Business Law and the Legal

Solutions Manual For Business Law and the Legal Environment, Standard Edition, 10 th Edition By Jeffrey Beatty, Susan Samuelson, Patricia Abril (All Chapters 1-44, 100% Original Verified, A+ Grade)

All Chapters Arranged Reverse:

44-1 This is The Original Solutions Manual For 10 th

Edition, All other Files in The Market are Fake/Old/Wrong Edition. 1 / 4

Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment – Standard Edition 10e, ©2026, 9798214045207; Chapter 44: Planning for the Future: Wills, Trusts, and Insurance Solution and Answer Guide Beatty/Samuelson/Abril, Business Law and the Legal Environment – Standard Edition 10e, ©2026, 9798214045207; Chapter 44: Planning for the Future: Wills, Trusts, and Insurance

TABLE OF CONTENTS

Multiple Choice Questions............................................................................................1 Additional Exam Strategy Questions............................................................................2 Case Questions..............................................................................................................3 Discussion Questions....................................................................................................4

MULTIPLE CHOICE QUESTIONS

1.CPA Question. A decedent’s will provided that the estate was to be divided among the decedent’s issue per capita and not per stirpes. If there are two surviving children and three grandchildren who are children of a predeceased child at the time the will is probated, how will the estate be divided?a.1/2 to each surviving child b.1/3 to each surviving child and 1/9 to each grandchild c.1/4 to each surviving child and 1/6 to each grandchild d.1/5 to each surviving child and grandchild

Answer: D

2.Hallie is telling her cousin Anne about the will she has just executed. “Because of my broken arm, I couldn’t sign my name, so I just told Bertrand, the lawyer, to sign it for me. Bertrand was also the witness

to the will.” Anne said, “You made a big mistake:

I.You should have made at least some sort of mark on the paper.II.The lawyer is not permitted to witness the will.III.You did not have enough witnesses.Which of Anne’s statements is true?a.I, II, and III b.Neither I, II, nor III c.Just I d.Just II e.Just III

Answer: E

3.Blake tells his client that there are five good reasons to set up a trust. Which of the following is not a good reason?a.To pay his grandchildren’s college tuition if they go to the same college he attended b.To save money, since setting up a trust is cheaper than a will c.To make sure the money is properly invested d.To avoid probate e.To safeguard his privacy 1 © 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 / 4

Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment – Standard Edition 10e, ©2026, 9798214045207; Chapter 44: Planning for the Future: Wills, Trusts, and Insurance

Answer: B

2.An electronic will is valid a.only if it is printed out and signed by the testator.b.if there is an audio or video recording of the testator signing the will.c.only if the witnesses were in the same room as the testator when he signed the will.d.if the will is in any way legible, including in computer code.e.if the will is signed with any tangible symbol as long as the symbol was created with the intent to validate the will.

Answer: E

4.If Chip buys an insurance policy covering his daughter Sarah’s apartment, which of the following statements is true?f.Sarah is the insured, the beneficiary, and the owner.g.Chip is the insured, the beneficiary, and the owner.h.Sarah is the beneficiary; Chip is the insured and the owner.i.Sarah is the insured and the beneficiary; Chip is the owner.

Answer: D

ADDITIONAL EXAM STRATEGY QUESTIONS

1.If you were in an emergency situation and desperately wanted to prepare a new will, under what circumstances would a holographic will be preferable to the nuncupative option?

Strategy: The two types of wills have different requirements for witnesses.

Solution: A holographic will does not require witnesses; a nuncupative will requires two.

2.Noah was a grouchy fellow, often at odds with his family. In his will, he left his son an autographed copy of his book, A Guide to Federal Prisons. He completely omitted his daughter, instead leaving the rest of his substantial estate to the Society for the Assistance of Convicted Felons. Which child fared better?

Strategy: Pretermitted children fare differently from those named in the will.

Solution: Because the son was not totally omitted from the will, he is entitled to nothing more than the book, while the daughter who was not mentioned in the will gets more than her brother— she receives whatever share she would be entitled to if Noah had died intestate.

3.When Martin applied for life insurance with Farmstead, he indicated on the application that he had not received any traffic tickets in the preceding five years. In fact, he had received several such citations for driving while intoxicated. Two years later, Martin was shot to death. When Farmstead discovered the traffic tickets, it denied coverage to his beneficiary. Was Farmstead in the right?Strategy: A misrepresentation is material if it affects the insurer’s decision to issue a policy or set a premium amount.Solution: If Martin had told the truth, Farmstead still would have issued the policy, but the premium would have been higher. It can refuse to pay the claim, even though the issue that he lied about was not a factor in his death.2 © 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 / 4

Solution and Answer Guide: Beatty/Samuelson/Abril, Business Law and the Legal Environment – Standard Edition 10e, ©2026, 9798214045207; Chapter 44: Planning for the Future: Wills, Trusts, and Insurance

CASE QUESTIONS

1.If your grandparents were to die leaving a large estate, and all of their children were also dead, would you have a larger inheritance under a per stirpes or a per capita distribution?Solution: Answers will vary. It depends on the number of siblings you have in relation to the number of children in each of the other branches of the family. For example, if the decedents had two children, under per stirpes distribution, they would each inherit half the estate. If the children were dead, their children (the grandchildren of the decedents) would split the parents’ portions. So, if you were an only child, you would get half the estate. If you had three siblings, you would get ¼ of half, or 1/8 of the estate. In the same example, but under per capita, each grandchild would get 1/5 of the estate. So, per stirpes is better if you have few siblings; per capita is better if your sibling group is larger than the average sibling group in the extended family.

4.Linda and Eddie had two children before they were divorced. Under the terms of their divorce, Eddie became the owner of their house. When he died suddenly, their children inherited the property. Linda moved into the house with the children and began paying the mortgage that was in Eddie’s name. She also took out fire insurance. When the house burned down, the insurance company refused to pay the policy because she did not have an insurable interest. Do you agree?Solution: Linda had an insurable interest because she had made a substantial financial contribution by paying the mortgage. Also, the house was owned by her children and as their guardian, she had an insurable interest in the house. Motorists Mutual v. Richmond, 676 S.W.2d 478 (Ky. Ct. App. 1984).

5.Dannie Harvey sued her employer, O. R. Whitaker, for sexual harassment, discrimination, and defamation.Whitaker counterclaimed for libel and slander, requesting $1 million in punitive damages. Both Whitaker and Harvey were insured by Allstate under identical homeowner’s policies. This policy explicitly promised to defend Harvey against the exact claim Whitaker had made against her. Harvey’s Allstate agent, however, told her that she was not covered. Because the agent kept all copies of Harvey’s insurance policies in his office, she took him at his word. She had no choice but to defend against the claim on her own. Whitaker mounted an exceedingly hostile litigation attack, taking 80 depositions. After a year, Allstate agreed to defend Harvey. However, instead of hiring the lawyer who had been representing her, it chose another lawyer who had no expertise in this type of case and was a close friend of Whitaker’s attorney. Harvey’s new lawyer refused to meet her or to attend any depositions. Harvey and Whitaker finally settled. Whitaker had spent $1 million in legal fees, Harvey $169,000, and Allstate $2,513. Does Harvey have a claim against Allstate?Solution: Harvey sued Allstate for a violation of the covenant of good faith and fair dealing. A jury awarded her $94,000 plus attorney’s fees. Harvey v. Allstate Insurance Co., 1993 U.S. app.

LEXIS 33865 (10

th Cir. 1993).

6.When Gregg died, his will left his money equally to his two children, Max and Alison, whom he explicitly named. Max had died a few years earlier, leaving behind four children. Who will get Gregg’s money?Solution: Alison will inherit everything. His grandchildren would inherit only if his will said “to his issue” or if the will named the grandchildren explicitly.

7.Suzy Tomlinson, 74, met a tragic end—she drowned, fully clothed, in her bathtub after a night out partying with 36-year-old J.B. Carlson. He had taken her home at 1:00 a.m. and was the last person to see her alive.The two were not only party buddies; Suzy was on the board of directors of a company J.B. had started.Her family was stunned to find out that she had a $15 million life insurance policy, with the proceeds payable to a company J.B. controlled. He said it was a key person policy. He wanted to protect the 3 © 2026 Cengage Learning, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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