,SOLUTION MANUAL FOR Introduction to Business Law 8th 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.
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Contact Email:
, Solution and Answer Guide: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
Solution and Answer Guide
Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
TABLE OF CONTENTS
Answer to Additional EXAMStrategy Question........................................................................1
Answers to Matching Questions................................................................................................2
Answers to True/False Questions ............................................................................................. 2
Answers to Multiple Choice Questions.....................................................................................2
Answers to Case Questions.......................................................................................................3
Answers to Discussion Questions ............................................................................................ 5
ANSWER TO ADDITIONAL EXAMSTRATEGY QUESTION
1. Jackson and Layla are hiking in the woods. Layla walks down a hill to fetch a pail of water.
Jackson meets a stranger who introduces herself as Kate. Jackson sells a kilo of cocaine to Kate,
who then flashes a badge and mentions how much she enjoys her job at the Drug Enforcement
Agency. Layla, heading back to camp with the water, bumps into Amare, a motorist whose car
has overheated. Amare is late for a meeting where he expects to sign a $30 million deal; he’s
desperate for water for his car. He promises to pay Layla $500 tomorrow if she will give him the
pail of water, which she does. The next day, Jackson is in jail, and Amare refuses to pay Layla.
Explain the criminal law/civil law distinction and what it means to Jackson and Layla. Who will do
what to whom, with what results?
Strategy: You are asked to distinguish between criminal and civil law. What is the difference?
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.
Solution: The government will prosecute Jackson for dealing in drugs. If convicted, he will go to
prison. The government will take no interest in Layla’s dispute. However, if she chooses, she may
sue Amare for $500, the amount he promised her for the water. In that civil lawsuit, a court will
decide whether Amare must pay what he promised; however, even if Amare loses, he will not go
to jail.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
ANSWERS TO MATCHING QUESTIONS
_____A. Statute
_____B. Administrative agencies
_____C. Common law
_____D. Stare decisis
_____E. United States Constitution
1. Law created by judges
2. Let the decision stand
3. A law passed by Congress or a state legislature
4. The supreme law of the land
5. The IRS, the EPA, the FCC, the SEC
Answers:
A. 3
B. 5
C. 1
D. 2
E. 4
ANSWERS TO TRUE/FALSE QUESTIONS
1. If the president vetoes a bill, it can still become a statute if the House and the Senate approve it
by a two-thirds majority.
Answer: T
2. Civil lawsuits are brought to court by the injured party, but criminal cases must be prosecuted by
the government.
Answer: T
3. Federalism means that the federal government’s laws and policies always supersede those of the
states.
Answer: F
4. The federal government has three branches: executive, legislative, and administrative.
Answer: F
5. Law is different from morality, but the two are closely linked.
Answer: T
ANSWERS TO MULTIPLE CHOICE QUESTIONS
1. More U.S. law originates from one country than from any other. Which country?
A. France
B. England
C. Germany
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
D. Spain
E. Canada
Answer: B. England
2. Under the United States Constitution, power that is not expressly given to the federal government
is retained by:
A. the courts.
B. the Congress.
C. the Founders.
D. the states and the people.
E. international treaty.
Answer: D. the states and the people.
3. Judges use precedent to create what kind of law?
A. Common law
B. Statutes
C. National Law
D. Local law
E. Empirical law
Answer: A. Common 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. All of these
5. What part of the Constitution addresses most basic liberties?
A. Article I
B. Article II
C. Article III
D. The amendments
Answer: D. The amendments
ANSWERS TO CASE QUESTIONS
1. 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) ruled that these restrictions
violated the law and ordered the hospital to permit the activities in the cafeteria and coffee shop.
The NLRB cannot create common law or statutory law. What kind of law was it creating?
Solution: Administrative law. As an administrative agency, the NLRB has the authority
and jurisdiction to create such regulations in furtherance of its agency mission and
mandate.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
2. 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 facts. 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? Explain the relationship between voters, Congress, and the law.
Solution: Congress created a statutory law, as authorized by Article II of the
Constitution. As for the relationship between voters, Congress, and the law, students may
posit that voters elect to Congress members who agree with what they believe, or at
least, hope to do so. But of course, answers will vary. Voters who are disappointed in
what their representatives have done may vote them out at the next opportunity.
3. ETHICS The greatest of all Chinese lawgivers, Confucius, did not esteem written laws. He
believed that good rulers were the best guarantee of justice. Does our legal system rely primarily
on the rule of law or the rule of people? Which do you instinctively trust more?
Solution: Hopefully, students will recognize that the rule of law provides more safety,
security, and justice than a reliance on the current ruler. But as to which they instinctively
trust more, answers will vary.
4. 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.
5. 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 ISIS 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.
ANSWERS TO DISCUSSION QUESTIONS
1. Do you believe that there are too many lawsuits in the United States? If so, do you place more
blame for the problem on lawyers or on individuals who sue? What evidence do you have for your
opinion?
Solution: Responses will vary. Look for evidence that the student has applied key concepts
from the chapter, engaged in critical thinking, and has effectively communicated their
reasoning in writing or discussion.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
2. 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.
3. 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. A business should keep customers safe from its own employees.
B. A business should keep customers safe from other customers.
C. A business should keep customers safe from themselves. (Example: an intoxicated customer
who can no longer walk straight.)
D. 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.
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.
4. In his most famous novel, The Red and the Black, French author Stendhal (1783-1842) wrote:
“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.” Do you agree with Stendhal? Without laws, would society
quickly crumble?
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.
5. Should judges ignore their life experiences and feelings when making judicial decisions? Do you
think it is possible?
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:
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
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.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985; Chapter 2: Ethics and Corporate Social
Responsibility
Solution and Answer Guide
Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985; Chapter 2:
Ethics and Corporate Social Responsibility
TABLE OF CONTENTS
Answers to Matching Questions................................................................................................1
Answers to True/False Questions ............................................................................................. 1
Answers to Multiple Choice Questions.....................................................................................2
Answers to Case Questions.......................................................................................................3
Answers to Discussion Questions ............................................................................................ 5
ANSWERS TO MATCHING QUESTIONS
_____A. Shareholder model
_____B. Stakeholder model
_____C. Utilitarianism
_____D. Deontological ethics
_____E. Veil of ignorance
1. Requires doing the greatest good for the greatest number
2. The rules for society that we would propose if we did not know how lucky we would be in life
3. Requires business decisions that maximize the owners’ return on investment
4. Focuses on the reasons for which decisions are made
5. Requires business leaders to consider employees, customers, communities, and other
groups when making decisions
Answers:
A. 3
B. 5
C. 1
D. 4
E. 2
ANSWERS TO TRUE/FALSE QUESTIONS
1. Immanuel Kant was a noted utilitarian thinker.
Answer: F
2. The shareholder model requires that business leaders consider the needs of employees when
making decisions.
Answer: F
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985; Chapter 2: Ethics and Corporate Social
Responsibility
3. As long as we are aware of any conflicts of interest, we can make fair and objective decisions that
affect us personally.
Answer: F
4. John Stuart Mill’s ideas are consistent with business use of risk management and cost-benefit
analyses.
Answer: T
5. John Rawls believed that everyone should have the same income.
Answer: F
ANSWERS TO 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 wrote Utilitarianism and 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. With which of the following statements would Kant have agreed?
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 wrong for some people to have greater opportunities than others.
d. It is wrong to tell a lie.
Answer: D
5. Which of the following statements is true?
a. Most people rarely lie.
b. People with good relationships are happier than those whose goals are money or fame.
© 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.
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, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
Solution and Answer Guide
Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
TABLE OF CONTENTS
Answer to Additional EXAMStrategy Question........................................................................1
Answers to Matching Questions................................................................................................2
Answers to True/False Questions ............................................................................................. 2
Answers to Multiple Choice Questions.....................................................................................2
Answers to Case Questions.......................................................................................................3
Answers to Discussion Questions ............................................................................................ 5
ANSWER TO ADDITIONAL EXAMSTRATEGY QUESTION
1. Jackson and Layla are hiking in the woods. Layla walks down a hill to fetch a pail of water.
Jackson meets a stranger who introduces herself as Kate. Jackson sells a kilo of cocaine to Kate,
who then flashes a badge and mentions how much she enjoys her job at the Drug Enforcement
Agency. Layla, heading back to camp with the water, bumps into Amare, a motorist whose car
has overheated. Amare is late for a meeting where he expects to sign a $30 million deal; he’s
desperate for water for his car. He promises to pay Layla $500 tomorrow if she will give him the
pail of water, which she does. The next day, Jackson is in jail, and Amare refuses to pay Layla.
Explain the criminal law/civil law distinction and what it means to Jackson and Layla. Who will do
what to whom, with what results?
Strategy: You are asked to distinguish between criminal and civil law. What is the difference?
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.
Solution: The government will prosecute Jackson for dealing in drugs. If convicted, he will go to
prison. The government will take no interest in Layla’s dispute. However, if she chooses, she may
sue Amare for $500, the amount he promised her for the water. In that civil lawsuit, a court will
decide whether Amare must pay what he promised; however, even if Amare loses, he will not go
to jail.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
ANSWERS TO MATCHING QUESTIONS
_____A. Statute
_____B. Administrative agencies
_____C. Common law
_____D. Stare decisis
_____E. United States Constitution
1. Law created by judges
2. Let the decision stand
3. A law passed by Congress or a state legislature
4. The supreme law of the land
5. The IRS, the EPA, the FCC, the SEC
Answers:
A. 3
B. 5
C. 1
D. 2
E. 4
ANSWERS TO TRUE/FALSE QUESTIONS
1. If the president vetoes a bill, it can still become a statute if the House and the Senate approve it
by a two-thirds majority.
Answer: T
2. Civil lawsuits are brought to court by the injured party, but criminal cases must be prosecuted by
the government.
Answer: T
3. Federalism means that the federal government’s laws and policies always supersede those of the
states.
Answer: F
4. The federal government has three branches: executive, legislative, and administrative.
Answer: F
5. Law is different from morality, but the two are closely linked.
Answer: T
ANSWERS TO MULTIPLE CHOICE QUESTIONS
1. More U.S. law originates from one country than from any other. Which country?
A. France
B. England
C. Germany
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
D. Spain
E. Canada
Answer: B. England
2. Under the United States Constitution, power that is not expressly given to the federal government
is retained by:
A. the courts.
B. the Congress.
C. the Founders.
D. the states and the people.
E. international treaty.
Answer: D. the states and the people.
3. Judges use precedent to create what kind of law?
A. Common law
B. Statutes
C. National Law
D. Local law
E. Empirical law
Answer: A. Common 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. All of these
5. What part of the Constitution addresses most basic liberties?
A. Article I
B. Article II
C. Article III
D. The amendments
Answer: D. The amendments
ANSWERS TO CASE QUESTIONS
1. 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) ruled that these restrictions
violated the law and ordered the hospital to permit the activities in the cafeteria and coffee shop.
The NLRB cannot create common law or statutory law. What kind of law was it creating?
Solution: Administrative law. As an administrative agency, the NLRB has the authority
and jurisdiction to create such regulations in furtherance of its agency mission and
mandate.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
2. 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 facts. 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? Explain the relationship between voters, Congress, and the law.
Solution: Congress created a statutory law, as authorized by Article II of the
Constitution. As for the relationship between voters, Congress, and the law, students may
posit that voters elect to Congress members who agree with what they believe, or at
least, hope to do so. But of course, answers will vary. Voters who are disappointed in
what their representatives have done may vote them out at the next opportunity.
3. ETHICS The greatest of all Chinese lawgivers, Confucius, did not esteem written laws. He
believed that good rulers were the best guarantee of justice. Does our legal system rely primarily
on the rule of law or the rule of people? Which do you instinctively trust more?
Solution: Hopefully, students will recognize that the rule of law provides more safety,
security, and justice than a reliance on the current ruler. But as to which they instinctively
trust more, answers will vary.
4. 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.
5. 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 ISIS 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.
ANSWERS TO DISCUSSION QUESTIONS
1. Do you believe that there are too many lawsuits in the United States? If so, do you place more
blame for the problem on lawyers or on individuals who sue? What evidence do you have for your
opinion?
Solution: Responses will vary. Look for evidence that the student has applied key concepts
from the chapter, engaged in critical thinking, and has effectively communicated their
reasoning in writing or discussion.
© 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: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
2. 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.
3. 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. A business should keep customers safe from its own employees.
B. A business should keep customers safe from other customers.
C. A business should keep customers safe from themselves. (Example: an intoxicated customer
who can no longer walk straight.)
D. 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.
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.
4. In his most famous novel, The Red and the Black, French author Stendhal (1783-1842) wrote:
“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.” Do you agree with Stendhal? Without laws, would society
quickly crumble?
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.
5. Should judges ignore their life experiences and feelings when making judicial decisions? Do you
think it is possible?
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:
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, Solution and Answer Guide: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985;
Chapter 1: Introduction to Law
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.
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,Solution and Answer Guide: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985; Chapter 2: Ethics and Corporate Social
Responsibility
Solution and Answer Guide
Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985; Chapter 2:
Ethics and Corporate Social Responsibility
TABLE OF CONTENTS
Answers to Matching Questions................................................................................................1
Answers to True/False Questions ............................................................................................. 1
Answers to Multiple Choice Questions.....................................................................................2
Answers to Case Questions.......................................................................................................3
Answers to Discussion Questions ............................................................................................ 5
ANSWERS TO MATCHING QUESTIONS
_____A. Shareholder model
_____B. Stakeholder model
_____C. Utilitarianism
_____D. Deontological ethics
_____E. Veil of ignorance
1. Requires doing the greatest good for the greatest number
2. The rules for society that we would propose if we did not know how lucky we would be in life
3. Requires business decisions that maximize the owners’ return on investment
4. Focuses on the reasons for which decisions are made
5. Requires business leaders to consider employees, customers, communities, and other
groups when making decisions
Answers:
A. 3
B. 5
C. 1
D. 4
E. 2
ANSWERS TO TRUE/FALSE QUESTIONS
1. Immanuel Kant was a noted utilitarian thinker.
Answer: F
2. The shareholder model requires that business leaders consider the needs of employees when
making decisions.
Answer: F
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accessible website, in whole or in part.
, Solution and Answer Guide: Beatty/Samuelson/Abril, Introduction to Business Law 8e, ©2027, 9798214055985; Chapter 2: Ethics and Corporate Social
Responsibility
3. As long as we are aware of any conflicts of interest, we can make fair and objective decisions that
affect us personally.
Answer: F
4. John Stuart Mill’s ideas are consistent with business use of risk management and cost-benefit
analyses.
Answer: T
5. John Rawls believed that everyone should have the same income.
Answer: F
ANSWERS TO 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 wrote Utilitarianism and 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. With which of the following statements would Kant have agreed?
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 wrong for some people to have greater opportunities than others.
d. It is wrong to tell a lie.
Answer: D
5. Which of the following statements is true?
a. Most people rarely lie.
b. People with good relationships are happier than those whose goals are money or fame.
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