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Solution Manual For: SM Introduction to Business Law, 7th Edition Jeffrey F. Beatty Susan S. Samuelson Patricia Sanchez Abril, 9780357717189;

Solution Manual For SM Introduction to Business Law, 7th Edition Jeffrey F. Beatty Susan S. Samuelson Patricia Sanchez Abril, 9780357717189; Chapter 01: Introduction to Law

Table of Contents Answers to Matching Questions ................................................................................................. 1 Answers to True/False Questions .............................................................................................. 1 Answers to Multiple Choice Questions ....................................................................................... 2 Answers to Case Questions ....................................................................................................... 2 Answers to Discussion Questions .............................................................................................. 4

Answers to Matching Questions _____A. Statute _____B. Administrative agencies _____C. Common law _____D. Stare decisis _____E. United States Constitution

1. Law created by judges 2. Let the decision stand 3. A law passed by Congress or a state legislature 4. The supreme law of the land 5. The IRS, the EPA, the FCC, the SEC

Answers: A. 3 B. 5 C. 1 D. 2 E. 4

Answers to True/False Questions 1. If the president vetoes a bill, it can still become a statute if the House and the Senate approve it by a two-thirds majority. Answer: T 2. Civil lawsuits are brought to court by the injured party, but criminal cases must be prosecuted by the government. Answer: T 3. Federalism means that the federal government‘s laws and policies always supersede those of the states. Answer: F 4. The federal government has three branches: executive, legislative, and administrative. Answer: F 5. Law is different from morality, but the two are closely linked. Answer: T

Solution Manual For: Chapter 01: Introduction to Law

Answers to Multiple Choice Questions 1. More U.S. law originates from one country than from any other. Which country? A. France B. England C. Germany D. Spain E. Canada Answer: B. England 2. Under the United States Constitution, power that is not expressly given to the federal government is retained by: A. the courts. B. the Congress. C. the Founders. D. the states and the people. E. international treaty. Answer: D. the states and the people. 3. Judges use precedent to create what kind of law? A. Common law B. Statutes C. National Law D. Local law E. Empirical law Answer: A. Common law 4. For a statute to become law, Congress must pass it by a: I. Majority vote in the House. II. Majority vote in the Senate. III. Two-thirds vote in the House, but only if the president has first vetoed it. IV. Two-thirds vote in the Senate, but only if the president has first vetoed it. A. Just I and II B. Just III and IV C. All of these D. None of these Answer: C. All of these 5. What part of the Constitution addresses most basic liberties? A. Article I B. Article II C. Article III D. The amendments Answer: D. The amendments

Answers to Case Questions 1. Union organizers at a hospital wanted to distribute leaflets to potential union members, but hospital rules prohibited leafleting in areas of patient care, hallways, cafeterias, and any areas open to the public. The National Labor Relations Board (NLRB) ruled that these restrictions

Solution Manual For: Chapter 01: Introduction to Law

violated the law and ordered the hospital to permit the activities in the cafeteria and coffee shop. The NLRB cannot create common law or statutory law. What kind of law was it creating? Solution Administrative law. As an administrative agency, the NLRB has the authority and jurisdiction to create such regulations in furtherance of its agency mission and mandate. 2. The stock market crash of 1929 and the Great Depression that followed were caused in part because so many investors blindly put their money into stocks they knew nothing about. During the 1920s, it was often impossible for an investor to find out what a corporation was planning to do with its money, who was running the corporation, and many other vital facts. Congress responded by passing the Securities Act of 1933, which required a corporation to divulge more information about itself before it could seek money for a new stock issue. What kind of law did Congress create? Explain the relationship between voters, Congress, and the law. Solution Congress created a statutory law, as authorized by Article II of the Constitution. As for the relationship between voters, Congress, and the law, students may posit that voters elect to Congress members who agree with what they believe, or at least, hope to do so. But of course, answers will vary. Voters who are disappointed in what their representatives have done may vote them out at the next opportunity. 3. ETHICS The greatest of all Chinese lawgivers, Confucius, did not esteem written laws. He believed that good rulers were the best guarantee of justice. Does our legal system rely primarily on the rule of law or the rule of people? Which do you instinctively trust more? Solution Hopefully, students will recognize that the rule of law provides more safety, security, and justice than a reliance on the current ruler. But as to which they instinctively trust more, answers will vary. 4. Lance, who is a hacker, stole 15,000 credit card numbers and sold them on the black market, making millions. Police caught Lance, and two legal actions followed, one civil and one criminal. Who will be responsible for bringing the civil case? What will be the outcome if the jury believes that Lance was responsible for identity thefts? Who will be responsible for bringing the criminal case? What will be the outcome if the jury believes that Lance stole the numbers? Solution The civil cases will be brought by the victims of identity theft, and the outcome of a successful case against Lance would be some type of monetary award for damages suffered. The criminal case will be brought by state prosecutors and the outcome would be imprisonment for Lance. 5. In 2015, terrorists in Paris killed 130 people in a series of coordinated attacks at restaurants, a soccer match, and a rock concert. The father of an American woman killed in the Paris terrorist attacks sued Twitter, Facebook, and YouTube, alleging the sites knowingly allowed terrorists to recruit members, raise money, and spread extremist propaganda. The sites defended themselves by saying that their policies prohibit terrorist recruitment and that, when alerted to it, they quickly remove offending videos. What type of lawsuit is this – criminal or civil? What responsibilities, if any, should social media sites have for the spread of terrorism? Solution The case is a civil case, but answers will vary as to the scope of the responsibilities social media sites should have for the spread of terrorism.

Solution Manual For: Chapter 01: Introduction to Law

Answers to Discussion Questions 1. Do you believe that there are too many lawsuits in the United States? If so, do you place more blame for the problem on lawyers or on individuals who sue? What evidence do you have for your opinion? Solution Answers will vary. 2. In the 1980s, the Supreme Court ruled that it is legal for protesters to burn the American flag. This activity counts as free speech under the Constitution. If the Court hears a new flag-burning case in this decade, should it consider changing its ruling or should it follow precedent? Is following past precedent something that seems sensible to you: always, usually, sometimes, rarely, or never? Solution Answers will vary. 3. When should a business be held legally responsible for customer safety? Consider the following statements, and consider the degree to which you agree or disagree. a. A business should keep customers safe from its own employees. b. A business should keep customers safe from other customers. c. A business should keep customers safe from themselves. (Example: an intoxicated customer who can no longer walk straight) d. A business should keep people outside its own establishment safe if it is reasonable to do so. Solution Answers will vary. 4. In his most famous novel, The Red and the Black, French author Stendhal (1783-1842) wrote: ―Prior to laws, what is natural is only the strength of the lion, or the need of the creature suffering from hunger or cold, in short, need.‖ Do you agree with Stendhal? Without laws, would society quickly crumble? Solution Answers will vary. 5. Should judges ignore their life experiences, political leanings, and feelings when making judicial decisions? Do you think it is possible? Solution Answers will vary.

Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility

Solution and Answer Guide Beatty, Intro to Business Law 7e, 9780357717189; Chapter 02: Ethics and Corporate Social Responsibility

Table of Contents Answers to Matching Questions ................................................................................................. 5 Answers to True/False Questions .............................................................................................. 5 Answers to Multiple Choice Questions ....................................................................................... 6 Answers to Case Questions ....................................................................................................... 7 Answers to Discussion Questions .............................................................................................. 8

Answers to Matching Questions _____A. Shareholder model _____B. Stakeholder model _____C. Utilitarianism _____D. Deontological ethics _____E. Veil of ignorance

1. Requires doing ―the greatest good for the greatest number‖ 2. The rules for society that we would propose if we did not know how lucky we would be in life‘s lottery 3. Requires business decisions that maximize the owners‘ return on investment 4. Focuses on the reasons for which decisions are made 5. Requires business leaders to consider employees, customers, communities, and other groups when making decisions

Answers: A. 3 B. 5 C. 1 D. 4 E. 2

Answers to True/False Questions 1. Immanuel Kant was a noted utilitarian thinker. Answer: F 2. The shareholder model requires that business leaders consider the needs of employees when making decisions. Answer: F 3. Modern China has experienced slower economic growth than did England during the Industrial Revolution. Answer: F 4. John Stuart Mill‘s ideas are consistent with business use of risk management and cost-benefit

Solution and Answer Guide:

analyses. Answer: T 5. John Rawls believed that everyone should have the same income. Answer: F

Answers to Multiple Choice Questions 1. Milton Friedman argued that: A. A corporate leader‘s sole obligation is to make money for the company‘s owners. B. Corporate leaders should consider the well-being of all company stakeholders, not just shareholders. C. Lying for prosocial reasons is appropriate. D. Life prospects are a crucial determinant of success in life. Answer: A. a corporate leader‘s sole obligation is to make money for the company‘s owners. 2. Which of the following wrote the book Utilitarianism and believed that ethical actions should ―generate the greatest good for the greatest number‖? A. Milton Friedman B. John Stuart Mill C. Immanuel Kant D. John Rawls Answer: B. John Stuart Mill 3. Which of the following believed that the dignity of human beings must be respected and that the most ethical decisions are made out of a sense of obligation? A. Milton Friedman B. John Stuart Mill C. Immanuel Kant D. John Rawls Answer: C. Immanuel Kant 4. With which of the following statements would Kant have agreed? A. It is ethical to tell a lie if necessary to protect an innocent person from great harm. B. It is ethical to tell a lie if the benefit of the lie outweighs the cost. C. It is wrong for some people to have greater opportunities than others. D. It is wrong to tell a lie. Answer: D. It is wrong to tell a lie. 5. The following statements is true: A. Most people rarely lie. B. Even people who do not believe in God are more likely to behave honestly after reading the Ten Commandments. C. Most people are accurate when comparing themselves to others. D. People make their best ethical decisions instinctively, rather than thinking through a problem. Answer: B. Even people who do not believe in God are more likely to behave honestly after reading the Ten Commandments.

Solution and Answer Guide:

Answers to Case Questions 1. Should engineers program driverless cars to protect pedestrians or the driver? Who gets to decide? In one study, participants said that, if a car had to choose between ten pedestrians and one driver, it should swerve into a wall, killing the driver and saving the ten people. But when asked what car they would actually buy, participants chose the one that would protect them -- the driver. What would Kant and Mill say about this choice? What result under the Front Page Test? If drivers chose to protect themselves, would they be to blame, legally or ethically, for the deaths of the pedestrians? Solution Kant argued for the unique dignity of human beings and, thus, that it was wrong to kill them. He would, therefore, choose the program that limited the number of deaths by killing just the driver. So would Mill because that choice would maximize overall happiness and minimize overall pain. Under the Front Page test, people might be embarrassed to admit they had chosen their own life over ten other people. As for the ethics of the decision, participants recognized that, ethically, it would be wrong to choose themselves over ten other people. But then they chose it anyway. 2. Located in Bath, Maine, Bath Iron Works builds high-tech warships for the Navy. Winning Navy contracts is crucial to the company‘s success—it means jobs for the community and profits for the shareholders. Navy officials held a meeting at Bath‘s offices with its executives and those of a competitor to review the specs for an upcoming bid. Both companies desperately wanted to win the contract. After the meeting, a Bath worker realized that one of the Navy officials had left a folder on a chair labeled: ―Business Sensitive.‖ It contained information about the competitors‘ bid that would be a huge advantage to Bath. William Haggett, the Bath CEO, was notified about the file just as he was walking out the door to give a luncheon speech. What ethics traps did he face? How could he avoid these traps? What would result if he considered Mill, Kant, or the Front Page test? What should he do? Solution Haggett ordered the file to be copied. By the time he got back from lunch, the company president had found out about the file and ordered the copy destroyed. But by then, other Bath executives had had a chance to examine the file. Haggett, personally returned the file to the Navy, but by then it was too late. The Navy considered banning Bath from bidding on its contracts, which would have meant the end of the company. Haggett resigned. A much beloved CEO and an important figure in Maine, he had worked at Bath for 28 years and his father had been a pipefitter there. The pitfalls were being in a hurry, money. 3. Each year, the sale of Girl Scout cookies is the major fund-raiser for local troops. But because the organization was criticized for promoting such unhealthy food, it introduced a new cookie, Mango Cremes with Nutrifusion. It promoted this cookie as a vitamin-laden, natural whole food. ―A delicious way to get your vitamins.‖ But these vitamins were a minuscule part of the cookie. The rest had more unhealthy fat than an Oreo. The Girl Scouts do much good for many girls. And to do this good, they need to raise money. What would Kant and Mill say? What about the Front Page test? What do you say? Solution Mill would say that the benefit of selling the cookie is greater than the harm. Kant would say that it is the wrong thing to do. The Girl Scouts would not want this information on the front page.

Solution and Answer Guide:

4. The CEO of Volkswagen set an ambitious goal: to triple sales in the United States and become the largest car manufacturer in the world. Employees listened carefully because the CEO had a reputation for punishing those who did not make their goals. Then the VW engineers realized that the emissions equipment on the company‘s cars could not meet tough U.S. standards. Fixing the equipment would take time, raise costs, and reduce sales. The engineers believed that other car companies had the same problem. Instead of fixing the equipment, an engineer figured out how to install software that would cheat on the emissions tests. Engineers predicted that the chance of being discovered was low, and executives thought the cost of being caught would be manageable. VW produced 11 million cars with this deceptive software. After the company was caught, it spent $18 billion in fines, legal costs, and car repairs. Its sales and stock price plummeted, and one of its top officials was sentenced to seven years in prison. Into what traps did these VW employees fall? Solution Answers will vary. But ethics traps include money, competition, rationalization, following orders, and a short-term perspective. 5. Consider this true story: I was a plant manager at a factory that used a lot of steel equipment. When a piece of equipment failed and was not worth repairing, it was sold for scrap. Plant managers usually kept the scrap money for themselves without telling headquarters. That money was considered an unofficial bonus. (After all, the equipment was no longer functional, and plant managers are underpaid.) I felt a little uncomfortable taking the money, but my boss warned me that, if I didn‘t, I would make the other plant managers look bad. I could have paid off my credit card debt with that money but, instead, I hosted an employee picnnic and bought work boots for the low-wage workers. Did I do the right thing? What traps did I face? Solution Answers will vary. Kant would say that the right thing was to turn in the money. Mill might argue that more people benefited by using the money to help the employees. But this plan would surely fail the Front Page test. Traps faced: rationalization, fudge factor (it wasn‘t much money), I did it for someone else, conformity, following orders.

Answers to Discussion Questions 1. A vice president from the customer service team told me that the company‘s largest customer was going to be conducting an on-site audit. The customer would be particularly interested in seeing the dedicated computing equipment that was part of their contract. As it turns out, we did not have any dedicated computing equipment. The past director of my area had, on multiple occasions, simply lied. To survive the audit, the VP asked me to lie and also to put fake labels on some of the machines to show the customer. If I didn‘t agree, I knew the VP would be furious, and we might lose this client. What would Kant and Mill say? What is the difference between a long-term versus a short-term perspective? What should I do? How should I do it? Solution Answers will vary.

Solution and Answer Guide:

2. Darby has been working for 14 months at Holden Associates, a large management consulting firm. She is earning $95,000 a year, which sounds good, but does not go very far in New York City. It turns out that her peers at competing firms are typically paid 20 percent more and receive larger annual bonuses. Darby works about 60 hours a week--more if she is traveling. Holden has a policy that permits any employee who works as late as 8:00 p.m. to eat dinner at the company‘s expense. The company will also pay for an Uber. Darby is in the habit of staying until 8:00 p.m. every night, whether or not her workload requires it. Then she orders enough food for dinner, with leftovers for lunch the next day. She has managed to cut her grocery bill to virtually nothing. Sometimes she invites her boyfriend to join her for dinner. As a student, he is always hungry and broke. Darby often uses the Holden Uber to charge a ride back to his apartment, although the cost is twice as high as to her own place. Darby has also been known to return online purchases through the Holden mailroom on the company dime. Many employees do that, and the mailroom workers look the other way. Is Darby doing anything wrong? What ethics traps is she facing? What would your Life Principle be in this situation? Solution Answers will vary. 3. Lucius supervises a team of account managers. One night at a company outing, Malcolm, a visiting account manager, made some wildly inappropriate sexual remarks to Maddie, who is on Lucius‘s team. When she told Lucius, he was uncertain what to do, so he asked his boss. She was concerned that if Lucius took the matter further and Malcolm was fired or even disciplined, her whole area would suffer. Malcolm was one of the best account managers in the region, and everyone was overworked as it was. She told Lucius to get Maddie to drop the matter. Just tell her that these things happen, and Malcolm did not mean anything by it. What should Lucius do? What ethics traps does he face? What would be your Life Principle in this situation? What should Maddie do? Solution Answers will vary. 4. Ice-T‘s song ―Cop Killer‖ caused significant controversy when it was released. Among other things, its lyrics celebrated the idea of slitting a police officer‘s throat. At the same time, Rick Ross rapped about drugging and raping a woman. Time Warner Inc. did not withdraw Ice-T‘s song, but Reebok fired Ross over his lyrics. One difference: Time Warner was struggling with a $15 billion debt and a depressed stock price. Reebok at first refused to take action, but then singing group UltraViolet began circulating an online petition against the song and staged a protest at the main Reebok store in New York. What obligation do media companies have to their audiences? What factors matter when making a decision about content? Solution Answers will vary. 5. You are negotiating a new labor contract with union officials. The contract covers a plant that has experienced operating losses over the past several years. You want to negotiate concessions

Solution and Answer Guide: Beatty, Intro to Business Law 7e, 9780357717189; Chapter 03: International Law

from labor to reduce the losses. However, labor is refusing any compromises. You could tell them that, without concessions, the plant will be closed, although that is not true. Is bluffing ethical? Under what circumstances? What would Kant and Mill say? What would be the result under the Front Page test? What is your Life Principle? Solution Answers will vary. 6. What percentage of your income should you donate to charities? Which charities are most worthwhile? Peter Singer, a Princeton professor, argues that people should give away one-third of their income to worthy charities. But when entertainment mogul David Geffen donated $100 million to renovate a New York concert hall, Singer said that he could not understand ―how anyone could think that giving to the renovation of a concert hall that could impact the lives of generally well-off people living in Manhattan … could be the best thing that you could do with $100 million.‖ He added that a donation of less than $100 could restore sight to someone who is blind. To what theory of ethics is Professor Singer subscribing? Do you agree with him? What obligation do you have to help others? What is the best way to help others? Solution Answers will vary.

Solution and Answer Guide Beatty, Intro to Business Law 7e, 9780357717189; Chapter 03: International Law

Table of Contents Answers to Matching Questions ................................................................................................10 Answers to True/False Questions .............................................................................................11 Answers to Multiple Choice Questions ......................................................................................11 Answers to Case Questions ......................................................................................................12 Answers to Discussion Questions .............................................................................................13

Answers to Matching Questions _____A. GATT _____B. USMCA _____C. IGO _____D. CISG _____E. ICJ Answers: F. 4 G. 1

1. An updated trade agreement between Mexico, the United States, and Canada 2. The World Court 3. An international convention that governs the sale of goods 4. A treaty that governs trade 5. A supranational organization of states

Solution and Answer Guide:

H. 5 I. 3 J. 2

Answers to True/False Questions 6. The ICC makes international law. Answer: F 7. States can opt out of ICJ jurisdiction. Answer: T 8. The CISG requires parties to negotiate internationally in good faith. Answer: T 9. Incoterm rules define terms used in international contracts. Answer: T 10. The WTO settles disputes involving individuals, businesses, or countries. Answer: F

Answers to Multiple Choice Questions 6. For which of the following activities can a foreign sovereign be sued? E. Operating a factory dangerously F. Issuing a law that discriminates against a certain group G. Suspending the civil rights of its people H. Taxing its citizens Answer: A. Operating a factory dangerously 7. Outdoor Technologies (an Australian company) obtained a judgment for $500,000 against Silver Star (a Chinese company) in a court in Australia. Silver Star owned property in Iowa, so Outdoor filed suit in Iowa to collect the judgment. Which of the following statements is true? A. Outdoor cannot collect a judgment in the United States that was issued by an Australian court. B. Outdoor cannot collect in the United States because Silver Star is not an American company. C. Outdoor can collect in the United States if the Australian court was fair and proper. D. Outdoor can collect in the United States because both the United States and Australia have common law systems. Answer: C. Outdoor can collect in the United States if the Australian court was fair and proper. 8. The U.S. president negotiates a defense agreement with a foreign government. To take effect, the agreement must be ratified by which of the following? A. Two-thirds of the House of Representatives B. Two-thirds of the Senate C. The Supreme Court D. A majority of Congress Answer: B. Two-thirds of the Senate