Managing the Law: The Legal Aspects of Doing Business 5th Editon

This is the eBook of the printed book and may not include any media, website access codes, or print supplements that may come packaged with the bound book. NOTE: Before purchasing, check with your instructor to ensure you select the correct ISBN. Several versions of Pearson's MyLab & Mastering products exist for each title, and registrations are not transferable. To register for and use Pearson's MyLab & Mastering products, you may also need a Course ID, which your instructor will provide. Managing the Law: The Legal Aspects of Doing Business aims to equip students with the conceptual tools and intellectual skills needed to identify, assess, and manage the risks that arise in the course of doing business. Managing the Law provides a thorough and current picture of thelegal rules that are relevant in the business world. It does not sacrifice important information forthe sake of simplicity. The tone is intelligent and student-friendly.The text is accessible and comprehensible, regardless of the readers background. 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