BusinessjItsjLegal,jEthical,jandjGlobaljEnvironment,j12thjEditionjChapt
erj1-20
Chapterj1
Table of Contents
j j
Consider… .................................................................................................................................................... 1
Consider…j1.2 ............................................................................................................................................ 1
Consider…j1.3 ............................................................................................................................................ 2
CasejProblems................................................................................................................................................................... 2
Casej1.1...................................................................................................................................................... 2
ForjthejManager’sjDesk ............................................................................................................................... 4
ThejCover-upjversusjthejCrime,jpagej11 ..................................................................................................... 4
EthicaljIssues ...................................................................................................................................................................... 4
Casej1.1,jpagej10........................................................................................................................................ 4
BusinessjStrategy ............................................................................................................................................................. 5
COVID-19jLockoutsjandjBusinessjCiviljDisobedience ................................................................................... 5
ChapterjReview ................................................................................................................................................................. 6
AnswersjtojChapterjQuestionsjandjProblems ............................................................................................. 6
Economics,jEthics,j&jthejLaw:jThejCostjofjCorporatejWrongdoing ...............................................................12
Consider…
Consider…j1.2
AfterjhejenrolledjinjthejUniversityjofjCaliforniajatjLosjAngelesj(UCLA),jDamonjThompsonjexperiencedj
auditoryjhallucinations.jHejbelievedjotherjstudentsjinjthejclassroomjandjdormitoryjwerejcriticizingjhi
m.jSchooljadministratorsjeventuallyjlearnedjofjThompson’sjdelusionsjandjattemptedjtojprovidejment
aljhealthjtreatment.jHowever,jonejmorningjThompsonjstabbedjfellowjstudentjKatherinejRosenjdurin
gjajchemistryjlab.jRosenjsuedjthejuniversityjandjseveraljofjitsjemployeesjforjnegligence,jarguingjtheyjf
ailedjtojprotectjherjfromjThompson’sjforeseeablejviolentjconduct.
UCLAjisjajstatejeducationaljinstitution.jBasedjonjthejdecisionjinjthejAvilajcase,jwhatjshouldjthejcourtjd
ecide?jConsiderjwhetherjUCLAjhasjajdutyjtojprotectjstudentsjfromjinjuryjonjthejcampusjand,jifjso,jwh
atjtypesjofjinjuries.jBejsurejtojconsiderjwhatjisjdifferentjinjthisjfactualjpatternjfromjthe
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 1
website,jinjwholejorjinjpart.
,factsjinjAvila.jWhatjwilljthejimpactjbejonjstudents,jfaculty,jandjadministratorsjpendingjonjwhichjwayjt
hejcourtjdecidesjonjthejissuesjofjliabilityjandjduty?jBejsurejtojconsiderjthejpurposesjandjcharacterist
icsjofjlawjinjevaluatingjthejclaimjMs.jRosenjforjinjuries.j[RegentsjofjthejUniversityjofjCaliforniajvjSuper
iorjCourt,j413jP.3dj656j(Cal,2018)]
Solution
ThejtrialjcourtjdeniedjUCLAjsummaryjjudgment.jUCLAjfiledjajpetitionjforjwritjofjmandate,jrequestingjanjor
derjdirectingjtrialjcourtjtojenterjsummaryjjudgmentjinjitsjfavor.jThejCourtjofjAppealjgrantedjthejpetition.jT
hejSupremejCourtjgrantedjreview,jsupersedingjthejopinionjofjthejCourtjofjAppeal.
ThejSupremejCourtjheldjthatjthejuniversityjhadjdutyjofjcarejtojprotectjstudentsjfromjforeseeablejviolencej
duringjthejchemistryjlab,jreversingjajlongjlinejofjprecedent.
ThisjcasejisjdifferentjfromjthejAvilajcasejinjthatjUCLAjhadjknowledgejofjthejpotentialjharmjthatjthejstudent
jcouldjdo.jInjthejAvilajcase,jthejconductjwasjsuchjthatjitjcouldjnotjbejanticipatedjexceptjperhapsjthejpossibi
lityjthatjplayersjhavejdisobeyedjthejrulesjofjthejgame,jbutjtherejwasjnojdirectjknowledgejaboutjthejpitcher
’sjtendenciesjtojbeanjbatters.jInjthisjcase,jUCLAjwasjawarejofjthejproblemsjthejstudentjhadjandjwasjworki
ngjwithjthejstudent.jThejcasejwasjajwarningjtojuniversitiesjaboutjthejimportancejofjcurbingjthejbehaviorsj
ofjstudentsjandjthen,jwhenjnecessaryjremovingjthemjfromjthejcampusjasjajdangerjtojthemselvesjandjothe
rjstudents.jThejcourtjnotedjthatjthejscopejofjthejdutyjisjbasedjonjthejextentjofjthejrelationshipjthejstudentj
hadjwithjthejuniversity.
ThejimmunityjofjgovernmentjentitiesjwasjcurbedjinjAvilajandjnowjthejcourtsjarejsimplyjdealingjwithjthejc
onceptjofjduty.jWhatjisjthejdutyjofjgovernmentjentities?jHowjfarjdoesjitjextend?jWhatjactionsjmustjtheyj
take?j [RegentsjofjthejUniversityjofjCaliforniajvjSuperiorjCourt,j413jP.3dj656j(Cal.j2018)]
Consider…j1.3
Everyjstate,jcounty,jandjcityjhasjlawsjthatjregulatejthejmaximumjspeedjforjtheirjroadways.jYet,jsu
rveysjindicatejthatjnearlyj100%jofjusjadmitjtojdrivingjabovejthejspeedjlimit.jWhatjphilosophyjofjl
awjdojwejfollowjwhenjwejdecidejwhichjlawsjtojobey,jhowjcloselyjwejfollowjthosejlaws,jandjwhen
jwejwilljfollowjthem?jIsjthere jajriskjtojsocietyjwhenjwejmakejourjownjdecisionsjaboutjfollowingjt
hejlaw?
Solution
Speedingjisjanjexamplejofjthejnormjshifting.jThatjis,jtherejisjajlaw,jbutjfewjpeoplejfollowjthejlawjandjthejr
esultjisjthatjthejlawjbecomesjmeaningless.jSomejphilosophersjfearjthatjdisregardjofjthejlawjonjanjindividu
aljbasisjcouldjmeanjthatjwejarejintroducingjanarchy—
thejlawjhasjnojeffect.jOthersjwouldjfollowjthejnormativejstandardjofjdoingjwhatjisjacceptablejtojothers.
Case Problems
j
Casej1.1
1. Outlinejthejcasejhistory—whatjeachjofjthejcourtsjdecidedjinjthejcase.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 2
website,jinjwholejorjinjpart.
, Solution
Lowerjcourtjheldjthatjthejcommunityjcollegesjwerejimmune,jsojitjneverjreachedjthejdutyjissue.jTh
ejcourtjofjappealjheldjthatjthejcommunityjcollegesjwerejnotjimmunejandjfoundjthatjtheyjhadjbre
achedjtheirjdutyjtojJose.
2. Explainjthejstandardjnowjforjthejliabilityjofjgovernmentjentities.
Solution
Althoughjtherejisjimmunityjforjgovernmentjentitiesjforjinjuriesjfromjrecreationaljactivitiesj(haza
rdousjandjotherwise),jthejcourtjheldjthatjgovernmentjentitiesjstilljhavejdutiesjtowardjthosejwhoj
arejusingjtheirjfacilities.
3. Whatjinterestsjisjthejcourtjbalancing?
Solution
Thejcourtjisjbalancingjthejlongstandingjprotectionjofjgovernmentjentitiesjfromjtortjliabilityjwithjth
ejinjuriesjthatjcanjresultjwhenjtherejisjnojsupervisionjofjthosejinvolvedjinjgovernment-
jsponsoredjactivities.jTherejwasjalsojthejlongstandingjprecedentjthatjisjbeingjchanged.
Governmentjentitiesjwilljneedjnewjinsurancejlevelsjandjwilljneedjtojchangejtheirjinvolvementjandj
supervisionjrequirements.
4. Doesjthejcourtjchangejthejpreviousjstandardjforjliabilityjofjgovernmentjentities?jWhyjorjwhyjno
t?jWhatjeffectjwilljthejdecisionjhavejonjgovernmentjentities?
Solution
Seejanswerjtojabove—
thejholdingjisjajfundamentaljchangejinjthejliabilityjandjresponsibilitiesjofjgovernmentjentities.
5. Whyjwasjtherejnojbreachjofjdutyjbyjthejcommunityjcolleges?
Solution
Becausejbeingj“beaned”jisjajriskjinjthejgamejandjonejthatjthejcollegesjcouldjnotjprevent.jAlso,jJose
jwasjstilljablejtojwalkjandjgotjthejattentionjthatjhejneeded.
6. Doesjitjmatterjthatj“beaning”jajbatterjviolatesjthejrulesjofjthejgame?
Solution
Thejcourtjtakesjnotejthatjprofessionaljbaseballjprohibitsjbeaning,jbutjbeaningjhappensjandjthatjitj
happensjisjnotjthejresultjofjanyjactionsjbyjsponsorsjbutjindividualjchoicesjbyjplayers.
However,jsanctionsjforjbeaningjcouldjdeterjsuchjactivities—somethingjthejcourtjdoesjnotjdiscuss.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 3
website,jinjwholejorjinjpart.
, For the Manager’s Desk
j j j
ThejCover-upjversusjthejCrime,jpagej11
ThejdecisionsjinjthejAvilajandjUCLAjcasesjarejpartjofjajnationwidejtrendjthatjhasjexpandedjliabilit
yjandjimposedjadditionaljdutiesjonjthosejwhojownjandjrunjfacilitiesjwherejthejpublicjisjpresent.j
Thejscopejofjthatjdutyjrequires,jatjleastjinjmostjcases,jthatjbusinessjownersjandjpublicjentitiesjta
kejappropriatejstepsjtojensurejsafetyjoncejtheyjbecomejawarejofjthejdanger.jThatjdutyjisjdifficultj
forjuniversitiesjthatjarejworkingjwithjstudentsjsuchjasjthejonejinjthejUCLAjcasejorjemployeesjwhoj
havejbecomejaggressivejinjthejworkplace.
Injbothjsituations,jadministratorsjarejtryingjtojbalancejthejrightsjofjthejstudentjorjemployeesjwithjthej
needjtojprotectjotherjstudentsjandjemployeesjinjthejsituation.jBothjstudentsjandjemployeesjhavejrig
htsjtojbejatjschooljorjwork.jIfjthosejrightsjarejtojbejtakenjaway,jthejadministratorsjmustjbuildjajrecordj
tojestablishjthejneedjforjtheirjremoval.jThejrightsjissuesjarejcoveredjinjChapterj5,jthejdutyjissuesjarejco
veredjinjmorejdetailjinjChapterj9,jandjthejemployeejrightsjissuesjarejcoveredjinjChaptersj16,j19,jandj2
0.
Solution
Thejchallengesjinjdealingjwithjproblemjstudentsjarejgreatjbecausejtherejarejduejprocessjrightsjthatjthejstu
dentsjhold.jExpulsionjandjsuspensionjarejactionsjthatjdeprivejthemjofjajpropertyjright—
tojbejtherejforjobtainingjanjeducation.jAtjthejsamejtime,jadministratorsjhavejtojworryjaboutjthejsafetyjofj
otherjstudentsjwhenjtherejarejbehaviorsjthatjendangerjthem.jAdministratorsjhavejtojcarefullyjkeepjreport
sjofjincidentsjandjbejsurejtojcoordinatejalljinformationjthatjisjcomingjinjaboutjproblemjstudents.
Administratorsjshouldjalsojkeepjcarefuljrecordsjandjconductjoversightjofjareasjwherejtherejarejanyjstuden
tjinjuries.jTakingjstepsjtojpreventjthejinjuriesjisjalsojimportant.
Ethical Issues
j
Casej1.1,jpagej10
Discussjthejethicsjofjthejpitcher’sjdeliberatej“beaning”jofjJose.jArejthejstandardsjofjethicsjdif
ferentjinjsportingjcompetitions?jIfjanjactionjcannotjpenalizejwhatjhappensjinjthejgame,jwhat
jarejthejeffectsjonjplayers’jbehaviorsjduringjthejgame?
Solution
Ethicsjisjconductjthatjgoesjbeyondjthejrules,jbutjitjcertainlyjincludesjthejobligationjtojfollowjthejrules.j Asjthe
jcourtjnotes,j“beaning”jorjotherjintentionaljinjuriesjtojotherjplayersjisjprohibitedjinjbaseball.
However,jonejofjthejproblemsjisjthatjthejlackjofjenforcementj(nojsanctionjforjviolatingjthosejrules)jshiftsjthe
jnormsjofjbehaviorjduringjthejgamejawayjfromjthejrulejtojanjacceptedjorjtoleratedjleveljofjbehavior.jHowe
ver,jasjthejcasejillustrates,jtherejcanjbejseriousjinjuriesjresultingjfromjthejconduct.
Onejofjthejdifficultiesjwithjthejrulejisjinjestablishingjthatjthejconductjwasjintentional.jBeingjhitjbyjajba
seballjisjajriskjassumedjinjbaseball.jUmpiresjhavejdifficultyjprovingjthatjthejintentionaljhitsjwerejinten
tional.
Thejbottomjlinejisjthatjwejarejdependentjonjthejhonorjofjthosejplayingjthejgamesjtojnotjviolatejthejrul
es.
©j2022jCengage.jAlljRightsjReserved.jMayjnotjbejscanned,jcopiedjorjduplicated,jorjpostedjtojajpubliclyjaccessible 4
website,jinjwholejorjinjpart.