PowerPoint Slides to

accompany

Canadian
Business and
the Law
Fifth Edition
by Dorothy DuPlessis,
Steven Enman,
Shannon OByrne,
and Philip King

Copyright 2014 by Nelson Education Ltd.

Knowledge of
Law as a
Business Asset
Chapter 1

Copyright 2014 by Nelson Education Ltd.

Knowledge of Law as a
Business Asset
LEARNING OBJECTIVES
Understand the role of law in
guiding business
Understand the importance of legal
knowledge in the business
environment
Understand the challenges posed
by business ethics and their
relationship to legal requirements
Copyright 2014 by Nelson Education Ltd.

Knowledge of Law as a
Business Asset
Law impacts every aspect of society,
including the business environment.

Knowledge of the law helps

entrepreneurs maximize protection and
avoid pitfalls.

The law affects most business decisions.

Copyright 2014 by Nelson Education Ltd.

Business Law
A set of established rules governing
commercial relationships, including the
enforcement of rights

Defines general rules of commerce

Protects property and ideas

Copyright 2014 by Nelson Education Ltd.

How Is Law Useful in the

Business Environment?
Facilitates business planning
Provides mechanisms that permit
businesspeople to manage their
participation
in business activities and exposure to risk
in business ventures

Provides mechanisms to ensure losses are

borne by those who are responsible for
them
Copyright 2014 by Nelson Education Ltd.

Business Law Protects

People and Property
The most familiar purpose of the law is to
provide protection.

Those who violate the Criminal Code of

Canada such as breaking into another
persons house, assaulting someone, or
committing a commercial fraud are
subject to criminal sanctions such as
fines or imprisonment.
Copyright 2014 by Nelson Education Ltd.

Business Application of the

Law
How does business law protect intangible
property such as ideas and inventions?

Copyright 2014 by Nelson Education Ltd.

Angry judge

slams chain for

fake label on
goods
Gordon Kent, The Edmonton Journal
(31 December 2004, at A1, A14)

Copyright 2014 by Nelson Education Ltd.

International Perspective:
US Spam Laws
How does business law protect the privacy
of individuals?

Copyright 2014 by Nelson Education Ltd.

10

Personal Information Protection

and Electronic Documents Act
(PIPEDA)
Business are required to adequately protect
their customers personal information or be
subject to fines of up to $100,000.

Copyright 2014 by Nelson Education Ltd.

11

Business Law
Facilitates Interactions
Business law assists with many personal
interactions, such as providing rules
concerning marriage or the disposal of
property upon the owners death.

Business law facilitates commercial

activity by providing rules governing the
marketplace.

Copyright 2014 by Nelson Education Ltd.

12

Business Law Facilitates

Commercial Activity
CONTRACT LAW Rules that make
agreements binding and facilitate
planning and enforcement expectations

BREACH OF CONTRACT Failure to

comply with a contractual promise

Copyright 2014 by Nelson Education Ltd.

13

Business Law Provides

Methods for Resolving
Disputes

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14

Business Law Provides

Methods for Resolving
Disputes
LITIGATION The process involved when
one sues another using the formal court
system

Copyright 2014 by Nelson Education Ltd.

15

Should All Disputes

Be Litigated?
Are legal proceedings absolutely
necessary right now?

Is there a relationship-preserving way

to resolve the problem?

Copyright 2014 by Nelson Education Ltd.

16

Are There Alternatives

to Litigation?
NEGOTIATION

MEDIATION

ARBITRATION
Copyright 2014 by Nelson Education Ltd.

17

Negotiation
Solutions to a legal dispute exist at
various levels of formality.

The first logical step is for the parties to

try to come to a negotiated resolution
between themselves.

If necessary, a formalized settlement

agreement can be created.

Copyright 2014 by Nelson Education Ltd.

18

Mediation
A process through which parties try to
reach a resolution with the assistance of
a neutral person (the mediator)

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19

Arbitration
A process through which a neutral person
(or panel) makes a decision

Arbitration is usually binding.

Copyright 2014 by Nelson Education Ltd.

20

Law and Business Ethics

BUSINESS ETHICS Moral principles and
values that seek to determine right and
wrong in the business world

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23

Business Ethics
From the perspective of reputation and
profitability, is it enough for a commercial
enterprise to simply comply with the law?

Copyright 2014 by Nelson Education Ltd.

24

Law and Business Ethics

Inhumane Killing of Sled Dogs in
B.C.

Copyright 2014 by Nelson Education Ltd.

21

Using Knowledge of the

Law as a Business Asset
An effective way to minimize negative
business experience and enhance returns
is to implement a legal risk management
plan.

Copyright 2014 by Nelson Education Ltd.

26

Legal Risk Management

Plan
A comprehensive action plan for dealing
with the legal risks involved in operating
a business

Copyright 2014 by Nelson Education Ltd.

27

Knowledge of Law as a
Business Asset
Owners and managers can protect their
business by ensuring compliance with
legal requirements.

Businesses can use contracts to plan for

the future.

Laws can protect people and property.

Businesses can use laws to enforce legal
rules against those who do business and
have interactions with the enterprise.
Copyright 2014 by Nelson Education Ltd.

28

Knowledge of Law as a
Business Asset
Identify the legal risks associated with a
business and implement measures for
managing those risks.

Identify and plan for risks before they occur

rather than adopting the reactive mode.

Business ethics are not always coextensive

with legal requirements but are increasingly
important for running a successful business.
Copyright 2014 by Nelson Education Ltd.

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