MATH 223 Lecture Notes - Lecture 5: Liability Insurance, Primary And Secondary Legislation, No Liability
21 Oct 2020
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Chapter 1: risk management and sources of law. As consumers we all need to be aware of the rules that govern commercial transactions. Factors affect success and failure in business, primarily for decision making (choices) > positive consequences ( decisions to bind contractual party to promise) Risk management: the process of identifying, evaluating, and responding to the possibility of harmful events. Can we be held liable for doing something wrong . What are the chances of something going wrong . What are we going to be about it . Risk shifting: make the risk someone else"s problem. Risk acceptance: choose to live with the risk. >contractual terms that exclude liability for certain types of acts/losses, or that limit the amount of compensation available. > limited liability: directors and shareholders are not usually liable for debts of the company. >employees, directors and of ces may still be held personally liable for the torts they commit.
