MOS 2275 Lecture 2

September 16
th
, 2014
Chapter 1 Knowledge of Law as a Business Asset
Law in the Business Envirnment
Law a!!ects mst business "ecisins !rm "eve#pment ! the basic business i"ea thru$h its
imp#ementatin, an" a## the atten"ant matters in between, inc#u"in$ !inancin$, hirin$,
pr"uctin, mar%etin$, an" sa#es
Law enab#es wners an" mana$ers t reach their $a#s an" b&ectives
Business #aw
"e!ines $enera# ru#es ! cmmerce
prtects business i"eas an" mre tan$ib#e !rms ! prpert'
prvi"es mechanisms that permit businesspep#e t se#ect their "esire" "e$ree !
participatin an" e(psure t ris% in business ventures
see%s t ensure #sses are brne b' thse wh are respnsib#e !r them
!aci#itates p#annin$ b' ensurin$ cmp#iance with cmmitments
Le$a# i$nrance ma' resu#t in the business r its wner bein$ sub&ecte" t re$u#atr' an"
&u"icia# sanctin bein$ !ine", pa' pena#ties, c#se "wn a#t$ether
)hat is the #aw*
Set ! ru#es that are en!rce" an" inten"e" t $ui"e sciet' which are estab#ishe" b' the
$vernment
+rimari#' prtectin$ persns an" prpert' !aci#itatin$ persna# an" cmmercia#
interactins, an" prvi"in$ mechanism !r "ispute res#utin
,here is tremen"us "isa$reement with the #aw
,he #aw prtects members ! sciet' in tw wa's
1- Sets ru#es with pena#ties in r"er t encura$e cmp#iance
2- .t see%s t ma%e thse wh brea% the #aw accuntab#e !r miscn"uct
,he #aw a#s prtects businesses b' settin$ pena#ties an" ensurin$ accuntabi#it'
/atura# #aw therists there is a natura# #aw that e(ists, a natura# #aw that $verns sciet' &ust
#i%e there is a natura# #aw ! $ravit' that h#"s thin$s "wn
0ti#itarians 1 ru#e is a #aw i! it is $" !r sciet', i! it prmtes scia# uti#it'
Le$a# rea#ists ,he sceptics, the' sa' that the #aw is arbitrar', ran"m, an" an inventin !
human !rai#ment 2 3what the &u"$es ha" !r brea%!ast4 2 &u"$es "au$hter was in a car acci"ent in
the past s he5s mre harsh t cases inv#vin$ car acci"ents
,here is wi"e "isa$reement even with the basic princip#es ! #aw
En!rcement is a necessar' in$re"ient in a #aw
Breach ! cntract is !ai#ure t cmp#' with a cntractua# prmise
6aci#itatin$ .nteractins
1$e ! Ma&rit'7 the a$e at which a persn becmes an a"u#t !r #e$a# purpses8 .n 9ana"a it is
1: t 1; 'ears ! a$e, "epen"in$ n prvince
9ntract #aw7 ru#es that ma%e a$reements bin"in$ an" there!re !aci#itate p#annin$ an"
en!rcement ! e(pectatins
Law !unctins t prevent "isputes an" !aci#itate re#atinships
<w an" )h' the #aw wr%s*
=etermines #iabi#it' in accr"ance with certain princip#es an" prcess that are re$ar"e" as &ust
9ana"ian #e$a# s'stem "eman"s that bth the prcess !r "eterminin$ #iabi#it' an" the ru#es r
#aws that are app#ie" in the prcess are !air an" !ree !rm bias
,he #aw the &u"$e re#ies n must be !air an" reasnab#e
>nw#e"$e ! the Law as a Business 1sset
Le$a# ris% mana$ement p#an7 a cmprehensive actin p#an !r "ea#in$ with the #e$a# ris%s
inv#ve" in peratin$ in a business
Business Ethics7 mra# princip#es an" va#ues that see% t "etermine ri$ht an" wrn$ in the
business wr#"
B29 business t cnsumer 5)hen "es sa#es becme "eceptin*5
B2S business t sciet' 5, what #en$ths shu#" a cmpan' $ t enhance shareh#"er
return* , re"uce csts b' usin$ chi#" #abur*5
B2E business t emp#'ee 5Shu#" a business mnitr emp#'ee emai#s, internet, etc*5
B2B business t business 5.s it ethica# t b#u!! "urin$ business ne$tiatins*5
Chapter 2 The Canadian Legal System
.ntr"uctin
,he 9ana"ian #e$a# s'stem is the machiner' that cmprises an" re$u#ates $vernment
?vernment is sp#it int three branches7
Le$is#ative branch creates #aw in the !rm ! statutes an" re$u#atins
E(ecutive branch !rmu#ates an" imp#ements $vernment p#ic' an" #aw
@u"icia# branch a"&u"icates n "isputes
Le$is#ative Branch
9reates a !rm ! #aw %nwn as statute #aw r #e$is#atin
6rma# written #aws create" r enacte" b' the #e$is#ative branch ! $vernment
,hree #eve#s ! $vernment ma%e #e$is#atin in 9ana"a7 !e"era#, prvincia#, municipa#
Law must !irst be passe" b' <use ! 9mmns an" then apprve" b' the Senate
9ana"ian Law
,he A surces ! ur #aw inc#u"e7
1- 9nstitutin
2- Statutes B Le$is#atin
+asse" b' #e$is#atrs
1s citiCens we can be inv#ve" in statutes Demai#in$ r ca##in$ #ca# municipa#it'-
@uris"ictin means the pwer that a $iven #eve# ! $vernment has t enact #aws, each
#eve# ! $vernment has it
9ana"a is a !e"era# state, which means that $vernmenta# pwer is sp#it between the
centra#, natina# authrit' D!e"era#-, an" re$ina# authrities Dprvincia#-
,he !e"era# $vernment has e(c#usive &uris"ictin ver crimina# #aw meanin$ that ne
#eve# ! $vernment h#"s entire#' n its wn an" nt n a share" basis n anther #eve#
9ncurrent &uris"ictin e(ists with !e"era# an" prvincia# $vernments &uris"ictin
that is share" between #eve#s ! $vernments
+aramuntc' is a "ctrine that prvi"es that !e"era# #aws prevai# when there are
cn!#ictin$ r incnsistent !e"era# an" prvincia# #aws Da%a the !e"s a#wa's win n
matter what-
Business is mst e!!ecte" b' prvincia# an" municipa# $vernments
/atina# transprt, hea#th, #icensin$ are a## !e"era# #aw cncerns
Lev'in$ ta(es, par%in$, #icensin$ ! "$s are a## municipa# matters which are essentia##'
b'#aws #aws ma"e b' the municipa# #eve# ! $vernment
A- 9ases B +rece"ent B 9mmn #aw
Once a case is "eci"e" it wi## be part ! ur #aw !rever
9ases can be use" t persua"e a &u"$e in the !uture
+rece"ent means that we ten" t treat a#i%e cases in simi#ar !ashin
,here is a sense ! !airness with this
9nsistenc' "emnstrates !airness
?enerates cn!i"ence in the #e$a# s'stem
+re"ictive abi#it' cmes !rm cnsistenc'
+rece"ent is e(treme#' e!!icient as we##
=isa"vanta$es ! prece"ent inc#u"e7
,en"s t $rup cases t$ether an" sa' the' are the same a#thu$h tw cases ma'
"i!!er
,he prb#em i! tw cases are su!!icient#' simi#ar an" i! the' shu#" en" in the
same resu#t
.! we insist n !##win$ prece"ent ri$i"#' hw "es the #aw a"vance an" $rw
<as t a"apt with new scia# nrms an" va#ues
.! there was an errr ma"e in the past it ma' create a "isma# #aw
.n terms ! a ba" "ecisin there is an appea# prcess
.! it is a ba" ut#ier resu#t, it wi## reverse that ba" "ecisin an" put in a new
prece"ent !rm a hi$her curt
/ tw cases are ever a#i%e
@u"$es ma%e this ca## i! it shu#" pr"uce the same resu#t r "istin$uish the
case n the !acts
1t the hi$hest #eve# the curt can actua##' chan$e the #aw
)e a##w statutes t trump cases
,he 9ana"ian 9nstitutin an" 9nstitutina# Law
,he supreme #aw ! 9ana"a that cnstrains an" cntr#s hw the branches ! $vernment
e(ercise pwer uph#"in$ the va#ues ! a natin
Libera#ism7 1 p#itica# phi#sph' that emphasiCes in"ivi"ua# !ree"m as its %e' r$aniCin$
va#ue
,he $vernment is nt abve the #aw, it is sub&ect t the #aw, this simp#e statement sets us apart
!rm a #ar$e percenta$e ! the wr#"
.n 9ana"a the $vernment is nt abve the #aw, the' must be' the #aw an" act within the
cnstitutin
.n mst ! the wr#" $vernments " whatever the' want an" citiCens can5t " an'thin$ the'
want
.n 9ana"a we can actua##' ta%e the $vernment t curt
9nstitutina# cnventins are a c"e ! ethics that $verns ur p#itica# prcesses cannt be
en!rce" in a curt ! #aw
9mbinatin ! written an" unwritten #aw in 9ana"a
,he written parts are main#' e(p#ainin$ the b%
,he unwritten parts are cnventins but it is sti## part ! ur cnstitutina# #aw because that
is the wa' we " thin$s
.n Britain a## ! their cnstitutin is unwritten
,he "ivisin ! pwers are assi$nments ! respnsibi#ities ! ma%in$ #aws
Sectin ;1 areas ! !e"era# &uris"ictin
9an create #aws n mi#itar' "e!ence, psta# service, immi$ratin, crimina# #aw, internatina#
tra"e, !ishin$, currenc', ban%in$, transprtatin, hea#thcare,
+rvincia# &uris"ictin
+rpert' an" civi# ri$hts
E"ucatin
1#ch#
Emp#'ment stan"ar"s
Municipa#ities "erive a## their pwers !rm prvincia#
.n cnstitutin there are n#' tw #eve#s ! $vernment7 !e"era# an" prvincia#
Eesi"ua# $vernment
+eace r"er as a resi"ua#
.! it5s nt n either #ist it is sent t the !e"s
.! 'u can cmp#' with bth #aws then the' are bth va#i"
.! the' cn!#ict then it is the !e"era# #aw that prevai#s
9harter ! ri$hts an" !ree"ms D1;;2-
9ntains !un"amenta# ri$hts an" !ree"ms !r ever'ne in 9ana"a
6ree"m ! speech an" e(pressin, re#i$in, assciatin, mbi#it', eFua#it', "emcratic
ri$hts
Ei$ht t be !ree ! arbitrar' arrest r search an" seiCure withut reasnab#e $run"s
Lan$ua$e ri$hts
=e!ines 9ana"ian va#ues thin$s we cnsi"er imprtant an" un"eniab#e
)hen 'u are in 9ana"a 'u are $uarantee" these thin$s
/t with2stan"in$ c#ause DSectin AA-
?vernments can avi" the charter i! the' sa' the' are "in$ it
Sectin 1
Means that ri$hts an" !ree"ms can never be abs#ute
Must be sub&ect t reasnab#e #imitatins
,here is a ba#ancin$ that ccurs with a## ri$hts an" !ree"ms
9ivi# vs 9rimina# Law
9ivi# is the t'pe ! #aw use" in Guebec
9nsi"er each case n its merits
1n'thin$ that is nt crimina# #aw is civi# #aw
9rimina# #aw is abut punishment an" retributin
+unishin$ pep#e !r brea%in$ the ru#es ! sciet'
1#wa's inv#ves the state versus the accuse"
EeFuire a rea##' hi$h "e$ree in a persns $ui#t be!re we ren"er them $ui#t'
)e $ive the bene!it ! the "ubt t sme ! the accuse" since punishment is rea##' hi$h
9urt S'stem in 9ana"a
Supreme curt ! 9ana"a at the ver' tp
9urt ! 1ppea# !r each prvince
6r each prvince there are man' tria# curts
,here is a#s a !e"era# curt s'stem an" mu#tip#e !e"era# tria# curts that "ea#s with sectin ;1
9an n#' appea# n matters ! #aw
E(ecutive Branch ! ?vernment
6rma# e(ecutive7 the branch ! $vernment respnsib#e !r the ceremnia# !eatures !
$vernment
+#itica# e(ecutive7 respnsib#e !r "a' t "a' peratins, inc#u"in$ $vernment p#ic',
a"ministerin$ "epartments ! $vernment
9abinet7 1 b"' cmpse" ! a## ministers hea"in$ $vernment "epartments, as we## as +M an"
premier
Ee$u#atins7 Eu#es create" b' the p#itica# e(ecutive that have the !rce ! #aw
@u"icia# Branch ! ?vernments
@u"iciar' is a branch ! $vernment a c##ective re!erence t &u"$es
@u"$es7 1ppinte" b' !e"era# an" prvincia# $vernments t a"&u"icate n a variet' ! "isputes,
as we## as t presi"e ver crimina# prcee"in$s
,he S'stem ! 9urts
,hree basic #eve#s7 tria#, interme"iate appea#, !ina# appea#
,ria# curts are ! tw t'pes
.n!erir curts a curt with #imite" !inancia# &uris"ictin whse &u"$es are appinte" b'
the prvincia# $vernment
Sma## c#aims curt a curt that "ea#s with c#aims up t a speci!ie" amunt
Superir curts &u"$es appinte" b' !e"era# $vernment han"#e c#aims inv#vin$ an
un#imite" mnetar' amunt parties usua##' represente" b' #aw'ers
Supreme 9urt ! 9ana"a
,he !ina# curt !r appea#s in the cuntr'
6e"era# 9urt ! 9ana"a
,he curt that "ea#s with sme t'pes ! #iti$atin inv#vin$ the !e"era# $vernment
1## abut Laws
6ur surces ! #aw as state" in the te(tb% cnstitutina# cnventin, statute #aw, r'a#
prer$ative, an" cmmn #aw
E'a# +rer$ative "iminishin$ in!#uence in the m"ern 9ana"ian #e$a# s'stem, it re!ers t the
histrica# ri$hts an" privi#e$es ! the 9rwn, ri$ht t cn"uct !rei$n a!!airs an" t "ec#are war
9mmn Law ru#es that are !rmu#ate" in &u"$ements
+rece"ent an ear#ier case use" t res#ve a current case because ! its simi#arit'
EFuit' ru#es that !cus n what wu#" be !air $iven speci!ic circumstances ! the case as
ppse" t what cmmn #aw mi$ht "ictate
9#assi!icatin ! Laws
=mestic #aw interna# #aw ! a $iven cuntr', which inc#u"es bth statute an" case #aw
.nternatina# #aw #aw that $verns re#atins between states an" ther cuntries
Substantive #aw "e!ines ri$hts, "uties, an" #iabi#ities
+rce"ura# #aw #aw $vernin$ the prce"ure t en!rce ri$hts, "uties, an" #iabi#ities
+ub#ic #aw areas ! that #aw that re#ate t r re$u#ate the re#atinship between persns an"
$vernment at a## #eve#s
E(amp#es ! pub#ic #aw n pa$e 40241
+rivate #aw areas ! #aw that cncern "ea#in$s between persns
1"ministrative #aw ru#es create" an" app#ie" b' thse havin$ $vernmenta# pwers
9mmn #aw vs 9ivi# #aw
9mmn #aw is ne that bases its private #aw n &u"icia# "ecisins that i! re#evant an" bin"in$
must e app#ie" t the case at issue
Chapter 4 Dispute esolution
.ntr"uctin
Eis% mana$ement p#an minimiCes ptentia##' a"verse impact ! the #e$a# envirnment thru$h
preventin an" a p#anne" reactin t a"verse events when the' arise
=isputes can be res#ve" withut $in$ t curt this wa' it
a- 1vi"s time cnsumptin an" e(pensive #iti$atin
b- +reserves a "esirab#e #n$ term cmmercia# re#atinships
Liti$atin +rcess
,he prcess inv#ve" when ne persn sues anther
On#' put in !rnt ! the curt the items in "ispute
Ever'ne has access t a## evi"ence an" witnesses
1#ternatives t #iti$atin
/e$tiatin, me"iatin, arbitratin
/e$tiatin sittin$ "wn an" ta#%in$ abut the prb#em
Me"iatin "in$ the same thin$ but with a me"iatr B thir" part'
Eeach a "ecisin with assistance ! a neutra# persn
1rbitratin a mre !rma# wa', cme up t a "ecisin at the en" Fuic% cnvenient
wa' t s#ve "ispute, ine(pensive cmpare" t #iti$atin
=ecisin is ma"e b' the neutra# part'
1#ternative =ispute Ees#utin D1=E-
1 ran$e ! ptins !r res#vin$ "isputes as an a#ternative t #iti$atin
1- /e$tiatin
1 prb#em s#vin$ prcess in which parties "iscuss their "i!!erences an" attempt t reach a
mutua##' a$reeab#e res#utin
,his is the mst cmmn a#ternative t a "ispute
9st e!!ective, usua##' Fuic%, an" a##ws parties t cra!t a s#utin that is suitab#e !r their
situatin
)hen t /e$tiate*
)hen bth si"es are wi##in$
.! a prvisin in the cntract reFuires the parties t ne$tiate
Smetimes ne$tiatin is nt the prper wa' t prcee", such as when insurance cvers
the ris% that is the sub&ect ! the "ispute
<w t /e$tiate*
0sua##' carrie" ut b' the parties in the "ispute, smetimes the' hire #aw'ers r
cunse##rs
6irst step is t investi$ate the situatin, cntact the in"ivi"ua#s respnsib#e an" c#ari!'
the situatin
,he $a# is t reach a res#utin that is a$reeab#e t a## parties
6actrs in success
)i##in$ness
/ature an" si$ni!icance ! the "ispute
+ririt' the parties $ive t its res#utin
E!!ectiveness ! thse inv#ve" in the ne$tiatins
.! parties reach a sett#ement it is usua# !r them t enter a sett#ement a$reement r re#ease s
that it cannt be #iti$ate" in the !uture a#s cmmn t have a cn!i"entia#it' c#ause that
prevents parties !rm revea#in$ terms
2- Me"iatin
1 neutra# persn ca##e" a me"iatr, assists the parties in reachin$ a sett#ement ! their
"ispute
Me"iatin wi## happen !ace2t2!ace
<e#ps the parties c#ari!' their interests an" vercme bstac#es t cmmunicatin
Me"iatr "es nt chse a si"e but assists an" mana$es the prcess
9#ears misun"erstan"in$ an" re#ieves tensin
,he me"iatr =OES /O, impse a s#utin n the parties it is the parties that must reach
a res#utin v#untari#'
A- 1rbitratin
Meth" !r res#vin$ a "ispute whereb' a thir" persn, ca##e" an arbitratr appinte" b' the
parties an" makes the "ecisin
Simi#ar t #iti$atin in that it inv%es a hearin$ !rm bth parties an" the res#utin is
utsi"e the cntr# ! the parties
0sua##' cheaper an" !aster than #iti$atin
1t the en" a !ina# "ecisin is ma"e with #itt#e r n ri$ht t appea#, meanin$ it is bin"in$
!ina# an" en!rceab#e in the curts
,he Liti$atin +rcess
1rises when ne part' brin$s a #e$a# actin a$ainst anther
+#ainti!! r c#aimant is the ne that initiates the #awsuit a$ainst the ther part'
=e!en"ant is the part' bein$ sue"
Liti$atin shu#" be "ep#'e" n#' when a## ther !easib#e meth"s have !ai#e" an" the c#aim
cannt rea#istica##' be aban"ne"
.t is a "rain ! crprate resurces, "istractin !rm pr!itab#e activities, an" causes stress
/ $uarantee ! success
Liti$atin is $enera##' s#w, e(pensive, an" unpre"ictab#e
Limitatin peri"7 the time peri" speci!ie" b' #e$is#atin !r cmmencin$ #e$a# actin
9#ass actin7 a prcee"in$ bru$ht b' a representative p#ainti!! n beha#! !, r !r the bene!it
!, a c#ass ! persns havin$ simi#ar c#aims a$ainst the same "e!en"ant
,he purpse is t imprve access t &ustice b' enab#in$ c#aimants t cmbine resurces in a
sin$#e actin t e!!icient#' a""ress cases ! a##e$e" mass wrn$ b' e#iminatin$ the nee" !r
a #ar$e number ! in"ivi"ua# actins
E(8 Sriracha 5heat5 !umes causes "istress an" irritatin t resi"ents ! .rwin"a#e
9mmercia# #iti$atin which inv#ves business t business is %nwn as private #iti$atin, bears
the cst ! brin$in$ the matter thru$h the &u"icia# s'stem an" an' recver' cmpensatin
cmes !rm the #sin$ part' n $vernment !un"in$, the' n#' set up the curt, &u"$e an"
ther !!icia#s
)hen the p#ainti!! is suin$ !r a re#ative#' sma## amunt ! mne' i! can $ thru$h sma##
c#aims curt Dsmethin$ ! the #ca# eFuiva#ent-
Superir curt is nee"e" !r #ar$e amunts since it has un#imite" mnetar' &uris"ictin
Sta$es ! Lawsuit
6ur sta$es
1- +#ea"in$s
.nv#ves the e(chan$e ! the !rma# "cuments ut#inin$ the basis ! the suit
.n"icates the actin b' preparin$ a "cument that cntains the a##e$atins supprtin$ the
c#aim
=cument is then !i#e" an" re$istere" with the curt !!ice, then sent t the part' bein$ sue"
Dwithut evi"ence but ut#ines the %e' pints-
,he "e!en"ant then has a shrt peri" ! time t respn" t a##e$atins
.! the "e!en"ant has n "e!ence t the c#aim, he ma' a##w the p#ainti!! t 5win5 the case
Simp#' e(p#ain t the &u"$e that the case was cnce"e" an" the &u"$e wi## $ive a "e!au#t
&u"$ement t the p#ainti!! which then mves n t the en!rcement sta$e
.! the "e!en"ant "isputes, the' wi## see% #e$a# a"vice an" prepare a !rma# respnse t the
c#aim %nwn as a "e!ence
1#s has the ptin t cunterc#aim
E(8 @e sues @ames !r causin$ a mtr acci"ent in&ur', @ames is pisse" an" turns the
tab#es !i#in$ a cunter c#aim, a##e$in$ that it was @e wh cause" the acci"ent an"
in&ure" @ames
2- =iscver'
Bth parties must revea# an" "emnstrate !acts that supprt their a##e$atins
En$a$e in a !rma# attempt t res#ve their "ispute be!re it actua##' $es t curt
A- ,ria# an" =ecisin
.! n sett#ement is reache" the p#ainti!! can prcee" t tria#
1t tria#, bur"en ! pr! !a##s n the p#ainti!! Dthe b#i$atin ! the p#ainti!! t prve the
case-
,he "e!en"ant has the pprtunit' t cha##en$e the p#ainti!!5s witnesses an" "cuments an"
t intr"uce its wn accunt ! events t ppse the c#aims
,he "ecisin ma' be $iven b' the &u"$e imme"iate#' at the en" ! the tria# r reserve" unti#
a #ater time
@u"$e5s "ecisin cntains the &u"$e5s res#utin ! the case wh must pa' hw much t
whm supprte" b' evi"ence an" #e$a# ru#es
1n' mnetar' awar" inc#u"es the basic amunt ! the c#aim p#us interest, an", in the usua#
case, #e$a# csts ! the success!u# part'
4- En!rcement
En!rcement ! the &u"$ement awar"e" t the winnin$ part'
,he &u"$e issues a &u"$ement !r a certain amunt ! mne' which in turn can be en!rce"
a$ainst the #ser, nw %nw as the &u"$ement "ebtr Dthe part' r"ere" b' the curt t pa'
an amunt t the winner ! the #awsuit-
1ppea#s
1 part' wh "es nt wish t accept the tria# "ecisin ma' cnsi"er an appea# t the ne(t curt
hierarch'
9hances ! success are #imite"
1n pprtunit' t ar$ue that the tria# "ecisin ha" si$ni!icant errrs in hw the #aw was app#ie"
0sua##' a pane# ! at #east three &u"$es
/ new evi"ence is presente"
Law'ers represent the appe##ant an" respn"ent
1!ter the curt ru#es, the unsuccess!u# part' can cnsi"er anther appea# t the Supreme 9urt
! 9ana"a
,hese cases are usua##' matters ! pub#ic imprtance r inv#ves an imprtant issue ! #aw
9hances ! ma%in$ an appea# up here are ver' s#im
9ntin$enc' 6ees
9mpensatin pai" t the #aw'er Da percenta$e i! the case is wn- usua##' mre wi"esprea" in
the 0S