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York University (12,353)
ADMS 2610 (76)
Rudi Lof (11)
Chapter 1

ADMS 2610 Chapter 1: B.Law10th ppt notes Ch1

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York University
Administrative Studies
ADMS 2610
Rudi Lof

Chapter 1 – The Law and the Legal System  The Legal Environment of Business  The Nature of Law  Rights versus Privileges  The Role of Law  Development of Law  Sources of Law  Constitution and the Charter of Rights  Classification of Laws  Learning the Law  Business Law is important to Business Persons  A knowledge of legal issues is essential to the making of proper risk management decisions  Learning the history of law helps us to better understand the law in its present day context  We need to understand the types of basic legal issues that affect business planning/operations  We also need to be aware of developments in law that may impact our specific type of business  Legal Environment of Business  Business law  Divided into a number of general areas ○ Tort law – injuries to another's person, property or reputation ○ Contract law – day-to-day operations of a business ○ Business Organizations  Partnership, sole proprietorship, corporation ○ Land Law ○ Intellectual Property ○ Environmental Law  Nature of Law  Reflects the society we live in  Historical influences  Definitions ➢ A set of rules that enable people to live together and respect each others rights ➢ Rules of civil conduct  Rights versus Privileges  Distinguish between a right and a privilege  Right – are things we can do with impunity  Others have a duty not to interfere with our rights i.e. Freedom of Speech  Privilege – We earn a privilege under certain circumstances and if improperly exercised it can be taken away by the State i.e. Driver’s Licence  Rights can become privileges  Due to social pressure or the state’s desire for funds  Role of Law  Law – body of rules of conduct that are obligatory  Sanctions imposed if a rule is violated  Social Control – using laws to shape society  Role of Law  Three Functions of the Law  Settling Disputes  Establishment of Rules – to bring order and minimize conflict  Protection – of one’s self, possessions, ideas.  Development of the Law  Within the Family and within the Tribe  word of mouth from generation to generation  Early form of precedent  Within the City-State  Formation of governments to deal with disputes  Balance between common good and individual freedom  Roman Empire, Western Europe, Middle East  Common Law  Customary Law ➢ Religious laws ➢ Community based  Pre-Norman England ➢ Roman law followed by Germanic influence to the Norman conquest in 1066  Common Law – Rise of the Courts  Norman England  Power consolidated with the King and the King’s justices  Central judiciary established under King Henry II ○ Beginning of the precedent system of common law ○ Written records began to be kept  Sources of Law  Common Law  Law as found in the recorded judgments of the courts know as “case law”  “Statutes” are laws based by a properly constituted legislative body/government  Judicial interpretation and application of “statute law” creates case law  Sources of Law  Stare Decisis – Latin Phrase- “to let a decision stand” applies if decision:  From the judges own court – Persuasive  Form a court of equal rank – Persuasive  From a court of higher rank - Binding  This is a basic Judicial Principle that Judges in lower courts must follow higher court direction when dealing with similar facts and issues  Common Law  Creates certainty and predictability  Predictable yet flexible  More flexible than a civil code  Can adapt to social changes such as same sex marriage  Requires familiarity with ongoing evolution of statute and case law  Sources of Law  Canon Law – church law  Original jurisdiction over religion, family, marriage, morals, estates  Influence today (Sunday shopping laws, Ecclesiastical Courts)  Merchant Law  Customs or rules established by merchants to resolve disputes  Example today would be the sales of goods legislation  Sources of Law  Equity ➢ Rules originally based on decisions of the King rather than on the law ➢ Fairness, equality, justice ➢ Overcomes the harshness and rigidity of the common law ➢ Takes precedence over common law when equity and common law conflict ➢ Over time decisions of the King became principles of equity and eventually equity and common law merged  Statute Law  Statute  Latin word “statutum” meaning “it is decided”  Laws made by governments  Result of legislative process  Debated, voted upon and passed through a strict process established to protect democratic principles  Statute  Process –Slightly different Federally and Provincially  Bill – proposed law presented to a legislative body  Motion – decision to read a bill the first time  Royal Assent – granted by the Governor General or Lieutenant Governor after required readings - Required in order to become
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