Canadian Business Law & Legal System Review Flashcards

A 150-card practice deck designed to test key principles, terminology, constitutional concepts, litigation steps, ADR methods, and contract law doctrines from the lecture transcripts.

How is "The Law" defined in the lecture notes?

A set of rules established and enforced by the government.

What is Business Law?

Law governing commercial relationships and enforcing legal rights in the business environment.

What is the definition of liability in a legal context?

Legal responsibility for an event, obligation, or loss.

What does jurisdiction refer to?

The legal authority of a government or court over a particular subject or matter.

What is Civil Law as a legal system?

A legal system based on a comprehensive code, as used in Quebec and parts of Europe.

What is Common Law as a legal system?

A legal system based on previously decided cases, as used in Ontario, the U.K., the U.S., and Australia.

How does Criminal Law differ from Civil Law in terms of purpose and type of justice?

Criminal law is concerned with punishing people who commit crimes ("retributive" justice), while civil law deals with disputes between private parties or harmful behaviour ("distributive" justice).

What are the three main sources of law in Canada?

Constitution, Statutes/Legislation, and Common Law/Case Law.

What is Substantive Law?

Law defining people's legal rights, duties, and liabilities.

What is Procedural Law?

Law governing the processes used to enforce legal rights and obligations.

What is Public Law?

Law governing relationships involving government and governmental authority.

What is Private Law?

Law governing relationships between private individuals or organizations.

What is a precedent in case law?

A previous judicial decision used as authority when deciding a later case.

What does the Rule of Precedent require?

A lower court must follow applicable decisions of higher courts within the same jurisdiction.

What are Rules of Equity?

Fairness-based legal principles developed to supplement strict common-law rules.

What does the equitable doctrine of Clean Hands require?

A person asking for an equitable remedy should have acted fairly/properly in relation to the dispute.

Which branch of government is responsible for making laws?

The Legislative Branch.

Which branch of government is responsible for developing and implementing policy and administering government?

The Executive Branch.

Which branch of government is responsible for interpreting and applying law and resolving legal disputes?

The Judicial Branch / Judiciary.

Which section of the Canadian Constitution outlines Federal Jurisdiction?

Section 91.

Which section of the Canadian Constitution outlines Provincial Jurisdiction?

Section 92.

Name five subject matters assigned to Federal Jurisdiction in Canada.

Criminal law, banking, defence, currency, and interprovincial/international trade.

Name four subject matters assigned to Provincial Jurisdiction in Canada.

Property and civil rights, hospitals, administration of justice, and local matters.

How is Municipal Jurisdiction defined and what matters does it include?

Local authority delegated by provinces, covering matters such as zoning, licensing, subdivisions, and certain municipal taxation.

What is Exclusive Jurisdiction?

An area of law assigned to one level of government.

What is Concurrent Jurisdiction?

An area where more than one level of government may have authority over different aspects of the same issue.

What is the doctrine of Paramountcy in constitutional law?

Where valid federal and provincial laws conflict in the constitutional sense, the federal law prevails to the extent of the conflict.

What is a Bill?

Proposed legislation going through the process of becoming law.

What is a Bylaw?

A law enacted by a municipal government.

What is a Regulation?

Subordinate legislation made under authority granted by a statute and having the force of law.

How does legislation rank in authority relative to case law and the Constitution?

Legislation takes precedence over case law, but is subordinate to the Constitution.

What is the primary scope of application for the Canadian Charter of Rights and Freedoms?

It provides constitutional protection for specified rights and freedoms, applying primarily to government action.

Which section of the Charter guarantees fundamental freedoms?

Section 2.

What are the four fundamental freedoms protected under Section 2 of the Charter?

(a) freedom of conscience and religion; (b) freedom of thought, belief, opinion and expression; (c) freedom of peaceful assembly; and (d) freedom of association.

Which section of the Charter guarantees equality rights?

Section 15.

Which section of the Charter establishes that it applies to federal and provincial governments?

Section 32.

What is Section 33 of the Charter commonly called, and what does it permit?

The "notwithstanding clause"; it permits Parliament or a provincial legislature to expressly override certain Charter rights for a limited period.

Which section of the Charter allows for reasonable limits on rights and freedoms?

Section 1.

List five general categories of rights and freedoms protected by the Charter in addition to fundamental freedoms.

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

What is a Legal Risk Management Plan?

A plan for identifying, evaluating, and managing legal risks facing a business.

What is Risk Avoidance in legal risk management?

Avoiding an activity because the associated legal risk is unacceptable.

What is Risk Reduction in legal risk management?

Taking steps to reduce the likelihood or severity of a loss.

What is Risk Transfer in legal risk management?

Shifting financial consequences of a risk to another party, such as through insurance.

What is Risk Retention in legal risk management?

Accepting and keeping the risk yourself.

What is the difference between a preventive approach and a reactive approach in legal risk management?

A preventive approach manages legal problems before they occur, whereas a reactive approach responds to legal problems after they occur.

What is Litigation?

Resolving a legal dispute through the court system.

What is a Limitation Period?

The legally prescribed period within which a lawsuit generally must be started.

What are Pleadings?

Formal documents setting out the parties' claims and responses.

What is a Claim / Statement of Claim?

Document setting out the plaintiff's allegations and requested remedy.

What is a Defence / Statement of Defence?

Defendant's formal response to the plaintiff's claim.

What is a Counterclaim?

A claim made by the defendant against the plaintiff.

What occurs during the Discovery phase of civil litigation?

Pre-trial process where parties disclose relevant information and evidence.

What is a Trial?

Formal court hearing where the dispute is decided.

What is a Judgment?

The court's decision.

What is Enforcement in civil litigation?

Legal process used to make sure a judgment is carried out.

What is the correct sequential order of steps in a lawsuit?

Pleadings -> Discovery -> Trial -> Judgment -> Enforcement.

What is a Judgment Debtor?

Person who has been ordered by a court to pay money.

What is the Burden of Proof and standard of proof in civil law?

The burden of proof is the responsibility for proving the facts required to establish a claim, evaluated on a Balance of Probabilities (showing the claim is more likely true than not).

What is an Appeal?

Asking a higher court to review a lower court's decision.

What is the difference between an Appellant and a Respondent?

The Appellant is the party bringing an appeal, while the Respondent is the party responding to an appeal.

What does Alternative Dispute Resolution (ADR) refer to?

Methods of resolving disputes outside ordinary court litigation.

How does Negotiation work as an ADR method?

Parties communicate directly to reach their own agreement.

How does Mediation work as an ADR method?

A neutral mediator helps the parties reach their own agreement but generally does not decide the dispute.

How does Arbitration work as an ADR method?

A neutral arbitrator hears the dispute and makes a decision.

What is the simplified summary of roles for Negotiation, Mediation, and Arbitration?

Negotiation = parties talk; Mediation = third party helps; Arbitration = third party decides.

What is the definition of a Contract?

An exchange of value (often in the form of promises) which the law will enforce.

What is the underlying purpose of Contract Law?

To promote trade and commerce.

What assumption regarding fairness is made in contract law?

We assume that the terms of contracts voluntarily entered are fair.

What are the five essential elements of a valid contract?

Consensus (Consent), Consideration, Intent (Intention), Legality, and Capacity.

What two elements combine to form Consensus?

Offer + Acceptance.

What is an Offer?

A sufficiently definite promise to enter a contract on specified terms if accepted.

Define Offeror and Offeree.

The Offeror is the person making the offer; the Offeree is the person receiving the offer.

What is an Invitation to Treat?

An invitation for another person to make an offer rather than an offer itself.

When are offers effective?

Offers are effective when received and understood.

What five events cause an offer to lapse?

(1) It is rejected, (2) there is a counter-offer, (3) it expires, (4) it is revoked, or (5) one of the parties dies or becomes incompetent.

What is Revocation of an offer?

Withdrawal of an offer before acceptance.

What is a Counteroffer and what is its legal effect on the original offer?

A response proposing different terms, which generally rejects and terminates the original offer.

What is an Option Agreement?

An agreement supported by consideration requiring the offeror to keep an offer open for a specified period.

What is Acceptance?

Complete and unqualified agreement to the terms of an offer.

When is acceptance generally effective?

Acceptance must be communicated and is effective when received and understood (except for the postbox acceptance rule).

What is the Postbox Acceptance Rule?

When acceptance may be made by mail, the acceptance is effective when mailed, not when received.

In this timeline, why is a valid contract formed when acceptance is mailed, even though a revocation was mailed earlier?

Under the Postbox Acceptance Rule, acceptance is effective immediately upon mailing, whereas revocation is only effective when received. Since acceptance was mailed before revocation was received, a contract was formed.

What qualities must acceptance possess regarding certainty and terms?

Acceptance must be unqualified and complete, and offer and acceptance must not be vague or ambiguous.

What is the legal standing of an "agreement to agree"?

An "agreement to agree" is nothing (too uncertain to enforce).

What standard test is used to determine whether there has been offer and acceptance?

An Objective Standard Test (looking at what a reasonable person would understand from words and conduct, not secret subjective intentions).

What is Consideration?

Something of legal value (often a promise) exchanged between the parties in order to create a contract.

What is a Gratuitous Promise?

A promise given without receiving consideration in exchange.

What is Past Consideration and is it valid consideration?

Something already performed before the new promise was made; it is generally not valid consideration for that later promise.

What three things do NOT constitute valid consideration?

Past consideration, illegal consideration, and something that is already required to be done (a pre-existing legal duty).

What are three exceptions to the consideration rule?

Contracts under seal, part payment of a debt, and promissory estoppel.

What is Promissory Estoppel?

A doctrine that prevents someone from insisting on strict legal rights after making an express promise that another party relied upon to their detriment.

What are the four required elements of Promissory Estoppel?

1. Existing legal relationship; 2. Express promise by one party; 3. Detrimental reliance on the promise by the other party; 4. Can be used only as a shield, not as a sword.

What does the phrase "Promissory estoppel can be used only as a shield, not as a sword" mean?

It can only be used as a defence against a claim, not as an independent cause of action to sue someone.

What test is used to assess Intention to create a legally binding relationship?

An objective test, not a subjective test.

What is an Express Term?

A contractual term explicitly written or stated in the contract.

What is an Implied Term?

A contractual term not explicitly stated but treated as part of the contract.

What is a Condition in a contract?

An important/major contractual term; breach allows the innocent party to terminate the contract and claim damages.

What is a Warranty in a contract?

A less important/minor contractual term; breach generally allows a claim for damages but not termination.

What is an Innominate Term?

A contractual term whose legal consequences depend on the seriousness/effect of its breach.

Distinguish between a Condition Precedent and a Condition Subsequent.

A Condition Precedent must occur before a contractual obligation takes effect; a Condition Subsequent ends an existing contractual obligation if it occurs.