,TABLE OF CONTENTS
C C C
➢ ChapterC1.CToday’sCBusinessCEnvironment:CLawCandCEthics
➢ ChapterC2.CTheCCourtCSystems
➢ ChapterC3.CTrialsCandCResolvingCDisputes
➢ ChapterC4.CTheCConstitution:CFocusConCApplicationCtoCBusiness
➢ ChapterC5.CCriminalCLawCandCBusiness
➢ ChapterC6.CElementsCofCTorts
➢ ChapterC7.CBusinessCTortsCandCProductCLiability
➢ ChapterC8.CRealCandCPersonalCProperty
➢ ChapterC9.CIntellectualCProperty
➢ ChapterC10.CContracts
➢ ChapterC11.CDomesticCandCInternationalCSales
➢ ChapterC12.CBusinessCOrganizations
➢ ChapterC13.CNegotiableCInstruments,CCredit,CandCBankruptcy
➢ ChapterC14.CAgencyCandCtheCEmploymentCRelationship
➢ ChapterC15.CEmploymentCandCLaborCRegulations
➢ ChapterC16.CEmploymentCDiscrimination
➢ ChapterC17.CTheCRegulatoryCProcess
➢ ChapterC18.CSecuritiesCRegulation
➢ ChapterC19.CConsumerCProtection
➢ ChapterC20.CAntitrustCLaw
➢ ChapterC21.CEnvironmentalCLaw
➢ ChapterC22.CTheCInternationalCLegalCEnvironmentCofCBusiness
,CHAPTER 1 C
Table of Contents
C C
AnswerCtoCDiscussionCQuestion .................................................................................................................... 1
AnswersCtoCCaseCQuestions .......................................................................................................................... 1
AnswersCtoCEthicsCandCSocialCQuestions ....................................................................................................... 3
Answer to Discussion Question
C C C
ShouldCtheCcommonClawCmaximC“IgnoranceCofCtheClawCisCnoCexcuse”CapplyCtoCanCimmigrantCwhoCspeaksClittleCEnglis
hCandCwasCnotCeducatedCinCtheCUnitedCStates?CHowCaboutCforCaCtouristCwhoCdoesCnotCspeakCEnglish?CEveryoneCkno
wsCcriminalCactsCareCprohibited,CbutCwhatCaboutCsubtlerCrulesCthatCdifferCacrossCcountriesCandCsoCmayCbeCmisunder
stoodCbyCforeigners?
Answer:CItCisCgenerallyCtrueCthatCignoranceCofCtheC lawCisCnoCexcuse.CCitizensCareCdeemedCtoChaveCconstructiveCkno
wledgeCofCtheClaw.CYet,CasCwellCknownCasCthisCruleCis,CitCisCsurprisingChowCoftenCitCisCprofferedCasCanCexcuse.C(
ACWestlawCsearchCcasesCfindsChundredsCofCexamples).CExamplesCinclude:CDelucoCv.CDeziC(Conn.CSuper)C(lackC
ofCknowledgeCregardingCtheCstate‘sCusuryClawsCisCnoCexcuseCforCtheCinclusionCofCanCillegalCinterestCrateCinCaCs
alesCcontract);CandCPlumleeCv.CPaddockC(ignoranceCofCtheCfactCthatCtheCsubjectCmatterCofCtheCcontractCwasCille
galCwasCnotCexcuse).CTheCcourtsChaveCprovidedCaCsmallCexceptionCtoCtheCruleCwhenCitCcomesCtoCpeopleCinClac
kCofCEnglishClanguageCskills.CConsiderCFlaneryCv.CKuska,C(defendantCdidCnotCspeakCEnglishCwasCadvisedCbyCaCfri
endCthatCanCanswerCtoCaCcomplaintCwasCnotCrequired);CRamonCv.CDept.CofCTransportation,C(noCEnglishCandCan
CinabilityCtoCunderstandCtheClawCrequiredCforCanCexcuse);C YurechkoCv.CCountyCofCAllegheny,C(IgnoranceCandC wi
thCtheCfactCthatCtheCmunicipalityCsufferedCnoChardshipCinClateClawsuitCfilingCwasCanCexcuse).
Answers to Case Questions
C C C
1. FactsCfromCanCEnglishCjudge’sCdecisionCinC1884:C“TheCcrewCofCanCEnglishCyacht....................wereCcastCawayCin
aCstormConCtheChighCseasC.C.C.CandCwereCcompelledCtoCputCintoCanCopenCboat. ................ TheyChadCnoCsupply
ofCwaterCandCnoCsupplyCofCfood.C.C.C.CThatConCtheCeighteenthCdayC.C.C.Cthey ............... suggestedCthatCone
shouldCbeCsacrificedCtoCsaveCtheCrest.C.C.C.CThatCnextCdayC.C.C.CtheyC.C.C.CwentCtoCtheCboy ................. putCaCknife
intoChisCthroatCandCkilledChimC.C.C.CtheCthreeCmenCfedCuponCtheCbody ..............ofCtheCboyCforCfourCdays;C[then]
theCboatCwasCpickedCupCbyCaCpassingCvessel,CandC[they]CwereCrescued.C.C.C.CandCcommittedCforCtrial.C.C.C.
ifCtheCmenChadCnotCfedCuponCtheCbodyCofCtheCboyCtheyCwouldCprobablyCnotChaveCsurvivedCtoCbeCsoCpickedC
upCandCrescued,CbutCwould ...................... haveCdiedCofCfamine.CTheCboy,CbeingCinCaCmuchCweaker
condition,CwasClikelyCtoChaveCdiedCbeforeCthem ............. TheCrealCquestionCinCthisCcaseC[is]CwhetherCkilling
underCtheCconditionsCsetCforth .......... beCorCbeCnotCmurder.”CDoCyouCconsiderCtheCactsCtoCbeCimmoral?
[ReginaCv.CDudleyCandCStephens,C14CQueensCBenchCDivisionC273C(1884)]
Answer:CThisCpointsCoutCthatCtheClegalCsystemChasClimits.CItsCacceptabilityCisCdictatedCbyClegalCculture--
whichCdeterminesCwhetherClawCwillCbeCenforced,Cobeyed,Cavoided,CorCabused.CItCisClimitedCbyCtheCinformalCrul
esCofCtheCsociety--
itsCcustomsCandCvalues.COneClimitCisCtheCextentCtoCwhichCsocietyCwillCallowCtheCformalCrulesCtoCbeCimposedCw
henCaCcrimeCisCcommittedCinCoddCcircumstances.CHereCthereCwasCanCintentionalCmurder.CDoesCtheCmotiveCfor
CtheCmurder,CtheCeffortCtoCsaveCseveralClivesCbyCsacrificingCone
, life,CmakeCitCaCcrimeCthatCshouldCbeCpunished?CNotCallCcrimesCareCtreatedCtheCsame.C ItCalsoCraisesCquestionsCabo
utCtheCdesirabilityCofCnotCgivingCjudgesCflexibilityCinCsentencing.
ThereCwasCaCprecedentCforCaClightCsentenceCinCthisCcaseCinCU.S.Claw:C U.S.Cv.CHolmes,C20CF.CCas.C360C(No.C15383
)C(C.C.E.D.CPa.C1842).CTheCcaseCinvolvedCaCsinkingCoceanCliner.CSeveralCpassengersCmadeCitCtoCtheConlyClifeboat,
C whichCwasCfarCtooCovercrowded.CTheCcaptainCdecidedCtoCsaveCtheC womenCandCchildrenC andC threwC severalC m
enCoverboard.CTheClifeboatC wasCrescued.CTheC grandC juryCrefusedCtoCindictCtheCcaptainCfromCmurder,ConlyCforC
manslaughter.CHeCgotCaCsixCmonthCsentence.
TheCBritishCjudgeCinCtheCcaseChereCimposedCtheCdeathCpenaltyCuponCtheCpersonCwhoCsurvived.CTheCjudgeCf
oundCitCdifficultCtoCruleCthatCeveryCmanConCboardChadCtheCrightCtoCmakeClawCbyChisCownChand.CTheCCrownC
reducedCtheCsentenceCtoCsixCmonths.
2. SmokingCisCaCseriousChealthChazard.CCigarettesCareClegal.CShouldCcigaretteCmanufacturersCbeCliableCforCtheCser
iousCillnessesCandCuntimelyCdeathsCcausedCbyCtheirCunavoidablyCdangerousCproducts,CevenCthoughCtheyCpostCa
CwarningConCtheCpackageCandCconsumersCvoluntarilyCassume CtheChealthCrisksCbyCsmoking?C[CipolloneC v.CLigge
ttCGroup,CInc.,C505CU.S.C504C(1992)]
Answer:CTheCgeneralCruleCthatCexistsCnowCisCthatCsinceCtheCgovernmentChasCorderedCtheCpostingCofCwarningClabelsC
onCcigarettes,CandCsinceCtheCdangersCofCsmokingCareCwellCknown,CconsumersChaveCbeenCwarnedCandCareCnot
CdueCcompensationCifCtheyCkillCthemselvesCbyCsmoking.CTheC CippolineCcase,CsinceCreviewedCbyCtheCSupremeCC
ourt,CappearsCtoCbeCofClimitedCimpactCsinceCtheC victimCwasCadjudgedCtoChaveCbecomeCaddictedCtoCcigarettesC
beforeCtheCwarningClabelCwasCorderedCinC1964.CIfCcigaretteCmakersCwereCheldCresponsibleCforCallChealthCprob
lemsCassociatedCwithCcigarettes,Cthen,ClikeCalcoholCandCotherCdangerousCproducts,CtheCdamagesCwouldClikelyC
beCsoChighCitCwouldCeffectivelyCbanCtheCproducts.CPresumably,CinCaCfreeCsocietyCifCadultsCareCclearlyCinformed
CofCtheCrisksCofCproductsCthatCcannotCbeCmadeCsafe,CtheyCacceptCtheCrisk. CTobaccoCandCalcoholCproducersCcan
notCtakeCtheCdangersCoutCofCtheCproductsCexceptCatCtheCmarginCbyCencouragingCresponsibleCdrinkingCandCthe
Clike.CAreCdrugsClikeCcocaineCdifferent?
3. TwoCeight-year-oldCboysCwereCseriouslyCinjuredCwhenCridingCHondaCmini-
trailCbikes.CTheCboysCwereCridingConCpublicCstreets,CranCaCstopCsign,CandCwereChitCbyCaCtruck.CTheCbikesChadCcle
arCwarningClabelsConCtheCfrontCstatingCtheyCwereConlyCforCoff-
roadCuse.CTheCmanualCstatedCtheCbikesCwereCnotCtoCbeCusedConCpublicCstreets.CTheCparentsCsuedCHonda.CTheCsu
premeCcourtCofCWashingtonCsaidConeCbasicCissueCexisted:C“IsCaCmanufacturerCliableCwhenCchildrenCareCinjuredC
whileCridingConeCofCitsCmini-
trailCbikesConCaCpublicCroadCinCviolationCofCmanufacturerCandCparentalCwarnings?”CIsCitCunethicalCtoCmakeCprod
uctsClikeCmini-
trailCbikesCchildrenCwillCuseCwhenCweCknowCaccidentsClikeCthisCwillChappen?C[BaughnCv.CHondaCMotorCCo.,C727C
P.2dC655CSup.CCt,CWash.,C(1986)]
Answer:CTheCcourtCfoundCnoCliabilityCforCtheCmanufacturers.CThereCwasCnoCdefect;CtheCproductCwasCsafeCforCinten
dedCuse.CSafetyCinstructionsCwereCclear;CtheCparentsCletCtheCboysCrideCtheCbikes.CAnythingCcanCbeCdangerous--
baseballsCareCdangerousCwhenCtheyChitCtheChead,CswingsCareCdangerousCwhenCkidsCjumpCoutCofCthem;CthereCi
sConlyCsoCmuchCthatCcanCbeCdoneCtoCmakeCtheCgovernmentCtheC―nationalCnanny‖CasCtheCWashingtonCPostCon
ceCsaidCaboutCexcessiveCconsumerCprotection.CParentsCmustCacceptCaChighCdegreeCofCresponsibleCforCtheirCo
wnCchildren.
4. JohnsonCControlsCadoptedCaC“fetalCprotectionCpolicy”CthatCwomenCofCchildbearingCageCcouldCnotCworkCinCtheC
battery-
makingCdivisionCofCtheCcompany.CExposureCtoCleadCinCtheCbatteryCoperationCcouldCcauseCharmCtoCunbornCbabi
es.CTheCcompanyCwasCconcernedCaboutCpossibleClegalCliabilityCforCinjuryCsufferedCbyCbabiesCofCmothersCwhoCha
dCworkedCinCtheCbatteryCdivision.CTheCSupremeCCourtCheldCtheCcompanyCpolicyCwasCillegal.CItCwasCanC“excuseCf
orCdenyingCwomenCequalCemploymentCopportunities.”CIsCtheCCourtCforcingCtheCcompanyCtoCbeCunethicalCbyCal
lowingCpregnantCwomenCwhoCignoreCtheCwarningsCtoCexposeCtheirCbabiesCtoCtheClead?C[UnitedCAutoCWorkers
Cv.CJohnsonCControls,C499CU.S.C187C(1991)]
Answer:CTheCCourtCheldCitCaCformCofCsexCdiscriminationCtoCpreventC womenCofCchild-
