LAW 122 Chapter 1: Chapter 1 - Qaynat's Notes
21 Apr 2016
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Document Summary
Risk management: the process of identifying, evaluating, and responding to the possibility of harmful events. Success and failure are the results of choices each choice has legal consequences: ex. decision-making (location choice, product, marketing) Legal factors affect profits and loss: liabilities and opportunities. Risk avoidance some risks are so serious that they should be avoided altogether: ex. exploding cars, remove from market. Risk reduction some risks can be reduced to an acceptable level through precautions: ex. don"t lend ,000, issue a mortgage to ensure property. Ex. courier company says they can"t be liable for missing packages. Risk acceptance sometimes appropriate to simply accept a risk: ex. golf club beside factory window. Incorporation individual who chooses to act in a personal capacity may be help personally liable for any debts or liabilities incurred by the business. Law fixes liability; determines when and how much liability; considers whether you mitigated or managed properly. Consequences the greatest good for the greatest number.
