Textbook Notes (369,082)
Canada (162,376)
LAW 122 (625)
Chapter 1

LAW 122 - Chapter 1 Notes.docx

8 Pages

Law and Business
Course Code
LAW 122
Theresa Miedema

This preview shows pages 1,2 and half of page 3. Sign up to view the full 8 pages of the document.
Why Study Law? (TEXT: PG 2) • Legal factors affect success and failure o Decision making (location, marketing, product launch, employment) • Business decisions have legal consequences o Consequences can be positive or negative • Positive: bind contractual party to a promise they made to you • Negative: illegal dumping of toxic waste into the environment • Legal consequences affect profit and loss o Can be held legally liable for poor decisions • Positive: contract follow through for endorsement (promise made above) • Negative: $ fine for dumping toxic waste in environment Studying law helps businesses manage RISK. RISK MANAGEMENT 3 Steps Toward RISK MANAGEMENT (TEXT: PG 3) 1. Identification a. Identifying the legal risks associated with a decision (concerned with liability) b. Important questions: can we be held liable? 2. Evaluation a. Evaluating the consequences of the legal risk and liability associated b. Important questions: what are the chances of this going wrong? How does this affect our decision? 2. Response a. Reacting to the legal risk and making the decision b. Important questions: what will we do about it? What course of action will we take? FORMS OF RISK MANAGEMENT RESPONSE (TEXT: PG 4) 1. RISK AVOIDANCE - eliminating the risk a. Risk is too serious and should be avoided b. EX: withdrawing a product from the market 1. RISK REDUCTION - minimizing the risk a. Risks can be made more manageable by taking precautions b. EX: a bank requesting a manufacturer to take a mortgage on their plant in return for a loan 1. RISK SHIFTING - making the risk 'someone else's problem' a. Risks can be taken by shifting the liability to another party or parties b. EX: obtaining insurance, including exclusion clauses, hiring contract workers i. 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. ii. Exclusion and Limitation Clauses - a contractual term that changes the usual rules of liability. The clause can exclude risk of liability, liability for certain losses, etc. 1. RISK ACCEPTANCE - choosing to live with the risk a. Choosing to live with the consequences of liability and accepting the risk b. EX: Golf course behind factory; a wild shot could hit the window and the course could be held liable, but the possibility of that is small so course accepts the risk. RISK MANAGEMENT STRATEGIES (TEXT PG: 5) 1. INSURANCE a. A contract; one part agrees, in exchange for a price, to pay a certain amount of money if another party suffers a loss. b. EX: Property insurance; $ paid for damaged, stolen, destroyed property 1. EXCLUSION AND LIMITATION CLAUSES a. Contractual term(s); changes the usual rules of liability. The clause can exclude risk of liability, liability for certain losses, etc. b. EX: car parking lot with sign; park at own risk 1. INCORPORATION a. Limits liability for those acting as business within a personal capacity b. Company itself is held accountable for debts and not the individuals (i.e. shareholder) c. Personal assets are protected ***Does not protect individuals in company from actual laws they individually commit (torts) INTRODUCTION TO THE LEGAL SYSTEM (TEXT PG: 6) Nature of Law - laws are rules, but not every rule is a law Can be hard to distinguish law from a moral/ethical norms (saving canoeist ex; morally right, but not legally obligated) Laws; formally sanctioned Morals; informally sanctioned MAP OF THE LAW (TEXT PG: 7) 1. CIVIL LAW a. History rooted to Ancient Rome b. Most of Europe follows this c. Quebec follows this; borrowed from France d. "Civilian" - countries that follow this legal system 1. COMMON LAW a. History rooted to England (Colonial times) b. Canada follows this (all except Quebec) 1. JURISDICTION a. A geographical area that uses the same set of laws FULL MAP OF THE LAW - TEXT PG: 8 Common Law System 1. Private Law Concerned with the rules that apply in private matters a. Law of TORTS i. An offence against a particular person is called a tort ii. 3 main territories; 1. Intentional torts a. Torts committed on purpose EX. Assault, false imprisonment 2. Business torts a. Torts within business; EX. Deceit, conspiracy 2. Negligence a. Torts in which one person carelessly hurts another a. Law of CONTRACTS i. Concerned with the creation and enforcement of agreements ii. Contracts are involved in: 1. The sale of goods 2. The use of negotiable instruments 3. Real estate transactions 4. Corporations (operations) 5. Employment (relationships) a. Law of PROPERTY i. Concerned with; 1. REAL Property EX. Land, things that are attached to land 2. PERSONAL Property EX. Things that can be moved from one place to another 3. INTELLECTUAL Property EX. Things that consist of original ideas, patents, copyrights i. Laws dealing with property; 1. Law of SUCCESSION - deals with the distribution of a person's property after their death 2. Law of TRUSTS - deals with a situation in which one person holds property on behalf of another 1. Public Law Concerned with governments and the ways in which they deal with their citizens CONSTITUTIONAL Law • Provides basic rules of our political legal systems • Establishes fundamental rights and freedoms that Canadians enjoy • Determines who is entitled to create and enforce laws ADMINISTRATIVE Law • Concerned with the creation and operation of administrative agencies, boards, commissions and tribunals • EX: human rights tribunal may decide that a corporation discriminated against women by paying them less than men for similar work ***ADMINISTRATIVE BODIES AFFETING BUSINESS - TABLE - TEXT PG: 9 CRIMINAL Law • Deals with offences against the state - people who break rules designed to benefit and protect society as a whole • "White collar crimes" - committed by 'suits' - manager steals from petty cash drawer • Corporate crime - committed by an actual company - used car dealership rolls back odometers and sells cars at lower mileage TAX Law • Concerned with the rules that are used to collect money for public spending • EX: laws against tax evasion - it is the law to submit your taxes OVERLAP OF PUBLIC AND PRIVATE LAW ***Areas of law can overlap Two possibilities; 1. A situation can trigger more than 1 set of rules a. EX: follow a business lawyer's poor advice i. OVERLAP: suing for tort of negligence (caused you to suffer a loss) and suing for breach of contract (they did not act as promised) 2. Situations that involve various types of laws a. EX: employment relationship - in an employment relationship you should know; i. Administrative law
More Less
Unlock Document

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.