Law, Society, and Business

What are the 3 main roles of law?

1. Law protects people and property

2. Empowers and restricts government

3. Allows private ordering between individuals/businesses

What is private ordering and why does it matter for business?

Private ordering means people and businesses can make legally enforceable agreements. It matters because contracts give businesses certainty.

What are the 2 main reasons people obey laws?

• Natural law and legal positivism.

• Natural law is based on morals or religious principles.

• Legal positivism means people obey law because it comes from proper authority.

What is legal liability?

Being legally responsible for breaking the law or causing harm.

What are the 3 types of legal liability?

Criminal liability, regulatory/quasi-criminal liability, and civil liability.

What is the difference between criminal, regulatory, and civil liability?

Criminal liability is for serious harm to society, regulatory liability is for breaking rules usually punished by fines/tickets, and civil liability is for private disputes where one person sues another.

What are the 5 steps in a legal risk management plan?

Identify risks, assess/prioritize risks, develop strategies, implement the plan, and regularly review/update the plan.

How are legal risks assessed?

By looking at likelihood, meaning how likely the risk is, and magnitude, meaning how serious or costly it would be.

What are the 4 strategies to manage legal risk?

Avoid, reduce, transfer, and absorb the risk.

What does each legal risk strategy mean?

Avoid means stop the risky activity, reduce means lower the chance or damage, transfer means shift the risk through insurance/contracts, and absorb means accept the risk and budget for it.

What do law societies do?

They regulate lawyers and paralegals by setting standards like honesty, integrity, confidentiality, and competency, and disciplining those who break them.

What is a paralegal?

A non-lawyer who provides some legal services to the public.

Why might a business follow a higher standard than the law requires?

Because law and justice do not always match, and businesses may consider ethics, reputation, and stakeholder interests.

What is corporate social responsibility?

The idea that businesses should consider ethical issues and the interests of customers, employees, creditors, the public, and other stakeholders, not just profit.

What are the main sources of law in Canada?

The Constitution, legislation/statutes, regulations, administrative rulings, and court decisions/case law.

What is the Constitution?

The highest law in Canada that all other laws must follow.

What is the difference between statutes, regulations, and case law?

Statutes are laws passed by government, regulations are rules made under a statute, and case law is law developed by court decisions.

What do courts do?

Courts determine if legislation is valid, interpret legislation, protect human rights, develop case law, and resolve disputes between private parties.

What is the Charter of Rights and Freedoms?

Part of the Constitution that protects rights and freedoms from unreasonable government interference.

What does it mean that the Charter is entrenched?

It is part of the Constitution and cannot be easily changed by ordinary legislation.

What happens if a statute violates the Charter?

The court can declare the law invalid or not enforce it.

What is the notwithstanding clause?

Section 33, which allows governments to temporarily override certain Charter rights for up to five years unless re-enacted.

Are Charter rights absolute?

No. Section 1 says rights can have reasonable limits if they are justified in a free and democratic society.

What happens once someone proves a Charter right was infringed?

The burden shifts to the government to prove the infringement was reasonable and justified.

Who does the Charter protect people from?

Government and governmental activities, not usually private individuals or private businesses directly.

What rights and freedoms are protected by the Charter?

Democratic rights, mobility rights, freedoms, legal rights, and equality rights.

What are examples of Charter freedoms, legal rights, and equality rights?

Freedoms include religion, expression, assembly, and association. Legal rights include life, liberty, security, counsel, and no unreasonable search or arbitrary detention. Equality rights protect against discrimination based on things like age, religion, race, sex, and disability.

What are 3 ways to challenge the validity of a statute?

Argue the government lacked jurisdiction, argue the law violates the Charter, or argue the law was interpreted incorrectly.

What does ultra vires mean?

Outside the legal authority or power of the government.

How do courts resolve private disputes?

Courts often use case law and legal principles developed by judges, especially when legislation does not directly apply.