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Final

LAW 122 Study Guide - Final Guide: Golden Rule, Ultra Vires, Meeting Of The Minds


Department
Law and Business
Course Code
LAW 122
Professor
anon
Study Guide
Final

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Business Law - Law 122
Chapter 1
Why Study Law?
For Business Students
Goal of a business = maximize gains and minimize losses
Business must make choices, and every choice has legal consequences
Difference between winning & loosing depends on business’s ability to make the right decisions from a
legal perspective
Law can hurt and help any business
Risk Management
The process of identifying, evaluating and responding to the possibility of harmful events
Identification
Recognizing the legal risks
Ask yourself: “Can we be held liable for doing something wrong?”
Evaluation
Assessment Of Legal Risk
Ask yourself: “What are the chances of something going wrong?”
Response
Reaction to legal risk
Ask yourself: “What are we going to do about it?”
Forms of Risk Management
Risk Avoidance
Elimination of risk
Withdraw dangerous products from the market
Risk Reduction
Minimizing risk
Modify products to reduce the danger
Risk Shifting
Making the risk another person or businesss problem
Buy liability insurance for losses caused by danger
Risk Acceptance
Choosing to live with the risk do nothing about it
Management of Legal Risks
Low Costs High Costs
Low
Probability
Risk
Acceptance
Risk Shifting
High
Probability
Risk Reduction Risk
Avoidance
Concepts
Insurance
A contract in which one party agrees, in exchange for a price, to pay a certain amount of money if another
party suffers a loss (e.g. ability Insurance provides benefit if the purchaser is held liable for doing
something wrong)
Exclusion Clauses
Changes the usual rules of liability (e.g. A courier company may provide notice that it will not be held
liable for fore than $100 if a package is lost, damaged, or destroyed.)
Incorporation
A company that sets up as a corporation = incorporation
Limited Liability - if something goes wrong, it is usually only the company itself, and not the people who
run it, that may be held liable the company may be lost, but the people behind it are safe
The Nature of Law
Laws – rules that can be enforced by courts
All laws are rules but not all rules are laws
Interpreting the Law
Textual Approach:
Wording of the law each word is given its plain meaning & there’s no need to look outside the
document.
Purposive Approach:
Legislature’s intention first determine the statute’s purpose; then read the law in a way that best
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achieves that purpose.
A Map of the Law
Division between public law and private law
Public law: matters of public concern
Private law: matters of private concern
Public Law
Constitutional Law
Provides basic rules for legal and political systems
Difficult to amend
oAmending formula requires the consent of both the parliament and 2/3 of all provinces
and territories with at least 50% of the population
Highest source of law
oLaw is inconsistent with the Constitution no force or effect
Section 52 of the Constitution
Administrative Law
Concerned with the creation and operation of administrative agencies and tribunals
Profound impact on business
Criminal Law
Deals with offences against the state
Tax Law
Concerned with the rules that are used to collect money for public spending
Private Law
Tort law
Rules governing wrongs against persons
Contract law
Rules governing creation and enforcement of agreements
Property law
Rules governing acquisition, use, and disposition of property
A Map of the Law
Overlap
1 event can trigger more than one set of results
Some situations involve various types of laws
Morality and Law
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Moral wrongs may be informally sanctioned
E.g. loss of friendships or damaged reputation
Legal wrongs are formally sanctioned
E.g. imprisonment or payment of damages
Sources of Law
Constitution
Provides basic rules for legal and political systems
Difficult to amend
Amending formula requires the consent of both the parliament and 2/3 of all provinces and
territories with at least 50% of the population
Highest source of law
Law that is inconsistent with the Constitution has no force or effect
Section 52 of the Constitution
Division of Power
Federal
oComposed of 2 parts House of Commons (elected MPs) and the Senate (appointed)
Provincial and Territorial
oLegislative Assembly – elected body
Legislation
Laws created by Parliament or legislature
Statutes, regulations, by-laws, etc
Legislative process
Introduced as “bill”
Majority support through series of “readings”
Finalized by “royal assent”
Subordinate legislation
Created under Parliament’s or legislature’s authority
Example of municipality
oProvince creates municipality
oProvince gives municipality power to pass by-laws
Courts
Function of courts:
Interpret and apply Constitution
Interpret and apply legislation
Create and apply “common law” (judge-made law)
Common Law
Meanings of “common law”
System: legal system inherited from England
Compare: civil law inherited from ancient Rome
Sources: rules made by judges
Compare: rules made by legislators
Compare: rules made by constitutional drafters
Systems trace their history to England
All of Canada, except Quebec, have a Common Law jurisdiction Quebec has a Civil Law jurisdiction
Civil Law
Systems trace their history to ancient Rome
Common Law and Equity
Historical developments
oPhase I: Law
Only one set of courts in England
Rules often rigid and harsh
oPhase II: law and equity
Law supplemented by equity
Separate courts, judges, and rules
oPhase III: fusion
Law and equity combined into single court
Ongoing rationalization of legal and equitable rules
Equity
oNature of equity
Traditional equity
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