LAW 122 Lecture 3: CHAPTER 1
11 Sep 2017
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Legal consequences affect profits and losses: some decisions impose liability, others create opportunities, the difference between winning and losing in the business world often depends on the ability to make good choices from a legal perspective. Risk management is the process of identifying, evaluating, and responding to the possibility of harmful events. Example: one of your ex-employees is hoping to join another company. She has asked you to write a reference letter on her behalf. She obviously does not know that you have a very low opinion on her, largely because you believe that she stole money from your business. Furthermore, since the company that she wants to join is one of your best customers, you are tempted to write a candid letter. In order to properly answer a question, you need to identify, evaluate and respond to the legal risks involved. Identification: you always need to be concerned about liability (about actually being held legally responsible).
