The Legal Environment by HC120809044916


									The Legal Environment
             Business Law
• Established by governments (federally,
  provincially and at the municipal level) to
  ensure that businesses comply with these
  governmental standards
• Rules, statutes, regulations, rules, as a
  legal framework for business operations
• These policies can include product
  liability, consumer protection, fair
  competition, sales,, contracts, etc.
              Business Law
• Some laws that govern business practices:
• Hiring and firing practices
• Harassment in the workplace (Charter of Rights
  & Freedoms) and provincial Human Rights
• Environmental protection
• Consumer protection
• Compassionate Care
• Employee holidays, overtime, etc. (Employment
  Equity legislation)
 Laws originate from 4 sources:
• 1. Statutory Law:
  – Written law enforced by the federal and
     provincial governments, international treaties,
     and regulations and by-laws
  2. Common Law:
  – Legal precedents
  3. Laws from Administrative Agencies:
  -- mandated by federal or provincial legislatures
     to ensure there are rules and regulations in
     specific areas of business:
• Common Law continued:
  – Enforcement
    • Federal and provincial institutions and agencies
      with the power to pass rules and regulations within
      many areas of responsibility, including:
       – CRTC
       – Labour Boards
       – Zoning
       The Manitoba Human Rights Commission conducts
         investigations in cases of suspected violations of the
         Code. A Commission determines whether the rules and
         regulations are being upheld.
 3. Laws from Administrative Agencies:
--mandated by federal or provincial legislatures
  or municipalities to ensure there are rules
  and regulations in specific areas of business;

  --Federal – CRTC
  --Provincial – Labour Relations Boards
  --Municipal – Zoning boards, school boards
                  Additional Laws
• 3. Tort Law:
  – A wrongful act causing injury to another person,
    property or reputation
     •   i) Intentional Tort – willful act resulting in injury
     •   ii) Unintentional Tort – related to NEGLIGENCE,
     •   i.e. McDonald’s case
     •   Iii) Product Liability – holds business liable for harm if from
         the product, design, sale or use of business products
           – Doctrine of Strict (Product) Liability-even if company is not
             aware of any defects, still is held liable. There are no limits of
             the level of compensation that can be awarded.
   Intellectual Property Rights
• A) Patent – a type of intellectual property
  that provides inventors exclusive rights for
  20 years
• B)Copyright – protects a creator’s right to
  materials such as books, articles, photos
  and cartoons for the duration of his/her
  life and plus 50 years after his/her death;
  – Protected under The Copyright Act
         Intellectual Property
• c)Trademark – legal protection for BOTH
  the brand name and design, i.e.
  McDonald’s -- the golden arches
  – Protected under The Trademark Act

  d)Industrial Design – produced by an
    industrial process
    - protection of the owner’s right to the “visible
    features” of a finished product
       Type of Law continued
• 4. Contract Law
  – A legally enforceable agreement between two or
    more parties
  – A contract is considered binding if ALL of the
    following conditions are present:
     • An offer is made – oral or written
     • A voluntary acceptance of the offer
     • Both parties give CONSIDERATION – or something of value,
       and must be between both parties
     • Both parties are COMPETENT
     • Contract must be legal
     • Contract is in proper form – must be in writing if valued over
       $200.00 and if the contract is over one year
     Laws to promote fair and
   competitive business practices:
• Consumer Protection Act – due to the
  difficulty for consumers to identify defects
  in products.
  – Product Performance – Food and Drug Act,
    Hazardous Products Act, Motor Vehicle
    Safety Act
     • Establishes standards
• Business Practices – for example, door to door
  sellers, a consumer can rescind a purchase
  contract within a specific “cooling off” period.
• Miscellaneous Advertising – false or misleading
  statements about the characteristics of a
  product, including warranties, guarantees, etc.
  are all prohibited.
• Example – can’t offer a discounted price –
  without the product available for sale.
       A Business Corporation
• A company or a corporation is a person,
  separate from it’s owners (shareholders)
• Shareholders select a board – governs the
  overall operations of a business
• The Board of Directors – hire the officers and
• All have legal responsibility to shareholders, but
  increasingly there is pressure for boards to be
  accountable to their employees, suppliers,
  customers, clients, the community and also the

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