Biz Law MOS 2275 Key Concept.pdf

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Department
Management and Organizational Studies
Course
Management and Organizational Studies 2275A/B
Professor
Cristin Keller
Semester
Winter

Description
Business'Law'Key'Concept' Chapter'2'Introduction'to'the'Legal'System' Law$is$the$body$of$rules$that$can$enforced$by$the$courts$or$by$other$government$agencies. $ No$wholly$satisfactory$definition$of$law;$Don’t$confuse$law$and$morality;$Quebec$has$civil$law,$all$other$ provinces$have$common$law;$Civil$Code$used$throughout$much$of$the$word$and$it$provides$predictability,$ Common$law$grew$from$struggle$for$power;$Henry$ II$established$travelling$court;$Judges$follow$each$ other’s$decision;$stare$decisis$provides$predictability;$results$in$an$inflexible$system;$a$judge$must$choose$ among$precedents;$customs$and$traditions$major$source$of$common$law. $ Common$law$borrows$from: $ F Roman$law$ F Canon$law$ F Merchant$law$ Common$law$rigid,$courts$of$Chancery$provided$relief,$Resulting$in$the$law$of$equity,$conflict$resulted$in$ rigidity$in$chancery$as$well;$equity$today$does$not$simply$mean$fairness;$equity$supplements$the$ common$law;$statutes$and$regulations$override$judge Fmade$law;$BNA$created$Canada$and$divided$ powers;$More$to$Canadian$Constitution$than$BNA$Act$and$Charter. $ Constitution$Act$and$Charter$limit$power$of$federal$and$provincial$governments;$Constitution$Act$(1867)$ divides$powers$between$federal$and$provincial$governments;$Federal$powers$set$out$in$sec.91,$ Provincial$powers$set$out$in$sec.92,$these$sections$deal$with$types$of$legislation,$not$things. $ Validity$of$statute$determined$by$its$true$nature;$when$provincial$and$federal$la ws$conflict$follow$federal.$ Direct$delegation$prohibited,$indirect$delegation$permitted.$Statutes$must$receives$royal$assent,$Federal$ and$provincial$statutes$compiled$and$published;$regulations$also$published;$judges$interpret$and$apply$ statutes;$decisions$create$precedents.$Bill$of$Rights$just$another$statute;$The$Constitution$includes$the$ Charter;$Constitution$including$Charter$is$the$supreme$law$of$Canada;$Courts$are$empowered$to$strike$ down$offending$statutes;$Government$cannot$interfere$with$basic$righ ts$and$freedoms$except$if$ reasonable$to$do$so.$ Use$of$notwithstanding$clause$may$be$a$political$gamble;$sunset$clause;$Charter$applies$only$to$the$ governmentF$but$where$does$government$stop?$Charter$probably$applies$to$private$institutions$acting$ as$arms$of$government.$Everyone$in$Canada$has$right$to$freedom$of$conscience$and$religion;$of$thought.$ Belief$and$opinion;$of$the$press;$of$peaceful$assembly;$of$association.$Maximum$duration$is$five$years$ unless$crises$loom;$Right$to$vote,$to$be$elected,$duty$to$h ave$government$sit$annually.$Citizens$enjoy$ right$to$enter$and$leave$Canada.$Everyone$has$a$right$to$life,$liberty,$and$security$of$person;$Everyone$ entitled$to$procedural$fairness;$Everyone$to$be$secure$from$unreasonable$search,$seizure,$detention,$or$ imprisonment.$Every$person$is$to$be$equal$before$and$under$the$law. $ French$and$English$have$equal$status F$Canada$and$New$Brunswick.$Quebec$did$not$agree$with$patriating$ the$constitution.$Human$rights$legislation$prohibits$discrimination$or$certain$grounds.$Hu man$rights$ commissions$hear$complaints.$ Chapter'3'the'resolution'of'Disputes' Trials$open$to$public,$Both$criminal$and$civil$functions,$Civil$test F$balance$of$probabilities;$criminal$test F$ beyond$reasonable$doubt;$may$face$both$criminal$and$civil$trial$for$ same$matter,$regulatory$offences. $ Lower$and$superior$courts.$Questions$of$law$and$fact,$court$reforms$dictate$change.$Not$all$are$in$favour$ of$reforms,$federal$court$and$federal$court$of$appeal.$Supreme$court$of$Canada,$supreme$court$decisions$ set$binding$precedents,$timely$start$to$action$necessary,$should$try$to$settle$dispute;$some$variations$ from$province$to$province;$small$claims$court$is$simple$but$only$minimal$costs$are$recoverable. $ Statements$made$under$oath$and$may$be$used$at$trial.$Process$encoura ges$settlement$by$disclosure$of$ information.$Plaintiff$presents$its$case$first F$defendant$crossFexamines;$when$the$plaintiff$is$finished,$the$ defence$then$presents$its$case.$Juries$determine$questions$of$facts,$loser$usually$pays$costs,$legal$ expenses$usually$not$completely$recoverable,$and$damages$involve$payment$of$money.$ $ A$judgement$does$not$ensure$payment,$hearing$to$enforce$judgement,$property$may$be$seized$and$sold,$ proceeds$of$sale$shared$by$all$creditors;$some$properties$are$exempt$from$seizure. $Funds$owed$to$ debtor$can$be$garnished,$Pre Fjudgement$remedies$limited;$expiration$of$limitation$period$prohibits$suing. $ Government$consists$of$legislative$branch,$judicial$branch,$and$executive$branch.$Executive$branch$also$ known$as$the$Crown.$Government$obj ectives$achieved$through$rule$enforcement,$economic$incentives,$ and$education.$When$powers$are$abused,$judicial$review$available.$Decision$maker$must$have$authority;$ rules$of$statutory$interpretation;$statutes$must$be$passed$by$appropriate$level$of$governm ent;$statutes$ and$regulations$must$comply$with$Charter;$administrator$must$act$fairly;$notice$must$be$given$and$all$ information$must$be$disclosed.$Decision$must$be$made$by$persons$hearing$all$evidence,$decision$maker$ must$be$free$of$bias. $ Judicial$review$can$follow$from$ F Invalid$statute$or$regulation$ F Action$outside$prescribed$jurisdiction $ F Error$of$law$on$record$ F Failure$to$follow$procedural$fairness $ F Abuse$of$discretionary$power $ Courts$resist$operation$of$privative$clauses.$Challenging$administrative$decisions $may$be$futile$and$costly,$ alternative$dispute$resolution$may$provide$better$resolution;$ADR$leaves$control$in$the$hands$of$the$ parties.$Less$Delay,$distraction,$expense$with$ADR;$risk$of$adverse$judgement$reduced.$Good$relationship$ can$be$retained$with$ADR.$ ADR$provides$more$flexibility$and$can$resolve$conflicts$between$businesses$operating$internationally.$$ ADR$cannot$ensure$full$disclosure,$does$little$to$overcome$a$power$imbalance,$cannot$ensure$consistent$ outcomes,$agreements$not$enforceable$or$appeala ble.$Negotiation$should$be$tried$first.$Negotiation$ requires$cooperation$and$compromise,$representatives$may$conduct$negotiation,$relationship$may$be$ enhanced,$neutral$third$party$facilitates$communication.,$mediator$does$not$make$decision;$mediators$ finds$common$ground.$Mediation$may$be$required,$or$inappropriate.$Successful$mediation$requires$ balance$of$power$and$willingness$to$act$in$good$faith. $ Arbitration$involves$third$party$decision$maker,$arbitrators$are$chosen$by$parties;$arbitrators$may$be$ experts$in$the$field;$procedure$must$be$fair;$decision$cannot$be$appealed$but$process$may$be$reviewed$ by$court;$third$party$makes$a$decision$that$is$binding.$Arbitration$is$private;$mediator$may$become$an$ arbitrator.$ Chapter'4'Intentional'Tort' Tort$is$a$civil$or$social$wrong,$crimes$are$wrongs$that$affect$society$as$a$whole;$torts$differ$from$actions$ based$on$breach$of$contract;$torts$may$involve$intentional$or$inadvertent$conduct;$employer$may$be$ vicariously$liable$for$employee’s$torts;$intentional$physical$inter ference;$fear$of$contactF$assault;$actual$ contactF$battery;$intent$to$harm$not$required. $ Consent$is$a$defence;$reasonable$force$permitted$to$defend$self;$reasonable$force$permitted$to$eject$ trespasser;$on$land$without$authority;$trespass$can$be$indirect; $occupiers’$Liability$Act;$injunction$ available$to$remedy$continuing$trespass;$restraint$without$lawful$excuse F$false$imprisonment;$ submission$to$authority$can$constitute$imprisonment;$damage$awards$for$false $imprisonment$can$be$ significant.$ Private$nuisanceF$use$of$property$interferes$with$neighbour;$private$nuisance$at$a$distance;$detrimental$ false$statement;$statement$must$be$published;$innuendo;$mistake$no$excuse;$slander$spoken/libel$ written;$apology$reduces$damages;$truth$is$an$absolute$defence;$absolut e$privilege,$qualified$privilege,$ requires$duty;$fair$comment;$significant$damages$available. $ Intentional$torts$more$common$in$some$businesses;$inducing$breach$of$contract$actionable;$interference$ with$economic$relations;$intimidation;$intentional$inflicti on$of$mental$suffering;$fraud$or$deceit$ actionable;$conspiracy;$malicious$prosecution;$conversion$actionable;$trespass$to$chattels$actionable;$ deninue$actionable;$passing Foff$actionable;$misuse$of$confidential$information$actionable;$injurious$ falsehood$$actionable;$privacy$and$the$internet$;$privacy$protection$found$only$in$statutes;$internet$poses$ new$problems;$collection$and$use$of$private$information;$requirement$of$notice$and$consent;$Model$ Code;$limits$on$advanced$encryption$ Chapter'5'Negligence,'Professional'liability,'and'Insurance' NegligenceF$careless$conduct$causing$another$injury;$reasonable$person$test$establishes$standard;$ reasonable$foreseeability$test$establishes$duty;$duty$owed$to$anyone$who$could$foreseeably$to$harmed;$ scope$of$duty$can$be$reduced$where$appropriate;$unacceptable$action F$misfeasance;$failure$to$act F$ nonfeasance;$usually$no$duty$in$case$of$nonfeasance;$once$starting$help,$person$must$take$reasonable$ care.$ Reasonable$person$test$determines$standard$of$care;$risk$of$injury$affect s$standard,$as$does$cost;$ standard$depends$on$expertise;$liability$varies$with$age;$liability$may$be$established$by$circumstantial$ evidence;$damage$or$injury$must$be$present;$conduct$must$be$cause$of$injury;$problem$of$remoteness;$ Anns$case$applied$to$dete rmine$existence$of$duty;$we$take$our$victims$as$we$find$them;$not$responsible$ for$inevitable$loss;$act$allows$apportionment$of$responsibility.$ $ The$law$will$not$assist$volunteers;$but$assumption$of$legal$risk$must$be$clear;$duty$owed$to$rescuer;$ occupiers$owe$special$duty;$invitee/licensee$distinction$may$no$longer$be$importance;$special$duties$of$ innkeepers;$modifications$imposed$by$statute;$the$trend$away$from$fault;$negligent$words$may$create$ liability;$negligent$words$causing$economic$loss$actionable;$l iability$even$when$conduct$was$reasonable;$ when$dangerous$things$escape;$must$be$unusual$use$of$property;$vicarious$liability$of$employer;$breach$ of$duty$must$be$shown$for$product$liability;$breach$of$duty$can$be$implied$from$circumstances;$ manufacturers$must$warn$and$act$reasonably$to$make$dangerous$products$safer;$professional$liability$ and$insurance$costs$important$aspects$of$business.$ Liability$must$be$based$on$contract,$fiduciary$duty,$or$tort;$in$past,$contractual$risk$determined$price,$ tort$standard$implied$in$contract,$but$note$disclaimer;$tort$liability$extends$beyond$parties$to$contract;$ extension$of$tort$liability$to$third$parties;$standard$is$that$of$a$reasonable$member$of$the$profession;$ common$practice$may$not$measure$up$to$reasonable$standard; $modern$standard$recognize$economic$ loss$caused$by$negligent$words;$liability$may$extend$beyond$immediate$parties;$duty$determined$by$ reasonable$forseeability$but$scope$of$duty$may$be$reduced$where$appropriate;$tort$liability$of$ professionals$extends$beyon d$clients;$practices$should$be$adapted$to$avoid$risk. $ Fiduciary$duty$extended;$loyalty$and$good$faith$required;$information$must$not$be$disclosed;$fiduciary$ duty$owed$by$directors$and$officers$to$company;$trust$funds;$professional$insurance$often$required; $ problems$have$increased$significantly;$some$professional$bodies$exercise$significant$control;$power$of$ suspension;$must$act$fairly$or$decision$can$be$challenged;$charter$may$apply;$compliance$with$human$ rights$statutes;$penalties,$suspension,$expulsion;$$ Liability$insurance$covers$negligence$by$self$or$ employees;$only$to$extent$of$coverage,$coverage$only$when$insured$is$at$fault;$co Finsurance$clause$may$ reduce$coverage;$insurance$companies$often$re Finsure;$industry$regulated$by$statutes.$ Business$interruption$insurance$covers$lost$profits;$life$insurance$used$in$b usiness$to$cover$key$ personnel;$health$and$disability$insurance$usually$part$of$group$coverage;$contract$governs$coverage$but$ where$conflict,$both$share$equally;$must$be$insurable$interest$to$avoid $illegality;$shareholders$now$have$ insurance$interests$in$assets$of$corporation;$insurance$can$be$acquired$through$agents$and$brokers;$ adjuster$values$the$loss$for$the$insurance$company$after$the$insured Fagainst$event$takes$place;$ ambiguities$in$contract$favour$the$insured;$insured$must$disclose$relevant$information;$insurer’s$duty$to$ process$claims$fairly;$duty$to$defend. $ Right$of$subrogation;$right$of$salvage;$depreciated$rather$than$replacement$value;$insured$can’t$profit$ from$witful$misconduct;$bonded$parties$still$liable.$ Chapter'6'Formation'of'Contracts' Exchange$of$promises$enforceable$in$court;$freedom$to$contract$restricted$by$common$law$and$by$ legislation;$the$use$of$a$seal;$contracts$may$be$implied;$a$void$contract$is$no$contract;$a$voidable$ contract$is$valid$but$one$party$has$the$right$to$escape;$court$won’t$enforce$unenforceable$contract;$ illegal$contract$is$void;$unilatera
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