Lesson 1: Intro to Law and Risk Management

Question 1

Law VS Ethics

Answer 1

members of society must comply with laws as they are non-optional. ethics are optional, people should observe but don’t have to and ethics may vary from person to person because people have different opinions. people are punished if laws are broken. people are rarely punished for having ethics different from others.

Question 2

what is a law (3 points)

Answer 2

1. sets basic legal standards of behaviour which can be enforced by gov, courts, or by individuals or groups
2. gives gov power to act for benefit of society
3. regulates interaction and relations between individuals by allowing them to make binding agreements

Question 3

criminal law

Answer 3

offences against the state; rules designed to protect society; found in criminal code of canada

Question 4

civil law

Answer 4

rules that apply in private disputes between members of society; rules that govern when one member may sue another member of society

Question 5

legal system: common law

Answer 5

rules enunciated in decisions by judges are binding on lower courts in next cases. rule of precedent

Question 6

legal system: civil law

Answer 6

based on code adopted by napoleon. common in quebec

Question 7

how does equity apply in our common law courts

Answer 7

common law court mandated to enforce old common law rules but if common law rule and any rule of equity court conflict, the equitable rule prevails

Question 8

5 steps of legal risk management plan

Answer 8

1) legal risk audit, identify legal inability
2) prioritize risks based on frequency, likelihood, and consequences
3) develop strategies to deal with risk
4) implement plan like training, testing, educating, monitoring
5) plan must be monitored and revised as laws change and legal risks change

Question 9

4 strategies to manage risk

Answer 9

1) avoid risk
2) reduce risk
3) transfer risk (insurance company or consumer who assumes responsibility)
4) absorb risk (factor into price of product)

Question 10

3 places law comes from

Answer 10

1) constitution
2) legislation/statute law
3) case law

Question 11

constitution

Answer 11

where all laws draw power

Question 12

legislation/statute law

Answer 12

acts passed by province/federal gov under authority of constitution

Question 13

case law

Answer 13

court decisions of judges

Question 14

significance of federal constitution act 1867

Answer 14

divides power between federal and provincial gov

Question 15

supreme court of canada role in federal/prov gov

Answer 15

interprets meaning of divided sections between fed/prov

Question 16

what happens when fed/prov laws cannot be reconciled?

Answer 16

doctrine of paramountcy applies, federal law prevails

Question 17

competition act

Answer 17

federal; prevents unfair competition and abuse like conspiracies (agreements that hurt competition), monopolies, mergers if they prevent/lessen competition