MCS 3040 Chapter Notes - Chapter 1: Business Ethics, Neutral Party, Corporate Law

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

Mcs*3040*de chapter 1 : knowledge of law as a business asset. Law protects society/businesses in (2) ways: 1. Sets rules with penalties to encourage compliance and 2. Seeks to ensure accountability for those who break laws. Breach of contract is failing to comply with a contractual promise. Government can neglect to regulate given areas, providing opportunities for exploitative actions in by certain people/markets. Contract laws are rules that make agreements binding and therefore facilitate planning and enforcement of expectations. Law provides definition and context to doing business. No contract can provide for all contingencies. Parties sometimes do not observe agreement to the letter, preferring to maintain relationships rather than suing for a breach of contract. Maintaining a good business relationship with a party in breach or minimizing financial costs of dispute is often more important than proving yourself right in court.