Management and Organizational Studies 2275A/B Lecture Notes - Alternative Dispute Resolution, Parol Evidence Rule, Small Claims Court

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Knowledge of Law as a Business Asset: 05/10/2012 7:54:00 AM
Vocabulary:
Business Law: a set of established rules governing commercial
relationships, including the enforcement of rights
Law: the set of rules and principles guiding conduct in society
Breach of contract: failure to comply with a contractual promise
Contract law: rules that make agreements binding and therefore
facilitate planning and the enforcement of expectations
Litigation: the process involved when one person sues another
Mediation: a process through which the parties to a dispute endeavour
to reach a resolution with the assistance of a neutral person.
Arbitration: a process through which a neutral party makes a decision
(usually binding) that resolves a dispute
Liability: legal responsibility for the event or loss that has occurred.
Legal risk management plan: a comprehensive action plan for dealing
with the legal risks involved in operating a business
Business ethics: moral principles and values that seek to determine
right and wrong in the business world.
Chapter Summary:
Law is involved in all aspects of business, whether the entrepreneur is
aware of it or not.
The law protects persons and their property; facilitates commercial
interactions, particularly through contract law; and provide mechanisms
for dispute resolution
Thought not perfect, the Canadian legal system has much to recommend
it.
The system strives for just outcomes by demanding that both the process
for determining liability and the rules or laws that are applied in that
process are fair, objective, and free from bias.
No justice system, of course, can consistently accomplish all these goals.
Indeed, there are serious limitations to what the law can realistically
achieve when a legal problem arises; thus, it is imperative that a business
adopt a proactive approach in managing the legal aspects of its
environment through a legal risk management plan
This chapter has emphasized the idea that knowledge of the law is an
essential business asset
Informed owners and managers can protect their businesses by ensuring
compliance with legal requirements.
They can capitalize on the planning function of law to ensure the future of
their business by entering into contracts
They also can seek enforcement of legal rules against those who do
business or have other interactions with the enterprise.
In this way, the property, contractual expectations, and profitability of
the business are made more secure
Business ethics while sometimes but not always coextensive with legal
requirements are also increasingly important to running a successful
business.
The Canadian Legal System: 05/10/2012 7:54:00 AM
Vocabulary:
Government policy: the central ideas or principles that guide
government in its work, including the kind of laws it passes
Constitutional law: the supreme law of Canada that constrains and
controls how the branches of government exercise power.
Liberalism: a political philosophy that elevates individual freedom and
autonomy as its key organizing value.
Canadian Legal System: The machinery that comprises and governs
the legislative, executive, and judicial branches of government
Constitutional conventions: Important rules that are not enforceable
by a court of law but that practically determine or constrain how a given
power is exercised.
Legislative branch: the branch of government that creates statute law
Statute Law: formal, written laws created or enacted by the legislative
branch of government
Jurisdiction: the power that a given level of government has to enact
laws.
Exclusive jurisdiction: jurisdiction that one level of government holds
entirely on its own and not on a shared basis with another level.
Concurrent jurisdiction: jurisdiction that is shared between levels of
government
Paramountcy: a doctrine that provides that federal laws prevail when
there are conflicting or inconsistent federal and provincial laws.
Bylaws: laws made by the municipal level of government
Ratify: To authorize or approve
Treaty: an agreement between two or more states that is governed by
international law
Formal executive: the branch of government responsible for the
ceremonial features of government
Political executive: the branch of government responsible for day-to-
day operations, including formulating and executing government policy,
as well as administering all departments of government
Cabinet: a body composed of all ministers heading government
departments, as well as the prime minister or premier.