September 7, 2012
Risk Management and Sources of Law
Risk Management – is the process of identifying, evaluating and responding to the possibility of harmful
Risk Avoidance – A risks that should be avoided altogether. (Ex. Ford Pinto and exploding on impact)
Risk Reduction – Risk that can be reduced to an acceptable level through precautions. (Ex. Banks loans
Risk Shifting – Risk that can be put on a different party. (Ex. hiring an independent contractor)
Risk Acceptance – Sometime it is appropriate to accept the risk. (Ex. golf course and broken windows)
Insurance – is a contract in which one party agrees, in exchange for a price, to pay if suffered a loss.
Exclusion and Limitation Clauses – Contracts that contain exclusion and limitation clauses (Ex. we are
not reasonable for any lost or stolen articles)
Incorporation – the company itself is liable and not the directors and shareholders.
The Nature of Law
Law – is a rule that can be enforced by the courts.
Moral Obligations – the way society feels that I should act.
A Map of the Law
Common Law – systems track their history to England (All of Canada except Quebec)
Civil Law – systems track their history to ancient Rome. (Quebec)
Jurisdiction – is a geographical area that uses the same set of laws
In Canada, we all have the same criminal laws and constitutional laws
Public Law – is concerned with governments and the ways in which they deal with their citizens
Constitutional Law – provides the basic rules of our political and legal.
Administrative Law – is concerned with the creations and operation of administrative agencies
Criminal Law – deals with offences against the state.
Tax Law – is concerned with the rules that are used to collect money for the purposes of public
Private Law – is concerned with the rules that apply in private matters
A Tort – is a private wrong.
Law of Contracts – is concerned with the creation and enforcement of agreements
Law of Property – is concerned with the acquisition, use, and disposition of property.
(1) Real Property – land and things attached to land
(2) Personal property – things that can be moved from one place to another
(3) Intellectual property –original ideas (Ex. patents and copyrights)
1 | P a g e September 7, 2012
The Constitution – is the document that creates the basic rules for Canadian society, including its
political and legal system.
The Division of Powers – States the areas in which each level of government can create laws
Federal – The House of Commons (Ottawa) & the Senate (appointed to their jobs)
Provincial and Territorial – Canadians elect politicians to repent them within their own
provinces and territories.
o Canada is a federal country because it has two levels of government
Division of Powers
Federal Provincial or Territorial
Criminal Law Property and Civil Rights
Taxation Direct taxation to raise money for provincial purposes
Unemployment Insurance Corporations with provincial Objects
Banks The creation of Municipalities
Bankruptcy and Insolvency Matters of a local or private nature within a province
Negotiable instruments (Ex. cheques) Heath Care
Internal and interprovincial trade and commerce
Navigation and shipping
Any matter that is not exclusively given to the provinces
(Peace, order, and good government)
Residual Power – gives the federal government authority over everything that is not specifically
mentioned. (Ex. telecommunications and air travel)
The Doctrine of Federal Paramountcy – Determines which law is pre-eminent based on the
Constitution’s division of power
Charter of Rights and Freedoms
The Charter protects a large number of rights and freedoms. S.1
Democratic Rights (Sections 3-5)
Legal Rights (Sections 8-14) S.32
Official Languages and Minority Language (Sections 16-23) Economic, Property rights
Aboriginals and Multiculturalism (Sections 25 and 27)