Chapter 1: knowledge of law as a business asset. Business law a set of established rules governing commercial relationships, including the enforcement of rights. Protects business ideas and more tangible forms of property. Provides mechanisms that permit businesspeople to select their desired degree of participation and exposure to risk in business ventures. Seeks to ensure that losses are borne by those who are responsible for them. Law the set of rules and principles guiding conduct in society. Ex: businesses are legally required to adequately protect their customers personal information due to the regime established by canada"s personal information. Law protector"s members of society in 2 ways. It rules with penalties in order to encourage compliance. It seeks to hold those who break the law accountable for their misconduct. Breach of contract- failure to comply with contractual promise. Defamation is the public utterance of a false statement of fact or opinion that harms another"s reputation.