Law Lecture 4

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Management and Organizational Studies
Management and Organizational Studies 2275A/B
Philip King

Law: Lecture four  Very large gap between what people say they will do, and think what they will do, AND what people actually do in real life  So why do people not do the right thing?  People do not report because they doubt what they see, and how it doesn’t match the personality type of the person (denial)  If not in denial, you must make a decision to come forward or not; you are taking a risk of losing your career and enormous consequences  Doing the right thing can carry large consequences  The same pattern appears: anyone that is aware of the wrong doing has to make a choice; they convince themselves that the wellbeing of the organization is more important than the individual case; they choose to deal with it internally (quietly and hush it out)  Developing a framework for ethical decisions needs to be realistic  Agriculture Canada example (audio); was sued, fired, and discredited but won their case  Karen Olivery: Pediatric kidney diseases; discovered the drug she was giving her patients was killing them; she won her case but was fired, sued and discredited Tort Law  Involves compensating people for harm done to them  Compensatory mechanism  Wealth redistribution mechanism in the form of compensation  Based on fault: when we compensate people, we do it because someone else was in fault  Distinguished from other compensation mechanisms which are not based on fault; no fault auto insurance, workers compensation are some examples  workers compensation: first problem would be you would have no case unless it was the employers fault (unlikely to collect and no effective remedy if it was your fault or coworkers fault); enormous barriers to people even when the employer is in fault (suing a billion dollar company against you while recovering an injury will unlikely get an effective remedy); due to this, injuries give compensation without fault; the majority of people who get injured are young because they are inexperienced (they can afford court the least due to new families, etc.)  auto insurance: perceived injustice and concern that a lot of money was going to lawyers (insurance companies wanted to make it as expensive and time consuming as possible, because they knew they were in advantage); due to this injustice, 99% of automobile incidents are non fault (unless the injuries are massive); but can’t sue in non fault situations (ex. You are not making money right now but will be in a few months; will get zero pay to compensate); if you do not fit the formula, you run into problems  in Canada, we are a mix between no fault and fault  where does tort law come from? Comes almost entirely from cases; when law was being formed (700-800 years ago), there were two classes: the lords and the peasants; the rich made the laws  trespass to person and trespass to property are the two original tort laws that were formed (which is what the rich wanted); defamation then came about (ruining ones reputation), then fraud, nuisance, and has further expanded ever since  the body of case law is expanding, not only in the number of cases, but number of tort laws that will be used  all have one element in common: intention (to win, you needed to prove that it was intentional in order to win)  ought to known better, should have known better (negligence); now tort law got expanded to non intentional as well  TORT LAW can be made up of two things: Intentional and Negligence  Tort law goals: compensation and the secondary goal of modifying people’s behavior accordingly (acting more safely, and responsibly)  Vicarious (shared liability): employer are liable for the wrongdoing of an employee (ex. Bouncer doing something wrong but you take responsibility; bouncer is primarily liable, but employer is also liable); are responsible because you are responsible when things are going well, could have controlled it, controlled the environment); avoid this through buying insurance, training your employees better and enforcing consequences (having a contract will not work)  this will increase costs which will be pushed over to clients through increasing prices  Tort law distributes true costs among all people who use the facilities (why cover and beers is expensive; partial money goes towards these situations and avoiding them)  Tort law is almost entirely case law: raises couple interesting points: (1) fairly predictable but also prone to mistakes because we are dealing with humans (2) everything has to be based on evidence (what does the plaintiff must prove to be successful); must tip that balance of probability in your favor; arguments in court start with evidence (how much money and effort will you have to go through to retrieve and preserve evidence)  Each law has its own elements: ex. Trespass: elements are to prove that they were on plaintiff’s land intentionally without consent (the intention is not merely to do wrong, but do the thing that was wrong); may not even know you were trespassing, but i
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