BusinessmItsmLegal,mEthical,mandmGlobalmEnvironment,m12thmEditionmC
hapterm1-20
Chapterm1
Table of Contentsm m
Consider…......................................................................................................................................... 1
Consider…m1.2................................................................................................................................. 1
Consider…m1.3................................................................................................................................. 2
CasemProblems............................................................................................................................................................................. 2
Casem1.1 ......................................................................................................................................... 2
FormthemManager’smDesk................................................................................................................... 4
Them Cover-upmversusm themCrime,m pagem11......................................................................................... 4
Ethical mIssues ................................................................................................................................................................................ 4
Casem1.1,m pagem 10........................................................................................................................... 4
BusinessmStrategy....................................................................................................................................................................... 5
COVID-19mLockoutsm andm Businessm CivilmDisobedience......................................................................... 5
ChaptermReview........................................................................................................................................................................... 6
Answersm tom Chapterm Questionsm andmProblems .................................................................................. 6
Economics,mEthics,m&mthemLaw:mThemCostmofmCorporatemWrongdoing......................................................... 12
Consider…
Consider…m1.2
Aftermhe menrolledminmthe mUniversitymofmCaliforniamatmLosmAngelesm(UCLA),mDamonmThompsonmexper
iencedmauditorymhallucinations.mHe mbelievedmothermstudentsminmthe mclassroommandmdormitorymwer
e mcriticizingmhim.mSchoolmadministratorsmeventuallymlearnedmof mThompson’smdelusionsmandmattemp
tedmtomprovide mmentalmhealthmtreatment.mHowever,mone mmorningmThompsonmstabbedmfellowmstud
entmKatherine mRosenmduringmamchemistrymlab.mRosenmsuedmthe muniversitymandmseveralmof mitsmemplo
yeesmformnegligence,marguingmtheymfailedmtomprotectmhermfrommThompson’smforeseeable mviolentmcon
duct.
UCLAmismamstate meducationalminstitution.mBasedmonmthe mdecisionminmthe mAvilam case,mwhatmshouldmth
e mcourtmdecide?mConsidermwhethermUCLAmhasmamdutymtomprotectmstudentsmfromminjurymonmthe mcam
pusmand,mifmso,mwhatmtypesmofminjuries.mBe msure mtomconsidermwhatmismdifferentminmthismfactualmpatter
nmfrommthe
©m2022 mCengage.mAllmRightsmReserved.mMaym notmbemscanned,mcopiedmormduplicated,mormpostedmtomampublicly 1
m accessible
website,m inmwhole morminm part.
,factsminmAvila.mWhatmwillmthe mimpactmbe monmstudents,mfaculty,mandmadministratorsmpendingmonmwhi
chmwaymthe mcourtmdecidesmonmthe missuesmof mliabilitymandmduty?mBe msure mtomconsidermthe mpurposes
m andm characteristics m of m law m inm evaluatingm the m claimm Ms. m Rosen m form injuries. m [Regents m of m them Univ
ersitym ofm California m vm Superiorm Court,m 413mP.3dm656m(Cal,2018)]
Solution
The mtrialmcourtmdeniedmUCLAmsummarymjudgment.mUCLAmfiledmampetitionmformwritmofmmandate,mrequesti
ngmanmordermdirectingmtrialmcourtmtomentermsummarymjudgmentminmitsmfavor.mThe mCourtmofmAppealmgrant
edmthe mpetition.mThemSupreme mCourtmgrantedmreview,msupersedingmthemopinionmof mthemCourtmofmAppeal
.
The mSuprememCourtmheldmthatmthemuniversitymhadmdutymofmcare mtomprotectmstudentsmfrommforeseeablemv
iolence mduringmthe mchemistrymlab,mreversingmamlongmline mof mprecedent.
Thismcase mismdifferentmfrommthemAvilamcase minmthatmUCLAmhadmknowledgemofmthempotentialmharmmthatmth
e mstudentmcouldmdo.mInmthemAvilamcase,mthemconductmwasmsuchmthatmitmcouldmnotmbemanticipatedmexceptm
perhapsmthe mpossibilitymthatmplayersmhave mdisobeyedmthemrulesmofmthemgame,mbutmtheremwasmnomdirectm
knowledge maboutmthempitcher’smtendenciesmtombeanmbatters.mInmthismcase,mUCLAmwasmawaremofmthempro
blemsmthe mstudentmhadmandmwasmworkingmwithmthemstudent.mThemcasemwasmamwarningmtomuniversitiesma
boutmthe mimportancemofmcurbingmthembehaviorsmof mstudentsmandmthen,mwhenmnecessarymremovingmthe
mmfrommthemcampusmasmamdangermtomthemselvesmandmothermstudents.mThe mcourtmnotedmthatmthemscope
m of m the m duty m ism based m onm the m extentm of m the m relationship m the m studentm hadm withm the m university.
The mimmunitymofmgovernmentmentitiesmwasmcurbedminmAvilamandmnowmthemcourtsmare msimplymdealingm
withmthe mconceptmofmduty.mWhatmismthemdutymofmgovernmentmentities?mHowmfarmdoesmitmextend?mWha
tmactionsmmustmtheymtake?m [Regentsm ofmthemUniversitym ofmCaliforniam vmSuperiormCourt,m413mP.3dm656m(
Cal.m2018)]
Consider…m1.3
Everymstate,mcounty,mandm citymhasmlawsmthatmre gulate mthe m maximummspee dmfor mtheirmroadways.
mYet, m surveys m indicate m thatm ne arly m 100% m of m usm admitm tom drivingm above m the m speed m limit. m What
m philosophy m of m law m dom we m follow m whe n m we m de cide m which m laws m tom obey, m how m close ly m we m foll
owmthose mlaws,mandm whe nmwe mwillmfollowm the m?mIsmthe re m amriskm tomsocie tym whe nmwe m make mo
urmownmdecisionsmaboutmfollowingmthe m law?
Solution
Speedingmismanmexamplemof mthemnormmshifting.mThatmis,mthere mismamlaw,mbutmfewmpeoplemfollowmthemlaw
m andm the mresultm ismthatmthe mlaw mbecomes mmeaningless.m Somemphilosophers mfearmthatmdisregard mof mthe
m law m onm anm individualm basism couldm meanm thatm we m are m introducingm anarchy—
the mlawmhasmnomeffect.mOthersmwouldmfollowmthemnormativemstandardmofmdoingmwhatmismacceptablemtom
others.
Case Problems
m
Casem1.1
1. Outline mthe mcase mhistory—whatmeachmof mthe mcourtsmdecidedminmthe mcase.
©m2022 mCengage.mAllmRightsmReserved.mMaym notmbemscanned,mcopiedmormduplicated,mormpostedmtomampublicly 2
m accessible
website,m inmwhole morminm part.
, Solution
Lowermcourtmheldmthatmthemcommunitymcollegesmweremimmune,msomitmnevermreachedmthe mdutymi
ssue.mThe mcourtmofmappealmheldmthatmthemcommunitymcollegesmweremnotmimmune mandmfoundmt
hatmtheymhadmbreachedmtheirmdutymtomJose.
2. Explainmthe mstandardmnowmformthe mliabilitymof mgovernmentmentities.
Solution
Althoughmtheremismimmunitymformgovernmentmentitiesmforminjuriesmfrommrecreationalmactivities
m (hazardous mandmotherwise), mthe mcourtm heldmthatmgovernmentmentities mstillm have mdutiesm towar
dmthose mwhomare musingmtheirmfacilities.
3. Whatminterestsmismthe mcourtmbalancing?
Solution
The mcourtmismbalancingmthemlongstandingmprotectionmofmgovernmentmentitiesmfrommtortmliabilitym
withmthe minjuriesmthatmcanmresultmwhenmthere mismnomsupervisionmofmthose minvolvedminmgovernm
ent-msponsoredmactivities.mTheremwasmalsomthemlongstandingmprecedentmthatmismbeingmchanged.
Governmentmentitiesmwillmneedmnewminsurance mlevelsmandmwillmneedmtomchangemtheirminvolveme
ntmandmsupervisionmrequirements.
4. Doesmthe mcourtmchangemthempreviousmstandardmformliabilitymofmgovernmentmentities?mWhymor
m why m not?m Whatm effectm willm the m decision m have m onm governmentm entities?
Solution
See manswermtomabove—
the mholdingmismamfundamentalmchange minmthemliabilitymandmresponsibilitiesmofmgovernmentmentiti
es.
5. Whymwasmthere mnombreachmofmdutymbymthe mcommunitymcolleges?
Solution
Because mbeingm“beaned”mismamriskminmthemgamemandmone mthatmthemcollegesmcouldmnotmprevent.m
Also,mJose mwasmstillmable mtomwalkmandmgotmthe mattentionmthatmhe mneeded.
6. Doesmitmmattermthatm“beaning”mambattermviolatesmthe mrulesmofmthe mgame?
Solution
The mcourtmtakesmnotemthatmprofessionalmbaseballmprohibitsmbeaning,mbutmbeaningmhappensmandm
thatmitmhappensmismnotmthe mresultmofmanymactionsmbymsponsorsmbutmindividualmchoicesmbymplayer
s.
However, msanctionsmformbeaningmcouldmdetermsuchmactivities—
somethingmthe mcourtmdoesmnotmdiscuss.
©m2022 mCengage.mAllmRightsmReserved.mMaym notmbemscanned,mcopiedmormduplicated,mormpostedmtomampublicly 3
m accessible
website,m inmwhole morminm part.
, For the Manager’s Desk
m m m
ThemCover-upmversusmthemCrime,mpagem11
The mdecisionsminmthe m Avilam andmUCLAm case smare mpartmof m amnationwide m tre ndm thatm hasmexpand
edmliabilitymandm imposedm additionalmdutiesm onmthose mwhomownm andmrunmfacilitiesmwhere m the mp
ublicmismprese nt.m The m scope m of mthatmdutym require s,matmle astminmmostmcase s,mthatmbusinessm own
ersmandmpublicmentitie smtake m appropriate mstepsmtomensure msafetymonce mthe ymbe come m aware mof
m the m danger. m Thatm duty m ism difficultm form universities m thatm are m workingm withm stude nts m suchm asm th
e mone minmthe mUCLAm case m orme mployeesm whomhave mbe come maggressive minmthe mworkplace.
Inmbothmsituations,madministratorsmare mtryingmtombalance mthe mrightsmofmthe mstudentmormemployeesm
withmthe mneedmtomprotectmothermstudentsmandmemployeesminmthe msituation.mBothmstudentsmandmem
ployeesmhave mrightsmtombe matmschoolmormwork.mIf mthose mrightsmare mtombe mtakenmaway,mthe madminist
ratorsmmustmbuildmamrecordmtomestablishmthe mneedmformtheirmremoval.mThe mrightsmissuesmare mcoveredm
inmChapterm5,mthe mdutymissuesmare mcoveredminmmore mdetailminmChapterm9,mandmthe memployee mrightsm
issuesmare mcoveredminmChaptersm16,m19,mandm20.
Solution
The mchallengesminmdealingmwithmproblemmstudentsmare mgreatmbecausemtheremaremduemprocessmrightsmtha
tmthe mstudentsmhold.mExpulsionmandmsuspensionmaremactionsmthatmdeprive mthemmofmampropertymright—
tombe mthere mformobtainingmanmeducation.mAtmthemsamemtime,madministratorsmhavemtomworrymaboutmthems
afetymofmothermstudentsmwhenmthere mare mbehaviorsmthatmendangermthem.mAdministratorsmhave mtomcaref
ullymkeepmreportsmofmincidentsmandmbe msure mtomcoordinatemallminformationmthatmismcomingminmaboutmpro
blemmstudents.
Administratorsmshouldmalsomkeepmcarefulmrecordsmandmconductmoversightmofmareasmwheremthere maremany
m studentm injuries. m Takingm steps m tom preventm the m injuries m ism alsom important.
Ethical Issues
m
Casem1.1,mpagem10
Discussmthe me thicsmof mthe m pitche r’smde liberate m“be aning”mof mJose.mAre mthe mstandardsmof me
thicsmdiffere ntminmsportingmcompetitions?mIfmanmactionmcannotmpenalize mwhatmhappe nsminmt
he mgame,mwhatmare mthe meffe ctsmonm playe rs’m behaviorsm duringm the m game ?
Solution
Ethicsmismconductmthatmgoesmbeyondmthe mrules,mbutmitmcertainlymincludesmthemobligationmtomfollowmthe mrul
es.m Asmthemcourtmnotes,m“beaning”mormothermintentionalminjuriesmtomothermplayersmismprohibitedminmbase
ball.
However,mone mofmthemproblemsmismthatmthemlackmofmenforcementm(nomsanctionmformviolatingmthosemrules)m
shiftsmthe mnormsmofmbehaviormduringmthe mgamemawaymfrommthemrule mtomanmacceptedmormtoleratedmlevelm
ofmbehavior.mHowever,masmthe mcasemillustrates,mtheremcanmbemseriousminjuriesmresultingmfrommthemcondu
ct.
Onemofmthemdifficultiesmwithmthemrule misminmestablishingmthatmthemconductmwasmintentional.mBeingmhi
tmbymambaseballmismamriskmassumedminmbaseball.mUmpiresmhavemdifficultymprovingmthatmthemintention
almhitsmwere mintentional.
Thembottommlinemismthatmwe maremdependentmonmthemhonormofmthosemplayingmthemgamesmtomnotmviola
te mthe mrules.
©m2022 mCengage.mAllmRightsmReserved.mMaym notmbemscanned,mcopiedmormduplicated,mormpostedmtomampublicly 4
m accessible
website,m inmwhole morminm part.