Chapter3

Chapter Overview

  • Title: Contemporary Canadian Business Law Principles & Cases

  • Authors: John A. Willes | John H. Willes | Carol A. Willes | Frances M. Willes

  • Publisher: McGraw Hill

  • Edition: Thirteenth Edition

Chapter Objectives

  • Regulation vs Legislation: Understand the effect of regulation and how it differs from legislation.

  • Administrative Tribunals: Identify and describe the functions of administrative tribunals.

  • Jurisdiction: Recognize the distinctions between federal and provincial jurisdiction.

  • Natural Justice: Describe the fundamental principles of natural justice.

Introduction to Administrative Law

  • Scope of Administrative Law:

    • Encompasses all legislative acts from various levels of government.

    • Includes rules, decisions, and directives from public officials and agencies.

    • Increased government control has resulted in many regulatory bodies, leading to a substantial bureaucracy.

Role of Administrative Law

  • Policy Objectives: Administrative law sets broad policy goals for government activities.

  • Delegation of Authority: Government assigns enforcement of policies to specific entities created for administration.

  • Administrative Tribunals:

    • Created via legislation to oversee specific activities.

    • Enforce regulations pertinent to those activities.

Impact on Businesses

  • Regulatory Awareness: Businesses must recognize and comply with the relevant administrative agencies to avoid penalties or closure.

  • Self-governing Bodies: Many professions are controlled by self-governing bodies established by statutes to uphold standards (e.g., law, medicine).

Control of Professions and Services

  • Regulatory Entities: Various bodies regulate specific professions or groups. Examples include:

    • Self-governing colleges and societies.

    • Government ministry designated for trade regulation.

  • Legislative Framework:

    • Statutes outline the skill requirements, education/training protocols, and licensing procedures for professionals.

    • Bodies have the authority to revoke rights or impose penalties based on non-compliance.

The Hearing Process

  • Natural Justice Requirements:

    • Charge notification provided.

    • Opportunity to prepare and present a case at a hearing.

    • Decision-makers must provide a rationale for decisions.

    • Decisions can be appealed in court if found unreasonable.

Broad-Policy Administrative Law

  • Influences on Business Practices:

    • Regulatory laws shape the commercial environment.

    • Imposes licensing, compliance requirements, and taxes.

    • Includes regulations on advertising, competition, and discrimination.

    • Legislative responses during events like the COVID-19 pandemic reflect this adaptability.

Specific Areas of Regulation

  • Labour Relations Law: Governs the interaction between unions and employers, covering certification and collective bargaining processes.

  • Securities Legislation: Regulates security issuance and protects investors from fraud, e.g., Ontario Securities Commission oversees the provincial Securities Act.

  • Industry Control: Administrative laws govern various industries such as telecommunications, energy, and transportation.

Municipal Regulation

  • Local Delegation: Provincial governments may delegate authority to municipalities for local business activities (e.g., taxi services, zoning).

Appeal Process for Administrative Decisions

  • Quasi-judicial Nature: Administrative boards must make decisions fairly, often with an established appeal process to ensure fairness.

  • Judicial Review: Courts review administrative tribunal decisions for fairness and adherence to natural justice principles. Recourse is available if a decision is deemed unreasonable.

Checklist for Natural Justice

  • Guidelines:

    • Retroactive rules must not be prejudicial.

    • All parties must be notified of hearings.

    • Adequate preparation time for hearings.

    • Right to counsel.

    • Fair hearing process with the opportunity to challenge evidence.

    • Impartial adjudication.

    • Timely decisions must include reasons.

Summary

  • Administrative law governs the actions of various regulatory bodies to ensure compliance and oversee business activities.

  • Establishes licensing systems and holds authority to revoke licenses, acting in a quasi-judicial capacity with avenues for appeal through judicial review.