Ch 1 - Knowledge of Law as Business Asset

Question 1

Business law

Answer 1

set of established rules governing commercial relationships, including enforcement of rights

• defines general rules of commerce
• protects business ideas and more tangible forms of property
• provides mechanisms that permit biz people to select desired degree of participation and exposure to risk in biz venture
• seeks to ensure losses are borne by those responsible
• facilitates planning by ensuring compliance w/ commitment

Question 2

law

Answer 2

the set of rules and principles guiding conduct in society

Question 3

breach of contract

Answer 3

failure to comply with a contractual promise

Question 4

age of majority

Answer 4

The age at which a person becomes an adult for legal purposes. In Canada, this ranges from 18~19 depending on province

Question 5

contract law

Answer 5

rules that make agreements binding and therefore facilitate planning and the enforcement of expectations

Question 6

litigation

Answer 6

the person involved when one person sues another

Question 7

mediation

Answer 7

process through which parties to a dispute endeavor to reach a resolution with the assistance of a neutral person

Question 8

arbitration

Answer 8

a process through which a neutral party makes a decision (usually binding) that resolves a dispute

Question 9

liability

Answer 9

legal responsibility for the event or loss that has occurred

Question 10

legal risk management plan

Answer 10

a comprehensive action plan for dealing with the legal risks involved in operating a business

Question 11

business ethics

Answer 11

more principles and values that seek to determine right and wrong in the business world