Chapter 1 Flashcards
Risk management process
Identification
- recognize legal risks
- can we be held liable?
Evaluation
- assessment of legal risks
- what are the chances of something going wrong?
Response
- reaction to legal risk
- what are we going to do about it?
Forms of risk management
Risk avoidance
-eliminate risk
Risk reduction
-minimize risk
Risk shifting
-Make it someone else’s problem
Risk acceptance
-Live with the risk
Exclusion or limitation clauses
Contractual terms that exclude liability or limit compensation available
Incorporation
Shareholders, not usually liable for company debts
Limited liability
Common law
Legal system in a jurisdiction
Judge/court made law
Civil law jurisdiction
Originated an ancient Rome
Common law jurisdictions
Originated in England
Public law
How governments deal with their citizens.
Constitutional law
Administrative law
Tax law
Regulatory law
Criminal law
Constitutional law
Rules governing basic operation of law and politics
Administrative law
Rules covering creation and ation of agencies, boards, tribunals and commissions that exercise delegated authority
How governments can delegate their authority to their bodies
Tax law
Rules regarding collection of money for public spending
Regulatory law
Rules governing operation ation of societal activities
Food, pharmacies, trade environment, transportation modes, telecommunications, broadcasting
Criminal law
Rules governing wrongs against society
Crimes in the business world
Private law
How citizens deal with each other
Tort law, contract law, and property law
Tort law
Involuntary rules, governing wrongs against persons
Contract law
Voluntary rules governing creation and enforcement of agreements
Property law
Involuntary rules, governing voluntary acquisition use, and disposition of property
Sources of law
Consultation legislation and court
The constitution
Provides basic rules for society, including our legal and political systems
Law inconsistent with constitution has no force or effect
Hard to change/amend
Federalism
The division of powers
Two constitutionally recognized level of government
Federal government
- Represents country
- parliament made up of appointed senators and house of common (elected)
Led by Prime Minister
Provincial government
- represents province
- legislature (elected)
Ultra vires
Laws made outside of jurisdiction have no force or effect
Means beyond the power
Created by government acting outside of its area of authority
When government legislates outside its authority, the law is ultra vires and has no for effect.
Charger of rights and freedoms
Charter only implies when complaining about government actions
Part of constitution since 1982
Writes and freedoms commonly affecting business
- Freedom of religion, expression, and mobility
- right to equality
Economic and property rights not protected
Limits on charter rights
Charter only applies to government action
Charter may apply in favour of private businesses
Subject to reasonable limitations (balance, community, and individual interests)
Charter subject to not withstand clause
- Governments (provincial) can override the charter of rights and freedoms
Parliamentary supremacy
Democracy
Final Authority rest with elected and accountable governments not appointed judges
