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Unformatted text preview: Business and Consumer Law Midterm #1 Chapter Summary Chapters 1, 2, 3, 4, 10, 11, 12, 5, 6, 7, 8, 9, 23, 24 Chapter 1- Knowledge of the Law as a Business Asset Law in The Business Environment o The law impacts virtually every aspect of society, including the business environment o The law affects most business decisions- from development of the basic business idea through to its implementation, and all the attendant matters in between, including financing, hiring, production, marketing, and sales. o By understanding the role of law in the multitude of business decisions that people must make, an entrepreneur can maximize the protection that the law extends, while avoiding its pitfalls. o Knowledge of the law is a business asset that can assist owners and managers in reaching their goals and objectives. o Of course, a businessperson can function with little or no understanding of the law. This lack of knowledge, however, may result in failure to maximize opportunities or in losing out on them altogether. o Business law: a set of established rules governing commercial relationships, including the enforcement of rights. It also: Defines general rules of commerce Protects business ideas and more tangible forms of property Provides mechanisms that permit businesspeople to select their desire degree of participation and exposure to risk in business ventures Seeks to ensure that losses are borne by those who are responsible for them Facilitates planning by ensuring compliance with commitments Rules and Principles o Law: the set of rules and principle guiding conduct in society primarily by protecting persons and their property, facilitating personal and commercial interaction, and providing mechanisms for dispute resolution. Protecting Persons and Their Property o The most familiar purpose of the law is to provide protection. Those who violate the Criminal Code of Canada are subject to criminal sanctions. o The law protects members of society in two ways: 1) it sets rules with penalties in order to encourage compliance 2) It seeks to make those who break the law accountable for their misconduct. o The law also protects businesses by setting penalties and ensuring accountability as wells as ensuring that losses are paid for by the parties responsible for creating them. o Breach of Contract: failure to comply with a contractual promise o The laws guards business interests such as a breach of contract or defamation and the law protects those who deal with these businesses such as discriminatory practices, health and safety, paying creditors, not selling knockoffs and laws in other countries. Page 1 of 51 o Government may also neglect to or decide against regulating in a given area. This can have adverse consequences....
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