LAW 122 Lecture Notes - Lecture 1: Liability Insurance, False Imprisonment, Corporate Crime

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Theresa Miedema

Document Summary

Consumers need to be aware of the rules that govern commercial transactions. The law can both hurt and help. Risk management: the process of identifying, evaluating and responding to the possibility of harmful events. Risks are largely legal and private in nature. A business cannot exist and cannot profit, unless it is willing to take some chances. The goal is not to eliminate risks but to manage them. Risk avoidance: some risks are so serious they should be avoided all together. Risk reduction: some risks can be reduced to an acceptable level through precautions. Risk shifting: even if a risk cannot be avoided or reduced it may be shifted onto another party. Risk acceptance: it is sometimes appropriate to simply accept a risk. Insurance: a contract in which one party agrees, in exchange for a price, to pay a certain amount of money if another party suffers a loss.