LAW 122 Lecture Notes - Lecture 1: Rieti, Ultra Vires, Liability Insurance
19 Oct 2016
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Different areas of law: examples: corporate, criminal, tort, contract, administrative, family, civil, constitutional, etc. Factors affect success and failure in business: primarily decision making abilities. Business decisions have legal consequences: negative consequences. Legal consequences affect profits and losses: liability imposed for poor decisions, opportunities exploited by good decisions. Nearly every business decision creates some risk. Different risks must be treated differently forms of risk management: risk avoidance: elimination of risk. Withdraw dangerous product from market: risk reduction: minimization of risk. Modify product to reduce danger: risk shifti(cid:374)g: (cid:373)ake the risk so(cid:373)eo(cid:374)e else"s pro(cid:271)le(cid:373) Buy liability insurance for losses caused by danger: risk acceptance: choose to live with the risk. Examples of risk management: insurance liability insurance: property insurance. Exclusion and limitation clauses: contractual terms that exclude liability for certain types of acts/losses. Laws are what society believes is right and wrong. Ethics is what you believe is right and wrong.
