Law 122 Chapter 1: Risk Management and Sources of Law
• Risk Management: The process of identifying, evaluating and responding
to the possibility of harmful events.
• Risk Avoidance: Some risks are so serious that they should be avoided all
• Risk Reduction: Some risks can be reduced to an appropriate level
• Risk Shifting: Even is a risk cannot be avoided or reduced, it can be
shifted onto another party.
• Risk Acceptance: It is sometime appropriate to simply accept a risk.
• Insurance: A contract in which a party agrees, in exchange for a price, to
pay a certain amount of money if another party suffers a loss.
• Exclusion and Limitation Clauses: A contractual term that changes the
usual rules of liability. The clause may attempt to exclude all risk or
liability. Ex: A large sign at a car park telling customers to park at their
• Incorporation: Many businesses are set up as corporations or companies.
That means that is usually the company itself, and not the directors or
shareholders, that may be held liable for debts.
An Introduction to the Legal System
• A Law: is a rule that can be enforced by the courts
• Civil Law: Systems trace their history to ancient Rome.
• Jurisdiction: A geographical are that uses the same set of laws.
• Common Law: Systems trace their history to England.
• Public Law: Is concerned with governments and ways that they deal
with their citizens
Constitutional Law: Provides the basic rules of our political and
Administrative Law: Is concerned with the creation and operation
of administrative agencies and tribunals. This has profound impact
on businesses. Ex: A human rights tribunal may decide that a
corporation has discriminated against woman by paying them less
then men for the same work.
Criminal Law: Deals with offenses against the state. Deals with
people who break rules that are designed to protect society asa
White Collar crimes: Are committed by people in suits. A
manager who steals money from the cash drawer is a white collar
A corporate crime: Crime committed by the company itself. Tax Law: is concerned with the rules that are used to collect
money for the purposes of public spending.
• Private Law: is concerned with rules that apply in private
matters. Although we occasionaly talk about public law, private
law is what we mainly focus on. Both parties in a private dispute
are usually private persons, either individuals or organizations
such as corporations.
The law of torts: A private wrong, an offense against a particular
The Law of Contracts: Concerned with the creation and
enforcement of agreements.
The Law of property: Concerned with acquisition, use, and
disposition of property.
Real Property: which involves land and things that are
attached to land.
Personal Property: Which involves things that can be
moved from one place to another.
Intellectual Property: which involves things that consist
of original ideas, such as patents and copyrights.
Laws that deal with forms of property, for example would
be the law of succession deals with the distribution of a
persons property after death. Law of trusts deals with a
situation in which one person holds property on behalf of
An event can trigger more than one set of rules.
Some situations involve various types of laws.
Sources of Law
• The Constitution: The document that creates the basic rules for
Canadian Society, including its political and legal systems.
Divisions of Powers: States the areas in each level of
government can create laws.
Federal: The parliament of Canada governs the
country as a hole.