AFM 335 - Legal Environment

Traditional vocabulary flashcards covering the branches of government, foundational legal sources, administrative law, and dispute resolution methods discussed in AFM 335 Class 2.

Legislative Branch

The branch of government responsible for creating legislation (statutes), composed of Parliament at the federal level and Legislatures at the provincial level.

Executive Branch

One of the three primary branches of government that creates and impacts the legal environment of business.

Judicial Branch

The branch of government that conducts trials and appeals, interprets legislation, and creates legal principles to resolve disputes.

Jurisdiction

The establishment of spheres of authority that determine what levels of government can act, defined specifically in the Constitution Act.

Section 91

A part of the Constitution Act that outlines federal powers, including Unemployment Insurance, Bankruptcy & Insolvency, Patents & Copyright, and Criminal Law.

Section 92

A part of the Constitution Act that outlines provincial powers, including Municipalities, Property & Civil Rights, and the Administration of Justice.

Charter of Rights and Freedoms

A foundational document to which all government activity, including legislation and by-laws, must comply.

Section 1 (Charter)

A provision that permits governments to justify what would otherwise be a violation of Charter rights through a specific legal process and test.

Section 33 (Charter)

Also known as the notwithstanding clause, it permits governments to ignore Charter violations for a limited, renewable period of time.

Bill

A piece of proposed legislation that must pass multiple readings and committee processes before being proclaimed into law.

Regulations

Detailed obligations created under the authority of a piece of legislation, often containing the specific requirements for business compliance.

Common Law

Judicial decisions that have the force of law and are created through the resolution of legal disputes by judges.

Precedent

A prior similar case that inferior courts in the same judicial jurisdiction are generally expected to follow.

Equity

A branch of law designed to overcome outcomes regarded as unfair due to the rigidity of common law precedent, governed by notions of fairness.

Natural Justice

Overriding principles of administrative law requiring that an individual knows the case against them and has the right to respond.

Negotiation

A voluntary process where parties or their representatives (such as lawyers) communicate directly to reach a resolution.

Mediation

A dispute resolution method utilizing a neutral third party to facilitate negotiation and help parties reach a compromise.

Arbitration

A private dispute resolution process where an expert decision-maker holds an evidentiary hearing to resolve a conflict outside of formal court proceedings.

Small Claims Court

The litigation route in Ontario for claims with a value up to $50,000$.

Pleadings

Written documents, such as a Statement of Claim, that set out the factual allegations and legal principles parties intend to rely on in a lawsuit.

Discovery

A litigation stage where parties must disclose all relevant documentation and examine a key witness under oath.

Balance of Probabilities

The standard of proof required in civil litigation, as opposed to the criminal standard of beyond a reasonable doubt.

Judgment Interest

Simple interest that accumulates from the time of the incident until the judgment is awarded to a successful plaintiff.

Fiduciary Duty

An equitable legal principle often found in business law involving a high degree of trust and loyalty.