Quiz 1

Question 1

We need the law for what reasons?

Answer 1

o 1. It prohibits conduct that society believes is harmful
o 2.Gives government power to act in the interest of society
o 3. Law regulates the interactions and relationships between individualds.

Question 2

How does law regulate behaviour

Answer 2

• Legal Liability: breaking the law and he or she is held responsible for the consequence
  o Depending on the misconduct, it will determine the deverity of the penality.
• Criminal Liability: when the misconduct is so extremely offensive to society that it becomes a matter of public law and requires the government to enforce it such as murder
• Regulatory or quasi-criminal liability: if society views the offence as less offensive but still needed for an orderly society
  o Generally the government will ticket or fine these offences.
• Civil Liability: When the misconduct is around private matters between private parties

Question 3

5 Steps of a risk management plan

Answer 3

o 1. Managers must undertake a legal audit
o 2. Once a list of legal risks are developed, they must be prioritized.
o 3. Managers must develop effective strategies to deal with each risk.
o 4. The business must implement the plan
o 5. The plan must be revised regularly

Question 4

4 strategies to manage legal risks

Answer 4

• Avoid the risk: This strategy involves discontinuing the conduct or finding another way to achieve the result.
• Reduce the risk: This strategy includes quality control initiatives that decrease the likelihood of the risk or minimize its damage.
• Transfer the risk: This strategy accepts that the risk may occur and shifts the consequences to someone else—an insurance company or a consumer who, through contracts, assumes responsibility.
• Absorb the risk: This strategy accepts that the risk may occur and budgets for the expenses. This strategy is used with remote risks or small-valued risks. The potential cost is factored into the price of the product, and the strategy is known as “self-insuring.”

Question 5

Sources of law

Answer 5

1. The constition – the basic law from which all other laws draw their power. It is a higher law by which all other laws are judged.
2. Leglislation (statute) – is passed by parliament or provinces under the authority of the Canadain Consitution.
   a. Subordinate legislation – rules passed under the authorization of a statute by a body designated (I.E. federal cabinet or different commissions). These rules are refered to as regulations
   b. Administrative rulings - rulings handed down by administrative regulatory bodies created by the legislation to hear complaints and applications by individuals and groups, according to the terms of the legislation.
3. Court Decisions - judgments handed down by single judges or a panel of judges after hearing a case before the court. These decisions are collectively referred to as case law