LAW 122 Chapter Notes - Chapter 1: Ultra Vires, Liability Insurance, Property Insurance
8 Apr 2015
School
Department
Course
Professor
Document Summary
Positive example: binding contractual party to promise. Some decisions impose liability, others create opportunities. Difference between winning and losing in the business world often depends upon the ability to make good choices from a legal perspective. A contract a legal concept that allows people to create enforceable promises. Process of identifying, evaluating, and responding to the possibility of harmful events. You need to identify, evaluate, and respond to the legal risks involved. Identification: concerned about liability(being held legally responsible). Evaluation: identified the risks - now decide what to do. Response: after identifying and evaluating risks, you need to formulate a response: very few cases ever go before a judge settled by parties themselves, not necessarily eliminate risks; it is to manage them. An automobile that regularly explodes upon impact should be removed from the market. Aside from issues of morality, the financial costs of being held liable will probably outweigh any sales profits.
