After reading this chapter, you will be able to: Identify the sources of law; summarize the court system and the methods of conflict resolution; gain an appreciation of the framework for regulating business through administrative agencies;...
Chapter Two The Legal and Regulatory Environment © 2003 McGrawHill Ryerson Limited Business Law The rules and regulations that govern the conduct of business including federal, state and local laws 2-1 © 2003 McGrawHill Ryerson Limited Sources of Law 2-2 Constitutional law Law based on the Canadian Constitution Common law The law judges establish while deciding disputes Statutory law Laws enacted by a federal or provincial legislature Administrative law Regulations passed by provincial and federal tribunals â2003McGrawưHillRyersonLimited TheCourtSystem FederalCourts handlecasesinvolving 2-3 • • • Violations of federal laws Constitutional law Disputes between citizens of different countries copyright, patent, and trademark infringement Bankruptcy Taxlaw Disputesbetweenthefederal andprovincialgovernments â2003McGrawưHillRyersonLimited • • • Provincial Courts handle cases involving Violations of provincial laws Probatethe processing of wills Family law Small claims (up to $10 000) Civil law Criminal law Young Offenders law Dispute Resolution • Lawsuits • Mediation • Arbitration 2-4 © 2003 McGrawHill Ryerson Limited Criminal Health Care Fraud Cases in Selected U.S. States 199397 Total # % 2-5 Alabama California Kansas Maine Michigan Mississippi North Dakota New York Wyoming Cases 94 379 163 7 228 86 5 185 13 Prosecuted 20 171 25 3 59 28 1 135 3 Convicted 90 86 88 100 82 80 100 57 100 © 2003 McGrawHill Ryerson Limited Source: “Prosecuting health care fraud,” USA Today, February 23, 1999, p. 5B The Elements of a Contract Intention 2-6 Consideration Voluntary Agreement Stephen and Cathy Simon of 1234 Any Street, Dartmouth, Nova Scotia, agree to mow the front and back lawns and trim the trees and shrubberies at 6789 Any Street, Halifax, Nova Scotia. This service will be carried out every Saturday at 2 p.m. from June 1, 2002 through September 31, 2002. Mr. John James of 6789 Any Street, Halifax, Nova Scotia, agrees to pay Stephen and Cathy Simon $50 every Saturday after these services are completed. John James Date Stephen Simon Date Cathy Simon Date © 2003 McGrawHill Ryerson Limited Types of Property 2-7 Real real estate and everything permanently attached to it Personal everything else Intellectual property generated by a person’s creative activities (e.g., musical works, art work, computer software) © 2003 McGrawHill Ryerson Limited Patents Granted to Computer Companies Most U.S. patents granted in 1998 2-8 2,682 TED N A GR IBM (USA) 1,934 Canon (Japan) 1,632 NEC (Japan) Source: IFI/Plenum Data © 2003 McGrawHill Ryerson Limited Source: http://www.usatoday.com/snapshot/ money/msnap072.htm Three Bankruptcy Proceedings Voluntary Assignment Bankrupt person initiates proceedings 2-9 Proposal to Creditors Debtor makes a proposal to the creditors through a Licensed Trustee to work out a payment plan Creditor Petitions 1. If debts > $1 000 or Court for Receiving 2. If Act of bankruptcy Order