured sugar into the gas tank of his car. A dead bird was placed at his
workstation wrapped in toilet paper to look like a member of the Ku Klux Klan. Chrysler
documented and investigated the incidents. Records were checked to determine who was in the
building when the incidents occurred, the graffiti handwriting was examined, and employees were
reminded that harassment was not acceptable. What role might the law play in these
circumstances? Discuss. [May v. Chrysler Group, LLC, 716 F.3d 963 (7th Cir. 2013)]
Solution
Knowledge of the law is essential for any businessperson. To make a good decision, a
businessperson must have a basic knowledge of the law relating to that decision. And a
businessperson is expected to make a decision that is ethical as well as legal. Many different
laws may apply in a single situation. If a dispute cannot be resolved amicably, a lawsuit may
result.
In the circumstances of this case, there are employment laws that prohibit discrimination in the
workplace. Under these laws, an employer has a significant duty to take complaints of
harassment seriously. The employer has an obligation to set up clear policies and procedures
and follow those procedures when a complaint is made. If the employer does not take these
steps, a lawsuit may result, and a large penalty may be assessed.
Here, it appears that Chrysler took sufficient steps to stop and prevent the harassment against its
employee so as to avoid a penalty. The company used several strategies to stop and prevent the
harassment. These steps included documenting and investigating the incidents, analyzing the
graffiti handwriting, and reminding employees that harassment was not acceptable.
In the actual case on which this problem is based, Chrysler's actions had a positive effect—the
harassment's frequency gradually decreased and finally ceased. The harasser was never
© 2027 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly 4
accessible website, in whole or in part.
, Solution and Answer Guide: Miller, Business Law: Text and Exercises, 11e, Core ISBN; Chapter 1: Introduction to the Law
discovered, however. Later, May filed a suit against Chrysler. The court issued a judgment in the
employer’s favor, and the U.S. Court of Appeals for the Seventh Circuit affirmed this judgment,
based in part on the reasons stated above.
[return to top]
ANSWERS TO ETHICAL QUESTIONS
1–4A. Anticipation of Legal Problems. Should legal problems be anticipated? Why and why not?
Solution
Legal problems should be anticipated to prevent legal liability before it arises. One method to
anticipate legal problems is to learn about legal rights and duties ahead of time.
1–5A. Constitutional Law. During the COVID-19 pandemic, the federal government required that
employees working under certain federal contracts be vaccinated against the virus. Under the
First Amendment, however, employees could be exempted from this requirement based on their
religious beliefs.
The J. M. Smucker Company, known as Smucker’s, has supplied the U.S. military with apple
butter and other food products since World War II (1941–1945). As a result, the company was
subject to the federal government’s order and mandated that its workers be vaccinated against
COVID-19 or lose their jobs. Four Smucker’s employees sought religious exemptions from the
mandate. After Smucker’s denied these exemptions, the employees sued the company for
violating their constitutional rights. Did Smucker’s behave ethically by forcing its workers to
choose between their religious beliefs and their continued employment with the company? What
should be the outcome of the employees’ lawsuit, given that the First Amendment guarantees the
“free practice of religion”? Discuss. [Ciraci v. J.M. Smucker Company, 62 F.4th 278 (6th Cir.
2023)]
Solution
Companies are often put in the position of having to balance competing ethical considerations.
Here, Smucker’s had to balance the constitutionally protected religious beliefs of a small number
of employees against the health and safety of its larger workforce. At the same time, the company
was operating under a federal order that required all of its employees to be vaccinated unless the
religious exemption applied. On ethical grounds, Smucker’s decision to deny this exemption to
the four employees was defensible, as was the employees’ decision to place their religion
principles above their employment.
Legally, the facts of the case favored Smucker’s. The four former employees brought their lawsuit
under the Free Exercise Clause, arguing that Smucker’s denial of the religious exemption
infringed on their constitutional rights as guaranteed by the First Amendment. In general,
however, plaintiffs can only sue the federal government, and not private companies, for this sort
of constitutional violation. To succeed in their lawsuit, the former employees would have to
convince a court that, in this instance, Smucker’s was behaving not as a private company but as
a “government actor.” That is, because of its contract with the U.S. military and because it was
complying with a federal law, Smucker’s could be sued as if it were a branch of the federal
government.
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The U.S. Court of Appeals for the Sixth Circuit rejected both these arguments. First, the court
found that “making jam is simply not a government function,” even if that jam is sold to the
government. Second, the court was unwilling to, in effect, punish Smucker’s for complying with
federal law. Ruling in Smucker’s favor, the court stated that “the federal government never
required Smucker's to vaccinate the claimants, for the Executive Order did not tell Smucker’s to
deny exemptions to anyone. It told Smucker’s to grant religious exemptions to those legally
entitled to them, and let Smucker's decide on its own who qualified.” As you will learn in later
chapters, the former employees could have, and perhaps should have, relied more heavily on
employment law rather than constitutional law in this matter.
[return to top]
ANSWERS TO WORK SET
TRUE-FALSE QUESTIONS
1. Ethics is the study of what constitutes right and wrong behaviors.
Answer: T
2. Stare decisis refers to the practice of deciding new cases with reference to previous decisions.
Answer: T
3. The doctrine of stare decisis illustrates how unpredictable the law can be.
Answer: F
The doctrine of stare decisis is the use of previous case law as precedents, or guides, for
deciding current cases. This doctrine emphasizes the predictable resolution of disputes.
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4. Common law is a term that normally refers to the body of law consisting of rules of law
announced in court decisions.
Answer: T
5. Statutes are a primary source of law.
Answer: T
6. Administrative rules and regulations have virtually no effect on the operation of a business.
Answer: F
Administrative regulations affect nearly every aspect of a business’s operation, from its financing
to its hiring and firing of employees, as well as its manufacturing and marketing.
7. Each state’s constitution is supreme within that state’s borders even if it conflicts with the U.S.
Constitution.
Answer: F
Each state’s constitution is supreme within each state’s borders, so long as it does not conflict
with the U.S. Constitution.
8. The Uniform Commercial Code was enacted by Congress for adoption by the states.
Answer: F
The National Conference of Commissioners on Uniform State Laws drafted the Uniform
Commercial Code and proposed it for adoption by the states.
9. In most states, the same courts can grant both legal and equitable remedies.
Answer: T
MULTIPLE-CHOICE QUESTIONS
1. The doctrine of stare decisis performs many useful functions, including
a. efficiency.
b. uniformity.
c. stability.
d. all of the above.
Answer: D
The use of precedent—the doctrine of stare decisis—permits a predictable, relatively quick, fair
resolution of a case. If the application of the law were unpredictable, there would be no consistent
rules to follow and no stability.
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accessible website, in whole or in part.
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2. In addition to case law, when making decisions, courts sometimes consider other sources of law,
including
a. the U.S. Constitution.
b. state constitutions.
c. administrative agency rules and regulations.
d. all of the above.
Answer: D
In addition to case law, when making decisions, courts may consider other sources of law,
including the U.S. Constitution, state constitutions, and administrative agency rules and
regulations. A court may also take into consideration the principles of other areas of study,
including science, economics, psychology, and others.
3. Which of the following is a CORRECT statement about the distinction between law and equity?
a. Equity involves remedies different from those available at law.
b. Most states maintain separate courts of law and equity.
c. Damages may be awarded only in actions in equity.
d. None of the above is correct.
Answer: A
Equity and law do provide different remedies—injunctions and specific performance, for example,
are equitable remedies, and damages is a remedy at law. Most states no longer maintain
separate courts of law and equity.
4. Under the doctrine of stare decisis, a judge compares the facts in a case with facts in
a. another case.
b. a hypothetical case.
c. the arguments of the parties involved in the case.
d. none of the above.
Answer: A
The doctrine of stare decisis attempts to harmonize the results in cases with similar facts. When
the facts are sufficiently similar, the same rule is normally applied.
5. To learn about the coverage of a statute and how the statute is applied, a person must
a. only read the statute.
b. only see how courts in their jurisdiction have interpreted the statute.
c. read the statute and see how courts in their jurisdiction have interpreted it.
d. none of the above.
Answer: C
How a court interprets a particular statute determines how that statute will be applied. To learn
what a statute says, a person needs to study it. To learn how that statute will be applied, a person
needs to see what precedents have been established in regard to it.
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