Management and Organizational Studies 2275A/B Chapter Notes - Chapter 1: Corporate Law, Business Ethics, Mphasis

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CHAPTER 1: KNOWLEDGE OF LAW AS A BUSINESS ASSET
CHAPTER 1
KNOWLEDGE OF LAW AS A BUSINESS ASSET
Objectives
After studying this chapter, you should have an understanding of:
the role of law in guiding conduct
the importance of legal knowledge in the business environment
the challenges posed by business ethics and their relationship to legal requirements
Learning Outcomes
Understand the role of law in the business environment (page 4)
Understand the purpose of laws (page 5)
Understand how legal disputes are resolved (page 9)
Understand the values of the Canadian legal system (page 11)
Recognize that knowledge of law is a business asset (page 12)
Chapter Summary
Law is involved in all aspects of business, whether the entrepreneur is aware of it or not. The
law protects persons and their property, facilitates commercial interactions, particularly
through contract law; and provides mechanisms for dispute resolution. Though not perfect,
the Canadian legal system has much to recommend it. The system strives for just outcomes
by demanding that both the process for determining liability and the rules or laws that are
applied I that process are fair, objective, and free from bias. No justice system, of course,
can consistently accomplish all these goals. Indeed, there are serious limitations to what the
law can realistically achieve when a legal problem arises; thus, it is imperative that a business
adopt a proactive approach in managing the legal aspects of its environment through a legal
risk management plan. An emphasis is placed on the idea that knowledge of the law is an
essential business asset. Informed owners and managers can protect their businesses by
ensuring compliance with legal requirements. They can capitalize on the planning function
of law to ensure the future of their business by entering into contracts. They also can seek
enforcement of legal rules against those who do business or have other interactions with the
enterprise. In this way, the property, contractual expectations, and profitability of the
business are made more secure. Business ethics – while sometimes but not always
coextensive with legal requirements – are also increasingly important to running a successful
business.
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PART 1: THE LEGAL ENVIRONMENT OF BUSINESS
Study Outline
Use this outline to prepare a complete set of notes for this chapter.
Rules and Principles – page 5
______________________________________________________________________
______________________________________________________________________
Protecting Persons and Their Property _______________________________________
Sets rules of behaviour ________________________________________________
Enforces rules of behaviour ____________________________________________
Facilitating Interactions __________________________________________________
Creates certainty _____________________________________________________
Providing Mechanisms for Dispute Resolution ________________________________
Litigation __________________________________________________________
Mediation __________________________________________________________
Arbitration __________________________________________________________
SELF-ASSESSMENT
Key Terms
Briefly define each term in the space provided
Spam – page 3
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Business law – page 4
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Law – page 5
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______________________________________________________________________
Breach of contract – page 5
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Copyright © 2011 by Nelson Education Ltd.
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CHAPTER 1: KNOWLEDGE OF LAW AS A BUSINESS ASSET
Contract law – page 8
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Litigation – page 9
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Mediation – page 10
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Arbitration – page 10
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Liability – page 10
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Legal risk management plan – page 13
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Business ethics – page 13
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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