AFM231 Chapter Notes - Chapter 1: Corporate Law, Business Ethics

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Valerie B Irie

Document Summary

Law: set of rules and principles intended to guide conduct in society: protecting people and property. Legal action is the last resort, i. e. if the parties refuse mediation or one party is extremely unreasonable. Liability: legal responsibility for the event or loss that has occurred: breach of contract: failure to comply with a contractual promise, defamation occurs when a competitor injures a business" reputation. How and why the law works: modern ideas of what is just, fair, and reasonable. Legal risk management plan: a comprehensive action plan for dealing with the legal risks involved in operating a business. Business law in practice: business form, sole proprietor, partners, incorporations, business name, can not be confusingly similar to the name of another business. Financing considerations: promissory notes require loan payments with interest, property, whether to buy, lease or build property for business operations. Services: hiring practices including dismissal and employment equity, marketing, laws prohibiting false advertisement, trademark and copyright, etc.