Breen 2e PPT Ch1 Business Law PDF

Chapter 1- Business Law Prepared by Professor John Piccolo, Niagara College 0 © 2022 McGraw Hill Ltd.  Learning Objectives LO 1.1 Understand the law’s role in society LO 1...

Chapter 1- Business Law Prepared by Professor John Piccolo, Niagara College 0 © 2022 McGraw Hill Ltd.  Learning Objectives LO 1.1 Understand the law’s role in society LO 1.2 Understand how the law plays a part in business LO 1.3 Understand the importance of protecting a business with risk management LO 1.4 Identify how ethics plays a role in law and in business © 2022 McGraw Hill Ltd. 1-2 Learning Objectives cont. LO 1.5 Identify the types, areas, and sources of law LO 1.6 Understand how laws are made LO 1.7 Understand the court system LO 1.8 Define Alternative Dispute Resolution (ADR) and its benefits © 2022 McGraw Hill Ltd. 1-2 Law in Today’s Society Laws—the rules of conduct that protect the rights of individuals and businesses. All types of laws provide regulations and rules about how we conduct ourselves and how businesses conduct their business affairs. In the world of business, there are many federal, provincial, and municipal laws that protect businesses and the public from harm. © 2022 McGraw Hill Ltd. 1-4 Law in Today’s Society cont. Personal Information Protection and Electronic Documents Act (PIPEDA) applies to the collection, use, or disclosure of personal information in the course of a commercial activity protects the information of the public and provides guidelines for businesses surrounding their legal and ethical responsibilities to the individuals they interact with, such as employees and clients. © 2022 McGraw Hill Ltd. 1-5 Privacy Plan Privacy Plan —a list of rules of conduct for employees relating to the creation, usage, control, and maintenance of information. Make your employees aware of their privacy rights and those of your customers © 2022 McGraw Hill Ltd. 1-6 Privacy Plan cont. Some items a business should put in their company’s privacy policy: A pledge to protect the privacy of the customer/client. What information is collected and how it is collected. Type of information collected automatically via cookies on a website. Notification if your information will be provided to a third party. Explanation for the sharing of information with “trusted partners”. © 2022 McGraw Hill Ltd. 1-7 Law and the World of Business Business Law—all the laws that are created in order to form and run a business. Rules, regulations, processes, and procedures that a person needs to know in order to be successful in their field of business. Important to know about the law and the different areas of the law in order to minimize the risks that can occur. © 2022 McGraw Hill Ltd. 1-8 Law and the World of Business cont. From the moment a businessperson forms a business, throughout the life of the business and possibly to the completion of the business, laws are in place to protect the business, the owner, and the public. Laws also guide the businessperson in the proper way to conduct the business. © 2022 McGraw Hill Ltd. 1-9 Law and Risk Management Risk Management—a positive business management practice that realizes and assesses the risks associated with the activities of the business. Strong business management means knowing and understanding the risks and managing them legally and ethically. © 2022 McGraw Hill Ltd. 1-9 Business Ethics and the Law Business Ethics—the way a business behaves; moral decisions made by the stakeholders of a business. Knowing and managing risk when making decisions by understanding the guidelines, rules, regulations, and laws of an industry will help in the success of a business. © 2022 McGraw Hill Ltd. 1-10 Business Ethics and the Law Stakeholders—people and groups that are directly and indirectly involved in the business such as employees, shareholders, suppliers, and charitable organizations. How to handle a sexual harassment complaint by an employee. How to submit information to Canada Revenue Agency. © 2022 McGraw Hill Ltd. 1-11 Types, Areas, and Sources of Law in Canada Two Types of Law Public Law—sets the rules for the relationship between the person(s)/organization and society. Dictates what the business or individual can/cannot do, the governing body that makes those decisions, and the process that happens when there is a dispute. Criminal law, administrative law, and constitutional law. © 2022 McGraw Hill Ltd. 1-13 Types, Areas, and Sources of Law in Canada cont. Two Types of Law Private Law—sets the rules of engagement between individuals. Also called civil law. These rules of engagement could involve a dispute, a harm done to someone or their property, or a breach of an agreement between individuals or organizations/businesses. © 2022 McGraw Hill Ltd. 1-14 Public Law 1 Public law is divided into four distinct areas: Criminal Law Constitutional Law Administrative Law Tax Law © 2022 McGraw Hill Ltd. 1-15 Public Law 2 Criminal Law—the area of law where a defendant is charged with a crime and the Crown prosecutor brings the defendant to trial. The Crown prosecutor must prove beyond a reasonable doubt that the defendant is guilty of the crime. Deals with a set of rules such as the Criminal Code of Canada that individuals and organizations must obey Criminal law is designed to protect society from crimes such as assault, battery, theft, identity theft, fraud, and murder. © 2022 McGraw Hill Ltd. 1-16 Public Law 3 Constitutional Law—involves issues between our Charter of Rights and Freedoms or the Constitution Act and individuals or organizations. Limits the exercise of governmental power over individuals through the protection of human rights and fundamental freedoms. © 2022 McGraw Hill Ltd. 1-17 Public Law 4 Administrative Law—a group of laws and regulations within an industry—municipally, provincially, federally, and internationally. Environmental review boards (provincial and federal) Human rights tribunals (provincial and federal) Labour relations boards (provincial) Zoning commissions (municipal) © 2022 McGraw Hill Ltd. 1-18 Public Law 5 Tax Law—when an individual or organization has an issue with their federal income tax and, in particular, a decision of the CRA (Canada Revenue Agency), it can be decided before the tax court. Income Tax Act Employment Insurance Act Customs Act © 2022 McGraw Hill Ltd. 1-19 Civil Law Private (civil) law deals with disputes between individuals where one party has been harmed or injured and is seeking compensation. Civil or private law is also called tort law. © 2022 McGraw Hill Ltd. 1-20 Civil Law cont. Civil/private/tort law has to do with an injury that a person, persons, or organization commits on another person, persons, or organization. The person/persons/organization who is injured is called the plaintiff, and they sue the person who injured them. The person/persons/organization who is being sued is called the defendant. © 2022 McGraw Hill Ltd. 1-21  Figure 1.2: Criminal Law vs. Civil Law © 2022 McGraw Hill Ltd. 1-22 Indigenous (Aboriginal) Law The term aboriginal is used in the Canadian Constitution Includes First Nations, Metis, and Inuit Peoples Canadian Law provides constitutional rights to land and traditions of all these Indigenous peoples As of 2008 Indigenous people can now make complaints of discrimination to the Canadian Human Rights Commission © 2022 McGraw Hill Ltd. 1-23 Sources of Law 1 Statute Law—a set of codes, rules, and regulations that are created by the government or an administrative body Criminal Code of Canada Income Tax Act Copyright Act Matrimonial Property Act © 2022 McGraw Hill Ltd. 1-24 Sources of Law 2 Common Law—based on decisions handed down from case to case that is not criminal law Decisions of previous and similar cases are used as a basis for a court decision. Common law is the law of precedent Stare Decisis—a doctrine where lower courts, in similar matters, use the decisions of higher courts. © 2022 McGraw Hill Ltd. 1-25 Sources of Law 3 Common Law or Case Law Any dispute between individuals that requires a solution or a remedy is considered a civil law matter Contract law Property law Family law. © 2022 McGraw Hill Ltd. 1-26  Figure 1.3: Sources of Law © 2022 McGraw Hill Ltd. 1-27 How Laws Are Made in Canada Constitution Act 1867—outlines the executive and legislative powers of federal and provincial governments. Constitution Act 1982—entrenches the Canadian Charter of Rights and Freedoms Charter of Rights and Freedoms—protects Canadians’ fundamental freedoms such as freedom of religion, our mobility, legal and democratic rights, to name a few. © 2022 McGraw Hill Ltd. 1-28 Statutes Statute—a law enacted at the municipal, provincial, or federal level. Once Parliament or a provincial/territorial legislature creates an Act by way of statute, it becomes the law by which judges will rule. Statutes supersede any judge-made ruling. Regulations—laws developed by departments and other organizations in specific areas. © 2022 McGraw Hill Ltd. 1-29 Statutes cont. Table 1.2: Common Statutes a Businessperson Should Know Federal Canada Labour Code Competition Act Income Tax Act Canada Occupational Health and Safety Regulations Food and Drug Regulations Provincial/territorial- Property each province or Employment Standards Provincial Court territory has its own set Public Health of statutes Municipal- each Property Tax municipality has its own Commercial Property Noise set of statutes (bylaws) © 2022 McGraw Hill Ltd. 1-30 The Court System Canada’s system of government Judiciary branch resolves disputes according to law—including disputes about how legislative and executive powers are exercised. Legislative branch (Parliament) has the power to make, alter, and repeal laws. Executive branch (in particular, the prime minister and ministers, the public service, as well as a variety of agencies, boards, and commissions) is responsible for administering and enforcing the laws. © 2022 McGraw Hill Ltd. 1-31 Role of the Courts The justice system is the mechanism that upholds the rule of law. Courts provide a forum to resolve disputes and to test and enforce laws in a fair and rational manner. The courts are an impartial forum. Court decisions are based on what the law says and what the evidence proves. © 2022 McGraw Hill Ltd. 1-32 Figure 1.5: Hierarchy of Canadian Civil Courts © 2022 McGraw Hill Ltd. 1-33 Alternative Dispute Resolution (ADR) Alternative Dispute Resolution (ADR)—different ways to solve a dispute that do not involve the formality of a court or civil litigation such as mediation and arbitration. Saves time Saves money Creates goodwill Maintains privacy © 2022 McGraw Hill Ltd. 1-34 Key Questions 1 What is the importance of understanding law to a business today? (LO 1.1) Why is it important for a business to develop a privacy plan? (LO 1.1) What is meant by the term risk management? (LO 1.3) Define the areas of law. What is the difference between them? (LO 1.5) © 2022 McGraw Hill Ltd. 1-35 Key Questions 2 How would you compare a criminal case to a civil case? (LO 1.5) Vandals have destroyed a bench in a town park. Is this a matter of public or private law? (LO 1.5) Why would the parties in a civil case want to pursue ADR (Alternative Dispute Resolution) (LO 1.8) © 2022 McGraw Hill Ltd. 1-36 Key Terms 1 Laws — rules of conduct that protect the rights of individuals and businesses. Privacy Plan — a list of rules of conduct for employees relating to the creation, usage, control, and maintenance of information. Business Law — includes all the laws that are created in order to form and run a business. © 2022 McGraw Hill Ltd. 1-37 Key Terms 2 Risk Management — a positive business management practice that realizes and assesses the risks associated with the activities of the business. Business Ethics — is the way a business behaves; moral decisions made by the stakeholders of a business. Public Law — sets the rules for the relationship between the person(s)/organization and society. Private Law — sets the rules of engagement between individuals. © 2022 McGraw Hill Ltd. 1-38 Key Terms 3 Statute Law—a set of codes, rules, and regulations that are created by the government or an administrative body Common Law—based on decisions handed down from case to case that is not criminal law Statute—a law enacted at the municipal, provincial, or federal level. Alternative Dispute Resolution (ADR)—different ways to solve a dispute that do not involve the formality of a court or civil litigation © 2022 McGraw Hill Ltd. 1-39