Legal Issues in Management

Why study law in business?

• T understand proper risk management decisions.

• Understanding the history of law helps make sense of current legal contexts.

• Awareness of basic legal issues supports effective business planning and operations.

• Staying informed about legal developments ensures businesses can adapt to changes that affect their industry.

Business law is divided into what general areas?

Tort Law, Contract Law, Business Organizations, Land Law, IP, and Environmental Law

Nature of Law

refers to what law is, what it does, and why it exists. Law reflects the values, customs, and priorities of the society in which it operates. It evolves over time, shaped by historical influences and the needs of the people.

What is Law at its core?

• A set of rules created by society to guide behavior.

• A system designed to ensure fairness, predictability, and order in relationships—between individuals, businesses, and the government.

• Focused on civil conduct, meaning how we interact respectfully and responsibly with one another.

• Sanctions are imposed when laws are violated.

• Acts as a tool of social control, shaping and guiding societal behavior.

What is the Difference between and right and a Privilege

• Right: Something we can do with impunity; others have a duty not to interfere (e.g., freedom of speech).

• Privilege: Granted under certain conditions; can be taken away if misused (e.g., driver’s license).

• Rights can become privileges due to social or governmental changes.

What are the Three functions of law?

1) Settling Disputes

2) Establishment of Rules - to brinf order and minimize conflicts

3) Protection - of one’s self, possessions, ideas.

How did law develop in early societies?

• Within families/tribes: Oral traditions passed down; early precedent.

• In city-states: Governments formed to resolve disputes.

• Focus on balancing common good with individual freedom.

• Influenced by Roman Empire, Western Europe, and the Middle East.

what are the three sources of law

common law, doctrine of stare decisis, and statute

what is common law also referred to

“Case law” because its built from judicial decisons rather than only written stattues

What is common law and how did it develop?

• Originated in Norman England after 1066.

• Central courts established by King Henry II.

• Judges’ decisions were written down, creating the precedent system.

• Common law is also called case law—law based on court judgments, not just statutes.

• Grew from customary law (religious/community-based rules) in pre-Norman England.

What are statutes and how do they relate to case law?

• Laws passed by a legislative body (e.g., Parliament).

• Courts interpret and apply statutes in cases.

• These decisions become case law (judicial interpretation of statute law).

Stare decisis is a Latin term meaning

to let a decision stand

What is stare decisis and how does it work in common law?

It’s a judicial principle where courts follow precedents in similar cases. Decisions are from the same court or a court of equal rank, and decisions from higher courts are binding. It helps to ensure certainty, predictability, and allows for flexibility to adapt to societal change.

What is Canon Law?

• Church law with original authority over religion, family, marriage, morals, estates.

• Still influences modern issues like Sunday shopping laws and ecclesiastical courts.

What is Merchant Law (Lex Mercatoria)?

• Customary rules by merchants for resolving disputes.

• Formed the basis for modern sales of goods legislation and commercial law.

What is Equity in law?

• Legal principles based on fairness and justice.

• Originated from the King’s power to soften harsh common law outcomes.

• Overrides common law when the two conflict.

• Introduced remedies like injunctions and specific performance.

Statute latin meaning

it is decided

What is a statute and how does it become law in Canada?

• Made through a legislative process:

  1. Bill proposed

  2. Motion to read

  3. Royal Assent (Governor General or Lieutenant Governor)

  4. Proclaimed as law

• Revised statutes are updated to reflect societal changes, now often published online.

What is codification of common law and why is it important?

• Turning common law (case law) into written statutes.

• Happened in the late 1800s.

• Examples: Bills of Exchange Act, Partnership Act, Sale of Goods Act.

• Provides certainty, but still needs judicial interpretation.

What is administrative law and how does it work?

• governs how statutes are applied by tribunals/boards.

• Regulations: Rules made under a statute.

• Tribunals: Agencies created by legislation to regulate activities.

• Power is delegated from the legislature to the tribunal.

• Decisions can be subject to judicial review.

What is the Constitution and why is it important in Canadian law?

• The supreme law of Canada; defines government powers and rules for lawmaking.

• Two key parts:

  1. Charter of Rights and Freedoms

  2. Amending Formula

• Includes the 1867 B.N.A. Act and the 1982 Canada Act.

• Laws that don’t follow it can be ruled unenforceable or ultra vires.

What is the division of powers in Canada according to the Constitution?

• Section 91: Federal government powers.

• Section 92: Provincial government powers.

• Governments can only make laws within their areas of power.

• Residual power goes to the federal government for any matters not assigned to provinces.

Whats the Canadian Charter of Rights?

part of the Constitution and sets out the basic rights and freedoms that all Canadians have and that governments must respect.

• Because it is entrenched in the Constitution, it is difficult to change.

• Section 1: Reasonable Limits

  • Guarantees rights and freedoms but allows for reasonable restrictions prescribed by law if they are justified in a free and democratic society

Notwithstanding Clause

• Allows governments to pass laws that override certain Charter rights temporarily.

• Some parts of the Charter cannot be overridden.

• Laws using this clause expire after five years unless renewed (called the sunset clause).

Fundamental Freedoms

Freedom of conscience and religion
➢ Freedom of thought and expression
➢ Freedom of the press
➢ Freedom of peaceful assembly
➢ Freedom of association

whats mobility rights

freedom to move within Canada

whats Personal Liberty

to enjoy life without interference of the state

Life, Liberty and security of the person

right to be free from unreasonable search and seizure

free from arbitrary detention or imprisonment

What rights are included in the Right to Due Process?

• Be informed of rights on arrest.

• Right to a lawyer.

• Arrest only for committing an offence.

• Innocent until proven guilty.

• Right to a fair trial and reasonable bail

What do Equality Rights under the Charter protect?

• Everyone is equal before the law.

• No discrimination based on race, creed, colour, religion, sex, age, national/ethnic origin, or disabilities.

• Affirmative action is permitted to assist disadvantaged groups.

What are Language Rights under the Canadian Charter?

• The federal government must provide services in both languages.

• Right to education in your preferred official language.

How are Charter rights enforced in Canada?

Individuals can challenge laws in court if they violate Charter rights.

• Charter applies only to government, not private groups.

• Private matters dealt with by Provincial human rights laws.

• Courts may “read into” the Charter to protect rights.

• Example: Same-Sex Marriage case.

Substantive Law

Laws that define rights and duties of individuals.

Procedural Law

The steps and procedures used to enforce substantive laws.

Substantive Right

A legal right an individual can enforce in court.

Public Law:

Deals with the relationship between governments and individuals.

Private Law

Deals with relationships between individuals.

What does "jurisdiction" mean in the context of courts?

the right or authority of a court to hear a matter. It can refer to authority over the parties, the property, or the subject matter involved in a case.

What are the four main ways jurisdiction is divided in the court system?

1. Monetary – based on the dollar amount in dispute

2. Geographic – by federal or provincial area

3. Subject Matter – by type of law (e.g., criminal, civil)

4. Trial vs. Appeal – whether the court hears the case first or reviews a lower court’s decision

What are courts of original jurisdiction and what do they do?

Trial courts that hear a case for the first time. They listen to evidence, determine the facts, apply the law, and make a ruling.

What is the role of the Provincial (or Magistrate’s) Court in criminal cases?

court of original jurisdiction that hears all criminal matters first, handles less serious crimes, and holds preliminary hearings for more serious cases.

What are the two main types of criminal offences and how do they differ?

• Summary Conviction: For less serious offences, with a quicker, simpler process.

• Indictable: For more serious offences, often involving a longer trial and sometimes a jury.

What is a contingency fee and what are its pros and cons?

A: A lawyer’s fee that is only paid if the case is won.
Pros: Increases access to justice for those who can’t afford legal fees.
Cons: May encourage frivolous lawsuits and affect a lawyer’s ethical judgment.