LAW 122 Lecture Notes - Lecture 1: National Energy Board, Liability Insurance, Property Insurance
6 Mar 2017
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Document Summary
There are many factors affecting success and failure in business, and they are often a function of decision-making abilities: the choice of location, product, marketing etc. Business decisions have legal consequences: negative consequences, ex. Decision to dump pollutants into environment could result in liability for damage caused: positive consequences, ex. Decision to bind contractural party to promise, could ensure that promises will be kept. Legal consequences very often have a direct effect on profits and losses: liability may be imposed for poor decisions, opportunities can be exploited by good decsions. Forms of risk management: remember: every business decion creates some risk. The challenge is to know how to successfully manage those risks. Different risks must be treated differently: risk avoidance: elimination of risk, ex. Withdraw dangerous product from market: risk reduction: minimization of risk, ex. Modify product to reduce danger: risk shifting: make the risk someone elses problem, ex.
