Management and Organizational Studies 2275A/B Chapter 1: Law-Chapter 1

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Business law: a set of established rules governing commercial relationships, including the enforcements of rights. Provides mechanisms that permit business people to select their desired degree of participation and exposure to risk in business ventures. Seeks to ensure that loses are borne by those responsible. Law: a set of rules and principles guiding conduct in society. Sets rules with penalties in order to encourage compliance. Seeks to hold those that break the law accountable for their misconduct. Protects businesses by setting penalties and ensuring accountability. Facilitates commercial activity by providing rules that govern the marketplace. Contract law - rules that make agreements legally binding and allow for security. Law functions as a facilitator to prevent dispute. Maintaining a good business relationship is sometimes more important than pursuing legal rights. Mediation: resolution reached with a neutral third party. Arbitration: resolution reached by a neutral third party who makes a binding decision.