Law 2101- Midterm Exam Guide - Comprehensive Notes for the exam ( 23 pages long!)
Document Summary
Chapter 1: risk management and sources of law. Why study law: there are many factors affecting success and failure in business, and they are often a function of decision-making abilities: the choice of location, product, marketing, etc, business decisions have legal consequences, negative consequences, ex. Decision to dump pollutants into environment could result in liability for damage caused: positive consequences, ex. How can legal risks be successfully managed: three steps to risk management: Forms of risk management: remember: every business decision creates some risk. The challenge is to know how to successfully manage those risks. Different risks must be treated differently: risk avoidance: elimination of risk, ex. Withdraw dangerous product from the market: risk reduction: minimization of risk, ex. Modify product to reduce danger: risk shifting: make the risk someone elses problem, ex. Buy liability insurance for losses caused by danger: risk acceptance: choose to live with risk, do nothing.
