LAW 122 Lecture Notes - Lecture 1: Liability Insurance, Property Insurance, Private Law
27 Feb 2015
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Factors affect success and failure in business decision-making: eg location choice, product, marketing. Positive: eg binding contractual party to promise. Some decisions impose liability, others create opportunities. Risk management-the process of identifying, evaluating, and responding to the possibility of harmful events. Risk management process: identification: recognize legal risks. Can we be held liable for this? evaluation: assessment of legal risks. What are the chances of something going wrong? response: reaction to legal risks. What are we going to do about it? . The goal is not to eliminate the risk but to manage them. Nearly every business decision creates some risk. Therefore, there are different forms of risk management: risk avoidance-eliminate risk. Two important strategies for shifting risks: insurance and exclusion clauses. A company is vicariously liable for the actions of its employees. A company is not liable for an independent contractor. 4. risk acceptance-sometimes it"s appropriate to simply accept a risk.
