Textbook Notes (362,901)
Canada (158,095)
LAW 122 (614)
Chapter 1

Chapter 1 law notes

6 Pages
Unlock Document

Ryerson University
Law and Business
LAW 122
Pnina Alon- Shenker

CChapter 1: Risk Management and Sources of Law WWhy Study Law? • The success or failure of a business generally depends on the ability to minimize losses and maximize gains. • Legal education plays a critical role in risk management. • Law reflects and shapes the ways in which we interact with each other including in the business world. RRisk Management • Many business decisions have legal consequences which may negatively but also positively affect business profitability. • Businesses must manage legal risks. • Risk Management is the process of identifying, evaluating and responding to the possibility of harmful events. RRisk Management TThree Steps • Identification: recognition of legal risks • Evaluation: assessment of legal risks • Responding: reaction to legal risks FForms of Risk Management • Risk avoidance: e.g. withdraw dangerous product from market • Risk reduction: e.g. modify product to reduce danger • Risk shifting: e.g. liability insurance and exclusion clauses • Risk acceptance TThe Nature of Law • Rules and Laws: all laws are rules but not all rules are laws. • Morality and Law: moral wrongs are informally sanctioned. Legal wrongs are formally sanctioned. • Law is a rule that can be enforced by the courts. AA Map of the Law CCivil law • Originated in ancient Rome. • Quebec and most of the countries in Europe have civil law system. • The written law is the primary source of legal rules. • May also refer to private law (as opposed to public law) Common law • Originated in England. • Australia, NZ, US have common law system. • Applies federally in all of Canada and in all provinces and territories except Quebec. • Operates on the principle of stare decisis (precedent). • May also refer to rules that are made by judges rather than by legislatures. Within Canada’s Common Law System 1. Public Law Matters of public concern • constitutional law • administrative law • criminal law • tax law 2. Private Law Matters of private concern • The law of torts • The law of contracts • The law of property Different areas of law may overlap Sources of Law Hierarchy of sources of law • The Constitution • Constitution Act, 1867 – division of powers (ss. 91-92) • Constitution Act, 1982 – contains the Charter of Rights and Freedoms • Legislation – Parliament or Legislative Assembly • The Courts – decisions (judge made law) The Constitution • Provides basic rules for legal and political systems. • All laws should be compatible with the Constitution. • Section 52 of the Constitution: The Constitution of Canada is the supreme law. • Any inconsistent law is of no force or effect. • It is very complicated to amend the Constitution. • There is a special amending formula which requires the consent of both: • Parliament • The legislatures of at least two-thirds of all provinces. The consenting provinces should represent at least 50 percent of the population. Federalism Canada is a federal country that has two levels of government: Federal • Represents entire country. • The Parliament of Canada: • The House of Commons (elected) • The Senate (appointed). • Prime Minister (leader with most members in Commons). Provincial and Territorial • The Legislative Assembly (elected). • No Senate. • Premier (leader of party forming government) Division of Powers • Constitution creates division of powers (ss. 91-92) • Topics divided into federal or provincial authority: • Federal: criminal law, tax law, banks, copyright, etc. • Provincial: property and civil rights (such as contracts and torts), the creation of municipalities, etc. • The federal government holds residual power (e.g. telecommunications and air travel). travel). • Ultra vires legislation: • Created outside the scope of authority of the enacting body. • Has no force or effect (section 52). Charter of Rights and Freedoms • Part of the Constitution since 1982. • Any law that is inconsistent with the Charter is of no force and effect (unlike the Bill of Rights, 1960). • Rights and freedoms commonly affecting business: • Section 2: Fundamental Freedoms (freedom of religion, freedom of expression) • Section 6: Mobility Rights (This only applies to citizens) •
More Less

Related notes for LAW 122

Log In


Don't have an account?

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.