Canadian Business Law, 4th Edition PDF

EDITED BY TAMRA CANADIAN ALEXANDER BUSINESS LAW, 4TH EDITION  FOUNDATIONS OF CHAPTER 1 BUSINESS LAW IN...

EDITED BY TAMRA CANADIAN ALEXANDER BUSINESS LAW, 4TH EDITION  FOUNDATIONS OF CHAPTER 1 BUSINESS LAW IN CANADA Copyright © 2023 Emond Montgomery Publications. All rights reserved.  Copyright © 2023 Emond Montgomery Publications. All rights reserved. After reading this chapter, you should be able to: Describe how law relates to 3 LEARNING business and its significance to business decision-making OUTCOME S Describe the process for developing a legal risk management plan and explain its importance Explain the concept of legal precedent in Canada’s common law system  LEARNING OUTCOMES (CONT’D) Explain the function of Explain the significance Describe how the Explain the significance the three branches of of Canada’s Constitution federal, provincial, and of the Canadian Charter government and identify for the government’s municipal governments of Rights and Freedoms the source of law that is law-making powers regulate business to business activity derived from each activity Classify law as either substantive or procedural Copyright © 2023 Emond Montgomery Publications. All rights reserved. LEARNING OUTCOMES (CONT’D) Differentiate public law from private law and identify legal terminology associated with each Explain how administrative law affects business Discuss the difference between business law and business ethics Describe the benefits of studying business law Copyright © 2023 Emond Montgomery Publications. All rights reserved.  Identify legal risks associated with business Identify activity and business relationships. CLASS Apply Apply knowledge of law in developing strategies to minimize legal risks. OBJECTIVE S Recogni Recognize when the assistance of a legal ze professional is prudent. Utilize the services of a legal professional Utilize effectively. Copyright © 2023 Emond Montgomery Publications. All rights reserved.  BUSINESS AND THE LAW Managing Legal Risk Identify the legal risks. Evaluate the legal risks. Manage the legal risk by devising and implementing a legal risk strategy: Four strategies: 1) risk avoidance, 2) risk transference, 3) risk reduction, and 4) risk retention). Review and revise your legal risk strategy. Copyright © 2023 Emond Montgomery Publications. All rights reserved. 8 BUSINESS AND THE LAW TABLE 1.1: EVALUATING THE SEVERITY AND PROBABILITY OF LEGAL RISK Copyright © 2023 Emond Montgomery Publications. All rights reserved.  THE CANADIAN LEGAL SYSTEM: A FRAMEWORK FOR AN ORDERLY SOCIETY Law consists of the rules that are established and enforced by society to regulate the conduct of its members. Canada’s Two Legal Systems: The Civil Law System The Common Law System A system of codified law. System of law that recognizes court decisions with the same force of law as statutes. Copyright © 2023 Emond Montgomery Publications. All rights reserved. 9  Copyright © 2023 Emond Montgomery Publications. All rights reserved. 10 The Constitution Act, 1867 (formerly the BNA Act). The Three Branches of Government: Legislative Branch  democratically elected; function it is to legislate—to introduce, vote on, and THE CANADIAN pass legislation (statute law) CONSTITUTION Executive Branch AND OTHER  carries out the day-to-day function of SOURCES OF government; it formulates and executes government policy and LAW IN administers all the departments of CANADA government Judicial Branch  comprised of judges whose function it is to adjudicate; they do so by interpreting and applying the law to disputes that are brought before the courts.  Legislative Branch Executive Branch Judicial Branch Function Introduce, vote on, and Administer day-to-day Adjudicate legal pass legislation business of government matters and (statutes) disputes Composition Federal: Parliament Federal: Prime minister, Federally and (elected) Cabinet ministers, and provincially each department’s civil appointed judges Provincial: Legislative servants assemblies (elected) Provincial: Premier, Cabinet ministers, and each department’s civil servants Federal and provincial administrative tribunals Sources of law Statutes Regulations Case law Copyright © 2023 Emond Montgomery Publications. All rights reserved.  THE CANADIAN CONSTITUTION AND OTHER SOURCES OF LAW IN CANADA (CONT’D) Table 1.3: A Sampling of Statutes That Affect Business Copyright © 2023 Emond Montgomery Publications. All rights reserved. 12  Copyright © 2023 Emond Montgomery Publications. All rights reserved. 13 Constitution Act, 1982 (includes the THE CANADIAN Charter of Rights and Freedoms). CONSTITUTION Canadian courts are empowered to AND OTHER strike down any law that violates SOURCES OF the Charter. LAW IN CANADA (CONT’D) Charter protects rights and freedoms from government interference. Section 1 provides that all rights and freedoms are subject to “such reasonable limits prescribed by law as can be demonstrably justified in a free and democratic society”  CATEGORIES OF LAW Substantive Law Sets out the rights and obligations of individuals. Procedural Law Rules establishing how substantive law will be enforced. Public Law Rules governing the relationship between individuals and government at all levels. Private Law Relates to the legal relationships between persons, including corporations. Copyright © 2023 Emond Montgomery Publications. All rights reserved. 14  Table 1.5: Examples of Laws Categorized as Public or Private Copyright © 2023 Emond Montgomery Publications. All rights reserved. 15  Table 1.7ContrastingCriminal and Civil Proceedings Criminal Proceedings Civil Proceedings Category Public law Private law Case name R* v Defendant Plaintiff v Defendant Terminology Accused is charged Defendant is sued Issue in the case To determine whether the To determine whether the defendant is guilty defendant is liable Purpose To punish the guilty party To compensate the wronged party (plaintiff) Burden of proof Prosecutor Plaintiff Standard of proof Beyond a reasonable doubt Balance of probabilities Judgment If the defendant is convicted of the If the defendant is held to be liable crime, the judge will pass sentence. for the harm caused, the judge will order a remedy. Consequences Examples of types of sentence Example of types of remedies include fines, imprisonment, and include an order for damages, other requirements that are part of injunction, and specific a probation order. The accused will performance, as well as an order to have a criminal record. pay the other side for legal costs. 16 Copyright © 2023 Emond Montgomery Publications. All rights reserved.  LEGAL ASPECTS OF BUSINESS ACTIVITY Law aims to create stable environments in which members of society can plan their affairs with some certainty and predictability. There are key areas of law are common to all types of businesses, regardless of industry. Knowledge of business law forms the basis upon which to assess and minimize legal risk Copyright © 2023 Emond Montgomery Publications. All rights reserved. 17  “It depends...” Assessing a legal question THE requires applying the applicable ANSWER law and relevant facts to the TO EVERY issue at hand. LEGAL Consider this question: Can the QUESTION staff at a restaurant lawfully : serve an alcoholic beverage to a 19-year-old patron? 18 Copyright © 2023 Emond Montgomery Publications. All rights reserved.  Copyright © 2023 Emond Montgomery Publications. All rights reserved. 19 BUSINESS LAW AND BUSINESS ETHICS Legal principles and ethical values often intersect, but they are not the same thing. Business ethics: the values and moral principles that help to identify right and wrong in a business context. Legal standards may be minimum requirements. People in business should understand both legal and ethical risks in business decision-making. 2 0 THANK YOU! HAVE A GREAT NIGHT!