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

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Darren Charters

Document Summary

When starting a business everything you do is somehow related to law. By understanding the law business owners are able to make decisions while maximizing the protection that the law extends while avoiding pitfalls. Business law: defines general rules of commerce, protects businesses ideas and property, losses are borne by those who are responsible for them, facilities planning by ensuring compliance with commitments. Law is a set or rules and principles intended to guide conduct in society, primarily by protecting persons and their property, facilitating personal, and commercial interactions, and providing mechanisms for dispute resolution. Sets rules with penalties in order to encourage compliance. Mediation: a process through which the parties dispute endeavor to reach a resolution with the assistance of a neutral person. Arbitration: a process through which a neutral party make a decision (usually binding) that resolves the dispute. These methods help to avoid litigation and courtroom battles.