1. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-1 CANADIAN BUSINESS AND THE LAW Second Edition by Dorothy Duplessis Steven Enman Shannon O’Byrne Sally Gunz Presentation prepared by Allan Elliott, Southern Alberta Institute of Technology

2. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-2 CHAPTER ONE KNOWLEDGE OF LAW AS A BUSINESS ASSET OBJECTIVES:  The role of law in guiding conduct  The importance of legal knowledge in the business environment  The challenges posed by business ethics and their relationship to legal requirements

3. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-3 LAW IN THE BUSINESS ENVIRONMENT BUSINESS LAW A set of established rules governing commercial relationships, including the enforcement of rights  defines general rules of commerce  protects business ideas and more tangible forms of property

4. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-4 LAW IN THE BUSINESS ENVIRONMENT BUSINESS LAW  provides mechanisms that permit selection of participation and exposure to risk in business ventures  seeks to ensure losses are borne by those responsible for them  facilitates planning by ensuring compliance with commitments

5. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-5 RULES AND PRINCIPLES OF LAW LAW  a set of rules and principles guiding conduct in society  protecting persons and their property  facilitating personal and commercial interactions  providing mechanisms for dispute resolution

6. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-6 RULES AND PRINCIPLES OF LAW  Breach of Contract – failure to comply with a contractual promise  Contract Law – rules that make agreements binding, facilitate planning and enforcement of expectations

7. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-7 RULES AND PRINCIPLES OF LAW Litigation – the process involved when one person sues another Mediation – a process through which parties to a dispute try to reach a resolution with the assistance of a neutral person Arbitration – a process through which a third party makes a decision (usually binding) that resolves a dispute

8. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-8 BUSINESS APPLICATION OF THE LAW KNOWLEDGE OF THE LAW AS A BUSINESS ASSET Risks of Litigation – win/lose and costs Legal Risk Management Plan – a comprehensive action plan for dealing with the legal risks involved in operating a business

9. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1-9 BUSINESS APPLICATION OF THE LAW LAW AND BUSINESS ETHICS Business Ethics – moral principles and values which seek to determine right from wrong in the business world