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Canada (161,931)
LAW 122 (625)
Chapter 1


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Law and Business
LAW 122
Asher Alkoby

LAW122 | Chapter One: Risk Management and Sources of Law   Why study law? • Make good decisions and choices to benefit business • Understand consequences associated w/ choices RISK MANAGEMENT What are the 3 steps 1. Identification involved in risk 2. Evaluation management? 3. Response What are 4 basic strategies 1. Risk avoidance –avoiding the risk in general for managing risks? (ARSA) o Ie. Removing dangerous product from market 2. Risk reduction –reducing the risk to an acceptable level using precautions o Ie. Loan with collateral 3. Risk shifting –shifting risks to another party o Ie. Insurance and exclusion o Ie. Hiring independent worker vs. using own 4. Risk acceptance –just accept it.. o Ie. Golf course people breaking a window in factory behind it, just pay or set up nets List 3 strategies for risk 1. Insurance management; define and o Definition: contract where one party pays X give examples. amount if another party suffers a loss a. Liability –benefit if done something wrong b. Property –benefit if purchaser’s property is damaged, lost or destroyed 2. Exclusion and Limitation Clause o Clause changes regular rules of liability o Can exclude all risks, certain types of acts or losses, limit compensation o Without contract -> can post notices/signs 3. Incorporation (Becoming a corporation/company) o Major (+) = limited liability  Only company is liable not SH or BOD  Note: most employees are still liable for own torts committed *Note: some companies have an in house counsel* What is “in-house counsel?” • A company’s own team of legal staff Provide a (+) and (-) • (+): legal advice on hand • (-): may be costly due to salaries LAW122 | Chapter One: Risk Management and Sources of Law   THE LEGAL SYSTEM General definition of “law” • “A rule that can be enforced by the courts” Define “jurisdiction” • A geographical area that uses the same set of laws What is civil law? • Legal system that traces its roots to ancient Rome • Used in Quebec What is common law? • Legal system that traces back to England • Used in Canada (except Quebec) Public Law (C.A.C.T) What is public law most • With the government and how they deal with their concerned about? citizens What are the 4 areas of 1. Constitutional public law? Provide examples o Basic rules of political and legal system of how those areas are o Decides who can create and enforce laws relevant to business people. o Establishes basic rights and freedoms for Cdns. 2. Administrative o Concerned with creation and operation of admin. agencies and tribunals o How it affects business:  Federal: Radio and Telecommunications , Energy, Competition Board  Provincial/Territorial: Workers Compensation, Labour Relations, Environmental, Law Society  Municipal: Zoning and Planning, Building and Inspections, License Division 3. Criminal o Concerned with people that break rules meant to protect society o Crime = public wrong o Business examples:  White-collar crimes (ie. manager stealing)  Corporate crimes (ie. Used car dealer) 4. Tax o Concerned with rules used to collect money for public spending LAW122 | Chapter One: Risk Management and Sources of Law   PRIVATE LAW What is private law most a. Rules that apply in private matters concerned about? b. Occurs between private persons (individuals or corporations) o Ie. Suing construction company and municipal gov’t for foundation problems o Ie. Gov’t contractually buys paper from store What are the 3 areas of 1. Law of Torts private law? Provide o Tort: private wrong, an offence against a person examples of how those areas i. Intentional (ie. Assault) are relevant to business ii. Business (ie. Deceit or conspiracy) people. iii. Negligence (ie. Carelessly hurting *Page 61 another) 2. Law of Contracts o Concerned with creation and enforcement of agreements o Used in: i. Sale of g/s ii. Negotiable instruments (ie. Cheques) iii. Real estate transactions iv. Corporations v. Employment relationships 3. Law of Property o Concerned with acquisition, use and deposition of property i. Real property ii. Personal property iii. Intellectual property Areas of law dealing with all  Law of succession forms of property o Distribution of property after death  Law of Trusts o When one person holds property on behalf How is tort and contract law • Both deals with a duty that has been violated similar? How is tort and contract law 1. Issue of Consent different? Give 2 ways o Tort: never based on consent o Contract: consent of both parties must be issued in order for contract to be valid 2. Award for damages o Tort: compensate victim for loss o Contract: restore parties to position before breach LAW122 | Chapter One: Risk Management and Sources of Law   SOURCES OF LAW What are the 3 sources of 1. The Constitution law? 2. Legislation 3. The Courts The Constitution What is it? • Document that creates the basic rules for Cdn. Society, including the political and legal systems • Provides a foundation • Supreme law of Canada Consequences i. Every law in Canada must be compatible with it o Section 52 states any law that is inconsistent of the Constitution is “no force or effect” ii. Difficult to change o Amending formula used (but rare)  Parliament consent + legislatures of 2/3+ of provinces where those provinces rep. 50%+ of country’s population Federalism: Canada 1. Federal I. House of Commons o Members of parliament: elected from each province/territory o Represents them nationally in Ottawa o Power to: political party w/most MPs  Led by prime minister (PM) II. The Senate o Appointed senators 2. Provincial and Territorial 1. Legislative Assembly o Legislative: Politicians elected to represent own province/territory o Power to: most elected members  Led by premier Canada’s Link with Great • Canada’s Head of state: Queen Elizabeth II Britain • Represented in Canada by:
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