AFM231 Chapter Notes - Chapter 1: Corporate Law, Neutral Party, Business Ethics
19 Jun 2017
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C1: knowledge of law as a business asset. Need to know your selling quotas, how many cows you can have. 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. Facilitates planning by ensuring compliance with commitments. Law: the set of rules and principles guiding conduct in society. Law protects members of society/business in 2 ways. Sets rules with penalties to in order to encourage compliance. Seeks to hold those who break the law accountable for their misconduct. Breach of contract: failure to comply with a contractual promise. Contract law: rules that make agreements binding, facilitate planning and the enforcement of expectations. Allows business to plan for their future and enforce their expectations.
