Introduction to CLS (Brief - 2nd Edition) - Chapter 8 PDF

NOTICE COPYRIGHT DISCLAIMER This PowerPoint presentation is copyright protected. Individuals who have adopted the related Emond Publishing textbook for their course are granted permission to use this presentation for instructional purposes only. Slides may not be distributed under...

NOTICE COPYRIGHT DISCLAIMER This PowerPoint presentation is copyright protected. Individuals who have adopted the related Emond Publishing textbook for their course are granted permission to use this presentation for instructional purposes only. Slides may not be distributed under any kind of Open Access style license, or website, or be duplicated, copied, sold, or otherwise exploited for any commercial purpose without Emond Publishing’s express written consent. Thank you.  A Brief Introduction to Law in Canada, 2nd Edition CHAPTER 8 Business and Consumer Law  A Brief Introduction to Law in Canada, 2nd Edition 3 Learning Outcomes After reading this chapter, you will be able to: Describe the most common business structures in Canada—sole proprietorships, partnerships, and corporations—and the advantages and disadvantages of each. Describe the basic nature of business transactions, payment methods, and collection options. Recognize the circumstances that give rise to builders’ and repairers’ liens. Understand the importance of sale of goods acts in Canada. Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 4 Learning Outcomes (cont’d) After reading this chapter, you will be able to: Explain how consumers are protected under the federal Competition Act. Define the role of the federal Food and Drugs Act and the Canada Consumer Product Safety Act in protecting the health and safety of Canadian consumers. Identify selected areas covered by provincial consumer protection legislation. Describe how the Canadian advertising industry attempts to protect consumers. Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 5 Introduction There are many different ways of carrying on a business Three most common business structures in Canada: 1. Sole proprietorship 2. Partnership 3. Corporation Understanding the legislation that regulates their products and services is important for business owners Provincial and federal legislation aims to protect the rights and safety of Canadian consumers Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 6 Sole Proprietorships Simplest form of business structure Business is owned and operated by one person (sole proprietor) Minimal legal requirements for starting up a sole proprietorship Business names may need to be registered, depending on the province Restrictions Federal and provincial laws and taxes may apply Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 7 Partnerships 1. General Partnership Partnerships Act Partners manage the business together and share profits as well as debts and obligations 2. Limited Partnership Limited Partnerships Act Not all partners participate in the business General partners versus limited partners Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 8 Partnerships (cont’d) 3. Limited Liability Partnership Available for lawyers and accountants in all provinces except PEI Partners are NOT liable for each other’s professional negligence Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 9 Corporations Corporation: A legal entity separate from those who create it Owners and managers are in most cases NOT personally and legally liable for the company’s debts and obligations Federal versus provincial incorporation Creation: Filing of letters patent, memorandum of association, or articles of incorporation NUANS report Public versus private companies Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 10 Product Sales and Consumer Protection Legislation Sale of Goods Acts All common law provinces and territories in Canada have passed Acts based on England’s Sale of Goods Act (1893); Quebec’s Civil Code includes protections for sales transactions Federal Consumer Protection Legislation The Competition Act The Food and Drugs Act The Canada Consumer Product Safety Act Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 11 Provincial and Territorial Areas of Consumer Protection Provincial and territorial legislation typically defines a consumer as someone who has entered into a transaction “for personal, family or household purposes” Business or commercial transactions are excluded Ontario Consumer Protection Act, 2002 Applies to all Ontario consumer transactions (e.g., rights and warranties, credit agreements, leasing) “Unfair practices” Motor vehicle repairs Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 12 Advertising Standards Stakeholders in the advertising and marketing industries have formed associations to help protect consumers Advertising Standards Canada (ASC) Formed in 1957 1963: Publication of the Canadian Code of Advertising Standards Standards in 14 areas, including: Accuracy and clarity Price claims Testimonials Professional or scientific claims Advertising to children and minors Copyright © 2021 Emond Montgomery Publications. All rights reserved.  A Brief Introduction to Law in Canada, 2nd Edition 13 Key Terms builders’ (or construction) lien, 238 corporation, 235 fiduciary duty, 232 general partnership, 232 limited liability partnership, 233 limited partnership, 233 negotiable instrument, 237 sole proprietorship, 231 Copyright © 2021 Emond Montgomery Publications. All rights reserved.