, SOLUTION MANUAL FOR Legal Environment 9th Edition Beatty
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!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
, Solution and Answer Guide: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
Solution and Answer Guide
Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 1:
Introduction to Law
TABLE OF CONTENTS
Multiple Choice Questions ......................................................................................................... 1
Additional Exam Strategy Questions ........................................................................................ 2
Case Questions ........................................................................................................................... 3
Discussion Questions.................................................................................................................4
MULTIPLE CHOICE QUESTIONS
1. The United States Constitution is among the finest legal accomplishments in the history of the
world. Which of the following influenced Ben Franklin, Thomas Jefferson, and the rest of the
Founding Fathers?
I. English common-law principles
II. The Iroquois system of federalism
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II
Answer: C
2. Which of the following parts of the modern legal system are “borrowed” from medieval England?
a. Jury trials
b. Special rules for selling land
c. Following precedent
d. All of these
Answer: D
3. Union organizers at a hospital wanted to distribute leaflets to potential union members, but
hospital rules prohibited leafleting in areas of patient care, hallways, cafeterias, and any areas
open to the public. The National Labor Relations Board (NLRB), a government agency, ruled that
these restrictions violated the law and ordered the hospital to permit the activities in the cafeteria
and coffee shop. What kind of law was NLRB creating?
a. A statute
b. Common law
c. A constitutional amendment
d. Administrative regulation
Answer: D. The NLRB, as an agency, creates regulations. Congress creates statutes, and
judges shape the common law.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
4. For a statute to become law, Congress must pass it by a:
I. Majority vote in the House
II. Majority vote in the Senate
III. Two-thirds vote in the House, but only if the president has first vetoed it
IV. Two-thirds vote in the Senate, but only if the president has first vetoed it
a. Just I and II
b. Just III and IV
c. All of these
d. None of these
Answer: C
5. Dr. Martin Luther King, Jr., wrote “An unjust law is no law at all.” As such, “One has . . . a moral
responsibility to disobey unjust laws.” Dr. King’s view is an example of:
a. legal realism.
b. jurisprudence.
c. legal positivism.
d. natural law.
Answer: D
ADDITIONAL EXAM STRATEGY QUESTIONS
1. The stock market crash of 1929 and the Great Depression that followed were caused, in part,
because so many investors blindly put their money into stocks they knew nothing about. During
the 1920s, it was often impossible for an investor to find out what a corporation was planning to
do with its money, who was running the corporation, and many other vital things. Congress
responded by passing the Securities Act of 1933, which required a corporation to divulge more
information about itself before it could seek money for a new stock issue. What kind of law did
Congress create?
Strategy: What is the question seeking? The question asks you which type of law Congress
created when it passed the 1933 Securities Act. What are the primary kinds of law?
Administrative law consists of rules passed by agencies. Congress is not a federal agency.
Common law is the body of cases decided by judges. Congress is not a judge. Statutes are laws
passed by legislatures. Congress is a legislature.
Solution: The Securities Act of 1933 is a statute.
2. Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water. Bill meets a
stranger who introduces herself as Katrina. Bill sells a kilo of cocaine to Katrina, who then flashes
a badge and mentions how much she enjoys her job at the Drug Enforcement Agency. Diane,
heading back to camp with the water, meets Freddy, a motorist whose car has overheated.
Freddy is late for a meeting where he expects to make a $30 million profit; he’s desperate for
water for his car. He promises to pay Diane $500 tomorrow if she will give him the pail of water,
which she does. The next day, Bill is in jail and Freddy refuses to pay for Diane’s water. Explain
the criminal law/civil law distinction and what it means to Bill and Diane. Who will do what to
whom, with what results?
Strategy: You are asked to distinguish between criminal and civil law. What is the difference?
The criminal law concerns behavior that threatens society and is therefore outlawed. The
government prosecutes the defendant. Civil law deals with the rights and duties between parties.
One party files a suit against the other. Apply those different standards to these facts.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
Solution: The government will prosecute Bill for dealing in drugs. If convicted, he will go to
prison. The government will take no interest in Diane’s dispute. However, if she chooses, she
may sue Freddy for $500, the amount he promised her for the water. In that civil lawsuit, a
court will decide whether Freddy must pay what he promised; however, even if Freddy loses,
he will not go to jail.
CASE QUESTIONS
1. Lance, a hacker, stole 15,000 credit card numbers and sold them on the dark web, making
millions. Police caught Lance, and two legal actions followed, one civil and one criminal. Who will
be responsible for bringing the civil case? What will be the outcome if the jury believes that Lance
was responsible for identity thefts? Who will be responsible for bringing the criminal case? What
will be the outcome if the jury believes that Lance stole the numbers?
Solution: The civil cases will be brought by the victims of identity theft, and the outcome of a
successful case against Lance would be some type of monetary award for damages suffered.
The criminal case will be brought by state prosecutors and the outcome would be
imprisonment for Lance.
2. As The Oculist’s Case indicates, the medical profession has faced many lawsuits for centuries. In
Texas, a law provides that, so long as a doctor was not reckless and did not intentionally harm a
patient, recovery for “pain and suffering” is limited to $250,000. In many other states, no such limit
exists. If a patient will suffer a lifetime of pain after a botched operation, for example, they might
recover millions in compensation. Which rule seems more sensible to you—the Texas rule or the
alternative?
Solution: Answers may include the following:
Some students may focus on the patients, saying that $250,000 is not enough for
some patients who are destined to live their entire lives in pain and unable to
accomplish many of their personal and professional goals because of poor
health.
Other students, however, may focus on the larger healthcare system, noting that
unchecked awards could have an adverse effect on the public as a whole. For
example, if patients are routinely awarded millions for pain and suffering, doctors
will more comprehensive malpractice insurance coverage, and these expenses
will be passed along to the public through higher healthcare costs.
3. Leslie Bergh and his two brothers, Milton and Raymond, formed a partnership to help build a
fancy saloon and dance hall in Evanston, Wyoming. Later, Leslie met with his friend and drinking
buddy, John Mills, and tricked Mills into investing in the saloon. Leslie did not tell Mills that no one
else was investing cash or that the entire enterprise was already bankrupt. Mills remortgaged his
home and invested $150,000 in the saloon—and lost every penny of it. Mills sued all three
partners for fraud. Milton and Raymond defended on the grounds that they did not commit the
fraud; only Leslie did. The defendants lost. Was that fair? By holding them liable, what general
idea did the court rely on? What Anglo-Saxon legal custom did the ruling resemble?
Solution: The partners are indeed liable. Bergh v. Mills, 763 P.2d 214 (Wyo. 1988). That is
the essence of a partnership: All partners are liable for the acts of any partner committed in
the partnership’s normal business. This is the general idea of collective responsibility. It
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
relates to the “tithing” of English legal history, in which all tithing members were legally
responsible for the conduct of the others.
4. In 2015, terrorists coordinated a series of attacks on civilians in Paris, France. The father of an
American woman killed in a nightclub sued various social media companies including YouTube,
alleging the sites knowingly allowed terrorists to recruit members and spread extremist
propaganda. The sites defended themselves by saying that their policies prohibit terrorist
recruitment and that, when alerted to it, they quickly remove offending videos. What type of
lawsuit is this—criminal or civil? What responsibilities, if any, should social media sites have for
the spread of terrorism?
Solution: The case is a civil case, but answers will vary as to the scope of the responsibilities
social media sites should have for the spread of terrorism.
DISCUSSION QUESTIONS
1. In the 1980s, the Supreme Court ruled that it is legal for protesters to burn the American flag. This
activity counts as free speech under the Constitution. If the Court hears a new flag-burning case
in this decade, should it consider changing its ruling, or should it follow precedent? Is following
past precedent something that seems sensible to you: always, usually, sometimes, rarely, or
never?
Solution: Students’ answers should demonstrate an understanding of our legal system,
which is generally based on past precedent. Answers may include the following:
Most students will also recognize the need to periodically (as in usually, sometimes,
or rarely) re-evaluate laws and statutes based on evolving social norms and
concerns.
To never reconsider a ruling would be to deny social change, and to always
reconsider every ruling would mean overwhelming our legal system with unnecessary
litigation.
2. When should a business be held legally responsible for customer safety? Consider the following
statements, and consider the degree to which you agree or disagree.
A business should keep customers safe from its own employees.
A business should keep customers safe from other customers.
A business should keep customers safe from themselves (for example, by refusing to
serve alcohol to a visibly intoxicated customer).
A business should keep people outside its own establishment safe if it is reasonable to
do so.
Solution: Students’ answers will be based largely on the degree to which they believe
individuals are responsible for their own actions. Answers may include the following:
In general, those students who feel that people should be held accountable for their
own actions will say that businesses have relatively little responsibility for customer
safety, other than to take basic precautions of maintaining a safe facility and ensuring
that employees and customers abide by laws.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
Other students may argue that many individuals don’t know how or aren’t capable of
behaving responsibly, which is why businesses should take greater precautions on
behalf of their customers.
3. In his most famous novel, The Red and the Black, French author Stendhal (1783–1842) wrote:
“There is no such thing as ‘natural law’: This expression is nothing but old nonsense. Prior to
laws, what is natural is only the strength of the lion, or the need of the creature suffering from
hunger or cold, in short, need.” What do you think? Does legal positivism or legal realism seem
more sensible to you?
Solution: Natural law should be a question in the back of our minds throughout the course,
because it is a reminder of morality, and law without morality is despotism. Nonetheless,
Stendhal is obviously correct that both strength and need help to create law. The important
thing for this course is continually to apply moral principles to the rules you study and make
your own determinations about whether natural law really plays a role.
4. Before becoming a Supreme Court justice, Sonia Sotomayor stated in a speech to students: “I
would hope that a wise Latina woman with the richness of her experiences would more often than
not reach a better conclusion than a white male who hasn’t lived that life.” During her Senate
confirmation proceedings, this statement was heavily probed and criticized. One senator said that
the focus of the hearings was to determine whether Judge Sotomayor would “decide cases based
only on the law as made by the people and their elected representatives, not on personal feelings
or politics.” (Sotomayor convinced many of her critics because the Senate confirmed her by a
vote of 68–31.) Should judges ignore their life experiences and feelings when making judicial
decisions? Can they?
Solution: Most students will acknowledge that judges either consciously or
subconsciously include their life experiences, education, and social background in
forming opinions on questions of law. After all, these aspects of life are so ingrained in
our thinking process that it may not be possible to eliminate them. Answers may include
the following:
Some students will argue that factoring in their life experiences allows judges to
form more balanced, equitable, and beneficial decisions.
Others will argue that judges should actively try to eliminate any personal
perspectives and make decisions based solely on the Constitution and the
precedents set in earlier court cases.
5. The late Supreme Court Justice Antonin Scalia argued that because courts are not elected
representative bodies, they have no business determining certain critical social issues. He wrote:
Judges are selected precisely for their skill as lawyers; whether they reflect the policy
views of a particular constituency is not (or should not be) relevant. Not surprisingly then,
the Federal Judiciary is hardly a cross-section of America. Take, for example, this Court,
which consists of only nine men and women, all of them successful lawyers who studied
at Harvard or Yale Law School. Four of the nine are natives of New York City. Eight of
them grew up in east- and west-coast States. Only one hails from the vast expanse
in-between. Not a single Southwesterner or even, to tell the truth, a genuine Westerner
(California does not count). Not a single evangelical Christian (a group that comprises
about one quarter of Americans), or even a Protestant of any denomination. To allow [an
important social issue] to be considered and resolved by a select, patrician, highly
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
unrepresentative panel of nine is to violate a principle even more fundamental than no
taxation without representation: no social transformation without representation.
Do you agree?
Solution: Justice Scalia makes an interesting point. One of the core principles of our
democracy is that all people groups within the U.S. should be represented equally and
fairly in critically important decisions. And yet, we have allowed a select panel of
individuals (the Supreme Court) who do not fairly represent the public as a whole to make
socially transformative decisions for hundreds of years. Answers may include the
following:
Some students will say that this is not how things should work: the Supreme
Court’s influence should be limited to making rulings based solely on the
Constitution and what they believe the Founding Fathers intended.
Other students may disagree, stating that we can rely on the Supreme Court
justices—and particularly the system of checks and balances within the court—to
make forward-thinking, transformative decisions based on their knowledge and
understanding of our current social norms, ethics, and priorities and not on their
personal opinions.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 2: Ethics and Corporate Social
Responsibility
Solution and Answer Guide
Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 2: Ethics and
Corporate Social Responsibility
TABLE OF CONTENTS
Multiple Choice Questions ......................................................................................................... 1
Case Questions ........................................................................................................................... 2
Discussion Questions.................................................................................................................3
MULTIPLE CHOICE QUESTIONS
1. Which of the following arguments did Milton Friedman make?
a. A corporate leader’s sole obligation is to make money for the company’s owners.
b. Corporate leaders should consider the well-being of all company stakeholders, not just
shareholders.
c. Lying for good reasons is justifiable.
d. Life prospects are a crucial determinant of success in life.
Answer: A
2. Which of the following believed that ethical actions should “generate the greatest good for the
greatest number”?
a. Milton Friedman
b. John Stuart Mill
c. Immanuel Kant
d. John Rawls
Answer: B
3. Which of the following believed that the dignity of human beings must be respected and that the
most ethical decisions are rooted in a sense of obligation?
a. Milton Friedman
b. John Stuart Mill
c. Immanuel Kant
d. John Rawls
Answer: C
4. Kant believed that:
a. it is ethical to tell a lie if necessary to protect an innocent person from great harm.
b. it is ethical to tell a lie if the benefit of the lie outweighs the cost.
c. it is ethical to make a true, but misleading, statement.
d. it is wrong to tell an outright lie or to mislead.
Answer: D
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 2: Ethics and Corporate Social
Responsibility
5. Which of the following statements is true?
a. Most people rarely lie.
b. Liars get sick more than truthful people.
c. Most people are accurate when comparing themselves to others.
d. People make their best ethical decisions when in a hurry.
Answer: B
CASE QUESTIONS
1. Should engineers program driverless cars to protect pedestrians or the driver? Who gets to
decide? In one study, participants said that, if a car had to choose between ten pedestrians and
one driver, it should swerve into a wall, killing the driver and saving the ten people. But when
asked what car they would actually buy, participants chose the one that would protect them—the
driver. What would Kant and Mill say about this choice? What would result under the Front Page
test? If drivers chose to protect themselves, would they be to blame, legally or ethically, for the
deaths of the pedestrians?
Solution: Both Kant and Mill would say that driverless cars should kill the driver and save the
ten pedestrians. Under the categorical imperative, Kant believes you should not do something
unless you'd be willing for everyone else to do it, but here you'd be making a different
decision for yourself. Mill would say that saving ten lives maximizes overall happiness. It
would be embarrassing under the Front Page test for everyone to know that you had chosen
yourself over ten other people. It is difficult to think of the ethical argument for choosing one
person over ten.
2. Located in Bath, Maine, Bath Iron Works builds high-tech warships for the Navy. Winning Navy
contracts is crucial to the company’s success—it means jobs for the community and profits for the
shareholders. Navy officials held a meeting at Bath’s offices with its executives and those of a
competitor to review the specs for an upcoming bid. Both companies desperately wanted to win
the contract. After the meeting, a Bath worker realized that one of the Navy officials had left a
folder labeled “Business Sensitive” on a chair. It contained information about the competitor’s bid
that would be a huge advantage to Bath. William Haggett, the Bath CEO, was notified about the
file just as he was walking out the door to give a luncheon speech. What ethics traps did he face?
How could he avoid these traps? What would result if he considered Mill, Kant, or the Front Page
test? What should he do? How would you give voice to your values in this situation?
Solution: Haggett ordered the file to be copied. By the time he got back from lunch, the
company president had found out about the file and ordered the copy destroyed. But by then,
other Bath executives had had a chance to examine the file. Haggett personally returned the
file to the Navy, but by then it was too late. The Navy considered banning Bath from bidding
on its contracts, which would have meant the end of the company. Haggett resigned. A much
beloved CEO and an important figure in Maine, he had worked at Bath for 28 years and his
father had been a pipe fitter there. The pitfalls were being in a hurry, money.
3. A group of medical schools conducted a study on very premature babies—those born between 24
and 27 weeks of pregnancy (instead of the normal 40 weeks). These children face a high risk of
blindness and death. The goal of the study was to determine which level of oxygen in a baby’s
incubator produced the best results. Researchers did not tell the families that being in the study
could increase their child’s risk of blindness or death. The study made some important
© 2026 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.
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!
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
Contact Email:
, Solution and Answer Guide: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
Solution and Answer Guide
Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 1:
Introduction to Law
TABLE OF CONTENTS
Multiple Choice Questions ......................................................................................................... 1
Additional Exam Strategy Questions ........................................................................................ 2
Case Questions ........................................................................................................................... 3
Discussion Questions.................................................................................................................4
MULTIPLE CHOICE QUESTIONS
1. The United States Constitution is among the finest legal accomplishments in the history of the
world. Which of the following influenced Ben Franklin, Thomas Jefferson, and the rest of the
Founding Fathers?
I. English common-law principles
II. The Iroquois system of federalism
a. Only I
b. Only II
c. Both I and II
d. Neither I nor II
Answer: C
2. Which of the following parts of the modern legal system are “borrowed” from medieval England?
a. Jury trials
b. Special rules for selling land
c. Following precedent
d. All of these
Answer: D
3. Union organizers at a hospital wanted to distribute leaflets to potential union members, but
hospital rules prohibited leafleting in areas of patient care, hallways, cafeterias, and any areas
open to the public. The National Labor Relations Board (NLRB), a government agency, ruled that
these restrictions violated the law and ordered the hospital to permit the activities in the cafeteria
and coffee shop. What kind of law was NLRB creating?
a. A statute
b. Common law
c. A constitutional amendment
d. Administrative regulation
Answer: D. The NLRB, as an agency, creates regulations. Congress creates statutes, and
judges shape the common law.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
4. For a statute to become law, Congress must pass it by a:
I. Majority vote in the House
II. Majority vote in the Senate
III. Two-thirds vote in the House, but only if the president has first vetoed it
IV. Two-thirds vote in the Senate, but only if the president has first vetoed it
a. Just I and II
b. Just III and IV
c. All of these
d. None of these
Answer: C
5. Dr. Martin Luther King, Jr., wrote “An unjust law is no law at all.” As such, “One has . . . a moral
responsibility to disobey unjust laws.” Dr. King’s view is an example of:
a. legal realism.
b. jurisprudence.
c. legal positivism.
d. natural law.
Answer: D
ADDITIONAL EXAM STRATEGY QUESTIONS
1. The stock market crash of 1929 and the Great Depression that followed were caused, in part,
because so many investors blindly put their money into stocks they knew nothing about. During
the 1920s, it was often impossible for an investor to find out what a corporation was planning to
do with its money, who was running the corporation, and many other vital things. Congress
responded by passing the Securities Act of 1933, which required a corporation to divulge more
information about itself before it could seek money for a new stock issue. What kind of law did
Congress create?
Strategy: What is the question seeking? The question asks you which type of law Congress
created when it passed the 1933 Securities Act. What are the primary kinds of law?
Administrative law consists of rules passed by agencies. Congress is not a federal agency.
Common law is the body of cases decided by judges. Congress is not a judge. Statutes are laws
passed by legislatures. Congress is a legislature.
Solution: The Securities Act of 1933 is a statute.
2. Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water. Bill meets a
stranger who introduces herself as Katrina. Bill sells a kilo of cocaine to Katrina, who then flashes
a badge and mentions how much she enjoys her job at the Drug Enforcement Agency. Diane,
heading back to camp with the water, meets Freddy, a motorist whose car has overheated.
Freddy is late for a meeting where he expects to make a $30 million profit; he’s desperate for
water for his car. He promises to pay Diane $500 tomorrow if she will give him the pail of water,
which she does. The next day, Bill is in jail and Freddy refuses to pay for Diane’s water. Explain
the criminal law/civil law distinction and what it means to Bill and Diane. Who will do what to
whom, with what results?
Strategy: You are asked to distinguish between criminal and civil law. What is the difference?
The criminal law concerns behavior that threatens society and is therefore outlawed. The
government prosecutes the defendant. Civil law deals with the rights and duties between parties.
One party files a suit against the other. Apply those different standards to these facts.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
Solution: The government will prosecute Bill for dealing in drugs. If convicted, he will go to
prison. The government will take no interest in Diane’s dispute. However, if she chooses, she
may sue Freddy for $500, the amount he promised her for the water. In that civil lawsuit, a
court will decide whether Freddy must pay what he promised; however, even if Freddy loses,
he will not go to jail.
CASE QUESTIONS
1. Lance, a hacker, stole 15,000 credit card numbers and sold them on the dark web, making
millions. Police caught Lance, and two legal actions followed, one civil and one criminal. Who will
be responsible for bringing the civil case? What will be the outcome if the jury believes that Lance
was responsible for identity thefts? Who will be responsible for bringing the criminal case? What
will be the outcome if the jury believes that Lance stole the numbers?
Solution: The civil cases will be brought by the victims of identity theft, and the outcome of a
successful case against Lance would be some type of monetary award for damages suffered.
The criminal case will be brought by state prosecutors and the outcome would be
imprisonment for Lance.
2. As The Oculist’s Case indicates, the medical profession has faced many lawsuits for centuries. In
Texas, a law provides that, so long as a doctor was not reckless and did not intentionally harm a
patient, recovery for “pain and suffering” is limited to $250,000. In many other states, no such limit
exists. If a patient will suffer a lifetime of pain after a botched operation, for example, they might
recover millions in compensation. Which rule seems more sensible to you—the Texas rule or the
alternative?
Solution: Answers may include the following:
Some students may focus on the patients, saying that $250,000 is not enough for
some patients who are destined to live their entire lives in pain and unable to
accomplish many of their personal and professional goals because of poor
health.
Other students, however, may focus on the larger healthcare system, noting that
unchecked awards could have an adverse effect on the public as a whole. For
example, if patients are routinely awarded millions for pain and suffering, doctors
will more comprehensive malpractice insurance coverage, and these expenses
will be passed along to the public through higher healthcare costs.
3. Leslie Bergh and his two brothers, Milton and Raymond, formed a partnership to help build a
fancy saloon and dance hall in Evanston, Wyoming. Later, Leslie met with his friend and drinking
buddy, John Mills, and tricked Mills into investing in the saloon. Leslie did not tell Mills that no one
else was investing cash or that the entire enterprise was already bankrupt. Mills remortgaged his
home and invested $150,000 in the saloon—and lost every penny of it. Mills sued all three
partners for fraud. Milton and Raymond defended on the grounds that they did not commit the
fraud; only Leslie did. The defendants lost. Was that fair? By holding them liable, what general
idea did the court rely on? What Anglo-Saxon legal custom did the ruling resemble?
Solution: The partners are indeed liable. Bergh v. Mills, 763 P.2d 214 (Wyo. 1988). That is
the essence of a partnership: All partners are liable for the acts of any partner committed in
the partnership’s normal business. This is the general idea of collective responsibility. It
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
relates to the “tithing” of English legal history, in which all tithing members were legally
responsible for the conduct of the others.
4. In 2015, terrorists coordinated a series of attacks on civilians in Paris, France. The father of an
American woman killed in a nightclub sued various social media companies including YouTube,
alleging the sites knowingly allowed terrorists to recruit members and spread extremist
propaganda. The sites defended themselves by saying that their policies prohibit terrorist
recruitment and that, when alerted to it, they quickly remove offending videos. What type of
lawsuit is this—criminal or civil? What responsibilities, if any, should social media sites have for
the spread of terrorism?
Solution: The case is a civil case, but answers will vary as to the scope of the responsibilities
social media sites should have for the spread of terrorism.
DISCUSSION QUESTIONS
1. In the 1980s, the Supreme Court ruled that it is legal for protesters to burn the American flag. This
activity counts as free speech under the Constitution. If the Court hears a new flag-burning case
in this decade, should it consider changing its ruling, or should it follow precedent? Is following
past precedent something that seems sensible to you: always, usually, sometimes, rarely, or
never?
Solution: Students’ answers should demonstrate an understanding of our legal system,
which is generally based on past precedent. Answers may include the following:
Most students will also recognize the need to periodically (as in usually, sometimes,
or rarely) re-evaluate laws and statutes based on evolving social norms and
concerns.
To never reconsider a ruling would be to deny social change, and to always
reconsider every ruling would mean overwhelming our legal system with unnecessary
litigation.
2. When should a business be held legally responsible for customer safety? Consider the following
statements, and consider the degree to which you agree or disagree.
A business should keep customers safe from its own employees.
A business should keep customers safe from other customers.
A business should keep customers safe from themselves (for example, by refusing to
serve alcohol to a visibly intoxicated customer).
A business should keep people outside its own establishment safe if it is reasonable to
do so.
Solution: Students’ answers will be based largely on the degree to which they believe
individuals are responsible for their own actions. Answers may include the following:
In general, those students who feel that people should be held accountable for their
own actions will say that businesses have relatively little responsibility for customer
safety, other than to take basic precautions of maintaining a safe facility and ensuring
that employees and customers abide by laws.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
Other students may argue that many individuals don’t know how or aren’t capable of
behaving responsibly, which is why businesses should take greater precautions on
behalf of their customers.
3. In his most famous novel, The Red and the Black, French author Stendhal (1783–1842) wrote:
“There is no such thing as ‘natural law’: This expression is nothing but old nonsense. Prior to
laws, what is natural is only the strength of the lion, or the need of the creature suffering from
hunger or cold, in short, need.” What do you think? Does legal positivism or legal realism seem
more sensible to you?
Solution: Natural law should be a question in the back of our minds throughout the course,
because it is a reminder of morality, and law without morality is despotism. Nonetheless,
Stendhal is obviously correct that both strength and need help to create law. The important
thing for this course is continually to apply moral principles to the rules you study and make
your own determinations about whether natural law really plays a role.
4. Before becoming a Supreme Court justice, Sonia Sotomayor stated in a speech to students: “I
would hope that a wise Latina woman with the richness of her experiences would more often than
not reach a better conclusion than a white male who hasn’t lived that life.” During her Senate
confirmation proceedings, this statement was heavily probed and criticized. One senator said that
the focus of the hearings was to determine whether Judge Sotomayor would “decide cases based
only on the law as made by the people and their elected representatives, not on personal feelings
or politics.” (Sotomayor convinced many of her critics because the Senate confirmed her by a
vote of 68–31.) Should judges ignore their life experiences and feelings when making judicial
decisions? Can they?
Solution: Most students will acknowledge that judges either consciously or
subconsciously include their life experiences, education, and social background in
forming opinions on questions of law. After all, these aspects of life are so ingrained in
our thinking process that it may not be possible to eliminate them. Answers may include
the following:
Some students will argue that factoring in their life experiences allows judges to
form more balanced, equitable, and beneficial decisions.
Others will argue that judges should actively try to eliminate any personal
perspectives and make decisions based solely on the Constitution and the
precedents set in earlier court cases.
5. The late Supreme Court Justice Antonin Scalia argued that because courts are not elected
representative bodies, they have no business determining certain critical social issues. He wrote:
Judges are selected precisely for their skill as lawyers; whether they reflect the policy
views of a particular constituency is not (or should not be) relevant. Not surprisingly then,
the Federal Judiciary is hardly a cross-section of America. Take, for example, this Court,
which consists of only nine men and women, all of them successful lawyers who studied
at Harvard or Yale Law School. Four of the nine are natives of New York City. Eight of
them grew up in east- and west-coast States. Only one hails from the vast expanse
in-between. Not a single Southwesterner or even, to tell the truth, a genuine Westerner
(California does not count). Not a single evangelical Christian (a group that comprises
about one quarter of Americans), or even a Protestant of any denomination. To allow [an
important social issue] to be considered and resolved by a select, patrician, highly
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e,
©2026, 9798214045504; Chapter 1: Introduction to Law
unrepresentative panel of nine is to violate a principle even more fundamental than no
taxation without representation: no social transformation without representation.
Do you agree?
Solution: Justice Scalia makes an interesting point. One of the core principles of our
democracy is that all people groups within the U.S. should be represented equally and
fairly in critically important decisions. And yet, we have allowed a select panel of
individuals (the Supreme Court) who do not fairly represent the public as a whole to make
socially transformative decisions for hundreds of years. Answers may include the
following:
Some students will say that this is not how things should work: the Supreme
Court’s influence should be limited to making rulings based solely on the
Constitution and what they believe the Founding Fathers intended.
Other students may disagree, stating that we can rely on the Supreme Court
justices—and particularly the system of checks and balances within the court—to
make forward-thinking, transformative decisions based on their knowledge and
understanding of our current social norms, ethics, and priorities and not on their
personal opinions.
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 2: Ethics and Corporate Social
Responsibility
Solution and Answer Guide
Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 2: Ethics and
Corporate Social Responsibility
TABLE OF CONTENTS
Multiple Choice Questions ......................................................................................................... 1
Case Questions ........................................................................................................................... 2
Discussion Questions.................................................................................................................3
MULTIPLE CHOICE QUESTIONS
1. Which of the following arguments did Milton Friedman make?
a. A corporate leader’s sole obligation is to make money for the company’s owners.
b. Corporate leaders should consider the well-being of all company stakeholders, not just
shareholders.
c. Lying for good reasons is justifiable.
d. Life prospects are a crucial determinant of success in life.
Answer: A
2. Which of the following believed that ethical actions should “generate the greatest good for the
greatest number”?
a. Milton Friedman
b. John Stuart Mill
c. Immanuel Kant
d. John Rawls
Answer: B
3. Which of the following believed that the dignity of human beings must be respected and that the
most ethical decisions are rooted in a sense of obligation?
a. Milton Friedman
b. John Stuart Mill
c. Immanuel Kant
d. John Rawls
Answer: C
4. Kant believed that:
a. it is ethical to tell a lie if necessary to protect an innocent person from great harm.
b. it is ethical to tell a lie if the benefit of the lie outweighs the cost.
c. it is ethical to make a true, but misleading, statement.
d. it is wrong to tell an outright lie or to mislead.
Answer: D
© 2026 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: Beatty/Samuelson/Abril, Legal Environment, 9e, ©2026, 9798214045504; Chapter 2: Ethics and Corporate Social
Responsibility
5. Which of the following statements is true?
a. Most people rarely lie.
b. Liars get sick more than truthful people.
c. Most people are accurate when comparing themselves to others.
d. People make their best ethical decisions when in a hurry.
Answer: B
CASE QUESTIONS
1. Should engineers program driverless cars to protect pedestrians or the driver? Who gets to
decide? In one study, participants said that, if a car had to choose between ten pedestrians and
one driver, it should swerve into a wall, killing the driver and saving the ten people. But when
asked what car they would actually buy, participants chose the one that would protect them—the
driver. What would Kant and Mill say about this choice? What would result under the Front Page
test? If drivers chose to protect themselves, would they be to blame, legally or ethically, for the
deaths of the pedestrians?
Solution: Both Kant and Mill would say that driverless cars should kill the driver and save the
ten pedestrians. Under the categorical imperative, Kant believes you should not do something
unless you'd be willing for everyone else to do it, but here you'd be making a different
decision for yourself. Mill would say that saving ten lives maximizes overall happiness. It
would be embarrassing under the Front Page test for everyone to know that you had chosen
yourself over ten other people. It is difficult to think of the ethical argument for choosing one
person over ten.
2. Located in Bath, Maine, Bath Iron Works builds high-tech warships for the Navy. Winning Navy
contracts is crucial to the company’s success—it means jobs for the community and profits for the
shareholders. Navy officials held a meeting at Bath’s offices with its executives and those of a
competitor to review the specs for an upcoming bid. Both companies desperately wanted to win
the contract. After the meeting, a Bath worker realized that one of the Navy officials had left a
folder labeled “Business Sensitive” on a chair. It contained information about the competitor’s bid
that would be a huge advantage to Bath. William Haggett, the Bath CEO, was notified about the
file just as he was walking out the door to give a luncheon speech. What ethics traps did he face?
How could he avoid these traps? What would result if he considered Mill, Kant, or the Front Page
test? What should he do? How would you give voice to your values in this situation?
Solution: Haggett ordered the file to be copied. By the time he got back from lunch, the
company president had found out about the file and ordered the copy destroyed. But by then,
other Bath executives had had a chance to examine the file. Haggett personally returned the
file to the Navy, but by then it was too late. The Navy considered banning Bath from bidding
on its contracts, which would have meant the end of the company. Haggett resigned. A much
beloved CEO and an important figure in Maine, he had worked at Bath for 28 years and his
father had been a pipe fitter there. The pitfalls were being in a hurry, money.
3. A group of medical schools conducted a study on very premature babies—those born between 24
and 27 weeks of pregnancy (instead of the normal 40 weeks). These children face a high risk of
blindness and death. The goal of the study was to determine which level of oxygen in a baby’s
incubator produced the best results. Researchers did not tell the families that being in the study
could increase their child’s risk of blindness or death. The study made some important
© 2026 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.
