LAW 122 Chapter 1: LAW122 Chapter 1 Notes.docx
18 Mar 2014
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Factors affecting success or failure of a business: Three steps to risk management: identification recognition of legal risks, evaluation assessment of legal risks, response reaction to legal risks. Risk shifting make the risk someone else"s problem. Risk acceptance choose to live with the risk. Contractual terms that exclude liability for certain types of acts/losses, or that limit the amount of compensation available. Limited liability directors and shareholders are not usually liable for debts of the. Employees, directors and officers may still be held personally liable. All laws are rules but not all rules are laws. Laws = rules that can be enforced by courts. Laws are evolving, malleable process, rather than a static list of do"s and don"ts. Laws evolve to reflect changes in society (social beliefs, equality, e-commerce, alcohol, etc. ) Humans try to strike balance between conflicting interests. Since it evolves, must know law today and in the future.
