ch 1 Business law

Chapter: The Law and the Legal System

Overview

• Canadian society has its own set of rules (laws) that govern behavior in various aspects of life.

• Laws are essential for business, helping to avoid legal issues and utilizing rights for business advancement.

• Awareness of existing laws is critical for interactions with customers, employers, and investors.

Historical Context and Importance of Law

• The study of law involves old cases that have stood the test of time and newer cases that reflect current legal principles.

• Understanding both old and new cases provides context for contemporary laws, helping to comprehend ongoing legal evolution.

Importance of Business Law

• General Areas of Business Law:

  • Tort Law: Concerns injuries to others from negligence, unsafe workplace practices, etc.

  • Contract Law: Fundamental for business operations, covering sales, employment, and risk management.

  • Formation of Business Organizations: Understanding partnerships, corporations, and trusts is vital as these dictate business operation types.

  • Land Law: Involves property leasing and purchase.

  • Other areas include bankruptcy law, environmental law, and intellectual property.

The Nature of Law

• Law functions as social control and reflects societal values.

• It is a complex concept, referring to rules and processes that ensure fair outcomes in relationships.

• Definitions include:

  • Salmond: Body of principles recognized by the state in administering justice.

  • Holmes: Circumstances where public force is applied through courts.

  • Blackstone: Civil conduct rules prescribed by state authority.

Rights vs. Privileges

• A right allows freedom of action enforced by the state, while a privilege is granted under specific circumstances and can be revoked.

• Law delineates rights and duties, aiming for an ordered society.

Functions of Law

1. Settling Disputes: Originally procedural, laws ensure fair resolutions to conflicts.

2. Establishing Conduct Rules: Directs behavior in society to minimize conflict.

3. Providing Protection: Ensures individual and property security, addressing both personal and collective safety needs.

Development of Law

• Early laws were based on customs and evolved through societal needs.

• Established central judicial systems transitioned law into formalized codes with recorded judgments leading to the Common Law.

• Key aspects of Common Law include stare decisis (precedent application) and adaptability to societal changes.

Sources of Canadian Law

• Involves both Common Law (case law) and Statute Law (legislative law).

• The Canadian Constitution is a fundamental source, outlining rights and the structure of government.

The Canadian Charter of Rights and Freedoms

• Guarantees fundamental rights and freedoms, subject to reasonable limits.

• Protects rights related to equality and freedom, and includes sections acknowledging Indigenous rights.

• Enforcement mechanisms allow individuals to seek legal redress for Charter violations.

Statute Law vs. Common Law

• Substantive Law: Sets out rights and duties.

• Procedural Law: Details the process for enforcing rights.

• Law can be classified as public (government relationship) or private (individual relationship).

Conclusion

• The law is essential to uphold societal harmony and individual rights, influencing various aspects of life, especially in business settings.