Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Law 101 > Chapter 1 - Risk Management and Sources of Law > Flashcards

Chapter 1 - Risk Management and Sources of Law Flashcards

You may prefer our related Brainscape-certified flashcards:
Physics 101 flashcards Civil Procedure 1L flashcards Psychology 101 flashcards Chemistry 101 flashcards MBE flashcards MPRE flashcards Biology 101 flashcards Organic Chemistry 101 flashcards Sociology 101 flashcards
1
Q

What is Law?

A

A law is a rule that can be enforced by the courts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is Risk Management?

A

Is the process of identifying, evaluating, and responding to possible harmful events, in other words avoiding loses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Step 1 of Risk Management?

A

Identification, identify the risks and consider liability. Are you legally responsible and can you be sued?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is liability?

A

The state of being responsible for something, especially by law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Step 2 of Risk Management?

A

Evaluation: Evaluate the risks and their probabilities, how serious are those risks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Step 3 of Risk Management?

A

Response: formulate a response from an informed decisions, how you react

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are Risk Management Strategies?

A

Avoidance, Reduction, Shifting, Acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is Risk Avoidance?

A

Eliminate risk, avoid risk all together.

ex: withdraw dangerous product from market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is Risk Reduction?

A

Minimize/decrease risk, reduce risks to an acceptable level through precautions.
ex: modify produce to reduce danger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is Risk Shifting?

A

Shift/transfer risk onto another party.

ex: buy liability insurance for losses caused by the danger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Strategies for Risk Shifting?

A

Insurance and exclusion clauses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is Risk Acceptance?

A

When appropriate to accept/tolerate a risk, often when likelihood is insignificant and if the consequence isn’t detrimental
ex: Do nothing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is an independent contractor?

A

Person who performs services on behalf of a company, but who is not a regular employee of that company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does Vicariously liable mean?

A

A company is vicariously liable for the actions of its employees but not for independent contractors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are Risk Management Techniques

A

Insurance, Exclusion and limitation clause, incorporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is Insurance as a risk management technique?

A

A risk may be reduced and shifted by contracting for an INSURER’S PROMISE TO PAY if a loss occurs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the Exclusion and limitation clause as a risk management technique?

A

A risk may be reduced or eliminated by contracting for a right to LIMIT OR EXCLUDE LIABILITY.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does incorporation mean?

A

A risk may be reduced by conducting business through a company. To prevent being personally liable for any debts or liabilities incurred by the business, a business will be set up as a corporation or company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a Contract?

A

A legal concept that allows people to create enforceable promises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is Insurance?

A

An insurance policy is a type of contact involving two parties: one is the insured, the other is the insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Who is the insured?

A

The party that promises to pay a price, called the premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Who is the insurer?

A

Promises to pay a certain amount of money if the insured suffers a certain type of loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is liability insurance?

A

Provides a benefit if the purchaser is held liable for doing something wrong. Liability insurance creates a duty to defend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a duty to defend?

A

The insurance company is responsible for the litigation, including the costs of hiring lawyers, if its customer is sued by a third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is Property Insurance?

A

Provides a benefit if the purchaser’s property is damaged, lost, or destroyed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the Exclusion and limitation clause?

A

Within contracts, the clause is a contractual term that changes the usual rules of liability. Subject to certain rules and restrictions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The Exclusion and limitation clause may attempt to:

A

Exclude all risk of liability, Exclude liability for certain types of acts or certain types of losses, Limit the amount of compensation that is available

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How can a company attempt to exclude or limit liability when there isn’t a written contract?

A

When parties conducting business do not create a written contract, a company may post a notice somewhere on its premises, attempting to exclude or limit their liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the benefit of incorporation?

A

Limited liability, meaning that usually the company itself rather than the directors or shareholders may be held liable for debts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Exception to limited liability?

A

Limited liability does not protect individuals from all risks, can still be held personally liable for the torts they commit (employees, directors, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is in-house counsel?

A

Instead of hiring lawyers when the need arises, a company may create its own permanent legal department. Provides more efficient risk protection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Benefit of in-house counsel?

A

In-house counsel have inside knowledge of their company, they are able to both prevent problems from arising and resolve disputes that do occur

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is the Nature of Law?

A

There is a distinction between moral obligations and legal obligations but it’s becoming blurred. Moral issues can arise even if a rule is identified as a law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is Civil Law?

A

The source of law is codified. When a case is presented to a judge the judge goes to the section within the “rule book”.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is Common Law?

A

A common body of law that incorporates precedence and case law. Consider how issues have been dealt with in other cases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What is precedence?

A

Consider what is the law and how it’s been broken Consider how did past judges treat it in different cases
Until laws are changed, precedence’s will stay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

History of Civil law?

A

Traces history to Ancient Rome, only civil law jurisdiction in Canada is Quebec (having developed its law from France)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

History of Common Law?

A

Trace history to England. Most of Canada

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What does jurisdiction mean?

A

A geographical area that uses the same set of laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What is Public Law?

A

Governs the relationships between individuals and the government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What forms of law is included in Public Law?

A

Constitutional law, Criminal Law, Administrative Law and Tax Law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is Constitutional Law?

A

Provides the basic rules of our political and legal systems. Determines who is entitled to create and enforce laws, and establishes the fundamental rights and freedoms of Canadian citizens.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What is Administrative Law?

A

Concerned with the creation and operation of administrative agencies, boards, commissions, and tribunals. The government delegates responsibilities to these various bodies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What is Criminal law?

A

Deals with offences against the state. Concerned with people who break rules that are designed to protect society as a whole

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Difference between committing a tort and committing a crime?

A

Committing a tort: have done something wrong to someone else personally
Committing a crime: done something wrong to the entire community

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

What is a crime?

A

A public wrong, an offence against society as a whole

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Difference between corporate crimes and white-collar crimes

A

Committed by a company and Committed by business individuals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

What is Tax Law?

A

Concerned with the rules that are used to collect money for public spending

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What is Private law?

A

Concerned with the rules that apply in private matters.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What forms of law is included in Private Law?

A

Tort law, Contract Law, Property Law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

True or false Private Law can apply to the government?

A

True, it is possible for a private person to sue a public body (and vice versa). The government is subject to private law rules when it enters into private transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

What is a tort?

A

A private wrong, an offence against a particular person

53
Q

What is Tort Law?

A

Involuntary rules governing wrongs against persons including: Intentional torts, business torts, and negligence

54
Q

What is intentional torts?

A

A civil wrong resulting from an intentional act on the part of the tortfeasor (alleged wrongdoer)

55
Q

What is business torts?

A

A civil wrong that is committed by or against an organization. ex: deceit, conspiracy, fraud, defamation

56
Q

What is negligence torts (unintentional torts)?

A

Not deliberate actions, when an individual or entity fails to act as a reasonable person to someone whom he or she owes a duty to

57
Q

What is Contract Law?

A

Voluntary rules governing creation and enforcement of agreements. Contracts governs transactions

58
Q

What is Property Law?

A

Involuntary rules governing voluntary acquisition, use, and disposition of property

59
Q

What are the categories of Property Law?

A

Real property, personal property, and intellectual property

60
Q

What is real property?

A

Involves land and things that are attached to land

61
Q

What is personal property?

A

Involves things that can be moved from one place to another.

62
Q

What is intellectual property?

A

Involves things that consist of original ideas, such as patents and copyrights

63
Q

What is the law of succession?

A

Deals with the distribution of a person’s property after death

64
Q

What is the law of trusts?

A

Deals with a situation in which one person holds property on behalf of another

65
Q

True of false: Different areas of law can overlap?

A

True, there are at least two possibilities: Alternative Analysis and Multidisciplinary Contexts

66
Q

What is Alternative Analysis?

A

Can be sued for multiple things and therefore require multiple sets of rules

67
Q

What is Multidisciplinary Contexts?

A

Some situations involve various types of laws (administrative law, tort law and criminal law)

68
Q

What are the Sources of Law?

A

Includes a hierarchy of sources: the Constitution, Legislation, the Courts

69
Q

What is the Constitution?

A

A document that creates the basic rules for Canadian society

70
Q

What section of the Constitution must every law by compatible with?

A

Every law implemented must be compatible with Section 52 of the Constitution

71
Q

True or False, laws can be changed?

A

True, laws can be changed by a legislature or a court

72
Q

True or False, the Constitution can be changed?

A

True, but requires a special amending formula. Requires the consent of Parliament plus the legislatures of at least two-thirds of the provinces, where those consenting provinces represent at least 50 percent of the Country’s population

73
Q

What are the divisions of Powers in Canada?

A

Canada is a federal country, that has two levels of government : Federal and (Provincial and Territorial)

74
Q

What does the divisions of Powers mean?

A

Subject to two sets of laws: both federal and provincial (or territorial)

75
Q

What is outlined in Section 91 and 92 of the Constitution?

A

Identify the areas in which each level of government can act. Section 92 allows provinces and territories to create municipalities (third level go government)

76
Q

What is residual power?

A

Gives the federal government authority over everything that is not specifically mentioned

77
Q

What is a direct tax?

A

The cost of a direct tax is expected to fall on the taxpayer

78
Q

What is an indirect tax?

A

The cost of an indirect tax is expected to be passed on from the taxpayer to someone else (only the Federal government has this power)

79
Q

What is income tax?

A

A direct tax determined by income

80
Q

What is a sales tax?

A

A indirect tax, im

81
Q

Who is the Queen represented by?

A

The governor General who is Julie Payette

82
Q

Who is the Lieutenant Governor in Alberta?

A

Lois Mitchell, represents the Queen provincially

83
Q

What is a Commissioner?

A

Represents the Queen territorially

84
Q

What is Ultra Vires?

A

Acting or done beyond one’s legal power or authority. Becomes void under sec 52.

85
Q

What is Intra Vires?

A

Acts within the scope of its power

86
Q

What is the doctrine of federal paramountcy?

A

Gives priority to the application of a federal statute where those terms conflict with a provincial statute.

87
Q

What is the impact the Canadian Charter of Rights and Freedoms has had on laws?

A

A law can be attacked if it violates the Charter

88
Q

True or False the Charter provides property rights and economic rights?

A

False, the charter does not.

89
Q

What are property rights?

A

Rights to own and enjoy assets

90
Q

What are economic rights?

A

Rights to carry on business activities

91
Q

What are the other restrictions on the Charter?

A

Government action, Corporations, Reasonable limits, Notwithstanding clause

92
Q

What is Government action?

A

The Charter only has full effect if a person is complaining about the governments behaviour

93
Q

What is the restriction concerning Corporations?

A

The Charter generally does not apply against private corporations

94
Q

What is a Corporation?

A

It is considered a type of person but is is not an “individual. Therefore corporations enjoy freedom of expression under section 2(b), but not equality rights under section 15

95
Q

Who does Section 2(b) apply to?

A

“everyone” including corporations

96
Q

Who does Section 15 apply to?

A

only to “every individual”, not including corporations

97
Q

What is the Reasonable limits restriction?

A

Section 1 states that its rights and freedoms can subject to violation. Especially when it fringes on the

98
Q

What is the Notwithstanding clause?

A

Section 33 allows Parliament or a legislature to create and enforce a law “notwithstanding” the fact that it violates the Charter. Applies to Section 2, section 7-14 and section 15 rights. Invoked every 5 years

99
Q

What is Section 24 of the Charter?

A

Charter Remedies

100
Q

What are Charter Remedies?

A

Declaration, Injunction, Striking down,( Severance, Reading Down, and Reading in), and Damages

101
Q

What is a Declaration?

A

A court declares that the Charter has been violated

102
Q

What is an Injunction?

A

An injunction requires the government to address the problem in a certain way. The choice lies with the judge, rather than the legislature

103
Q

What is Striking Down?

A

A court may strike down or eliminate a statute that violates the Charter. That decision may take effect immediately or it may be temporarily suspended.

104
Q

What is a temporary suspension?

A

Appropriate where the immediate elimination of a statue would create substantial problems

105
Q

What is Severance, Reading Down, and Reading in?

A

A court may save a statue by re-writing part of it

106
Q

What is Severance?

A

If only one part of a statue is offensive, it may be severed or cut out

107
Q

What is Reading Down?

A

If a statute is written too broadly, it may be read down so that it applies only where it can be justified

108
Q

What is Reading In?

A

If a statue is written too narrowly, the court may read in a broader interpretation

109
Q

What is Damages?

A

may be awarded damages to a person who has suffered a Charter violation

110
Q

What are Charter Damages?

A

Intended to compensate the plaintiff’s loss vindicate the plaintiff’s rights, and deter future wrongdoing

111
Q

What is the first source of Law?

A

The Constitution, including the Charter.

112
Q

What is the second source of Law?

A

Legislation, within it statutes and/or acts

113
Q

What is legislation?

A

Law that is created by Parliament or a legislature

114
Q

What is a bill?

A

A bill is proposed legislation becomes Law when approved

115
Q

Federal bill?

A

Federal bill must have a reading in the Senate and must have Royal Assent of the Governor General

116
Q

What is a by-law?

A

A type of subordinate legislation that is created by a municipality. Used to license businesses, impose some sorts of taxes, plan commercial developments, and regulate parking

117
Q

What is the third source of Law?

A

The Courts

118
Q

What is the role of the Courts?

A

Courts must interpret and apply the words that appear in the Constitution and in legislation. Courts also have the ability to create laws

119
Q

What are the three ways “Common Law” can be understood?

A

As a system of law, a source of law, or a type of court

120
Q

What are Common Law sources?

A

specific way to refer to rules that are created by judges

121
Q

What are Common Law courts?

A

Consider judge-made rules. Two sets of courts: the courts of law and the courts of equity. Common law is referred to the rules developed in the “courts of law”

122
Q

What are courts of law?

A

A court system, courts insisted on applying the strict letter of the law, often rigid and harsh.

123
Q

What are courts of Equity (fairness)?

also known as courts of Chancery

A

A court system, concerned with justice than the rigid rules. Decisions were based on equity, this has since developed and applied a consistent set of rules

124
Q

What is the Nature of Equity?

A

Equity may still be slightly more flexible than law but, for the most part, the two systems are different only because they occasionally apply different rules

125
Q

True or false: Every Canadian court is now both a court of law and a court of equity?

A

True, apply both legal rules and equitable rules

126
Q

When is the division between law and equity especially important?

A

Especially important with respect to a trust

127
Q

What is a trust?

A

Exists anytime that one person owns property for the benefit of another

128
Q

What is most common type of trust?

A

An express trust, which is created when one person, called the settlor, transfers property to another person, called the trustee, to hold on behalf of the beneficiary. The trustee legally owns the property but the beneficiary is the equitable owner

129
Q

How is Legislation involved in risk management?

A

Business people are able to affect the creation of a law during the legislative process (lobbying)

Business Law 101 (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions