Textbook Notes (369,149)
Canada (162,420)
RSM100Y1 (431)
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Appendix C Business Law.docx

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Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Khan

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Appendix C Business Law – Emma Cai Apple’s iPhone: Don’t Touch the Patents The innovative device led to a long line of imitators. Apple also applied for patents. However, since iPhone was launched, Apple has been the target of patent infringement lawsuits by other firms. Nokia says the Apple has infringed on 10 of its patents related to wireless handset. But Apple has countersued Nokia, claiming that Nokia is infringing upon 13 ofApple’s patents. Innovations happens so fast that it can be hard to know who came up with an idea first and at what stage of development an idea should be considered proprietary. Many firms are turning to the US International Trade Commission(ITC) instead of other courts and agencies because ITC can move these cases along more quickly. Apple also sued HTC recently for infringement of 20 Apple patents. Same case happens in Canada, RIM’s lawsuit against Ted Livingston and his company, Kik Interactive Inc. These cases highlight the importance of every businessperson understanding the basics of business laws. Laws govern your business. Appendix C overview Legal issues affect every part of business. US is known as the world’s most litigious society because of what seems like an unreasonable fondness for filing lawsuits. It is estimated that the average US family pays a hidden ‘litigation tax’ of 5 percent each year because the cost of lawsuits force businesses to increase their prices. Small businesses are often the hardest hit. Legal systems and administrative agencies - Judiciary—the branch of government that is responsible for applying laws to settle disagreement; also known as the court system. - Court systems are organized at the federal, provincial, and local levels. Canadian Radio-television and Telecommunications Commission(CRTC) also perform some limited judicial functions. - Canadian’s court system is divided between the federal and provincial legislatures. Federal government: criminal laws, defence, currency, and telecommunications. Provincial government: civil matters such as property laws. The provinces may empower municipal governments to pass local laws. Both the federal and provincial courts hear civil and criminal cases - The supreme court of Canada will only hear lower-level appeal court cases that they select. These cases are chosen on the basis of their perceived importance to the entire country. - Each province has a similar court structure with a provincial court level and a superior court level. Provincial court deals with minor civil and criminal cases. The superior court including trial and appeal court will deal with more serious matters, including murder. - There are also several specialized courts, such as tax court Types of Law - Law : the standard set by government and society in the form of either legislation or custom - Common law: laws that result from judicial decisions, some of which can be traced to early England. Example: in many countries, provinces, and states, an unmarried couple who have lived together for a certain period of time are said to be legally husband and wife by common law. - Statutory Law: written law that includes provincial, state and federal constitutions; legislative enactments; treaties of the federal government; and ordinances of local governments. - International laws: the numerous regulation that govern international trades. Companies must be aware of the domestic laws of their trading partners, trade agreements such as North American Free Trade Agreement(NAFTA) and rulings by such groups as the WTO. Example: defective and tainted products manufactured in China are were recalled. Although the goods came from China, the companies that imported and sold these products in Canada and the US were liable or legally responsible for the products’ defects. - Business law : those parts of law that most directly influence and regulate the management of business activities. Specific laws vary from industry to industry, business to business Regulatory environment for business - Government regulation of business in North America has changed over time, swing between increased regulation and deregulation. The goal of both types of legislation is protection of healthy competition - The federal Competition Act guards against monopolies, price-fixing and other limitation on competition (market allocation, boycott in restraint of trade) - The objectives of the Competition Act are to encourage competition and to prevent monopolies The core of business law - contract law and law of agency contract requirements(4): agreement: must reach agreements about the act or thing specified consideration: the value or benefit that each party provides to the others with whom the contract is made. Example: assume that a builder hires an electrician to install electrical wiring in a new house. The wiring job and the resulting payment are the considerations capacity: Example: the law does not permit legally enforceable contracts by certain people, such as those judged to be insane. legal and serious purpose: Example:An agreement between to companies to fix the prices for their products is not enforceable as a contract because the subject matter is illegal Law ofAgency - The law of agency is based on common-law principles and case law decisions of provincial and federal courts. The law of agency is important because the principle is generally limited by the action of the agent. - The legal basis for holding the principle liable for acts of the agent is the Latin maxim respondeat superior(‘let the master answer’) - Warranties: Products carry two basic types of warranties—an express warranty and an implied warranty. An express warranty is a specific representation made by the seller regarding the products. An implied warranty is only legally imposed on the seller. Unless implied warranties are disclaimed by the seller in writing, they are automatically in effect. - Negotiable instruments: commercial paper that is transferable among individuals and businesses. Such as cheque, drafts, certificates of deposit(CDs) and notes are also sometimes considered negotiable instruments. The law specifies that a negotiable instruments must be writte
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