LAW 122 Chapter Notes - Chapter 1: Common Law, Liability Insurance, Property Insurance
27 Oct 2016
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Law122 chapter 1: risk management and source of law (textbook notes) In the business world, law can be both helpful and hurtful: every business has to make choices, and every choice involves a consequence, some consequences are profitable; others are disastrous. A contract is a legal concept that allows people to create enforceable promises. Risk management is the process of identifying, evaluating, responding to the possibility of harmful events: you need to identify, evaluate, and respond to the legal risks involved. In any event, you need to be concerned with liability, about actually being held legally responsible. Also be concerned about the possibility of getting sued. Ex: if you accuse your ex-employee of theft, she may sue you for defamation because your statement would cause a reasonable person to think less of her. Ex: having identified the risk of being sued for defamation, you may decide that a candid letter would nevertheless be legally acceptable.
