Law 2101 Study Guide - Midterm Guide: Ultra Vires, Private Law, Property Law
15 Nov 2017
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Chapter 1: risk management and sources of law. Factors affect success and failure in business: decision-making: ex. location choice, product, marketing. Business decisions have legal consequences: negative: ex. dumping pollutants into environment, positive: ex. binding contractual party to promise. Legal consequences affect profits and losses: some decisions impose liability, others create opportunities. Risk management: the process of identifying, evaluating and responding to the possibility of harmful events. Situation: one of your ex-employees is hoping to join another company and has asked you to write her a reference. You can write a candid letter leaving out your suspicions. You can write a letter that accuses the ex employee of theft. Risk avoidance: some risks are so serious that they should be avoided altogether. Risk reduction: some risks can be reduced to an acceptable level through precautions. Risk shifting: even if a risk cannot be avoided or reduced, it may be shifted onto another party.
