Managing the Law: The Legal Aspects of Doing Business

Cover......Page 1
Title Page......Page 2
Copyright Page......Page 3
Brief Contents......Page 4
Contents......Page 5
Preface......Page 12
Acknowledgments......Page 18
About the Authors......Page 20
Table of Statutes......Page 22
Table of Cases......Page 27
Chapter 1: Risk Management and Sources of Law......Page 32
Risk Management......Page 33
Business Decision 1.1......Page 34
Concept Summary 1.1......Page 36
The Nature of Law......Page 37
Ethical Perspective 1.1......Page 38
A Map of the Law......Page 39
Case Brief 1.1......Page 41
Sources of Law......Page 43
Concept Summary 1.2......Page 45
Case Brief 1.2......Page 46
Case Brief 1.3......Page 47
Case Brief 1.4......Page 52
Business Decision 1.2......Page 56
Chapter 2: Litigation and Alternative Dispute Resolution......Page 60
Who can Sue and be Sued?......Page 61
Concept Summary 2.1......Page 62
Legal Representation......Page 64
Pleadings......Page 66
Pre-Trial Activity......Page 67
The Trial......Page 68
Concept Summary 2.2......Page 69
Appeals......Page 70
Costs......Page 71
The Supreme Court of Canada......Page 74
Concept Summary 2.3......Page 75
Provincial Court......Page 76
Concept Summary 2.4......Page 77
Court Hierarchy......Page 78
Administrative Tribunals......Page 81
Concept Summary 2.6......Page 82
Alternative Dispute Resolution......Page 83
Negotiation......Page 84
Arbitration......Page 85
Business Decision 2.2......Page 86
Canadian Case Study for Part 1......Page 91
Chapter 3: Introduction to Torts......Page 92
Torts and Crimes......Page 93
Torts and Contracts......Page 94
Types of Torts......Page 95
Concept Summary 3.2......Page 96
Concept Summary 3.3......Page 97
Liability Insurance......Page 98
Vicarious Liability......Page 100
Ethical Perspective 3.1......Page 101
Business Decision 3.1......Page 102
You Be the Judge 3.1......Page 103
Alternative Compensation Schemes......Page 106
Case Brief 3.3......Page 107
Chapter 4: Intentional Torts......Page 112
Assault and Battery......Page 113
Case Brief 4.1......Page 114
Invasion of Privacy......Page 115
Case Brief 4.2......Page 117
False Imprisonment......Page 118
Business Decision 4.1......Page 121
Trespass to Land......Page 122
Concept Summary 4.1......Page 124
Conversion......Page 125
Ethical Perspective 4.1......Page 126
Defences to Intentional Torts......Page 127
Complete Defences......Page 128
Partial Defences......Page 130
Concept Summary 4.3......Page 131
Chapter 5: Miscellaneous Torts Affecting Business......Page 136
Conspiracy......Page 138
Intimidation......Page 139
Interference with Contractual Relations......Page 141
Unlawful Means Torts......Page 142
You Be the Judge 5.1......Page 143
Deceit......Page 144
Defamation......Page 146
Case Brief 5.2......Page 147
Case Brief 5.3......Page 151
Injurious Falsehood......Page 152
Occupiers’ Liability......Page 153
Concept Summary 5.3......Page 154
Business Decision 5.1......Page 155
Nuisance......Page 157
Business Decision 5.2......Page 159
The Rule in Rylands v Fletcher......Page 160
Concept Summary 5.4......Page 161
Concept Summary 5.5......Page 162
You Be the Judge 5.1......Page 163
Chapter 6: Negligence......Page 168
Test for Determining the Existence of Duty of Care......Page 170
Case Brief 6.1......Page 171
Business Decision 6.1......Page 172
Case Brief 6.2......Page 174
Breach of the Standard of Care......Page 176
The Standard of Care for Professionals: Professional Negligence......Page 178
The Standard of Care for Manufactured Products: Product Liability......Page 179
Ethical Perspective 6.2......Page 182
You Be the Judge 6.1......Page 183
Remoteness......Page 184
Case Brief 6.4......Page 185
Defences......Page 186
Contributory Negligence......Page 187
Illegality......Page 188
Case Brief 6.6......Page 189
Chapter 7: The Nature and Creation of Contracts......Page 194
Intention to Create Legal Relations......Page 196
The Nature of an Offer......Page 198
Communication of an Offer......Page 199
The Life of an Offer......Page 200
Business Decision 7.1......Page 201
Acceptance by Promise......Page 205
Business Decision 7.3......Page 209
You Be the Judge 7.2......Page 211
Acceptance by Performance......Page 212
Case Brief 7.1......Page 213
Chapter 8: Consideration and Privity......Page 218
Sufficient and Adequate Consideration......Page 219
Case Brief 8.1......Page 221
Ethical Perspective 8.1......Page 222
Pre-Existing Obligation......Page 223
Case Brief 8.3......Page 224
Concept Summary 8.1......Page 225
Promises Enforceable without Consideration......Page 227
Case Brief 8.4......Page 228
Concept Summary 8.2......Page 229
Privity of Contract......Page 230
Assignment......Page 231
Business Decision 8.2......Page 233
Trusts......Page 234
Statute......Page 235
Himalaya Clause......Page 236
Case Brief 8.5......Page 237
Chapter 9: Representations and Terms......Page 242
Misrepresentation......Page 243
The Nature of Misrepresentation......Page 244
Business Decision 9.1......Page 245
Ethical Perspective 9.1......Page 246
The Legal Consequences of Misrepresentation......Page 248
Types of Misrepresentation......Page 250
Honest Performance......Page 251
Express Terms......Page 252
Concept Summary 9.3......Page 253
Business Decision 9.2......Page 254
Implied Terms......Page 255
Standard Form Agreements......Page 256
Business Decision 9.3......Page 257
You Be the Judge 9.2......Page 258
Using Plain Language in Contracts......Page 259
Boilerplate Clauses......Page 261
Chapter 10: Contractual Defects......Page 271
Personal Incapacity......Page 272
Case Brief 10.1......Page 273
Case Brief 10.2......Page 274
Associations......Page 275
Concept Summary 10.1......Page 276
Statute of Frauds......Page 277
You Be the Judge 10.1......Page 279
General Principles......Page 280
Business Decision 10.2......Page 281
The Doctrine of Frustration......Page 282
Documents Mistakenly Signed......Page 284
Concept Summary 10.3......Page 285
Undue Influence......Page 286
Unconscionable Transactions......Page 288
Illegality......Page 289
The Doctrine of Public Policy......Page 290
Chapter 11: Discharge and Breach......Page 296
Time of Performance......Page 298
Tender of Payment......Page 299
Tender of Performance......Page 303
Termination by Agreement......Page 304
Conditional Contracts......Page 305
Business Decision 11.1......Page 306
Rescission......Page 307
You Be the Judge 11.1......Page 308
Release......Page 309
Waiver......Page 310
Lapse of Limitation Period......Page 311
Discharge for Breach of Condition......Page 312
Types of Terms......Page 313
Case Brief 11.1......Page 314
Concept Summary 11.3......Page 315
Case Brief 11.2......Page 316
The Effect of Discharge......Page 318
Rescission......Page 319
Chapter 12: Contractual Remedies......Page 324
Rescission......Page 325
Expectation Damages......Page 326
You Be the Judge 12.2......Page 328
Case Brief 12.1......Page 329
Case Brief 12.2......Page 330
Case Brief 12.3......Page 331
Case Brief 12.4......Page 332
Business Decision 12.1......Page 333
Business Decision 12.2......Page 334
Nominal Damages......Page 335
Liquidated Damages......Page 336
Punitive Damages......Page 337
Specific Performance......Page 338
Injunctions......Page 340
Exclusion Clauses......Page 341
Case Brief 12.7......Page 342
Unjust Enrichment......Page 343
Case Brief 12.8......Page 344
Chapter 13: Special Contracts: Sale of Goods......Page 349
The Sale of Goods Act......Page 350
A Sale of Goods......Page 351
Case Brief 13.1......Page 352
Passing of Property......Page 353
Business Decision 13.2......Page 354
Business Decision 13.4......Page 355
Concept Summary 13.1......Page 356
Terms in Contracts of Sale......Page 357
Nature of the Goods......Page 358
Delivery and Payment......Page 362
General Remedies......Page 363
You Be the Judge 13.1......Page 364
Special Remedies for the Seller......Page 365
Ethical Perspective 13.1......Page 366
Business Decision 13.6......Page 367
Concept Summary 13.3......Page 368
Chapter 14: Real Property: Interests and Leases......Page 374
Interests in Land......Page 375
Estates in Land......Page 376
Ethical Perspective 14.1......Page 377
Concept Summary 14.1......Page 378
Business Decision 14.1......Page 380
Non-Possessory Interests in Land......Page 381
Concept Summary 14.3......Page 383
Leases......Page 386
Duration......Page 387
Assignments and Subleases......Page 388
Commercial Leases......Page 389
You Be the Judge 14.1......Page 392
Residential Leases......Page 393
Chapter 15: Real Property: Sales and Mortgages......Page 399
Registry System......Page 400
Land Titles System......Page 401
Unregistered Interests......Page 403
Risk Management......Page 404
Conditional Contract......Page 407
Closing......Page 408
Case Brief 15.1......Page 409
Mortgages......Page 410
Nature of Mortgages......Page 412
Terms of the Contract......Page 414
Remedies for Default......Page 415
Concept Summary 15.2......Page 418
Chapter 16: Personal Property: Bailment and Insurance......Page 424
Acquiring Personal Property Rights......Page 425
Case Brief 16.1......Page 426
Losing Personal Property Rights......Page 427
Bailment......Page 428
Concept Summary 16.2......Page 429
Liability of Bailors......Page 430
Liability of Bailees......Page 431
You Be the Judge 16.1......Page 432
Sub-Bailment......Page 434
Case Brief 16.2......Page 436
Personal Property, Risk Management, and Insurance......Page 437
Property Insurance......Page 438
Other Forms of Business Insurance......Page 441
Ethical Perspective 16.1......Page 442
Chapter 17: Intellectual Property......Page 448
The Nature of Ideas......Page 449
Intellectual Property Law......Page 450
Copyright......Page 451
Ethical Perspective 17.1......Page 458
Business Decision 17.1......Page 459
Trademarks......Page 460
Business Decision 17.2......Page 462
You Be the Judge 17.1......Page 463
Patents......Page 465
Ethical Perspective 17.2......Page 467
Industrial Designs......Page 471
Confidential Information......Page 472
Trade Secrets......Page 473
Concept Summary 17.1......Page 474
Chapter 18: Electronic Commerce......Page 480
Domain Names......Page 482
Websites......Page 485
Terms of Use......Page 486
Privacy Policies......Page 488
User-Generated Content......Page 491
Intermediary Liability......Page 493
Internet Service Providers......Page 494
You Be the Judge 18.1......Page 496
Online Service Providers......Page 497
Automated Transactions......Page 499
Cryptocurrencies......Page 500
Jurisdiction......Page 502
Identity Theft......Page 504
Ethical Perspective 18.3......Page 505
Collection of Personal Identifiers......Page 506
Misuse of Personal Identifiers......Page 507
Privacy Breaches......Page 509
Consumer Protection......Page 510
Code of Practice......Page 511
Canadian Case Study for Part 5......Page 519
Chapter 19: Agency and Other Methods of Carrying on Business......Page 521
Creation of an Agency Relationship......Page 523
When is the Principal Liable?......Page 525
Case Brief 19.1......Page 527
When is the Agent Liable?......Page 528
The Agent’s Duties to the Principal......Page 529
Termination......Page 531
Contract Liability......Page 532
You Be the Judge 19.1......Page 533
Joint Ventures and Strategic Alliances......Page 534
Franchises......Page 535
Agents Governed by Special Statutes......Page 536
Business Decision 19.1......Page 537
Chapter 20: Basic Forms of Business Organizations......Page 541
Sole Proprietorships......Page 543
Characteristics of General Partnerships......Page 544
Creating a Partnership......Page 545
Concept Summary 20.1......Page 546
Risk and Liability in General Partnerships......Page 547
Case Brief 20.1......Page 548
Internal Organization of Partnerships......Page 550
Concept Summary 20.2......Page 551
Limited Partnerships......Page 552
Incorporation Process......Page 553
Characteristics of Corporations......Page 555
Case Brief 20.2......Page 556
Ethical Perspective 20.1......Page 557
Corporate Finance......Page 558
Chapter 21: Legal Rules for Corporate Governance......Page 563
Management and Control of the Corporation......Page 564
Directors......Page 565
Fiduciary Duty......Page 566
Case Brief 21.1......Page 567
Duty of Care......Page 569
Protection for Creditors......Page 570
Managing Liability Risk for Directors and Officers......Page 571
Business Decision 21.1......Page 572
How Shareholders Exercise Power......Page 573
Shareholders’ Access to Information......Page 574
Shareholders’ Agreements......Page 575
Relief from Oppression......Page 576
Other Shareholder Remedies......Page 577
Securities Regulation......Page 578
Corporate Governance in Practice......Page 579
Corporate Social Responsibility......Page 580
Contracts......Page 582
Crimes......Page 583
Tort......Page 585
Chapter 22: Secured Transactions......Page 589
Risk Management Strategies for Creditors......Page 590
Granting a Security Interest in a Specific Asset......Page 591
Granting a Security Interest in All of the Debtor’s Assets......Page 594
Special Security Interests of Banks......Page 595
Provincial Rules for Secured Transactions......Page 596
Scope of Application......Page 597
Protecting Security Interests under Personal Property Security (PPS) Legislation......Page 598
Priorities under PPS Legislation......Page 600
Security Interests When Collateral Is Transferred......Page 602
Concept Summary 22.2......Page 603
Enforcement of Security Interests......Page 604
You Be the Judge 22.1......Page 605
Special Rules for Consumers......Page 606
Guarantees......Page 607
Ethical Perspective 22.1......Page 609
Chapter 23: Dealing with Bankruptcy and Insolvency......Page 613
Bankruptcy and Insolvency Law......Page 615
Bankruptcy and Insolvency under the Bankruptcy and Insolvency Act......Page 617
Business and Consumer Bankruptcy......Page 618
Trustee in Bankruptcy......Page 619
Bankruptcy Court......Page 620
Assignment into Bankruptcy by the Debtor......Page 621
Application by Creditors for a Bankruptcy Order......Page 622
Distribution of Assets......Page 623
Concept Summary 23.1......Page 625
Ethical Perspective 23.1......Page 626
Prohibited Pre-Bankruptcy Transactions......Page 627
Proposals......Page 628
Approval Requirements......Page 629
Other Statutes Dealing with Financial Distress and Failure......Page 630
Case Brief 23.1......Page 632
Chapter 24: Government Regulation of Business......Page 636
Taxation......Page 637
Types of Taxation......Page 638
Taxation of Corporations and Shareholders......Page 639
Income Tax Administration and Audits......Page 640
Competition and the Common Law......Page 641
The Competition Act......Page 642
Concept Summary 24.1......Page 643
You Be the Judge 24.1......Page 646
Case Brief 24.1......Page 648
Business Decision 24.1......Page 650
Consumer Protection......Page 651
Misleading Advertising and Other Deceptive Marketing Practices......Page 652
Case Brief 24.2......Page 653
Other Federal Legislation Relating to Standards, Packaging, and Labelling......Page 655
Provincial Consumer Protection Legislation......Page 656
Canadian Case Study for Part 8......Page 661
Chapter 25: Individual Employment......Page 663
Business Decision 25.1......Page 664
Statements Made during Hiring......Page 665
Nature of the Work Relationship......Page 666
The Employment Contract......Page 668
Non-Competition and Non-Solicitation......Page 669
Third Party Liability......Page 670
Supervision......Page 671
Ethical Perspective 25.1......Page 672
Statutory Protection......Page 673
Concept Summary 25.3......Page 677
Termination of Employment......Page 679
Summary Dismissal......Page 680
Wrongful Dismissal......Page 683
Wrongful Resignation......Page 684
Severance Packages and Settlements......Page 685
Post-Employment Obligations......Page 686
Chapter 26: Organized Labour......Page 691
Nature and Function of Collective Bargaining......Page 692
Acquisition of Bargaining Rights......Page 693
Collective Bargaining Process......Page 694
Strike and Lockout Provisions......Page 695
Union Security Clauses......Page 696
Grievance Arbitration......Page 697
Arbitration Process......Page 698
You Be the Judge 26.1......Page 699
Industrial Conflict......Page 701
Case Brief 26.2......Page 702
Picketing......Page 703
Ethical Perspective 26.1......Page 704
Concept Summary 26.2......Page 705
Canadian Case Study for Part 9......Page 710
Appendix to Chapter 9......Page 712
Full Case Analysis......Page 718
Index......Page 724
Back Cover......Page 738