LAW 525 Lecture Notes - Lecture 1: Ultra Vires, Transaction Cost, Consumer Protection

151 views5 pages
28 Jul 2016
Course
Professor
Law525 – Lecture 1
Business-Consumer market transaction process
- Law structure & frames the process
- 1) pre transaction phase
oProducts are manufactured
oSales practices
oAdvertising campaigns
oInter firm sale arrangements
- 2) actual transaction phase
oTerms, conditions, warranties & garuntees are stipulated
oConsumer info is collected
oCredit arrangements are made
- 3) post transaction phase
oConsumer remedies
oConsumer info is used
oConsumer info is exchanged with third parties
oLoan payments are collected
Market failures & the law
- Basic framework for market transaction arises from
o1) contract law – voluntary obligation between parties
o2) tort law – obligations imposed by the common law (the courts)
oRelying on these may be inadequate
- Gov’t may create legislation & regulation to further protect consumers from market
failures
o1) monopolistic behavior
o2) negative externalites
Unknown cost are assumed by consumer (e.g. unknown hazards & risks)
o3) information failures
Information imbalance – businesses know their products (including
hazards & attributes) better than consumers
- Gov’t response – laws
oMinimum safety standards
oMandatory disclosures
oProhibition of certain sales practices
oProhibit the sale of certain products to certain consumers (e.g. age, licenses)
oLiability for defective or harmful products
Transaction costs
- Gov’t attempt to minimize “transaction cost” associated with consumer protecting
themselves
- Gov’t response – laws
oCool off periods
oStatutory “cause of action”
oAvailability of small claims courts
oClass proceedings
oOmbudsman
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
Risk management for businesses
- Managing legal risk -> 3 steps
o1) identify risks
o2) evaluate risks
o3) respond to the risks
- Forms of risk management
o1) risk avoidance
Withdraw dangerous product
o2) risk reduction
Modify product to reduce danger
o3) risk shifting
Insurance
Exclusion clauses
o4) accept the risk
Do nothing
- Legislation
oGov’t made laws
oLegislation = statute = act
oStatutes are dull & difficult to read
oCharacteristics
1) utilitarian prose (no irony, no wit, no embellishment, no humar)
2) consistency & uniformity
3) concise
4) precise
oWords to know
Knowingly, willfully -> with intent (mens rea)
May -> permissive
Shall, must -> imperative
Deem -> declaring the law with respect to a matter even though contrary
to common understanding
Chapter 2 – constitutional aspects
The constitution
- Basic rules of Canadian society
- Highest source of law
- 1) division of powers
oS.91 federal gov’t powers
Regulation of trade & commerce
Banking, bonds, weights, BIE, Promissory, Copyright
Criminal law
Federal gov’t holds residual powers
oS.92 – provincial powers
Shops, local workers, incorporations of companies
Property & civil rights
Administration of justice
oUltra vires – laws created outside gov’t authorities are of no force or effect (s.52)
oIntra vires – laws created within a gov’t authority of legal force & effect
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class