1. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Business Law in Canada, 7/e Chapter 3 Government Regulation and the Environment 3-1

2. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Regulatory Role of Government Executive branch of government is responsible for regulatory bodies created by legislation. Complaints against the actions of regulatory agencies are usually heard by administrative tribunals. Administrative tribunals must function by the rules of natural justice. 3-2

3. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Administrative Law Administrative tribunals include government regulatory bodies or their agents that make decisions affecting the rights of others. The rights of people facing an administrative tribunal are covered by administrative law. 3-3

4. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Authority of Decision Maker Rule of law - government officials must rely on legislation to authorize their acts. They cannot interfere with a person’s rights by virtue of their position. Authority of decision maker may be challenged validity of statute or regulation can be determined by the courts. 3-4

5. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Statutory Interpretation Continued on 3-6 3-5 Determination of whether a rule has been properly imposed is based on judicial interpretation of the statute.

6. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Statutory Interpretation/2 Rules of interpretation include golden rule - reasonable interpretation mischief rule - specific purpose of rule identified strict interpretation - must be clear and unambiguous 3-6

7. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Rules of Natural Justice Fair hearing - complainant must have notice and opportunity to be heard Heard by decision maker - the people making the decision must be the same ones hearing the evidence Impartiality - no bias on part of decision makers 3-7

8. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Judicial Review Courts review - not the decision but the process by which it was made. All other remedies must be exhausted before courts will hear the case Continued on 3-9 3-8

9. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Judicial Review/2 3-9 hears challenges to authority of decision maker questions of procedural fairness decision and remedy go beyond power set out in legislation decisions that involve errors of law

10. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Methods of Judicial Review Prerogative Writs - available when a duty to act fairly has not been met certiorari nullifies administrator’s decision prohibition - prevents a decision being made mandamus - forces a decision 3-10 Continued on 3-11

11. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Methods of Judicial Review/2 Declaratory Judgment - declaration of the law after decision has been made, court may assess damages, grant compensation 3-11 Continued on 3-12

12. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Methods of Judicial Review/3 Injunction - a court order to stop breaking the law inappropriate when damage has already occurred government officers may be immune from injunctions. Specific statute may modify rights. Judicial review process may be streamlined by statute. 3-12

13. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Privative Clauses Statutes contain provisions that make it difficult for courts to conduct reviews courts deem them not to apply when the board has gone beyond its jurisdiction or authority court retains right to interpret statutory provisions subject also to the Charter court will only interfere where serious problem 3-13

14. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Question for Discussion Administrators who make decisions affecting individuals must follow minimum standards of procedural fairness. Is this appropriate or should administrators remain unfettered by these rules and procedures that are more akin to the courts? 3-14

15. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Protection of the Environment Environmental law is an example of the role and purpose of government regulatory bodies Environmental protections provided by common law riparian rights nuisance strict liability 3-15

16. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Environmental Statutes Federal: international and interprovincial concerns federal lands coastal waters and inland fisheries Provincial: forests minerals fresh water 3-16

17. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Provincial Statutes Create government departments create regulations grant permits establish standards and assessment policies inspect and enforce regulations develop prevention programs research and development 3-17

18. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Federal Legislation*** By helping to finance provincial programs controls how funding is used and extent of provincial programs controls hazardous materials handling and disposal of hazardous wastes discharge of dangerous substances into waterways Continued on 3-19 3-18

19. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Federal Legislation/2 Federal and provincial legislation overlap and reinforce each other 3-19

20. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Enforcement Provisions Statutes give considerable powers to enforce (and stop violations): enter premises inspect seize documents require site and compliance audits set penalties 3-20

21. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Environmental Assessment Environmental Assessment Act requires new business proposals to include environmental risk assessment such reports increase cost of setting up a business requires hearings before an environmental assessment board 3-21

22. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Question for Discussion Government regulations help to control abuses that diminish the quality of our environment. In the process they increase the cost of doing business, perhaps discouraging industries from setting up here. Continued on 3-23 3-22

23. Copyright © 2005 Pearson Education Canada Inc. Business Law in Canada, 7/e, Chapter 3 Question for Discussion/2 Is there any way to accomplish the first goal without the disadvantages associated with it? 3-23