LAW 122 Chapter Notes - Chapter 1: Primary And Secondary Legislation, Settlor, Parliamentary Sovereignty
26 Sep 2013
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Document Summary
Law shapes and reflects how people interact. Success and failure are the result of choices (maximize profit, minimize losses) Every choice has legal consequences; some profitable, some disastrous. Risk management is the process of identifying, evaluating, and responding to the possibility of harmful events. Identification: liability is actually being held legally responsible, which, along with the possibility of being sued, you need to be concerned about. Evaluation: if you evaluate whether it is worth it to go ahead with legal action, or another action that may result in your being sued. Response: you are now in the position to make an informed decision. The goal is not necessarily to eliminate risks (taking chances is necessary for a business to survive or profit) but to manage them. Two of the most important are insurance and exclusion clauses. Liability insurance provides a benefit if the purchaser is held liable for doing anything wrong.
