Canadian Business law

Canadian Business and

the Law

Fifth Editionby Dorothy DuPlessis,

Steven Enman, Shannon O’Byrne,

and Philip King

Copyright © 2014 by Nelson Education Ltd.

PowerPoint Slides to accompany

1

Knowledge of Law as a

Business Asset

Chapter 1

Copyright © 2014 by Nelson Education Ltd. 2

LEARNING OBJECTIVESUnderstand the role of law in

guiding businessUnderstand the importance of legal

knowledge in the business environment

Understand the challenges posed by business ethics and their relationship to legal requirements


Knowledge of Law as a Business Asset

Law impacts every aspect of society, including the business environment.

Knowledge of the law helps entrepreneurs maximize protection and avoid pitfalls.

The law affects most business decisions.



Business Law

A set of established rules governing commercial relationships, including the enforcement of rights

Defines general rules of commerce

Protects property and ideas


How Is Law Useful in the Business Environment?

Facilitates business planning

Provides mechanisms that permit businesspeople to manage their participation in business activities and exposure to risk in business ventures

Provides mechanisms to ensure losses are borne by those who are responsible for them


Business Law Protects People and Property

The most familiar purpose of the law is to provide protection.

Those who violate the Criminal Code of Canada – such as breaking into another person’s house, assaulting someone, or committing a commercial fraud – are subject to criminal sanctions such as fines or imprisonment.


Business Application of the Law

How does business law protect intangible property such as ideas and inventions?


“Angry judge slams chain for fake label on goods”Gordon Kent, The Edmonton Journal

(31 December 2004, at A1, A14)


International Perspective: US Spam Laws

How does business law protect the privacy of individuals?


Personal Information Protection and Electronic Documents Act

(PIPEDA)

Business are required to adequately protect their customers’ personal information or be subject to fines of up to $100,000.


Business Law Facilitates Interactions

Business law assists with many personal interactions, such as providing rules concerning marriage or the disposal of property upon the owner’s death.

Business law facilitates commercial activity by providing rules governing the marketplace.


Business Law Facilitates Commercial Activity

CONTRACT LAW – Rules that make agreements binding and facilitate planning and enforcement expectations

BREACH OF CONTRACT – Failure to comply with a contractual promise


Business Law Provides Methods for Resolving

Disputes


Business Law Provides Methods for Resolving

Disputes

LITIGATION – The process involved when one sues another using the formal court system


Should All Disputes Be Litigated?

Are legal proceedings absolutely necessary right now?

Is there a relationship-preserving way to resolve the problem?


Are There Alternatives to Litigation?

NEGOTIATION

MEDIATION

ARBITRATION


NegotiationSolutions to a legal dispute exist at

various levels of formality.

The first logical step is for the parties to try to come to a negotiated resolution between themselves.

If necessary, a formalized settlement agreement can be created.


Mediation

A process through which parties try to reach a resolution with the assistance of a neutral person (the mediator)


Arbitration

A process through which a neutral person (or panel) makes a decision

Arbitration is usually binding.


Law and Business Ethics

BUSINESS ETHICS – Moral principles and values that seek to determine right and wrong in the business world


Business Ethics

From the perspective of reputation and profitability, is it enough for a commercial enterprise to simply comply with the law?


Law and Business EthicsInhumane Killing of Sled Dogs in

B.C.


Using Knowledge of the Law as a Business Asset

An effective way to minimize negative business experience and enhance returns is to implement a legal risk management plan.


Legal Risk Management Plan

A comprehensive action plan for dealing with the legal risks involved in operating a business



Owners and managers can protect their business by ensuring compliance with legal requirements.

Businesses can use contracts to plan for the future.

Laws can protect people and property.

Businesses can use laws to enforce legal rules against those who do business and have interactions with the enterprise.



Identify the legal risks associated with a business and implement measures for managing those risks.

Identify and plan for risks before they occur rather than adopting the reactive mode.

Business ethics are not always coextensive with legal requirements but are increasingly important for running a successful business.


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