[LAW 122] - Midterm Exam Guide - Ultimate 52 pages long Study Guide!
7 Feb 2017
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Factors affect success and failure in business: decision-making: e. g. location choice, product, marketing, supply and demand example. Business decisions have legal consequences: negative: e. g. dumping pollutants into environment, positive: e. g. binding contractual party to promise. Legal consequences affect profits and losses: some decisions impose liability others create opportunities. Risk management: identifying, evaluating, and responding to the possibility of harmful events: risk avoidance: avoiding risk, risk reduction: reduced law to acceptable level through precaution, risk shifting: shifted onto another party, risk acceptance: accept a risk. Insurance: is a contact in which one party agrees, in exchange for a price, to pay a certain amount of money if another party suffers a loss. Exclusion and limitation clauses: contracts that very often contain exclusion or limitation clauses. Only the company itself, and not the directors or shareholders, that may be held liable for debts. The company may be lost, but the people behind it will be safe.
