Why study law: effect success/failure in business. Impact decisions made by businesses (location, product, marketing, ideas and business property: legal consequences affect profit / losses, part of risk management and advice provided by managers. Identification (recognize legal risk who held liable?) 1: evaluation (assess legal risk chances of something wrong, response (reaction of legal risk) Risk avoidance: elimination of risk withdraw dangerous good from market. Risk reduction: minimization of risk modify product to reduce danger. Risk shifting: make risk someone else"s problem buy liability insurance for losses caused by danger outsource (transfer delivery of goods risk to another company) Risk acceptance: choose to live w/ risk do nothing. Operation of legal system: political process, environment, sociology. Law = rules that govern individual in given society (different society = different rules) Constitution: charter of rights and freedoms deals w/ powers of provincial, federal, municipal charter. Statutes: rso, rsc, etc laws created by municipalities called bi-laws.