,SOLUTION MANUAL FOR Business Law Text and
Cases 16th Edition by Kenneth W. Clarkson
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
Solution and Answer Guide
CLARKSON, BUSINESS LAW, TEXT AND CASES, 2025, 9780357985533; CHAPTER 1: LAW AND
LEGAL REASONING
TABLE OF CONTENTS
Answer to Critical Thinking Question in the Feature...............................................................1
Ethics Today—Critical Thinking.................................................................................................1
Answers to Questions in the Practice and Review Feature....................................................1
Answer to Debate This Question in the Practice and Review Feature of the End of the
Chapter.........................................................................................................................................2
Answers to Issue Spotters at the End of the Chapter ............................................................. 2
Answers to Business Scenarios and Case Problems at the End of the Chapter..................3
Answers to Time-Limited Group Assignment Questions at the End of the Chapter............7
ANSWER TO CRITICAL THINKING QUESTION IN THE FEATURE
ETHICS TODAY—CRITICAL THINKING
1. Should convicted criminals in Louisiana and Oregon be able to obtain retrials if they have been
convicted in a 10-2 vote of a jury? Why or why not?
Answer: Those who support the Supreme Court decision in Ramos would argue that yes,
any person convicted in Louisiana or Oregon by a 10-5 jury vote should have the ability to
appeal. Afterall, if the non-unanimous jury system in those two states was deemed
unconstitutional in 2020, it was clearly unconstitutional in all prior years.
ANSWERS TO QUESTIONS IN THE PRACTICE AND REVIEW
FEATURE AT THE END OF THE CHAPTER
Suppose that the California legislature passes a law that severely restricts carbon dioxide emissions from
automobiles in that state. A group of automobile manufacturers files suit against the state of California to
prevent the enforcement of the law. The automakers claim that a federal law already sets fuel economy
standards nationwide and that fuel economy standards are essentially the same as carbon dioxide
emission standards. According to the automobile manufacturers, it is unfair to allow California to impose
more stringent regulations than those set by the federal law. Using the information presented in the
chapter, answer the following questions.
1. Who are the parties (the plaintiffs and the defendant) in this lawsuit?
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
Answer: The automobile manufacturers are the plaintiffs, and the state of California is the
defendant.
2. Are the plaintiffs seeking a legal remedy or an equitable remedy?
Answer: The plaintiffs are seeking an injunction, an equitable remedy, to prevent the state of
California from enforcing its statute restricting carbon dioxide emissions.
3. What is the primary source of the law that is at issue here?
Answer: This case involves a law passed by the California legislature and a federal statute;
thus the primary source of law is statutory law.
4. Where would you look to find the relevant California and federal laws?
Answer: Federal statutes are found in the United States Code, and California statutes are
published in the California Code. You would look in these sources to find the relevant state
and federal statutes.
ANSWER TO DEBATE THIS QUESTION IN THE PRACTICE AND
REVIEW FEATURE OF THE END OF THE CHAPTER
1. Under the doctrine of stare decisis, courts are obligated to follow the precedents established in
their jurisdictions unless there is a compelling reason not to. Should U.S. courts continue to
adhere to this common law principle, given that our government now regulates so many areas by
statute?
Answer: Both England and the U.S. legal systems were constructed on the common law
system. The doctrine of stare decisis has always been a major part of this system—courts
should follow precedents when they are clearly established, excepted under compelling
reasons. Even though more common law is being turned into statutory law, the doctrine of
stare decisis is still valid. After all, even statutes have to be interpreted by courts. What better
basis for judges to render their decisions than by basing them on precedents related to the
subject at hand?
In contrast, some students may argue that the doctrine of stare decisis is passé. There is
certainly less common law governing, say, environmental law than there was 100 years ago.
Given that federal and state governments increasingly are regulating more aspects of
commercial transactions between merchants and consumers, perhaps the courts should
simply stick to statutory language when disputes arise.
ANSWERS TO ISSUE SPOTTERS AT THE END OF THE CHAPTER
1. Under what circumstances might a judge rely on case law to determine the intent and purpose of
a statute?
Answer: Case law includes courts’ interpretations of statutes, as well as constitutional
provisions and administrative rules. Statutes often codify common law rules. For these
reasons, a judge might rely on the common law as a guide to the intent and purpose of a
statute.
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
2. After World War II, several Nazis were convicted of “crimes against humanity” by an international
court. Assuming that these convicted war criminals had not disobeyed any law of their country
and had merely been following their government’s orders, what law had they violated? Explain.
Answer: At the time of the Nuremberg trials, “crimes against humanity” were new
international crimes. The laws criminalized such acts as murder, extermination, enslavement,
deportation, and other inhumane acts committed against any civilian population. These
international laws derived their legitimacy from “natural law.”
Natural law, which is the oldest and one of the most significant schools of jurisprudence,
holds that governments and legal systems should reflect the moral and ethical ideals that are
inherent in human nature. Because natural law is universal and discoverable by reason, its
adherents believe that all other law is derived from natural law. Natural law therefore
supersedes laws created by humans (national, or “positive,” law), and in a conflict between
the two, national or positive law loses its legitimacy.
The Nuremberg defendants asserted that they had been acting in accordance with German
law. The judges dismissed these claims, reasoning that the defendants’ acts were commonly
regarded as crimes and that the accused must have known that the acts would be considered
criminal. The judges clearly believed the tenets of natural law and expected that the
defendants, too, should have been able to realize that their acts ran afoul of it. The fact that
the “positivist law” of Germany at the time required them to commit these acts is irrelevant.
Under natural law theory, the international court was justified in finding the defendants guilty
of crimes against humanity.
ANSWERS TO BUSINESS SCENARIOS AND CASE PROBLEMS
AT THE END OF THE CHAPTER
1-1. Binding Versus Persuasive Authority. A county court in Illinois is deciding a case involving an
issue that has never been addressed before in that state’s courts. The Iowa Supreme Court,
however, recently decided a case involving a very similar fact pattern. Is the Illinois court
obligated to follow the Iowa Supreme Court’s decision on the issue? If the United States Supreme
Court had decided a similar case, would that decision be binding on the Illinois court? Explain.
Answer: A decision of a court is binding on all inferior courts. Because no state’s court is
inferior to any other state’s court, no state’s court is obligated to follow the decision of another
state’s court on an issue. The decision may be persuasive, however, depending on the
nature of the case and the particular judge hearing it. A decision of the United States
Supreme Court on an issue is binding, like the decision of any court, on all inferior courts.
The United States Supreme Court is the nation’s highest court, however, and thus, its
decisions are binding on all courts, including state courts.
1-2. Sources of Law. This chapter discussed a number of sources of American law. Which source of
law takes priority in the following situations, and why?
a. A federal statute conflicts with the U.S. Constitution.
Answer: The U.S. Constitution—The U.S. Constitution is the supreme law of the
land. A law in violation of the Constitution, no matter what its source, will be
declared unconstitutional and will not be enforced.
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
b. A federal statute conflicts with a state constitutional provision.
Answer: The federal statute—Under the U.S. Constitution, when there is a
conflict between a federal law and a state law, the state law is rendered invalid.
c. A state statute conflicts with the common law of that state.
Answer: The state statute—State statutes are enacted by state legislatures.
Areas not covered by state statutory law are governed by state case law.
d. A state constitutional amendment conflicts with the U.S. Constitution.
Answer: The U.S. Constitution—State constitutions are supreme within their
respective borders unless they conflict with the U.S. Constitution, which is the
supreme law of the land.
1-3. Stare Decisis. In this chapter, we stated that the doc trine of stare decisis “became a cornerstone
of the English and American judicial systems.” What does stare decisis mean, and why has this
doctrine been so fundamental to the development of our legal tradition?
Answer: Stare decisis is a Latin phrase meaning “to stand on decided cases.” In the King’s
Courts of medieval England, it became customary for judges to refer to past decisions
(precedents) in deciding cases involving similar issues. Over time, because of application of
the doctrine of stare decisis to issues that came before the courts, a body of jurisprudence
was formed that came to be known as the “common law”—because it was common to the
English realm. Common law was applied in the American colonies prior to the War of
Independence and was adopted by the American states following the Revolution. Common
law continues to be applied today in all cases except those falling under specific state or
federal statutory law. The doctrine of stare decisis is fundamental to the development of our
legal tradition because without the acceptance and application of this doctrine, the evolution
of any objective legal concepts—and thus a legal “tradition”—would have been impossible.
1-4. Spotlight on AOL—Common Law. AOL, LLC, mistakenly made public the personal information
of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL
asked the court to dismiss the suit on the basis of a “forum-selection clause” in its member
agreement that designates Virginia courts as the place where member disputes will be tried.
Under a decision of the United States Supreme Court, a forum-selection clause is unenforceable
“if enforcement would contravene a strong public policy of the forum in which suit is brought.”
California courts have declared in other cases that the AOL clause contravenes a strong public
policy. If the court appliesthe doctrine of stare decisis, will it dismiss the suit? Explain. [Doe 1 v.
AOL LLC, 552 F.3d 1077 (9th Cir. 2009)]
Answer: The doctrine of stare decisis is the process of deciding case with reference to
former decisions, or precedents. Under this doctrine, judges are obligated to follow the
precedents established within their jurisdiction.
In this problem, the enforceability of a forum selection clause is at issue. There are two
precedents mentioned in the facts that the court can apply The United States Supreme Court
has held that a forum selection clause is unenforceable “if enforcement would contravene a
strong public policy of the forum in which suit is brought.” And California has declared in other
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
cases that the AOL clause contravenes a strong public policy. If the court applies the doctrine
of stare decisis, it will dismiss the suit.
In the actual case on which this problem is based, the court determined that the clause is not
enforceable under those precedents.
1-5. Business Case Problem with Sample Answer—Reading Citations. Assume that you want to
read the entire court opinion in the case of Dolly Investments, LLC v. MMG Sioux City, LLC, 984
N.W.2d 168, 2023 WL 115159 (2023).
Answer: The court’s opinion in this case—Dolly Investments, LLC v. MMG Sioux City, LLC,
984 N.W.2d 168, 2023 WL 115159 can be found in Volume 984 of the North Western
Reporter, page 168. Alternatively, you can go to the 2023 WESTLAW database and find case
115159. This opinion was issued by the Supreme Court of Iowa in 2023.
1-6. A Question of Ethics—The Doctrine of Precedent. Sandra White operated a travel agency. To
obtain lower airline fares for her nonmilitary clients, she booked military-rate travel by forwarding
fake military identification cards to the airlines. The government charged White with identity theft,
which requires the “use” of another’s identification. The trial court had two cases that represented
precedents.
In the first case, David Miller obtained a loan to buy land by representing that certain investors
had approved the loan when, in fact, they had not. Miller’s conviction for identity theft was
overturned because he had merely said that the investors had done something when they had
not. According to the court, this was not the “use” of another’s identification.
In the second case, Kathy Medlock, an ambulance service operator, had transported patients
when there was no medical necessity to do so. To obtain payment, Medlock had forged a
physician’s signature. The court concluded that this was “use” of another person’s identity.
[United States v. White, 846 F.3d 170 (6th Cir. 2017)]
a. Which precedent—the Miller case or the Medlock case—is similar to White’s
situation, and why?
Answer: In this problem, White operated a travel agency. To obtain low fares
for her clients, she submitted fake military identification cards to the airlines.
She was charged with the crime of identity theft, which requires the “use” of
another’s identification. In a previous case, David Miller, to obtain a loan,
represented that certain investors approved of the loan when they did not.
Miller’s conviction for identity theft was overturned on the ground that he had
not “used” the investors’ identities—he had only said that they had done
something when they had not. In a second case, Kathy Medlock, the
operator of an ambulance service, obtained payment for transporting patients
for whom there was no medical necessity to do so by forging a physician’s
signature. White’s actions most closely resemble Medlock’s forgery. White
not only told the airlines that her clients were members of the military—she
created false identification cards and sent them to the airlines.
In all of these cases, the defendants lied about their actions. Whether or not
their conduct fell within the meaning of a word within a statute, or matched
the actions of a perpetrator in another case, none of these parties can claim
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
to have acted ethically. Honesty is a part of ethical behavior in any set of
circumstances, and none these defendants were truthful about their actions.
In the actual case on which this problem is based, the court concluded that
White’s actions were most similar to Medlock’s. White was convicted of
identity theft. On appeal, the U.S. Court of Appeals for the Sixth Circuit
affirmed the conviction.
b. In the two cases cited by the court, were there any ethical differences in the
actions of the parties? Explain your answer.
Answer: No, in the two cases cited by the White court—and in the White
case—there were no ethical differences in the actions of the parties.
Almost any definition of ethics, and any set of ethical standards, includes
honesty as a component. In the White case, Sandra White lied to the airlines
that her clients were members of the military, and created false identification
cards to obtain cheaper fares. In the first case cited by the White court, David
Miller, to obtain a loan, represented that certain investors approved of the
loan when they did not. In the second case cited by the White court, Kathy
Medlock, the operator of an ambulance service, obtained payment for
transporting patients for whom there was no medical necessity to do so by
forging a physician’s signature.
In all of these cases, the defendants lied. Whether or not their conduct fell
within the meaning of a word within a statute, or matched the unlawful
actions of each other, none of these parties can claim to have acted ethically.
Honesty is a part of ethical behavior in any set of circumstances, and none
these defendants were truthful.
ANSWERS TO TIME-LIMITED GROUP ASSIGNMENT QUESTIONS
AT THE END OF THE CHAPTER
1-7. Court Opinions. Read through the subsection in this chapter entitled “Decisions and Opinions.”
a. One group will explain the difference between a concurring opinion and a majority
opinion.
Answer: A majority opinion is a written opinion outlining the views of the majority
of the judges or justices deciding a particular case. A concurring opinion is a
written opinion by a judge or justice who agrees with the conclusion reached by
the majority of the court but not necessarily with the legal reasoning that led the
conclusion.
b. Another group will outline the difference between a concurring opinion and a dissenting
opinion.
Answer: A concurring opinion will voice alternative or additional reasons as to
why the conclusion is warranted or clarify certain legal points concerning the
issue. A dissenting opinion is a written opinion in which a judge or justice, who
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 6
website, in whole or in part.
,Solution and Answer Guide: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
does not agree with the conclusion reached by the majority of the court,
expounds his or her views on the case.
c. A third group will explain why judges and justices might write concurring and dissenting
opinions, given that these opinions will not affect the outcome of the case at hand, which
has already been decided by majority vote.
Answer: Obviously, a concurring or dissenting opinion will not affect the case
involved—because it has already been decided by majority vote—but such
opinions may be used by another court later to support its position on a similar
issue.
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 7
website, in whole or in part.
, Solution and Answer Guide: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 2: Business and The Constitution
Solution and Answer Guide
CLARKSON, BUSINESS LAW, TEXT AND CASES, 2025, 9780357985533; CHAPTER 2: BUSINESS
AND THE CONSTITUTION
TABLE OF CONTENTS
Answers to Critical Thinking Questions in the Feature...........................................................1
Digital Update—Critical Thinking...............................................................................................1
Cybersecurity and the Law—Finding Solutions.........................................................................2
Answers to Questions at the Ends of the Cases......................................................................2
Case 2.1—Critical Thinking ....................................................................................................... 2
Case 2.2—Critical Thinking ....................................................................................................... 2
Case 2.3—Critical Thinking ....................................................................................................... 3
Answers to Questions in the Practice and Review Feature at the End of the Chapter ........ 3
Answer to Debate This Question in the Practice and Review Feature of the End of the
Chapter.........................................................................................................................................4
Answers to Issue Spotters at the End of the Chapter ............................................................. 5
Answers to Business Scenarios and Case Problems at the End of the Chapter..................5
Answers to Time-Limited Group Assignment Questions at the End of the Chapter..........12
ANSWERS TO CRITICAL THINKING QUESTIONS IN THE
FEATURE
DIGITAL UPDATE—CRITICAL THINKING
1. The Court said in its opinion that “specific criminal acts are not protected speech even if speech is
the means for their commission.” What use of the social media and the Internet might therefore
still be unlawful (and not protected free speech) for registered sex offenders?
Answer
If a registered sex offender used the Internet specifically to contact a minor, that type of
speech would be prohibited. Additionally, a registered sex offender’s use of a website
specifically to obtain information about a minor would not be protected free speech.
CYBERSECURITY AND THE LAW—FINDING SOLUTIONS
1. Tim Cook, Apple’s chief operating officer, has suggested that the United States Congress should
pass a law limiting the ability of Apple and other tech countries to keep consumer data private. Why
would a business executive make such a request?
© 2025 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
Cases 16th Edition by Kenneth W. Clarkson
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
Solution and Answer Guide
CLARKSON, BUSINESS LAW, TEXT AND CASES, 2025, 9780357985533; CHAPTER 1: LAW AND
LEGAL REASONING
TABLE OF CONTENTS
Answer to Critical Thinking Question in the Feature...............................................................1
Ethics Today—Critical Thinking.................................................................................................1
Answers to Questions in the Practice and Review Feature....................................................1
Answer to Debate This Question in the Practice and Review Feature of the End of the
Chapter.........................................................................................................................................2
Answers to Issue Spotters at the End of the Chapter ............................................................. 2
Answers to Business Scenarios and Case Problems at the End of the Chapter..................3
Answers to Time-Limited Group Assignment Questions at the End of the Chapter............7
ANSWER TO CRITICAL THINKING QUESTION IN THE FEATURE
ETHICS TODAY—CRITICAL THINKING
1. Should convicted criminals in Louisiana and Oregon be able to obtain retrials if they have been
convicted in a 10-2 vote of a jury? Why or why not?
Answer: Those who support the Supreme Court decision in Ramos would argue that yes,
any person convicted in Louisiana or Oregon by a 10-5 jury vote should have the ability to
appeal. Afterall, if the non-unanimous jury system in those two states was deemed
unconstitutional in 2020, it was clearly unconstitutional in all prior years.
ANSWERS TO QUESTIONS IN THE PRACTICE AND REVIEW
FEATURE AT THE END OF THE CHAPTER
Suppose that the California legislature passes a law that severely restricts carbon dioxide emissions from
automobiles in that state. A group of automobile manufacturers files suit against the state of California to
prevent the enforcement of the law. The automakers claim that a federal law already sets fuel economy
standards nationwide and that fuel economy standards are essentially the same as carbon dioxide
emission standards. According to the automobile manufacturers, it is unfair to allow California to impose
more stringent regulations than those set by the federal law. Using the information presented in the
chapter, answer the following questions.
1. Who are the parties (the plaintiffs and the defendant) in this lawsuit?
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
Answer: The automobile manufacturers are the plaintiffs, and the state of California is the
defendant.
2. Are the plaintiffs seeking a legal remedy or an equitable remedy?
Answer: The plaintiffs are seeking an injunction, an equitable remedy, to prevent the state of
California from enforcing its statute restricting carbon dioxide emissions.
3. What is the primary source of the law that is at issue here?
Answer: This case involves a law passed by the California legislature and a federal statute;
thus the primary source of law is statutory law.
4. Where would you look to find the relevant California and federal laws?
Answer: Federal statutes are found in the United States Code, and California statutes are
published in the California Code. You would look in these sources to find the relevant state
and federal statutes.
ANSWER TO DEBATE THIS QUESTION IN THE PRACTICE AND
REVIEW FEATURE OF THE END OF THE CHAPTER
1. Under the doctrine of stare decisis, courts are obligated to follow the precedents established in
their jurisdictions unless there is a compelling reason not to. Should U.S. courts continue to
adhere to this common law principle, given that our government now regulates so many areas by
statute?
Answer: Both England and the U.S. legal systems were constructed on the common law
system. The doctrine of stare decisis has always been a major part of this system—courts
should follow precedents when they are clearly established, excepted under compelling
reasons. Even though more common law is being turned into statutory law, the doctrine of
stare decisis is still valid. After all, even statutes have to be interpreted by courts. What better
basis for judges to render their decisions than by basing them on precedents related to the
subject at hand?
In contrast, some students may argue that the doctrine of stare decisis is passé. There is
certainly less common law governing, say, environmental law than there was 100 years ago.
Given that federal and state governments increasingly are regulating more aspects of
commercial transactions between merchants and consumers, perhaps the courts should
simply stick to statutory language when disputes arise.
ANSWERS TO ISSUE SPOTTERS AT THE END OF THE CHAPTER
1. Under what circumstances might a judge rely on case law to determine the intent and purpose of
a statute?
Answer: Case law includes courts’ interpretations of statutes, as well as constitutional
provisions and administrative rules. Statutes often codify common law rules. For these
reasons, a judge might rely on the common law as a guide to the intent and purpose of a
statute.
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
2. After World War II, several Nazis were convicted of “crimes against humanity” by an international
court. Assuming that these convicted war criminals had not disobeyed any law of their country
and had merely been following their government’s orders, what law had they violated? Explain.
Answer: At the time of the Nuremberg trials, “crimes against humanity” were new
international crimes. The laws criminalized such acts as murder, extermination, enslavement,
deportation, and other inhumane acts committed against any civilian population. These
international laws derived their legitimacy from “natural law.”
Natural law, which is the oldest and one of the most significant schools of jurisprudence,
holds that governments and legal systems should reflect the moral and ethical ideals that are
inherent in human nature. Because natural law is universal and discoverable by reason, its
adherents believe that all other law is derived from natural law. Natural law therefore
supersedes laws created by humans (national, or “positive,” law), and in a conflict between
the two, national or positive law loses its legitimacy.
The Nuremberg defendants asserted that they had been acting in accordance with German
law. The judges dismissed these claims, reasoning that the defendants’ acts were commonly
regarded as crimes and that the accused must have known that the acts would be considered
criminal. The judges clearly believed the tenets of natural law and expected that the
defendants, too, should have been able to realize that their acts ran afoul of it. The fact that
the “positivist law” of Germany at the time required them to commit these acts is irrelevant.
Under natural law theory, the international court was justified in finding the defendants guilty
of crimes against humanity.
ANSWERS TO BUSINESS SCENARIOS AND CASE PROBLEMS
AT THE END OF THE CHAPTER
1-1. Binding Versus Persuasive Authority. A county court in Illinois is deciding a case involving an
issue that has never been addressed before in that state’s courts. The Iowa Supreme Court,
however, recently decided a case involving a very similar fact pattern. Is the Illinois court
obligated to follow the Iowa Supreme Court’s decision on the issue? If the United States Supreme
Court had decided a similar case, would that decision be binding on the Illinois court? Explain.
Answer: A decision of a court is binding on all inferior courts. Because no state’s court is
inferior to any other state’s court, no state’s court is obligated to follow the decision of another
state’s court on an issue. The decision may be persuasive, however, depending on the
nature of the case and the particular judge hearing it. A decision of the United States
Supreme Court on an issue is binding, like the decision of any court, on all inferior courts.
The United States Supreme Court is the nation’s highest court, however, and thus, its
decisions are binding on all courts, including state courts.
1-2. Sources of Law. This chapter discussed a number of sources of American law. Which source of
law takes priority in the following situations, and why?
a. A federal statute conflicts with the U.S. Constitution.
Answer: The U.S. Constitution—The U.S. Constitution is the supreme law of the
land. A law in violation of the Constitution, no matter what its source, will be
declared unconstitutional and will not be enforced.
© 2025 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: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
b. A federal statute conflicts with a state constitutional provision.
Answer: The federal statute—Under the U.S. Constitution, when there is a
conflict between a federal law and a state law, the state law is rendered invalid.
c. A state statute conflicts with the common law of that state.
Answer: The state statute—State statutes are enacted by state legislatures.
Areas not covered by state statutory law are governed by state case law.
d. A state constitutional amendment conflicts with the U.S. Constitution.
Answer: The U.S. Constitution—State constitutions are supreme within their
respective borders unless they conflict with the U.S. Constitution, which is the
supreme law of the land.
1-3. Stare Decisis. In this chapter, we stated that the doc trine of stare decisis “became a cornerstone
of the English and American judicial systems.” What does stare decisis mean, and why has this
doctrine been so fundamental to the development of our legal tradition?
Answer: Stare decisis is a Latin phrase meaning “to stand on decided cases.” In the King’s
Courts of medieval England, it became customary for judges to refer to past decisions
(precedents) in deciding cases involving similar issues. Over time, because of application of
the doctrine of stare decisis to issues that came before the courts, a body of jurisprudence
was formed that came to be known as the “common law”—because it was common to the
English realm. Common law was applied in the American colonies prior to the War of
Independence and was adopted by the American states following the Revolution. Common
law continues to be applied today in all cases except those falling under specific state or
federal statutory law. The doctrine of stare decisis is fundamental to the development of our
legal tradition because without the acceptance and application of this doctrine, the evolution
of any objective legal concepts—and thus a legal “tradition”—would have been impossible.
1-4. Spotlight on AOL—Common Law. AOL, LLC, mistakenly made public the personal information
of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL
asked the court to dismiss the suit on the basis of a “forum-selection clause” in its member
agreement that designates Virginia courts as the place where member disputes will be tried.
Under a decision of the United States Supreme Court, a forum-selection clause is unenforceable
“if enforcement would contravene a strong public policy of the forum in which suit is brought.”
California courts have declared in other cases that the AOL clause contravenes a strong public
policy. If the court appliesthe doctrine of stare decisis, will it dismiss the suit? Explain. [Doe 1 v.
AOL LLC, 552 F.3d 1077 (9th Cir. 2009)]
Answer: The doctrine of stare decisis is the process of deciding case with reference to
former decisions, or precedents. Under this doctrine, judges are obligated to follow the
precedents established within their jurisdiction.
In this problem, the enforceability of a forum selection clause is at issue. There are two
precedents mentioned in the facts that the court can apply The United States Supreme Court
has held that a forum selection clause is unenforceable “if enforcement would contravene a
strong public policy of the forum in which suit is brought.” And California has declared in other
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cases that the AOL clause contravenes a strong public policy. If the court applies the doctrine
of stare decisis, it will dismiss the suit.
In the actual case on which this problem is based, the court determined that the clause is not
enforceable under those precedents.
1-5. Business Case Problem with Sample Answer—Reading Citations. Assume that you want to
read the entire court opinion in the case of Dolly Investments, LLC v. MMG Sioux City, LLC, 984
N.W.2d 168, 2023 WL 115159 (2023).
Answer: The court’s opinion in this case—Dolly Investments, LLC v. MMG Sioux City, LLC,
984 N.W.2d 168, 2023 WL 115159 can be found in Volume 984 of the North Western
Reporter, page 168. Alternatively, you can go to the 2023 WESTLAW database and find case
115159. This opinion was issued by the Supreme Court of Iowa in 2023.
1-6. A Question of Ethics—The Doctrine of Precedent. Sandra White operated a travel agency. To
obtain lower airline fares for her nonmilitary clients, she booked military-rate travel by forwarding
fake military identification cards to the airlines. The government charged White with identity theft,
which requires the “use” of another’s identification. The trial court had two cases that represented
precedents.
In the first case, David Miller obtained a loan to buy land by representing that certain investors
had approved the loan when, in fact, they had not. Miller’s conviction for identity theft was
overturned because he had merely said that the investors had done something when they had
not. According to the court, this was not the “use” of another’s identification.
In the second case, Kathy Medlock, an ambulance service operator, had transported patients
when there was no medical necessity to do so. To obtain payment, Medlock had forged a
physician’s signature. The court concluded that this was “use” of another person’s identity.
[United States v. White, 846 F.3d 170 (6th Cir. 2017)]
a. Which precedent—the Miller case or the Medlock case—is similar to White’s
situation, and why?
Answer: In this problem, White operated a travel agency. To obtain low fares
for her clients, she submitted fake military identification cards to the airlines.
She was charged with the crime of identity theft, which requires the “use” of
another’s identification. In a previous case, David Miller, to obtain a loan,
represented that certain investors approved of the loan when they did not.
Miller’s conviction for identity theft was overturned on the ground that he had
not “used” the investors’ identities—he had only said that they had done
something when they had not. In a second case, Kathy Medlock, the
operator of an ambulance service, obtained payment for transporting patients
for whom there was no medical necessity to do so by forging a physician’s
signature. White’s actions most closely resemble Medlock’s forgery. White
not only told the airlines that her clients were members of the military—she
created false identification cards and sent them to the airlines.
In all of these cases, the defendants lied about their actions. Whether or not
their conduct fell within the meaning of a word within a statute, or matched
the actions of a perpetrator in another case, none of these parties can claim
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to have acted ethically. Honesty is a part of ethical behavior in any set of
circumstances, and none these defendants were truthful about their actions.
In the actual case on which this problem is based, the court concluded that
White’s actions were most similar to Medlock’s. White was convicted of
identity theft. On appeal, the U.S. Court of Appeals for the Sixth Circuit
affirmed the conviction.
b. In the two cases cited by the court, were there any ethical differences in the
actions of the parties? Explain your answer.
Answer: No, in the two cases cited by the White court—and in the White
case—there were no ethical differences in the actions of the parties.
Almost any definition of ethics, and any set of ethical standards, includes
honesty as a component. In the White case, Sandra White lied to the airlines
that her clients were members of the military, and created false identification
cards to obtain cheaper fares. In the first case cited by the White court, David
Miller, to obtain a loan, represented that certain investors approved of the
loan when they did not. In the second case cited by the White court, Kathy
Medlock, the operator of an ambulance service, obtained payment for
transporting patients for whom there was no medical necessity to do so by
forging a physician’s signature.
In all of these cases, the defendants lied. Whether or not their conduct fell
within the meaning of a word within a statute, or matched the unlawful
actions of each other, none of these parties can claim to have acted ethically.
Honesty is a part of ethical behavior in any set of circumstances, and none
these defendants were truthful.
ANSWERS TO TIME-LIMITED GROUP ASSIGNMENT QUESTIONS
AT THE END OF THE CHAPTER
1-7. Court Opinions. Read through the subsection in this chapter entitled “Decisions and Opinions.”
a. One group will explain the difference between a concurring opinion and a majority
opinion.
Answer: A majority opinion is a written opinion outlining the views of the majority
of the judges or justices deciding a particular case. A concurring opinion is a
written opinion by a judge or justice who agrees with the conclusion reached by
the majority of the court but not necessarily with the legal reasoning that led the
conclusion.
b. Another group will outline the difference between a concurring opinion and a dissenting
opinion.
Answer: A concurring opinion will voice alternative or additional reasons as to
why the conclusion is warranted or clarify certain legal points concerning the
issue. A dissenting opinion is a written opinion in which a judge or justice, who
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website, in whole or in part.
,Solution and Answer Guide: Clarkson, Business Law, Text and Cases, 2025, 9780357985533; Chapter 1: Law and Legal Reasoning
does not agree with the conclusion reached by the majority of the court,
expounds his or her views on the case.
c. A third group will explain why judges and justices might write concurring and dissenting
opinions, given that these opinions will not affect the outcome of the case at hand, which
has already been decided by majority vote.
Answer: Obviously, a concurring or dissenting opinion will not affect the case
involved—because it has already been decided by majority vote—but such
opinions may be used by another court later to support its position on a similar
issue.
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Solution and Answer Guide
CLARKSON, BUSINESS LAW, TEXT AND CASES, 2025, 9780357985533; CHAPTER 2: BUSINESS
AND THE CONSTITUTION
TABLE OF CONTENTS
Answers to Critical Thinking Questions in the Feature...........................................................1
Digital Update—Critical Thinking...............................................................................................1
Cybersecurity and the Law—Finding Solutions.........................................................................2
Answers to Questions at the Ends of the Cases......................................................................2
Case 2.1—Critical Thinking ....................................................................................................... 2
Case 2.2—Critical Thinking ....................................................................................................... 2
Case 2.3—Critical Thinking ....................................................................................................... 3
Answers to Questions in the Practice and Review Feature at the End of the Chapter ........ 3
Answer to Debate This Question in the Practice and Review Feature of the End of the
Chapter.........................................................................................................................................4
Answers to Issue Spotters at the End of the Chapter ............................................................. 5
Answers to Business Scenarios and Case Problems at the End of the Chapter..................5
Answers to Time-Limited Group Assignment Questions at the End of the Chapter..........12
ANSWERS TO CRITICAL THINKING QUESTIONS IN THE
FEATURE
DIGITAL UPDATE—CRITICAL THINKING
1. The Court said in its opinion that “specific criminal acts are not protected speech even if speech is
the means for their commission.” What use of the social media and the Internet might therefore
still be unlawful (and not protected free speech) for registered sex offenders?
Answer
If a registered sex offender used the Internet specifically to contact a minor, that type of
speech would be prohibited. Additionally, a registered sex offender’s use of a website
specifically to obtain information about a minor would not be protected free speech.
CYBERSECURITY AND THE LAW—FINDING SOLUTIONS
1. Tim Cook, Apple’s chief operating officer, has suggested that the United States Congress should
pass a law limiting the ability of Apple and other tech countries to keep consumer data private. Why
would a business executive make such a request?
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