LAW 122 Lecture 5: LAW122 - Chapter 1
31 Oct 2017
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Chapter 1 summary: the study of law is important to business because the need for risk management. Risk management: is the process of identifying, evaluating, and responding to the possibility of harmful events: a business can pursue various strategies for risk management including: Risk avoidance: if financial costs of being held liable, outweigh costs. Risk reduction: risks reduced to an acceptable level through precautions. Insurance: contract in which one party agrees, in exchange for a price, to pay a certain amount of money if another party suffers a loss (liability and property insurance) Exclusion and insurance clauses: contractual terms that changes rules of liability all risk or certain types. Incorporation: benefit, limited liability, only the company itself can be held liable, but people will be safe. A law: is a rule that can be enforced by the courts. Civil law: systems trace their history to ancient rome; civilians.
