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CHAPTER 4
BUSINESS AND THE CONSTITUTION
ANSWERS TO CRITICAL THINKING
QUESTIONS IN THE FEATURE
MANAGERIAL STRATEGY—BUSINESS QUESTIONS
1A. Can a business manager’s religious beliefs factor into the business’s hiring
treatment of same-sex partners? Why or why not? No, a business manager should avoid
letting her or his religious beliefs factor into the business’s treatment of same-sex partners with
regard to family and medical leave and health insurance.
2A. Must business owners in all states have to provide the same benefits to employees
in a same-sex union as they do to heterosexual couples? It seems likely that eventually,
most states will recognize the rights of same-sex couples, particularly with regard to
employment benefits, such as family and medical leave and health insurance. The public
2 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
ANSWERS TO QUESTIONS
AT THE ENDS OF THE CASES
CASE 4.1—CRITICAL THINKING
WHAT IF THE FACTS WERE DIFFERENT?
If this case had involved a small, private retail business that did not advertise nationally,
would the result have been the same? Why or why not? It is not likely that the result in this
case would have been different even if the facts had involved a small, private retail business
that did not advertise nationally. The intended impact of the decision in Heart of Atlanta was to
CASE 4.2—CRITICAL THINKING
WHAT IF THE FACTS WERE DIFFERENT?
If Bad Frog had sought to use the offensive label to market toys instead of beer, would
the court’s ruling likely have been the same? Why or why not? Probably not. The reasoning
underlying the court’s decision in the case was, in part, that “the State’s prohibition of the labels
LEGAL ENVIRONMENT
Whose interests are advanced by the banning of certain types of advertising? The
government’s interests are advanced when certain ads are banned. For example, in the Bad
CHAPTER 4: BUSINESS AND THE CONSTITUTION 3
CASE 4.3—LEGAL REASONING QUESTIONS
1. What is the standard for determining whether a government restriction on a religious
practice is constitutional under the First Amendment? The First Amendment states that the
government may not prohibit the free exercise of religious practices. This is the free exercise
clause. The standard for determining whether a restriction on a religious practice is
2. How did that standard apply to the prison guards’ conduct in this case? In the
Thompson case, the plaintiff, a Muslin prison inmate, alleged that he was denied an
accommodation provided to other Muslim inmates—meal bags distributed nightly during the
3. Were all of the guards personally involved in the alleged violation of the First
Amendment? Explain. In this case, the court determined that there was sufficient evidence in
the circumstances for a reasonable jury to find that all of the defendants were involved in the
4 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
ANSWERS TO QUESTIONS IN THE REVIEWING FEATURE
AT THE END OF THE CHAPTER
1A. Equal protection
When a law or action limits the liberty of some persons but not others, it may violate the equal
2A. Levels
The three levels of scrutiny that courts apply to determine whether the law or action violates
equal protection are strict scrutiny (if fundamental rights are at stake), intermediate scrutiny (in
3A. Standard
The court would likely apply the rational basis test. Similar to seat-belt laws and speed limits, a
statute requiring motorcyclists to wear helmets involves the state’s attempt to protect the welfare
4A. Application
The statute is probably constitutional, because requiring helmets is rationally related to a
ANSWER TO DEBATE THIS QUESTION IN THE REVIEWING FEATURE
AT THE END OF THE CHAPTER
Legislation aimed at “protecting people from themselves” concerns the individual
as well as the public in general. Protective helmet laws are just one example of such
legislation. Should individuals be allowed to engage in unsafe activities if they choose to
do so? Certainly many will argue in favor of individual rights. If certain people wish to engage in
risky activities such as riding motorcycles without a helmet, so be it. That should be their
CHAPTER 4: BUSINESS AND THE CONSTITUTION 5
ANSWERS TO ISSUE SPOTTERS
AT THE END OF THE CHAPTER
1A. Can a state, in the interest of energy conservation, ban all advertising by power
utilities if conservation could be accomplished by less restrictive means? Why or why
not? No. Even if commercial speech is neither related to illegal activities nor misleading, it may
2A. Suppose that a state imposes a higher tax on out-of-state companies doing
business in the state than it imposes on in-state companies. Is this a violation of equal
protection if the only reason for the tax is to protect the local firms from out-of-state
competition? Explain. Yes. The tax would limit the liberty of some persons (out-of-state busi-
nesses), so it is subject to a review under the equal protection clause. Protecting local
ANSWERS TO BUSINESS SCENARIOS
AT THE END OF THE CHAPTER
4-1A. Commerce clause
A Georgia statute that requires the use of contoured rear-fender mudguards on trucks and
trailers operating within its state lines, when thirty-five other states make it legal to use straight
mudguards and Florida explicitly mandates the use of straight mudguards, would violate the
commerce clause. This hypothetical question is based on Bibb v. Navajo Freight Lines, Inc.
4–2A. Equal protection
According to the standards applied to determine compliance with the equal protection clause,
this ordinance’s classification—a gender-based distinction—is subject to intermediate scrutiny.
Under this standard, the court could dismiss the plaintiffs’ complaint. Gender-based distinctions
6 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
ANSWERS TO BUSINESS CASE PROBLEMS
AT THE END OF THE CHAPTER
4–3A. SPOTLIGHT ON PLAGIARISM—Due process
To adequately claim a due process violation, a plaintiff must allege that he was deprived of “life,
liberty, or property” without due process of law. A faculty member’s academic reputation is a
protected interest. The question is what process is due to deprive a faculty member of this
interest and in this case whether Gunasekera was provided it. When an employer inflicts a
4–4A. BUSINESS CASE PROBLEM WITH SAMPLE ANSWER—The dormant commerce
clause
The court ruled that, like a state, Puerto Rico generally may not enact policies that discriminate
against out-of-state commerce. The law requiring companies that sell cement in Puerto Rico to
4-5A. Freedom of speech
No, Wooden’s conviction was not unconstitutional. Certain speech is not protected under the
First Amendment. Speech that violates criminal laws—threatening speech, for example—is not
constitutionally protected. Other unprotected speech includes fighting words, or words that are
CHAPTER 4: BUSINESS AND THE CONSTITUTION 7
4–6A. Equal protection
Yes, the equal protection clause can be applied to prohibit discrimination based on sexual
orientation in jury selection. The appropriate level of scrutiny would be intermediate scrutiny.
Under the equal protection clause of the Fourteenth Amendment, the government cannot enact
a law or take another action that treats similarly situated individuals differently. If it does, a court
examines the basis for the distinction. Intermediate scrutiny applies in cases involving
discrimination based on gender. Under this test, a distinction must be substantially related to an
important government objective.
4–7A. Procedural due process
No, the school’s actions did not deny Brown due process. Procedural due process requires that
any government decision to take life, liberty, or property must be made fairly. The government
must give a person proper notice and an opportunity to be heard. The government must use fair
procedures—the person must have at least an opportunity to object to a proposed action before
8 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
4–8A. The commerce clause
Yes, Massachusetts’s use tax is valid under the commerce clause. When a state regulation that
affects interstate commerce is challenged under the commerce clause, the court weighs the
state’s interest in regulating the matter against the burden that the regulation places on
interstate commerce. Because a court balances the interests involved, it is difficult to predict the
outcome in a particular case. State laws that alter conditions of competition to favor in-state
4-9A. A QUESTION OF ETHICS—Defamation
(a) The answers to these questions begin with the protection of the freedom of speech
under the First Amendment. The freedom to express an opinion is a fundamental aspect of
liberty. But this right and its protection are not absolute. Some statements are not protected
because, as explained in the Balboa decision, “they are no essential part of any exposition of
CHAPTER 4: BUSINESS AND THE CONSTITUTION 9
In the Balboa case, the court issued an injunction against Lemen, ordering her to, among
other things, stop making defamatory statements about the Inn. On appeal, a state intermediate
appellate court invalidated this part of the injunction, ruling that it violated Lemen’s right to
freedom of speech under the Constitution because it was a “prior restraint”—an attempt to
restrain Lemen’s speech before she spoke. On further appeal, the California Supreme Court
phrased “the precise question before us [to be] whether an injunction prohibiting the repetition of
(b) To answer this question requires a standard to apply to the facts. A different
chapter in the text sets out two fundamental approaches to ethical reasoning: one involves duty-
based standards, which are often derived from religious precepts, and the other focuses on the
consequences of an action and whether these are the “greatest good for the greatest number.”
Under the former approach, a pre-established set of moral values founded on religious
beliefs can be taken as absolute with regard to behavior. Thus, if these values proscribed
Finally, an outcome-based approach focuses on the consequences of an act, requiring a
determination as to whom it affects and assessments of its costs and benefits, as well as those
of alternatives. The goal is to seek the maximum societal utility. Here, Lemen’s behavior
10 UNIT ONE: THE LEGAL ENVIRONMENT OF BUSINESS
4-10A. SPECIAL CASE ANALYSIS—Freedom of religion
Case No. 4.3
Thompson v. Holm
United States Court of Appeals, Seventh Circuit, 2016
809 F.3d 376
(a) Issue: The focus in this case was on an allegation of the violation of which clause
of the Constitution and by what means? The clause of the Constitution alleged to have been
violated in this case was the free exercise clause of the First Amendment. This clause states
(b) Rule of Law: What is required to establish that this clause has been violated?
(c) Applying the Rule of Law: How did the court determine whether the claim of a
violation was supported in this case? To determine whether the claim of a violation was
(d) Conclusion: What did the court conclude with respect to the plaintiff’s claim, and
what did the court order as the next step in the case? With respect to the plaintiff’s claim, the
court concluded that the guards’ withholding of the Muslim inmate’s meal bags during Ramadan
CHAPTER 4: BUSINESS AND THE CONSTITUTION 11
ANSWERS TO LEGAL REASONING GROUP ACTIVITY QUESTIONS
AT THE END OF THE CHAPTER
4–11A. Free speech and equal protection
(a) The rules in this problem regulate the content of expression. Such rules must
serve a compelling governmental interest and must be narrowly written to achieve that interest.
In other words, for the rules to be valid, a compelling governmental interest must be furthered
only by those rules. To make this determination, the government’s interest is balanced against
the individual’s constitutional right to be free of the rules. For example, a city has a legitimate
(b) The rules in this problem do not regulate the content of expression—they are not
aimed at suppressing the expressive conduct of young adults but only of that conduct being
fostered on unsuspecting and unwilling audiences. The restrictions are instead aimed at
combating the societal problem of criminal graffiti. In other words, the rules are content neutral.
(c) Under the equal protection clause of the Fourteenth Amendment, a state may not
“deny to any person within its jurisdiction the equal protection of the laws.” This clause requires
a review of the substance of the rules. If they limit the liberty of some person but not others, they
may violate the equal protection clause. Here, the rules apply only to persons under the age of
twenty-one. To succeed on an equal protection claim, opponents should argue that the rules
should be subject to strict scrutiny—that the age restriction is similar to restrictions based on
