Archives: Solution Manual

ETHICAL DECISION MAKING: A TOOLKIT “Ethical analysis, unlike much quantitative analysis, can be a messy, complex business, without a clear and definitive outcome. However, we do have tools at our disposal to help us make these complicated assessments.” (Text, p.13) […]

LAW & ETHICS IN THE BUSINESS ENVIRONMENT 8e Instructor’s Manual CHAPTER ONE LAW, ETHICS, BUSINESS: AN INTRODUCTION MAIN CONCEPTS Freedom versus responsibility / Duty to rescue Ethical decision making Ethical theories: Free market ethics Utilitarianism Deontology Virtue ethics Ethic of […]

ANSWERS TO PROBLEMS 1. State whether or not a trust is created in each of the following situations: (a) A declares herself trustee of “the bulk of my securities” in trust for B. (b) A, the owner of Blackacre, purports […]

CASE 50-3 PRINE v. BLANTON Supreme Court of Georgia, 2012 290 GA. 307, 720 S.E.2D 600 http://scholar.google.com/scholar_case? q=Testamentary+Capacity+and+Power+&hl=en&as_sdt=2,34&as_ylo=2011&case=9029015898403998192&scil h=0 Hunstein, J [Debra Prine challenged the validity of her father’s will on the grounds that he lacked testamentary capacity and was […]

Chapter 50 TRUSTS AND DECEDENTS’ ESTATES I. Trusts A. Types of Trusts 1. Express Trusts a. Testamentary Trusts b. Inter Vivos Trusts c. Charitable Trusts d. Spendthrift Trusts e. Totten Trusts 2. Implied Trusts a. Constructive Trusts b. Resulting Trusts […]

ANSWERS TO PROBLEMS 1. Arthur was the father of Bridgette, Clay, and Dana and the owner of Redacre, Blackacre, and Greenacre. Arthur made and executed a warranty deed conveying Redacre to Bridgette. The deed provided that “this deed shall become […]

II. PUBLIC AND PRIVATE CONTROLS A. ZONING • Is the principal method of public control over land use. • The validity of zoning is rooted in the police power of the state, which is the inherent power of the government […]

Chapter 49 TRANSFER AND CONTROL OF REAL PROPERTY I. Transfer of Real Property A. Contract of Sale 1. Formation 2. Marketable Title 3. Implied Warranty of Habitability B. Deeds 1. Types of Deeds a. Warranty b. Special Warranty c c. […]

ANSWERS TO PROBLEMS 1. Kirkland conveyed a farm to Sandler to have and to hold for and during his life and on Sandler’s death to Rubin. Some years thereafter, oil was discovered in the vicinity. Sandler thereupon made an oil […]

CASE 48-2 TUCKER v. HAYFORD Washington Court of Appeals, Division 3, 2003 118 Wash App. 246, 75 P.3d 980 http://scholar.google.com/scholar_case?case=4713939053717898068&hl=en&as_sdt=2&as_vis=1&oi=scholar Sweeney, J. We again note that a claim for personal injuries by a tenant can be premised on three distinct […]

Chapter 48 INTERESTS IN REAL PROPERTY A. Freehold Estates 1. Fee Estates a. Fee Simple Estate b. Qualified or Base Fee Estate 2. Life Estates 3. Future Interests a. Reversions b. Remainders B. Leasehold Estates 1. Creation and Duration a. […]

20. Donna drove an automobile into Terry’s garage and requested him to make repairs for which the charge would be $125. Donna, however, never returned to get the automobile. Two months later, Carla saw the automobile in Terry’s garage and […]

ANSWERS TO PROBLEMS 1. In January, Roger Burke loaned his favorite nephew, Jimmy White, his valuable Picasso painting. Knowing that Jimmy would celebrate his twenty-first birthday on May 15, Burke sent a letter to Jimmy on April 14 stating: Dear […]

II. PROPERTY INSURANCE The insurance industry is huge and old, with origins possibly dating as far back as 1300 in Europe, when ships’ cargoes began to be insured. Today, insurance sales of all kinds fiourish because individuals want to lessen […]

Part Ten: Property CONTENTS Chapter 47 Introduction to Property, Property Insurance, Bailments, and Documents of Title Chapter 48 Interests in Real Property Chapter 49 Transfer and Control of Real Property Chapter 50 Trusts and Decedents’ Estates ETHICS QUESTIONS RAISED IN […]

ANSWERS TO PROBLEMS 1. Three banks that are wholly owned by the Republic of Costa Rica had issued promissory notes, payable in U.S. dollars in New York City. The notes are now in default due solely to actions of the […]

Chapter 46 INTERNATIONAL BUSINESS LAW A. The International Environment 1. International Court of Justice 2. Regional Trade Communities a. European Union b. NAFTA 3. International Treaties B. Jurisdiction Over Actions of Foreign Governments 1. Sovereign Immunity 2. Act of State […]

ANSWERS TO PROBLEMS 1. Atlantic Cement operated a large cement plant. Neighboring landowners sued for damages and an injunction, claiming that their properties were injured by the dirt, smoke, and vibrations coming from the plant. The lower court found that […]

*** Chapter Outcome*** Explain the regulation of both point and nonpoint sources of pollution by the Clean Water Act. Point Sources The EPA administrator establishes euent limitations for categories of existing point sources. An euent limitation is a technology-based standard […]

Chapter 45 ENVIRONMENTAL LAW I. Common Law Actions for Environmental Damage A. Nuisance 1. Private Nuisance 2. Public Nuisance B. Trespass to Land C. Strict Liability for Abnormally Dangerous Activities D. Problems Common to Private Causes of Action II. Federal […]

ANSWERS TO PROBLEMS 1. Baldwin Corporation made a public offering of $25 million of convertible debentures and registered the offering with the SEC. The registration statement contained financial statements certified by Adams and Allen, Certified Public Accountants. The financial statements […]

Chapter 44 ACCOUNTANT’S LEGAL LIABILITY A. Common Law 1. Contract Liability 2. Tort Liability a. Negligence b. Fraud 3. Criminal Liability 4. Client Information a. Working Papers b. Accountant-Client Privilege B. Federal Securities Law 1. Securities Act of 1933 2. […]

ANSWERS TO PROBLEMS 1. Acme Realty, a real estate development company, is a limited partnership organized in Georgia. It is planning to develop a 200-acre parcel of land for a regional shopping center and needs to raise $1,250,000. As part […]

CASE 43-4 UNITED STATES v. O’HAGAN Supreme Court of the United States, 1997 521 U.S. 642, 117 S.Ct. 2199, 138 L.Ed.2d 724 http://scholar.google.com/scholar_case?q=117+S.CT. +2199&hl=en&as_sdt=2,34&case=287189961484150105&scilh=0 Ginsburg, J. Respondent James Herman O’Hagan was a partner in the law firm of Dorsey & […]

CASE 43-3 MATRIXX INITIATIVES, INC. v. SIRACUSANO Supreme Court of the United States, 2011 563 U.S. ___, 131 S.CT. 1309, 179 L.ED.2D 398 http://scholar.google.com/scholar_case?q=131+S.+Ct. +1309&hl=en&as_sdt=2,34&case=15831619199744263593&scilh=0 Sotomayor, J. [Matrixx develops, manufactures, and markets over-the-counter pharmaceutical products. Its core brand of products […]

*** Chapter Outcome *** Discuss the potential civil liabilities under the 1933 Act. Unregistered Sales Section 12(1) of the act imposes express civil liability for • the sale of an unregistered security that is required to be registered, • the […]

Chapter 43 SECURITIES REGULATION I. The Securities Act of 1933 A. Definition of a Security B. Registration of Securities 1. Disclosure Requirements 2. Integrated Disclosure 3. Shelf Registrations 4. Communications 5. Emerging Growth Companies C. Exempt Securities 1. Short-term Commercial […]

17. At Whirlpool’s manufacturing plant in Ohio, overhead conveyors transported household appliance components throughout the plant. A wire mesh screen was positioned below the conveyors in order to catch falling components and debris. Maintenance employees frequently had to stand on […]

ANSWERS TO PROBLEMS 1. Gooddecade manufactures and sells automobile parts throughout the eastern part of the United States. Among its full-time employees are 220 fourteen- and fifteen-year-olds. These teenagers are employed throughout the company and are paid at an hourly […]

CASE 42-5 TOYOTA MOTOR MANUFACTURING, KENTUCKY, INC. v. WILLIAMS Supreme Court of the United States, 2002 534 U.S. 184, 122 S.Ct. 681, 151 L.Ed.2d 615 http://scholar.google.com/scholar_case?case=3382304874478067867&q=534+U.S. +184&hl=en&as_sdt=2,34 O’Connor, J. Under the Americans with Disabilities Act of 1990 (ADA or Act), […]

CASE 42-3 RICCI v. DESTEFANO Supreme Court of the United States, 2009 567 U.S. 557, 129 S. Ct. 2658, 174 L.Ed.2d 490 http://scholar.google.com/scholar_case?case=8509283780298736470&q=557+U.S.+.557&hl=en&as_sdt=2,34 Kennedy. J. In 2003, 118 New Haven firefighters took examinations to qualify for promotion to the rank […]

Chapter 42 EMPLOYMENT LAW A. Labor Law 1. Norris-La Guardia Act 2. National Labor Relations Act 3. Labor-Management Relations Act 4. Labor-Management Reporting and Disclosure Act B. Employment Discrimination Law 1. Equal Pay Act 2. Civil Rights Act of 1964 […]

ANSWERS TO PROBLEMS 1. The Federal Trade Commission (FTC) brings a deceptive trade practice action against Beneficial Finance Company based on Beneficial’s use of its “instant tax refund” slogan. The FTC argues that Beneficial’s advertising a tax refund loan or […]

CASE 41-2 HOUSEHOLD CREDIT SERVICES, INC. v. PFENNIG Supreme Court of the United States, 2004 541 U.S. 232, 124 S. Ct. 1741,158 L.Ed.2d 450 http://scholar.google.com/scholar_case?case=6616956060046722608&q=541+U.S.+232&hl=en&as_sdt=2,10 Thomas, J. [Sharon Pfennig, holds a credit card initially issued by Household Credit Services, Inc. […]

Chapter 41 CONSUMER PROTECTION A. State and Federal Consumer Protection Agencies 1. State and Local Consumer Protection Agencies 2. The Federal Trade Commission a. Standards b. Remedies 3. The Consumer Product Safety Commission 4. Consumer Financial Protection Bureau 5. Other […]

ANSWERS TO PROBLEMS 1. Discuss the validity and effect of each of the following: (a) A, B, and C, manufacturers of radios, orally agree that due to the disastrous, cutthroat competition in the market, they will establish a reasonable price […]

CASE 40-3 EASTMAN KODAK CO. v. IMAGE TECHNICAL SERVICES, INC. Supreme Court of the United States, 1992 504 U.S. 451, 112 S.Ct. 2072, 119 L.Ed.2d 265 http://scholar.google.com/scholar_case? case=6652719385155799724&q=504+U.S.+451&hl=en&as_sdt=2,22 Blackmun, J. * * * Kodak manufactures and sells complex business machines—as […]

Chapter 40 ANTITRUST A. Sherman Act 1. Restraint of Trade a. Standards b. Horizontal and Vertical Restraints c. Concerted Action d. Price Fixing e. Market Allocations f. Boycotts g. Tying Arrangements 2. Monopolies a. Monopolization b. Attempts to Monopolize c. […]

ANSWERS TO PROBLEMS 1. Keller, a professor of legal studies at Rhodes University, is a diligent instructor. Late one night, while reading a newly published, copyrighted treatise of 1,800 pages written by Gilbert, he came across a three-page section discussing […]

CASE 39-3 SUPAP KIRTSAENG v. JOHN WILEY & SONS, INC. Supreme Court of the United States, 2013 568 U.S. ____, 133 S.Ct. 1351, 185 L.Ed.2d 392 http://scholar.google.com/scholar_case?case=15712401143530412161&q=133+S.Ct.+1351&hl=en&as_sdt=2,34 Breyer, J. [The business of respondent, John Wiley & Sons, Inc., includes publishing […]

Part Nine: Regulation of Business CONTENTS Chapter 39 Protection of Intellectual Property Chapter 40 Antitrust Chapter 41 Consumer Protection Chapter 42 Employment Law Chapter 43 Securities Regulation Chapter 44 Accountants’ Legal Liability Chapter 45 Environmental Law Chapter 46 International Business […]

ANSWERS TO PROBLEMS 1. (a) Benson goes into bankruptcy. His estate is not sufficient to pay all taxes owed. Explain whether Benson’s taxes are discharged by the proceedings. (b) Benson obtained property from Anderson on credit by representing that he […]

CASE 38-2 RADLAX GATEWAY HOTEL, LLC v. AMALGAMATED BANK Supreme Court of the United States, 2012 566 U.S. ____, 132 S.CT. 2065, 182 L. Ed. 2d 967 http://scholar.google.com/scholar_case?q=132+S.CT. +2065+&hl=en&as_sdt=2,34&case=15917701183349776872&scilh=0 Scalia, J. [In 2007, RadLAX Gateway Hotel, LLC and RadLAX Gateway […]

Chapter 38 BANKRUPTCY I. Federal Bankruptcy Law A. Case Administration-Chapter 3 1. Commencement of the Case a. Voluntary Petitions b. Involuntary Petitions 2. Dismissal 3. Automatic Stays 4. Trustees 5. Meetings of Creditors B. Creditors, the Debtor, and the Estate-Chapter […]

ANSWERS TO PROBLEMS 1. Victor sells to Bonnie a refrigerator for $600 payable in monthly installments of $30 for twenty months. Bonnie signs a security agreement granting Victor a security interest in the refrigerator. The refrigerator is installed in the […]

CASE 37-2 KIMBRELL’S OF SANFORD, INC. v. KPS, INC. Court of Appeals of North Carolina, 1994 113 N.C.App 830,440 S.E.2d 329 http://scholar.google.com/scholar_case?case=59507666894516031 62&hl=en&as_sdt=2&as_vis=1 i=scholarr McCrodden, J. This action arises out of plaintiff’s attempt to recover from defendant KPS, Inc. a […]

Part Eight: Debtor and Creditor Relations CONTENTS Chapter 37 Secured Transactions and Suretyship Chapter 38 Bankruptcy ETHICS QUESTIONS RAISED IN THIS PART 1. Is it ethical for a business to refuse to deal with a customer if the customer has […]

ANSWERS TO PROBLEMS 1. The stock in Hotel Management, Inc., a hotel management corporation, was divided equally between two families. For several years the two families had been unable to agree on or cooperate in the management of the corporation. […]

CASE 36-2 SHAWNEE TELECOM RESOURCES, INC. v. BROWN Supreme Court of Kentucky, 2011 354 S.W.3D 542 http://scholar.google.com/scholar_case? q=354+S.W.3D+542&hl=en&as_sdt=2,34&case=295706676174884700&scilh=0 Abramson, J. [In December 2003, Shawnee Technology, Inc. (Shawnee Tech), a Kentucky corporation, merged into Appellant Shawnee Telecom Resources, Inc. (Shawnee Tel), […]

Chapter 36 FUNDAMENTAL CHANGES A. Charter Amendments 1. Approval by Directors and Shareholders 2. Approval by Directors B. Combinations 1. Purchase or Lease of All or Substantially All of the Assets a. Regular Course of Business b. Other Than In […]