Textbook Notes (368,214)
Canada (161,710)
LAW 122 (625)
Chapter 1

Chapter 1 notes Risk Management and Sources of Law

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Law and Business
LAW 122
Sari Graben

LAW 122 Chapter 1 - Introduction to Law Jan 15, 2014 WHY STUDY LAW? • As consumers, we need to be aware of the rules that govern commercial transactions • RISK MANAGEMENT Risk Management – Is the process of identifying, evaluating, and responding to the possibility of harmful events through informed decisions • Risk Management Process: o Identify and recognize the risk o Evaluate and assess the risk o Respond and react to the risk Forms of Risk Management: 1. Risk Avoidance – Some risks are so serious that they should be avoided altogether 2. Risk reduction – Some ricks can be reduced to an acceptable level through precautions 3. Risk Shifting – Risk shifted onto another party and it can be their problem o Insurance – Contract in which one part agrees in exchange for a price, to pay a certain amount of money if another party suffers a loss Ex. Liability insurance or property insurance o Exclusion and Limitation Clauses – Contractual terms that exclude liability for some acts/losses, or limit compensation available Courier company not held liable at all, or for more than $100, if it loses, damages, or destroys a package o Incorporation – Limited liability, meaning only the company is held liable, and not the employees, board of directors, shareholders, etc. Doesn’t protect individuals from all risks. 4. Risk Acceptance – Accepting the risk, if appropriate INTRODUCTION TO THE LEGAL SYSTEM The Nature of Law Law – Is a rule that can be enforced by the courts Civil Law – Systems trace their history to ancient Rome • This means Quebec is the only civil jurisdiction in Canada Jurisdiction – Is a geographical area that uses the same set of laws Common Law – Systems trace their history to England. Most jurisdictions that were settled by English colonists • Rest of Canada Page 1 of7 LAW 122 Chapter 1 - Introduction to Law Jan 15, 2014 Moral wrongs are informally sanctioned • Damaged friendships Legal wrongs are formally sanctioned • Fines of Imprisonment Public Law Concerned with governments and the ways in which they deal with their citizens 1. Constitutional Law – Provides basic rules of our political and legal systems 2. Administrative Law – Rules governing creation and operation of agencies, boards, tribunals, and commissions that exercise delegated authority 3. Tax Law – Rules regarding collection of money for public spending 4. Criminal Law – Rules governing wrongs against society and crimes in the business world  Assault on a person  White-collar crimes (committed by people in suits) – Bribery  Corporate crime (committed by corporation itself) – Falsifying information on financial statements Private Law Concerned with the rules that apply in private matters 1. Laws of Tort – A private wrong, an offense against a particular person o Intentional Tort – Assault or false imprisonment Page 2of 7 LAW 122 Chapter 1 - Introduction to Law Jan 15, 2014 o Business Tort – Deceit and conspiracy o Negligence – Carelessness 2. Law of Contracts – Concerned with the creation and enforcement of agreements o Sale of Goods o The use of negotiable instruments (cheques) o Real estate transactions o Operation of Corporations o Employment relationships between business and its workers 3. Law of Property – Concerned with the acquisition, use, and disposition of property o Real property – Land and things that are attached to land o Personal property – Things that can be moved from one place to another o Intellectual property – Things that consist of original ideas (patents, copyrights) o Law of succession – Deals with the distribution of a person’s property after death o Law of Trusts – Deals with a situation in which one person holds property on behalf of another Overlap A single event can trigger more than one set of rules SOURCES OF LAW 1. The Constitution • Provides the basic rules for Canadian society, including our political and legal systems • Highest source of law o Every other law must be compatible with it o Section 52 of the Constitution states: “The Constitution of Canada is the supreme law of Canada, and any other law that is inconsistent with the provisions of the Constitution is, to the extent of the inconsistency, of no force or effect.” • Difficult to change o Requires a special amending formula  Requires consent of both Parliament and 2/3 of all provinces with at least 50% of population Two levels of Government: 1. Federal Government – Represents entire country  Made up of: The House of Commons consisted of MPs (elected) from every province and territory, and The Senate consisted of Senators (appointed) Page 3 of7 LAW 122 Chapter 1 - Introduction to Law Jan 15, 2014  Led by Prime Minister 2. Provincial and Territorial Government – Represents the province (territory), called the Legislature (elected)  Lead by Premier Constitution divides legislative authority into federal and provincial (territorial) power  Written in 1867 Federal Government has the residual power, the power over everything that is not otherwise mentioned Division of Power Federal (s.91) Provincial or Territorial (s. 92) Banks Corporations with provincial objects Bankruptcy and insolvency Direct taxation to raise money for provincial purposes Copyright Matters of a local or private nature within a province Criminal Law Property and civil rights (contracts, torts) Intentional and interprovincial trade and commerce The creation of
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