Topic 1 - Introduction to Law and Risk
Management
Course Overview
Course Goals
The primary objectives of BU-231 are to help students:
1. Assess potential legal risks that will be encountered in business careers
2. Determine methods to reduce legal risk through preventive measures
3. Devise strategies to cope with legal issues when they arise in practice
Topics Covered in This Course
1. Torts
2. Contracts
3. Agency Law
4. Franchise Law
5. Employment Law
6. Secured Transactions
7. Business Entities
8. Corporate Governance
9. International Business Transactions
10. Intellectual Property
11. Privacy
Canadian Legal System Overview
Divisions vs. Separation of Power
• Divisions of Power (Branches of Government)
o Executive Branch:
▪ Function: Operates, implements, and enforces laws created by the
legislative branch
▪ Federal Level: The Crown (Governor General), Prime Minister, and
Cabinet (appointed)
▪ Provincial Level: The Crown (Lieutenant Governor), Premier, and
Cabinet Ministers (appointed)
o Legislative Branch:
▪ Function: Elected officials who debate, amend, and make laws
▪ Federal Level: Members of Parliament and Senate
▪ Provincial Level: Legislative Assembly (Members of Provincial
Parliament)
o Judiciary:
▪ Function: Administers justice by interpreting and applying laws
• Separation of Powers (Federalism)
o Federal Government Powers (s. 91 Constitution Act):
▪ Postal Service
▪ Military, Naval Service, and Defence
▪ Currency and Coinage
▪ Banking and Paper Money
▪ Copyright
▪ And other enumerated powers
o Provincial Government Powers (s. 92 Constitution Act):
▪ Incorporation of Companies with Provincial Objects
▪ Hospitals and Health Care
▪ Property and Civil Rights in the Province
▪ Generally all matters of a local or private nature in the Province
▪ And other enumerated powers
Key Federalism Principle: Federalism is a fundamental organizing principle of the Canadian
Constitution. Provincial and federal governments are coordinate - provinces are not subordinate
to federal government. A federal power cannot be given scope that would eviscerate provincial
legislative competence.
Sources of Law
• Primary Sources
o Legislation - Statutes passed by federal and provincial governments
o Criminal Code - Federal criminal law
o Common Law/Civil Law - Judge-made law through court decisions
o Equity - Principles of fairness to supplement common law
o Constitution - Supreme law that all other laws must comply with
• Hierarchy of Legal Authority
o Constitutional Supremacy: Every law, regardless of source, must comply with
the Constitution
o Legislative Supremacy: The legislature has unfettered discretion to pass laws as
long as they are constitutional
o Common Law: Follows the principle of stare decisis (precedent)
o Note: Quebec uses a civil law system rather than common law
Forms of Justice
Three Main Forms
1. Courts - Traditional judicial system for resolving disputes
2. Alternative Dispute Resolution (ADR) - Mediation or Arbitration outside court system
3. Administrative Tribunals - Specialized bodies (e.g., Human Rights Tribunal, Ontario
Securities Commission)
Legal Terminology
Essential Terms
• Action: A lawsuit commenced in the normal course
• Cause of Action: The legal rules relied upon to claim wrongdoing (e.g., breach of
contract, assault, battery, negligence)
• Plaintiff: The person suing (bringing the action)
• Defendant: The person being sued
• Damages: What the plaintiff suffered as a result of defendant's wrongful conduct
Course Administration
Assessment Structure
• Weekly Reflections: 10% (due Mondays at 9:00 a.m., must complete 10 of them)
• Group Assignment Part 1: 10% (due October 3, 2025 at 4:00 p.m.)
• Handwritten Midterm Exam: 35% (October 26, 2025 at 8:30 a.m., open book, 2 hours)
• Group Assignment Part 2: 10% (due November 21, 2025 at 4:00 p.m.)
• Handwritten Final Exam: 35% (non-cumulative, open book, 2 hours)
Required Materials
• Textbook: The Law and Business Administration in Canada (15th edition) by Smyth,
Soberman, Easson & McGill
• Expectation: Students should complete required readings before each lecture
• Note: All lecture materials and required readings are examinable
Important Policies
• Attendance: Topics may be discussed in class that are not in slides
• Midterm Absence: Prior notice required to be eligible for 70% cumulative final exam
• Support: Students encouraged to reach out early if struggling with any issues