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Chapter 1

LAW 122 Chapter Notes - Chapter 1: Private Law, Embezzlement, Equal Protection Clause

Law and Business
Course Code
LAW 122
Jane Monro

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Risk Management is the process of identifying, evaluating and responding to the
possibility of harmful events
Identification: Must become concerned about your own liability of being held
legally responsible for false accusations and the possibility of being sued.
Evaluation: After identifying the risk of being sued you can proceed if you feel
sharing your personal suspicions / allegations may be true if they have enough
Response: Now in a position to make an informed decision after identifying and
evaluating the risk.
Risk Avoidance Risks that are so serious they should be avoided altogether
Risk Reduction Some risks can be reduced to an acceptable level through precautions
Risk Shifting Involves shifting the risk onto another party, through insurance, exclusion
clauses and incorporation. Companies are not liable for independent contractors as they
are for their own employees.
Insurance: Two primary times of insurance Liability Insurance provides benefit if
the purchaser is held liable (being sued) for a wrongdoing. Property Insurance
provides benefit if the purchaser’s property is damaged, lost or destroyed
Exclusion and Limitation Clauses: a condition that changes the regular rules of
liability from the business, limiting the risk of fault or compensation that is
o Example: Courier’s contract might state it is not held responsible for over
$100 in lost or damaged packages
Incorporation: When a business is incorporated the major benefit comes from its
limited liability, meaning only the company itself is held at fault for debts so the
company may be lost, but the people behind it are safe.
o Example: If a company goes bankrupt and it’s assets are repossessed, the
personal assets of directors and officers will be safe
An Introduction to the Legal System
The Nature of Law it can be difficult to distinguish between moral obligations and legal
obligations, however by definition a law is a rule that can be enforced by the court
Civil Law is a system that traces its history to Rome, most countries in Europe
are still civilian. The only civil law jurisdiction in Canada is Quebec which
borrowed its laws from France
o Jurisdiction a geographical area that uses the same set of laws
Common Laws come from a system in place in England, and are used in Canada,
Australia, New Zealand and most of the United States. However, Quebec and the
rest of Canada share the same Criminal Laws and Constitutional Laws
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