SOLUTION MANUAL FOR . .
The Legal Environment of Business, 14th Edition by Roger E. Meiners
. . . . . . . . . .
Chapter.1-22
Chapter.1
Table of Contents
. .
Answer.to.Discussion.Question .................................................................................................... 1
Answers.to.Case.Questions ......................................................................................................... 1
Answers.to.Ethics.and.Social.Questions ....................................................................................... 3
Answer to Discussion Question
. . .
Should.the.common.law.maxim.“Ignorance.of.the.law.is.no.excuse”.apply.to.an.immigrant.who.speaks.little.Eng
lish.and.was.not.educated.in.the.United.States?.How.about.for.a.tourist.who.does.not.speak.English?.Everyon
e.knows.criminal.acts.are.prohibited,.but.what.about.subtler.rules.that.differ.across.countries.and.so.may.be.mi
sunderstood.by.foreigners?
Answer:.It.is.generally.true.that.ignorance.of.the.law.is.no.excuse..Citizens.are.deemed.to.have.constructive.k
nowledge.of.the.law..Yet,.as.well.known.as.this.rule.is,.it.is.surprising.how.often.it.is.proffered.as.an.excus
e..(A.Westlaw.search.cases.finds.hundreds.of.examples)..Examples.include:.Deluco.v..Dezi.(Conn..Sup
er).(lack.of.knowledge.regarding.the.state‘s.usury.laws.is.no.excuse.for.the.inclusion.of.an.illegal.interest.r
ate.in.a.sales.contract);.and.Plumlee.v..Paddock.(ignorance.of.the.fact.that.the.subject.matter.of.the.contr
act.was.illegal.was.not.excuse)..The.courts.have.provided.a.small.exception.to.the.rule.when.it.comes.to.p
eople.in.lack.of.English.language.skills..Consider.Flanery.v..Kuska,.(defendant.did.not.speak.English.wa
s.advised.by.a.friend.that.an.answer.to.a.complaint.was.not.required);.Ramon.v..Dept..of.Transportation,.(
no.English.and.an.inability.to.understand.the.law.required.for.an.excuse);.Yurechko.v..County.of.Alleghe
ny,.(Ignorance.and.with.the.fact.that.the.municipality.suffered.no.hardship.in.late.lawsuit.filing.was.an.exc
use).
Answers to Case Questions. . .
1. Facts.from.an.English.judge’s.decision.in.1884:.“The.crew.of.an.English.yacht ................ were.cast.away.in
a.storm.on.the.high.seas.......and.were.compelled.to.put.into.an.open.boat. ................They.had.no.supply
of.water.and.no.supply.of.food........That.on.the.eighteenth.day.......they ................ suggested.that.one
should.be.sacrificed.to.save.the.rest........That.next.day.......they.......went.to.the.boy ................... put.a.knife
into.his.throat.and.killed.him.......the.three.men.fed.upon.the.body ............... of.the.boy.for.four.days;.[then]
the.boat.was.picked.up.by.a.passing.vessel,.and.[they].were.rescued........and.committed.for.trial........if.the.m
en.had.not.fed.upon.the.body.of.the.boy.they.would.probably.not.have.survived.to.be.so.picked.up.and.resc
ued,.but.would ..................................... have.died.of.famine..The.boy,.being.in.a.much.weaker
condition,.was.likely.to.have.died.before.them ............The.real.question.in.this.case.[is].whether.killing
under.the.conditions.set.forth ......... be.or.be.not.murder.”.Do.you.consider.the.acts.to.be.immoral?
[Regina.v..Dudley.and.Stephens,.14.Queens.Bench.Division.273.(1884)]
Answer:.This.points.out.that.the.legal.system.has.limits..Its.acceptability.is.dictated.by.legal.culture--
which.determines.whether.law.will.be.enforced,.obeyed,.avoided,.or.abused..It.is.limited.by.the.informal.ru
les.of.the.society--
its.customs.and.values..One.limit.is.the.extent.to.which.society.will.allow.the.formal.rules.to.be.imposed.wh
en.a.crime.is.committed.in.odd.circumstances..Here.there.was.an.intentional.murder..Does.the.motive.for.t
he.murder,.the.effort.to.save.several.lives.by.sacrificing.one
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website,.in.whole.or.in.part.
, life,.make.it.a.crime.that.should.be.punished?.Not.all.crimes.are.treated.the.same..It.also.raises.questions.
about.the.desirability.of.not.giving.judges.flexibility.in.sentencing.
There.was.a.precedent.for.a.light.sentence.in.this.case.in.U.S..law:.U.S..v..Holmes,.20.F..Cas..360.(No..15
383).(C.C.E.D..Pa..1842)..The.case.involved.a.sinking.ocean.liner..Several.passengers.made.it.to.the.onl
y.lifeboat,.which.was.far.too.overcrowded..The.captain.decided.to.save.the.women.and.children.and.thre
w.several.men.overboard..The.lifeboat.was.rescued..The.grand.jury.refused.to. indict.the.captain.from.mu
rder,.only.for.manslaughter..He.got.a.six.month.sentence.
The.British.judge.in.the.case.here.imposed.the.death.penalty.upon.the.person.who.survived..The.judg
e.found.it.difficult.to.rule.that.every.man.on.board.had.the.right.to.make.law.by.his.own.hand..The.Crow
n.reduced.the.sentence.to.six.months.
2. Smoking.is.a.serious.health.hazard..Cigarettes.are.legal..Should.cigarette.manufacturers.be.liable.for.th
e.serious.illnesses.and.untimely.deaths.caused.by.their.unavoidably.dangerous.products,.even.though.th
ey.post.a.warning.on.the.package.and.consumers.voluntarily.assume.the.health.risks.by.smoking?.[Cipol
lone.v..Liggett.Group,.Inc.,.505.U.S..504.(1992)]
Answer:.The.general.rule.that.exists.now.is.that.since.the.government.has.ordered.the.posting.of.warning.label
s.on.cigarettes,.and.since.the.dangers.of.smoking.are.well.known,.consumers.have.been.warned.and.are.
not.due.compensation.if.they.kill.themselves.by.smoking..The.Cippoline.case,.since.reviewed.by.the.Sup
reme.Court,.appears.to.be.of.limited.impact.since.the.victim.was.adjudged.to.have.become.addicted.to.ci
garettes.before.the.warning.label.was.ordered.in.1964..If.cigarette.makers.were.held.responsible.for.all.h
ealth.problems.associated.with.cigarettes,.then,.like.alcohol.and.other.dangerous.products,.the.damage
s.would.likely.be.so.high.it.would.effectively.ban.the.products..Presumably,.in.a.free.society.if.adults.are.cl
early.informed.of.the.risks.of.products.that.cannot.be.made.safe,.they.accept.the.risk..Tobacco.and.alcoh
ol.producers.cannot.take.the.dangers.out.of.the.products.except.at.the.margin.by.encouraging.responsibl
e.drinking.and.the.like..Are.drugs.like.cocaine.different?
3. Two.eight-year-old.boys.were.seriously.injured.when.riding.Honda.mini-
trail.bikes..The.boys.were.riding.on.public.streets,.ran.a.stop.sign,.and.were.hit.by.a.truck..The.bikes.had.cl
ear.warning.labels.on.the.front.stating.they.were.only.for.off-
road.use..The.manual.stated.the.bikes.were.not.to.be.used.on.public.streets..The.parents.sued.Honda..Th
e.supreme.court.of.Washington.said.one.basic.issue.existed:.“Is.a.manufacturer.liable.when.children.are.i
njured.while.riding.one.of.its.mini-
trail.bikes.on.a.public.road.in.violation.of.manufacturer.and.parental.warnings?”.Is.it.unethical.to.make.pro
ducts.like.mini-
trail.bikes.children.will.use.when.we.know.accidents.like.this.will.happen?.[Baughn.v..Honda.Motor.Co.,.7
27.P.2d.655.Sup..Ct,.Wash.,.(1986)]
Answer:.The.court.found.no.liability.for.the.manufacturers..There.was.no.defect;.the.product.was.safe.for.inten
ded.use..Safety.instructions.were.clear;.the.parents.let.the.boys.ride.the.bikes..Anything.can.be.dangerou
s--
baseballs.are.dangerous.when.they.hit.the.head,.swings.are.dangerous.when.kids.jump.out.of.them;.ther
e.is.only.so.much.that.can.be.done.to.make.the.government.the.―national.nanny‖.as.the.Washington.Post.
once.said.about.excessive.consumer.protection..Parents.must.accept.a.high.degree.of.responsible.for.th
eir.own.children.
4. Johnson.Controls.adopted.a.“fetal.protection.policy”.that.women.of.childbearing.age.could.not.work.in.the
.battery-
making.division.of.the.company..Exposure.to.lead.in.the.battery.operation.could.cause.harm.to.unborn.ba
bies..The.company.was.concerned.about.possible.legal.liability.for.injury.suffered.by.babies.of.mothers.w
ho.had.worked.in.the.battery.division..The.Supreme.Court.held.the.company.policy.was.illegal..It.was.an.“
excuse.for.denying.women.equal.employment.opportunities.”.Is.the.Court.forcing.the.company.to.be.une
thical.by.allowing.pregnant.women.who.ignore.the.warnings.to.expose.their.babies.to.the.lead?.[United.A
uto.Workers.v..Johnson.Controls,.499.U.S..187.(1991)]
Answer:.The.Court.held.it.a.form.of.sex.discrimination.to.prevent.women.of.child-
bearing.age.from.holding.the.more.dangerous.jobs..The.company.argued.that.it.did.this.to.protect.itself.fr
om.possible.liability.in.case.of.damage.to.babies.and.that.the.decision.was.ethical..The.replacements.for
.these.workers.were.often.men.or.more.senior.women,.who.tended.to.be.higher.income.workers,.so.this
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website,.in.whole.or.in.part.
, was.not.a.current.cost-
saving.move..Note.that.a.2002.ruling.related.to.the.ADA.significantly.restricted.this.earlier.case.
5. McGrory.worked.for.Applied.Signal.Technology.in.a.supervisory.position..He.was.accused.of.violating.th
e.company’s.policies.on.sexual.harassment..An.internal.investigation.determined.he.did.not.violate.the.p
olicy.but.that.he.was.evasive.and.violated.the.company’s.personal.ethics.code..He.was.fired.and.sued.for
.wrongful.termination,.contending.that. if.he.did.not.violate .sexual.harassment.rules.he.should.not.have.b
een.subject.to.termination..Do.standards.of.law.and.ethics.need.to.be.the.same.for.an.employer?.[McGror
y.v..Applied.Signal.Technology,.152.Cal.Rptr.3d.154.(2013)]
Answer:.The.appeals.court.affirmed.that.the.employer.had.the.right.to.terminate.the.employee.for.failure.to.be.f
ully.cooperative.in.the.investigation.of.the.complaint.of.sexual.harassment.that.had.been.filed.against.him
..While.he.was.not.found.to.have.violated.the.harassment.policy,.he.was.evasive.and.uncooperative,.whic
h.violated.the.company‘s.code.of.ethics,.which.was.a.justification.for.termination.
6. Baker.works.as.a.document.clerk.for.the.Minnesota.Supreme.Court..After.she.had.worked.there.for.13.ye
ars.the.Minnesota.judicial.branch.adopted.a.policy.concerning.proper.Internet.use.and.stated.that.empl
oyees.must.adhere.to.the.highest.ethical.standards.when.using.the.Internet..Eleven.years.later,.she.was
.fired.for.excessive.surfing.on.the.Internet.during.working. hours..She.contended.she.did.not.know.about.
the.policy..Is.that.an.adequate.defense.for.her?.[Baker.v..Minnesota.Supreme.Court,.2016.WL.102513.(
2016)]
Answer:.The.Minnesota.high.court.held.that.Baker‘s.termination.was.proper..She.violated.standards.expected
.of.employees..She.had.been.warned.about.excessive.personal.Internet.use.during.work.time,.including.b
uying.and.selling.goods.for.a.little.business.she.ran..The.claim.that.she.did.not.know.about.the.ethics.of.Int
ernet.use.was.not.credible.as.the.policy.was.posted.for.all.employees.who.received.e-
mails.about.any.changes.to.the.policy..The.fact.that.the.term.―ethical‖.was.used.in.the.policy.does.not.likel
y.impact.this.decision.
Answers to Ethics and Social Questions
. . . . .
1. The.federal.tax.code.is.riddled.with.special-
interest.loopholes..Most.of.these.exist.because.firms.and.trade.associations.lobby.Congress.and.provide.
campaign.support.to.members.of.Congress.to.gain.special.favors.to.individual.firms.or.industries..Is.it.ethi
cal.for.firms.to.seek.special.privilege?
Answer:.The.nature.of.our.political.system.forces.firms.to.participate.in.the.political.process..Those.that.fail.to.
do.so,.if.they.are.of.any.size,.are.more.likely.to.be.subject.to.political.attack..In.a.sense,.firms
―buy‖.protection.by.keeping.a.flow.of.contributions.going,.especially.to.incumbent.members.of.Congress..
Competition.also.means.that.if.a.firm.does.not.lobby.for.special.privilege,.then.it.may.suffer.if.competitors.
achieve.such.status.in.the.tax.code.or.some.area.of.regulation..Many.business.leaders.do.not.much.care.f
or.the.Washington,.D.C..operations.their.firms.support.but.know.that.it.is.a.part.of.the.modern.legal.environ
ment.of.business.
2. “Fair.trade”.goods.have.become.popular,.as.some.people.are.willing.to.pay.more.to.know.the.goods.come
.from.workers.paid.a.decent. price.for.their.efforts..However,.some.retailers.who.sell.fair.trade.goods.mark.
them.up.substantially.more.than.nonfair.trade.goods..One.study.showed.that.coffee.growers.got.an.aver
age.of.44.cents.a.pound.more.for.fair.trade.coffee,.but.the.coffee.at.retail.was.marked.up.an.additional.$3.
46.per.pound..At.one.supermarket.chain,.fair.trade.bananas.that.cost.an.extra.3.6.cents.per.pound.were.
marked.up.four.times.the.price.of.non-
fair.trade.bananas..Fair.trade.goods.are.claimed.to.be.a.form.of.social.responsibility..Is.that.true.if.it.just.m
eans.higher.profit.margins?
Answer:.The.high.mark.up.suppresses.the.demand.for.fair.trade.goods,.thereby.reducing.the.market.for.fair.tra
de.goods..If.the.retail.prices.reflected.the.actual.additional.cost,.not.the.profit.maximizing.price.to.the.retail
er.that.exploits.the.goodwill.from.―fair.trade,‖.then.it.is.hard.to.argue.that.the.company.is.being.particularly.
socially.responsible.
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website,.in.whole.or.in.part.
, 3. A.chemical.company.located.a.new.plant.in.a.depressed.area.with.high.unemployment.in.West.Virginia..
It.built.a.state-of-the-
art.plant.that.had.the.latest.pollution.control.technology.meeting.all.EPA.requirements..It.created.2,500.j
obs..The.company.was.attacked.for.polluting.a.previously.pristine.area..Had.the.plant.been.built.in.an.ind
ustrial.area,.such.as.the.coast.near.Houston,.no.one.would.have.been.likely.to.complain..Was.the.compa
ny.socially.irresponsible.for.building.the.plant.in.such.an.area?
Answer:.The.company.was.in.a.no-win.situation..It.was.attacked.by.environmentalists.and.some.locals.for
―destroying‖.the.environment,.even.though.the.pollution.was.acceptable..When.the.company.later.stat
ed.it.would.close.the.plant,.which.as.not.profitable,.it.came.under.fire.for.destroying.jobs..It.eventually.u
pgraded.the.plant.and.kept.it.open,.but.it.was.never.a.profitable.operation..The.plant.should.probably.n
ot.have.been.built.in.such.a.remote.location,.as.that.made.it.a.target..Built.in.a.higher-
density.area.and.there.would.have.been.fewer.issues.as.the.environmental.impact.on.an.existing.indu
strial.area.would.have.been.small..Corporate.social.responsibility.can.involve.difficult.tradeoffs.that.do
.not.always.allow.a.win-win.result.
4. Discussion.of.ethics.issues.focuses.on.company.examples..What.personal.ethics.matter?.Surveys.indi
cate.that.many.students.have.cheated.in.classes.one.way.or.another,.pad.their.resumes.when.seeking.
jobs,.and.have.improperly.downloaded.copyrighted.music..Does.ethics.“begin.at.home”?
Answer:.If.ethics.is.to.be.theoretical.or.applied.only.in.formal.situations,.then.it.means.little.in.practice.
SolutionandAnswerGuide . . .
Meiners,.The.Legal.Environment.of.Business,.14e,.9780357451724;.Chapter.2:.The.Court.System
Table of Contents
. .
Answer.to.Discussion.Question ..................................................................................................... 4
Answers.to.Case.Questions .......................................................................................................... 5
Answer.to.Ethics.and.Social.Question ............................................................................................ 7
Answer to Discussion Question
. . .
Judges.in.many.nations.are.trained.for.their.offices.in.law.school..They.are.hired.into.the.judicial.system.and.wo
rk.their.way.up.through.that.system..In.the.United.States,.there.is.no.special.training.to.be.a.judge;.it.is.an.honor.
bestowed,.usually.on.senior.attorneys,.or.it.is.an.office.one.runs.for.in.some.states..What.advantages.might.the.
other.system.have.over.the.U.S..method?
Answer:.Judges.in.Europe.and.Japan.play.a.quasi-
prosecutor.role,.so.they.are.quite.different.than.U.S..judges..The.instruct.attorneys.on.what.evidence.the
y.want.to.see..So.in.that.sense,.their.roles.are.quite.different..Further,.judges.in.most.countries.do.not.hav
e.as.much.independence.as.do.U.S..judges..Not.relying.on.the.legislature.or.executive.to.retain.a.job,.and
.having.the.power.to.strike. down.statutes.for.violating.constitutional.rights,.is.important.in.the.integrity.of.t
he.U.S..system.and.its.structure..That.does.not.address.the.issue.of.competence,.but.I.have.never.seen.a.
study.that.tries.to.address.that.issue.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 4
website,.in.whole.or.in.part.
The Legal Environment of Business, 14th Edition by Roger E. Meiners
. . . . . . . . . .
Chapter.1-22
Chapter.1
Table of Contents
. .
Answer.to.Discussion.Question .................................................................................................... 1
Answers.to.Case.Questions ......................................................................................................... 1
Answers.to.Ethics.and.Social.Questions ....................................................................................... 3
Answer to Discussion Question
. . .
Should.the.common.law.maxim.“Ignorance.of.the.law.is.no.excuse”.apply.to.an.immigrant.who.speaks.little.Eng
lish.and.was.not.educated.in.the.United.States?.How.about.for.a.tourist.who.does.not.speak.English?.Everyon
e.knows.criminal.acts.are.prohibited,.but.what.about.subtler.rules.that.differ.across.countries.and.so.may.be.mi
sunderstood.by.foreigners?
Answer:.It.is.generally.true.that.ignorance.of.the.law.is.no.excuse..Citizens.are.deemed.to.have.constructive.k
nowledge.of.the.law..Yet,.as.well.known.as.this.rule.is,.it.is.surprising.how.often.it.is.proffered.as.an.excus
e..(A.Westlaw.search.cases.finds.hundreds.of.examples)..Examples.include:.Deluco.v..Dezi.(Conn..Sup
er).(lack.of.knowledge.regarding.the.state‘s.usury.laws.is.no.excuse.for.the.inclusion.of.an.illegal.interest.r
ate.in.a.sales.contract);.and.Plumlee.v..Paddock.(ignorance.of.the.fact.that.the.subject.matter.of.the.contr
act.was.illegal.was.not.excuse)..The.courts.have.provided.a.small.exception.to.the.rule.when.it.comes.to.p
eople.in.lack.of.English.language.skills..Consider.Flanery.v..Kuska,.(defendant.did.not.speak.English.wa
s.advised.by.a.friend.that.an.answer.to.a.complaint.was.not.required);.Ramon.v..Dept..of.Transportation,.(
no.English.and.an.inability.to.understand.the.law.required.for.an.excuse);.Yurechko.v..County.of.Alleghe
ny,.(Ignorance.and.with.the.fact.that.the.municipality.suffered.no.hardship.in.late.lawsuit.filing.was.an.exc
use).
Answers to Case Questions. . .
1. Facts.from.an.English.judge’s.decision.in.1884:.“The.crew.of.an.English.yacht ................ were.cast.away.in
a.storm.on.the.high.seas.......and.were.compelled.to.put.into.an.open.boat. ................They.had.no.supply
of.water.and.no.supply.of.food........That.on.the.eighteenth.day.......they ................ suggested.that.one
should.be.sacrificed.to.save.the.rest........That.next.day.......they.......went.to.the.boy ................... put.a.knife
into.his.throat.and.killed.him.......the.three.men.fed.upon.the.body ............... of.the.boy.for.four.days;.[then]
the.boat.was.picked.up.by.a.passing.vessel,.and.[they].were.rescued........and.committed.for.trial........if.the.m
en.had.not.fed.upon.the.body.of.the.boy.they.would.probably.not.have.survived.to.be.so.picked.up.and.resc
ued,.but.would ..................................... have.died.of.famine..The.boy,.being.in.a.much.weaker
condition,.was.likely.to.have.died.before.them ............The.real.question.in.this.case.[is].whether.killing
under.the.conditions.set.forth ......... be.or.be.not.murder.”.Do.you.consider.the.acts.to.be.immoral?
[Regina.v..Dudley.and.Stephens,.14.Queens.Bench.Division.273.(1884)]
Answer:.This.points.out.that.the.legal.system.has.limits..Its.acceptability.is.dictated.by.legal.culture--
which.determines.whether.law.will.be.enforced,.obeyed,.avoided,.or.abused..It.is.limited.by.the.informal.ru
les.of.the.society--
its.customs.and.values..One.limit.is.the.extent.to.which.society.will.allow.the.formal.rules.to.be.imposed.wh
en.a.crime.is.committed.in.odd.circumstances..Here.there.was.an.intentional.murder..Does.the.motive.for.t
he.murder,.the.effort.to.save.several.lives.by.sacrificing.one
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 1
website,.in.whole.or.in.part.
, life,.make.it.a.crime.that.should.be.punished?.Not.all.crimes.are.treated.the.same..It.also.raises.questions.
about.the.desirability.of.not.giving.judges.flexibility.in.sentencing.
There.was.a.precedent.for.a.light.sentence.in.this.case.in.U.S..law:.U.S..v..Holmes,.20.F..Cas..360.(No..15
383).(C.C.E.D..Pa..1842)..The.case.involved.a.sinking.ocean.liner..Several.passengers.made.it.to.the.onl
y.lifeboat,.which.was.far.too.overcrowded..The.captain.decided.to.save.the.women.and.children.and.thre
w.several.men.overboard..The.lifeboat.was.rescued..The.grand.jury.refused.to. indict.the.captain.from.mu
rder,.only.for.manslaughter..He.got.a.six.month.sentence.
The.British.judge.in.the.case.here.imposed.the.death.penalty.upon.the.person.who.survived..The.judg
e.found.it.difficult.to.rule.that.every.man.on.board.had.the.right.to.make.law.by.his.own.hand..The.Crow
n.reduced.the.sentence.to.six.months.
2. Smoking.is.a.serious.health.hazard..Cigarettes.are.legal..Should.cigarette.manufacturers.be.liable.for.th
e.serious.illnesses.and.untimely.deaths.caused.by.their.unavoidably.dangerous.products,.even.though.th
ey.post.a.warning.on.the.package.and.consumers.voluntarily.assume.the.health.risks.by.smoking?.[Cipol
lone.v..Liggett.Group,.Inc.,.505.U.S..504.(1992)]
Answer:.The.general.rule.that.exists.now.is.that.since.the.government.has.ordered.the.posting.of.warning.label
s.on.cigarettes,.and.since.the.dangers.of.smoking.are.well.known,.consumers.have.been.warned.and.are.
not.due.compensation.if.they.kill.themselves.by.smoking..The.Cippoline.case,.since.reviewed.by.the.Sup
reme.Court,.appears.to.be.of.limited.impact.since.the.victim.was.adjudged.to.have.become.addicted.to.ci
garettes.before.the.warning.label.was.ordered.in.1964..If.cigarette.makers.were.held.responsible.for.all.h
ealth.problems.associated.with.cigarettes,.then,.like.alcohol.and.other.dangerous.products,.the.damage
s.would.likely.be.so.high.it.would.effectively.ban.the.products..Presumably,.in.a.free.society.if.adults.are.cl
early.informed.of.the.risks.of.products.that.cannot.be.made.safe,.they.accept.the.risk..Tobacco.and.alcoh
ol.producers.cannot.take.the.dangers.out.of.the.products.except.at.the.margin.by.encouraging.responsibl
e.drinking.and.the.like..Are.drugs.like.cocaine.different?
3. Two.eight-year-old.boys.were.seriously.injured.when.riding.Honda.mini-
trail.bikes..The.boys.were.riding.on.public.streets,.ran.a.stop.sign,.and.were.hit.by.a.truck..The.bikes.had.cl
ear.warning.labels.on.the.front.stating.they.were.only.for.off-
road.use..The.manual.stated.the.bikes.were.not.to.be.used.on.public.streets..The.parents.sued.Honda..Th
e.supreme.court.of.Washington.said.one.basic.issue.existed:.“Is.a.manufacturer.liable.when.children.are.i
njured.while.riding.one.of.its.mini-
trail.bikes.on.a.public.road.in.violation.of.manufacturer.and.parental.warnings?”.Is.it.unethical.to.make.pro
ducts.like.mini-
trail.bikes.children.will.use.when.we.know.accidents.like.this.will.happen?.[Baughn.v..Honda.Motor.Co.,.7
27.P.2d.655.Sup..Ct,.Wash.,.(1986)]
Answer:.The.court.found.no.liability.for.the.manufacturers..There.was.no.defect;.the.product.was.safe.for.inten
ded.use..Safety.instructions.were.clear;.the.parents.let.the.boys.ride.the.bikes..Anything.can.be.dangerou
s--
baseballs.are.dangerous.when.they.hit.the.head,.swings.are.dangerous.when.kids.jump.out.of.them;.ther
e.is.only.so.much.that.can.be.done.to.make.the.government.the.―national.nanny‖.as.the.Washington.Post.
once.said.about.excessive.consumer.protection..Parents.must.accept.a.high.degree.of.responsible.for.th
eir.own.children.
4. Johnson.Controls.adopted.a.“fetal.protection.policy”.that.women.of.childbearing.age.could.not.work.in.the
.battery-
making.division.of.the.company..Exposure.to.lead.in.the.battery.operation.could.cause.harm.to.unborn.ba
bies..The.company.was.concerned.about.possible.legal.liability.for.injury.suffered.by.babies.of.mothers.w
ho.had.worked.in.the.battery.division..The.Supreme.Court.held.the.company.policy.was.illegal..It.was.an.“
excuse.for.denying.women.equal.employment.opportunities.”.Is.the.Court.forcing.the.company.to.be.une
thical.by.allowing.pregnant.women.who.ignore.the.warnings.to.expose.their.babies.to.the.lead?.[United.A
uto.Workers.v..Johnson.Controls,.499.U.S..187.(1991)]
Answer:.The.Court.held.it.a.form.of.sex.discrimination.to.prevent.women.of.child-
bearing.age.from.holding.the.more.dangerous.jobs..The.company.argued.that.it.did.this.to.protect.itself.fr
om.possible.liability.in.case.of.damage.to.babies.and.that.the.decision.was.ethical..The.replacements.for
.these.workers.were.often.men.or.more.senior.women,.who.tended.to.be.higher.income.workers,.so.this
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 2
website,.in.whole.or.in.part.
, was.not.a.current.cost-
saving.move..Note.that.a.2002.ruling.related.to.the.ADA.significantly.restricted.this.earlier.case.
5. McGrory.worked.for.Applied.Signal.Technology.in.a.supervisory.position..He.was.accused.of.violating.th
e.company’s.policies.on.sexual.harassment..An.internal.investigation.determined.he.did.not.violate.the.p
olicy.but.that.he.was.evasive.and.violated.the.company’s.personal.ethics.code..He.was.fired.and.sued.for
.wrongful.termination,.contending.that. if.he.did.not.violate .sexual.harassment.rules.he.should.not.have.b
een.subject.to.termination..Do.standards.of.law.and.ethics.need.to.be.the.same.for.an.employer?.[McGror
y.v..Applied.Signal.Technology,.152.Cal.Rptr.3d.154.(2013)]
Answer:.The.appeals.court.affirmed.that.the.employer.had.the.right.to.terminate.the.employee.for.failure.to.be.f
ully.cooperative.in.the.investigation.of.the.complaint.of.sexual.harassment.that.had.been.filed.against.him
..While.he.was.not.found.to.have.violated.the.harassment.policy,.he.was.evasive.and.uncooperative,.whic
h.violated.the.company‘s.code.of.ethics,.which.was.a.justification.for.termination.
6. Baker.works.as.a.document.clerk.for.the.Minnesota.Supreme.Court..After.she.had.worked.there.for.13.ye
ars.the.Minnesota.judicial.branch.adopted.a.policy.concerning.proper.Internet.use.and.stated.that.empl
oyees.must.adhere.to.the.highest.ethical.standards.when.using.the.Internet..Eleven.years.later,.she.was
.fired.for.excessive.surfing.on.the.Internet.during.working. hours..She.contended.she.did.not.know.about.
the.policy..Is.that.an.adequate.defense.for.her?.[Baker.v..Minnesota.Supreme.Court,.2016.WL.102513.(
2016)]
Answer:.The.Minnesota.high.court.held.that.Baker‘s.termination.was.proper..She.violated.standards.expected
.of.employees..She.had.been.warned.about.excessive.personal.Internet.use.during.work.time,.including.b
uying.and.selling.goods.for.a.little.business.she.ran..The.claim.that.she.did.not.know.about.the.ethics.of.Int
ernet.use.was.not.credible.as.the.policy.was.posted.for.all.employees.who.received.e-
mails.about.any.changes.to.the.policy..The.fact.that.the.term.―ethical‖.was.used.in.the.policy.does.not.likel
y.impact.this.decision.
Answers to Ethics and Social Questions
. . . . .
1. The.federal.tax.code.is.riddled.with.special-
interest.loopholes..Most.of.these.exist.because.firms.and.trade.associations.lobby.Congress.and.provide.
campaign.support.to.members.of.Congress.to.gain.special.favors.to.individual.firms.or.industries..Is.it.ethi
cal.for.firms.to.seek.special.privilege?
Answer:.The.nature.of.our.political.system.forces.firms.to.participate.in.the.political.process..Those.that.fail.to.
do.so,.if.they.are.of.any.size,.are.more.likely.to.be.subject.to.political.attack..In.a.sense,.firms
―buy‖.protection.by.keeping.a.flow.of.contributions.going,.especially.to.incumbent.members.of.Congress..
Competition.also.means.that.if.a.firm.does.not.lobby.for.special.privilege,.then.it.may.suffer.if.competitors.
achieve.such.status.in.the.tax.code.or.some.area.of.regulation..Many.business.leaders.do.not.much.care.f
or.the.Washington,.D.C..operations.their.firms.support.but.know.that.it.is.a.part.of.the.modern.legal.environ
ment.of.business.
2. “Fair.trade”.goods.have.become.popular,.as.some.people.are.willing.to.pay.more.to.know.the.goods.come
.from.workers.paid.a.decent. price.for.their.efforts..However,.some.retailers.who.sell.fair.trade.goods.mark.
them.up.substantially.more.than.nonfair.trade.goods..One.study.showed.that.coffee.growers.got.an.aver
age.of.44.cents.a.pound.more.for.fair.trade.coffee,.but.the.coffee.at.retail.was.marked.up.an.additional.$3.
46.per.pound..At.one.supermarket.chain,.fair.trade.bananas.that.cost.an.extra.3.6.cents.per.pound.were.
marked.up.four.times.the.price.of.non-
fair.trade.bananas..Fair.trade.goods.are.claimed.to.be.a.form.of.social.responsibility..Is.that.true.if.it.just.m
eans.higher.profit.margins?
Answer:.The.high.mark.up.suppresses.the.demand.for.fair.trade.goods,.thereby.reducing.the.market.for.fair.tra
de.goods..If.the.retail.prices.reflected.the.actual.additional.cost,.not.the.profit.maximizing.price.to.the.retail
er.that.exploits.the.goodwill.from.―fair.trade,‖.then.it.is.hard.to.argue.that.the.company.is.being.particularly.
socially.responsible.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 3
website,.in.whole.or.in.part.
, 3. A.chemical.company.located.a.new.plant.in.a.depressed.area.with.high.unemployment.in.West.Virginia..
It.built.a.state-of-the-
art.plant.that.had.the.latest.pollution.control.technology.meeting.all.EPA.requirements..It.created.2,500.j
obs..The.company.was.attacked.for.polluting.a.previously.pristine.area..Had.the.plant.been.built.in.an.ind
ustrial.area,.such.as.the.coast.near.Houston,.no.one.would.have.been.likely.to.complain..Was.the.compa
ny.socially.irresponsible.for.building.the.plant.in.such.an.area?
Answer:.The.company.was.in.a.no-win.situation..It.was.attacked.by.environmentalists.and.some.locals.for
―destroying‖.the.environment,.even.though.the.pollution.was.acceptable..When.the.company.later.stat
ed.it.would.close.the.plant,.which.as.not.profitable,.it.came.under.fire.for.destroying.jobs..It.eventually.u
pgraded.the.plant.and.kept.it.open,.but.it.was.never.a.profitable.operation..The.plant.should.probably.n
ot.have.been.built.in.such.a.remote.location,.as.that.made.it.a.target..Built.in.a.higher-
density.area.and.there.would.have.been.fewer.issues.as.the.environmental.impact.on.an.existing.indu
strial.area.would.have.been.small..Corporate.social.responsibility.can.involve.difficult.tradeoffs.that.do
.not.always.allow.a.win-win.result.
4. Discussion.of.ethics.issues.focuses.on.company.examples..What.personal.ethics.matter?.Surveys.indi
cate.that.many.students.have.cheated.in.classes.one.way.or.another,.pad.their.resumes.when.seeking.
jobs,.and.have.improperly.downloaded.copyrighted.music..Does.ethics.“begin.at.home”?
Answer:.If.ethics.is.to.be.theoretical.or.applied.only.in.formal.situations,.then.it.means.little.in.practice.
SolutionandAnswerGuide . . .
Meiners,.The.Legal.Environment.of.Business,.14e,.9780357451724;.Chapter.2:.The.Court.System
Table of Contents
. .
Answer.to.Discussion.Question ..................................................................................................... 4
Answers.to.Case.Questions .......................................................................................................... 5
Answer.to.Ethics.and.Social.Question ............................................................................................ 7
Answer to Discussion Question
. . .
Judges.in.many.nations.are.trained.for.their.offices.in.law.school..They.are.hired.into.the.judicial.system.and.wo
rk.their.way.up.through.that.system..In.the.United.States,.there.is.no.special.training.to.be.a.judge;.it.is.an.honor.
bestowed,.usually.on.senior.attorneys,.or.it.is.an.office.one.runs.for.in.some.states..What.advantages.might.the.
other.system.have.over.the.U.S..method?
Answer:.Judges.in.Europe.and.Japan.play.a.quasi-
prosecutor.role,.so.they.are.quite.different.than.U.S..judges..The.instruct.attorneys.on.what.evidence.the
y.want.to.see..So.in.that.sense,.their.roles.are.quite.different..Further,.judges.in.most.countries.do.not.hav
e.as.much.independence.as.do.U.S..judges..Not.relying.on.the.legislature.or.executive.to.retain.a.job,.and
.having.the.power.to.strike. down.statutes.for.violating.constitutional.rights,.is.important.in.the.integrity.of.t
he.U.S..system.and.its.structure..That.does.not.address.the.issue.of.competence,.but.I.have.never.seen.a.
study.that.tries.to.address.that.issue.
©.2022.Cengage..All.Rights.Reserved..May.not.be.scanned,.copied.or.duplicated,.or.posted.to.a.publicly.accessible 4
website,.in.whole.or.in.part.
