LAW 122 Chapter Notes - Chapter 1: Charter Of The French Language, Specific Performance, Settlor
28 Dec 2016
School
Department
Course
Professor
Document Summary
Chapter 1: risk management and sources of law. Business student - business choices legal consequences, make good choices from legal perspective (max. profits and min. losses) Hurt vs. help, prohibition/punishment, do things you could not do otherwise. Contract = legal concept, allows people to create enforceable promises. Risk management = process of identifying, evaluating, responding to possibility of harmful threats. Risk avoidance - risk so serious, avoid altogether, cost v. profit. Risk reduction - reduce risk to acceptable level through precautions. Risk shifting - cannot avoid or reduce risk, shift onto another party. Insurance: contract, one party agrees (in exchange for a price) to pay a certain amt. of $ if another party suffers a loss, shifts risk, spreading the cost of that liability over entire group. Liability insurance: provide benefit if the purchaser is held liable for doing something wrong. Property insurance: provide benefit if purchaser"s property is damaged, lost or destroyed.
