,Solution manual for Introduction to Business Law ,
7th Edition Jeffrey F. Beatty
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
Solution and Answer Guide
Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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 ............................................................................................................................. 4
Answers to Matching Questions
_____A. Statute 1. Law created by judges
_____B. Administrative agencies 2. Let the decision stand
_____C. Common law 3. A law passed by Congress or a state legislature
_____D. Stare decisis 4. The supreme law of the land
_____E. United States Constitution 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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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
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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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.
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, who is a hacker, stole 15,000 credit card numbers and sold them on the black market,
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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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 in Paris killed 130 people in a series of coordinated attacks at restaurants, a
soccer match, and a rock concert. The father of an American woman killed in the Paris terrorist
attacks sued Twitter, Facebook, and YouTube, alleging the sites knowingly allowed terrorists to
recruit members, raise money, 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
Answers will vary.
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
Answers will vary.
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.
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
Solution
Answers will vary.
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
Answers will vary.
5. Should judges ignore their life experiences, political leanings, and feelings when making judicial
decisions? Do you think it is possible?
Solution
Answers will vary.
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 5
website, in whole or in part.
,Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility
Solution and Answer Guide
Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: 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 1. Requires doing “the greatest good for the greatest number”
_____B. Stakeholder model 2. The rules for society that we would propose if we did not
know how lucky we would be in life’s lottery
_____C. Utilitarianism 3. Requires business decisions that maximize the owners’ return
on investment
_____D. Deontological ethics 4. Focuses on the reasons for which decisions are made
_____E. Veil of ignorance 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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
,Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility
3. Modern China has experienced slower economic growth than did England during the Industrial
Revolution.
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. Milton Friedman argued that:
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 prosocial reasons is appropriate.
D. Life prospects are a crucial determinant of success in life.
Answer: A. a corporate leader’s sole obligation is to make money for the company’s owners.
2. Which of the following wrote the book 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. John Stuart Mill
3. Which of the following believed that the dignity of human beings must be respected and that the
most ethical decisions are made out of a sense of obligation?
A. Milton Friedman
B. John Stuart Mill
C. Immanuel Kant
D. John Rawls
Answer: C. Immanuel Kant
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.
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility
D. It is wrong to tell a lie.
Answer: D. It is wrong to tell a lie.
5. The following statements is true:
A. Most people rarely lie.
B. Even people who do not believe in God are more likely to behave honestly after reading the
Ten Commandments.
C. Most people are accurate when comparing themselves to others.
D. People make their best ethical decisions instinctively, rather than thinking through a problem.
Answer: B. Even people who do not believe in God are more likely to behave honestly after
reading the Ten Commandments.
Answers to 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 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
Kant argued for the unique dignity of human beings and, thus, that it was wrong to kill them. He
would, therefore, choose the program that limited the number of deaths by killing just the driver.
So would Mill because that choice would maximize overall happiness and minimize overall pain.
Under the Front Page test, people might be embarrassed to admit they had chosen their own life
over ten other people. As for the ethics of the decision, participants recognized that, ethically, it
would be wrong to choose themselves over ten other people. But then they chose it anyway.
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 on a chair labeled: “Business Sensitive.” It contained information about the competitors’ 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?
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
7th Edition Jeffrey F. Beatty
Notes
1- The file is chapter after chapter.
2- We have shown you 10 or five pages.
3- The file contains all Appendix and Excel
sheet if it exists.
4- We have all what you need, we make
update at every time. There are many new
editions waiting you.
5- If you think you purchased the wrong file
You can contact us at every time, we can
replace it with true one.
Our email:
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
Solution and Answer Guide
Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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 ............................................................................................................................. 4
Answers to Matching Questions
_____A. Statute 1. Law created by judges
_____B. Administrative agencies 2. Let the decision stand
_____C. Common law 3. A law passed by Congress or a state legislature
_____D. Stare decisis 4. The supreme law of the land
_____E. United States Constitution 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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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
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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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.
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, who is a hacker, stole 15,000 credit card numbers and sold them on the black market,
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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
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 in Paris killed 130 people in a series of coordinated attacks at restaurants, a
soccer match, and a rock concert. The father of an American woman killed in the Paris terrorist
attacks sued Twitter, Facebook, and YouTube, alleging the sites knowingly allowed terrorists to
recruit members, raise money, 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
Answers will vary.
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
Answers will vary.
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.
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 01: Introduction to Law
Solution
Answers will vary.
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
Answers will vary.
5. Should judges ignore their life experiences, political leanings, and feelings when making judicial
decisions? Do you think it is possible?
Solution
Answers will vary.
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 5
website, in whole or in part.
,Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility
Solution and Answer Guide
Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: 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 1. Requires doing “the greatest good for the greatest number”
_____B. Stakeholder model 2. The rules for society that we would propose if we did not
know how lucky we would be in life’s lottery
_____C. Utilitarianism 3. Requires business decisions that maximize the owners’ return
on investment
_____D. Deontological ethics 4. Focuses on the reasons for which decisions are made
_____E. Veil of ignorance 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
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
,Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility
3. Modern China has experienced slower economic growth than did England during the Industrial
Revolution.
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. Milton Friedman argued that:
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 prosocial reasons is appropriate.
D. Life prospects are a crucial determinant of success in life.
Answer: A. a corporate leader’s sole obligation is to make money for the company’s owners.
2. Which of the following wrote the book 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. John Stuart Mill
3. Which of the following believed that the dignity of human beings must be respected and that the
most ethical decisions are made out of a sense of obligation?
A. Milton Friedman
B. John Stuart Mill
C. Immanuel Kant
D. John Rawls
Answer: C. Immanuel Kant
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.
© 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility
D. It is wrong to tell a lie.
Answer: D. It is wrong to tell a lie.
5. The following statements is true:
A. Most people rarely lie.
B. Even people who do not believe in God are more likely to behave honestly after reading the
Ten Commandments.
C. Most people are accurate when comparing themselves to others.
D. People make their best ethical decisions instinctively, rather than thinking through a problem.
Answer: B. Even people who do not believe in God are more likely to behave honestly after
reading the Ten Commandments.
Answers to 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 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
Kant argued for the unique dignity of human beings and, thus, that it was wrong to kill them. He
would, therefore, choose the program that limited the number of deaths by killing just the driver.
So would Mill because that choice would maximize overall happiness and minimize overall pain.
Under the Front Page test, people might be embarrassed to admit they had chosen their own life
over ten other people. As for the ethics of the decision, participants recognized that, ethically, it
would be wrong to choose themselves over ten other people. But then they chose it anyway.
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 on a chair labeled: “Business Sensitive.” It contained information about the competitors’ 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?
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