Midterm Notes:

Rules that govern the country (legal principals that governs the country)
Definitions:
Law- the set of rules and principles guiding conduct in society
Business Law defines general rules of business

Breach of Contract failure to comply with a contractual promise

Defamation the action of damaging someones good reputation (ex: slander)

Age of Majority the age at which a person becomes an adult for legal purposes (ranges from 18-19
in Canada)

Contract Law rules that make agreements binding and therefore facilitate planning and the
enforcement of expectations

Litigation the process involved when one person sues another

Business Ethics moral principles and values that seek to determine right and wrong in the business
world
Business ethics fluctuates based on the circumstances and who is judging the case

5 concepts that define our legal system:

1. Our society is based on the rule of law
- law defines our conducts and our obligations (there is a series of rules that tells us what we
can or cannot do)
- the law is governing us
- everyone is equal before and under the law
2. Our country is run by fundamental principles (found in the Charter of Rights and Freedom)
- Defines our freedoms and rights
o Freedom of conscience and religion
o Freedom of through belief opinion and expression
o Freedom of peaceful assembly
3. Our constitution defines how the state works (Constitution of Canada)
- Common law
4. Ownership of Assets
- We are a capitalist society and we are emphasizing property rights our society confirms
ownership
- Property Rights: is the ownership and our society confirms ownership.
- We have property rights over our image
- We have the right for protections of our image but if were in a public place there is no right
for protection of image
o EX: if someone wanted to film inside the classroom you have rights to your image
BUT outside the classroom/in the hallway you dont have rights
5. The Public Agreement
- Obligations, trust, and predicable behavior
- When we use the word reasonable or unreasonable
- Dont stereotype society because of your own norms
- Notion of trust is fundamental/extremely important in law. (treat your friends as one day
they will become your enemies and your enemies as if one day theyll become your friends)
- What is reasonable? What is the norm?
o Depends on the individual
o Dont make the societies norm your norm
 - EX: the wife od Bin Laden sold him to the US gov because she believed he cared more
about the other women in the family

Examples:
The boat example (4 ppl on a boat which one should be killed to eat)
- we are all equal either all of us die or none of us die

Vaccine Example (who gets the vaccine)

- Given to the Canadian residence first and the non Canadian citizens go back to their
country
- People working in emergency wards
- Any people working to help during the crisis
- People that are essential to the economy

Gender equality plays a large role in law

- Ex: if they make a dress code and say women have to wear heals then men also do
- Ex: health cards no longer have your sex
Charter of rights and freedom and the process
Definition: defines all our individual rights and freedoms

Guarantee of Rights and Freedoms:

o guarantees the rights and freedoms set out in it subject only to such reasonable limits if it
not in the charter, it doesnt exit
o safety prevails over religious rights (hijab and helmet scenario when skating)

5 steps to a Democratic Charter/Society

1. The charter applies between the state and individual
[Example: Landlord kicks you out cause your pregnant, doesnt relate to charter of
rights cause its not between you and the government]
2. You need to find/ identify that there is a right or freedom
[Example: The charter does not apply to hospitals because they are private, if not in
charter then nothing you can do]
3. You have to show that the right/freedom was violated
[Example: The school board does not have a policy regarding nuts, denying the
constitutional right of quality of life]
4. There is a Transfer of burden from the plaintiff to the state
The state is required to demonstrate that the restriction is reasonable
o Oaks test 2 step balancing test to determine whether a government can
justify a law which limits a charter right
1. The law needs to be pressing and substantial (has to be something
urgent)
2. There has to be a proportional analysis test using 3 sub tests:
a) There has to be a logical reason to why were doing it
b) It has to limitly impair the individual (if theres other options have I
contemplated those?)
c) Have to look at the consequence and cost of it
5. Enforcement
The courts have the power/authority to fix the problem.
Anything that is done would bring disrepute of justice. (Rules need to be justified)

Rule of Law everyone is equal before and under the law

Fundamental Freedoms:
 a) freedom and conscience and religion
b) freedom of thought, beliefs, opinion and expression including freedom of the press and other
media of communication
c) freedom of peaceful assembly
d) freedom of association

Democratic Rights
- The right to vote in Canada (only Canadian citizens)
- Every citizen has the right to leave and enter Canada

Legal Rights
- Rights that protect you against anything

Equality Rights
- every individual is equal before and under the law and has a right to the equal
protection and benefit of the law without discrimination

Legal risks
Definition: an unpredictable event that causes hardship or damages involving legal consequences
- Everything has a legal spin when things go wrong
o EX: drinking at a friends house and then you slip and fall with a knife and stab
your friend

4 Elements/levels of Risk
1st Identify the Risk
o we need to know what type of legal situation we are involved in.
A. Who made the business decision?
(Who is accountable for the decision)
o Because at the end of the day hes the one that gets nailed, not the boss
B. What is the functional area?
(Functional area with the appropriate expertise)
- There comes a time where you have to be responsible for certain things and if not then
you have to move it on to someone else
- If its not your field throw the ball to someone else (bring it to the boss to sign)
C. What are the actual conditions or terms that causes the risk
D. What is the actual legal definition of the risk assessed
- EX: Defining terrorism for Policies not a simple task after Boston tragedy
o The definition of terrorism is more then a paper long (so long that there are so
many various policies that we dont know which policy is the right one)
- EX: trump Muslim order
o Hes using the national security clause (biometric data)

2nd Probabilities
- What are a. the probabilities of facing that risk and b. the level of damage/ severity

3rd Management of the Risk

4 Elements:
1. Remove the risk
- Theres a risk and you need to eliminate it because it needs to be no longer an
issue
- Problem: very few times you can do this (ex: how do you avoid having knives in
the kitchen)
2. Alter the Risk
- By trying to redesign the possibilities of the risk
 - EX: if you have a BBQ, you try to move the propane tank away from the people if
anything were to happen it would lessen the impact
- You have to demonstrate that you have taken the necessary steps to avoid the
problem
3. Transfer the Risk
- Sell or give or provide that someone else would be responsible for the risk
- EX: selling a knife to someone, the risk is then transferred to the other
individual if something were to happen
4. Managing the Risk by controlling the consequence
- Cant do anything more to prevent it so just control the consequences

4th Evaluation of the Risk

1. You need to actually exercise the risk (try the event)
2. Correct the failures of your evaluation

EX: Mad shooter in DMS

- How do you lock the DMS classroom doors
- If prof hides he has done nothing legally wrong
- Not the guardian of students
- Not trained to be in situation like this

Court Structure

Supreme Court of Canada

- Highest court in this country
- Final court of appeal
- Makes sure that we develop strong democratic values and the respect of the rule of law
- 1 in 10 people actually pass

Federal side Provincial side

Federal court of Appeal
- Court that hears cases from the trial
division
- Hears cases from the lower courts
FC, TC, MC)
Court of Appeal for Ontario
- Need to have permission
-
Superior Court of Justice
 - The higher division
Tax Court of Canada - Serious cases such as murder, terrorist, drug dealing
- Deals with situations with - Divorce, custody
o Income tax - Always on permission (question of law that is fundamentally
o HST essential) EX: sever criminal cases
o Pension pans
Federal Court Ontario Court of Justice (Small Claims Court)
- Aboriginals
- Immigration - The lower division
- Refugees - Deals with criminal charges (ex: drinking & driving)
- Provincial offenses (ex: parking tickets)
Marshall Court Small Claims Court
- Military court - Can sue for money or the return of personal property valued at
- Hears cases that define application 25000 or less
of military law - The lawsuit/claim must fall into one of the two following:
- EX: The Canadian solider in o Claims for money owed under an agreement
Afghanistan helped kill another Unpaid accounts for goods or services sold and
afghan solider who was lying about delivered
to die in the dessert (Also known as Unpaid loans
mercy killing). He should have NOT Unpaid rent
done that even though it may have NSF cheques
stopped the mans pain, he has the o Claims for damages
right to provide the solider with aid. Property damage
Clothes damaged by a dry cleaner
Personal injuries
Breach of contract
- If you want to sue for more than 25000 you have to take the case to
the Superior Court of Justice (civil court)

Small Claims Court

- How to sue in a Small Claims court
1) Prepare a Claim
1. Make sure you have the facts
Write a short summary why and what happened
Need to have the legal name and address (EX: if they give you
a PO box # BAD SIGN, because you cant track a person from
this)
Hint: always photocopy a drivers license
2. Gather your evidence
Examples of documented evidence (copies/photos are valid):
o A contract
o A record of any payments
3. Know your Limitations
There may me a limit on how long you can wait before making
a claim
A claim cant be filed if more than 2 years has passed
o Or Presumption- you have to prove why the 2 years
doesnt apply to you (EXs: I was in a coma, depression
but have to show medical evidence)
Limitations Act (https://www.ontario.ca/laws/statute/02l24)
Minors:
 o A 2 year period for a minor starts when he/she is 18
(never sign with a minor, sign with the representative
or parent)
Ultimate Limitation Periods:
o Cannot claim for damages if the sexual assault was
more then 15 years ago
Example in class: Trial delay daycare sex-abuse Ottawa (this is
a criminal act not a civil case, thats why it this case was
dropped/stayed)
2) Reply to the Claim
disagree or agree or settle (most of the time people settle)
Filing a defense - you have 20 calendar days to file your defense
3) You need to Serve your documents
Either serve it by:
A professional service
Yourself
A friend
Business associate
Leave the claim with a relative of the defendant
Mailing the claim to the address of the defendants employer
Posting the claim on the door of the other place

Dispute and litigation

Notion on disputes
How to resolve Disputes?
1. Negotiations
-> Being able to compromise
o When dealing with negotiations Ask yourself What are the discussion we should in
order to achieve an acceptable solution/situation
- When your dealing with negotiations we have to follow these 4 factors:
1. The willingness of the parties to negotiate in good faith and compromise
2. The importance of the dispute (how important is it to the people involved in the
negotiation)
3. The priority to resolve the conflict
4. Effectiveness of the negotiations (what are your techniques?)

2. Mediation
- the use of an independent or respected third party (called the mediator) to attempt at reaching a
solution without going to court (compromise)
- A person will help you resolve conflicts
- It is confidential
- It allows the parties to get support to their specific needs
- Mediation works because People desire to come with a solution, mediation is supposed to be
done in a way where we are looking to find a conclusion, the problem is that when people
dont want to resolve then mediation doesnt work so you have to go through arbitration
- In family law Mediation is compulsory (your required to go thought mediation)
- Mediation is done by a retired judge
- EX: Brad needs to keep his image as a die hard in the movie community, while Angelina
needs to keep her public image in UN
People who have a career or image dont go to court, they got to mediation to
keep their image
3. Arbitration
- where a neutral party makes a decision (binding) that resolves a dispute (semi-judicial
approach)
- There is a ruling that is binding on the parties (once they make that settlement thats the
one you play with)
- The only way to get out of this settlement is if they broke the rule of justice

4. Litigation
- go to court and litigate and the judge will decide/settle
- the court process of the small claims court

*Mediation is better than arbitration because no court or law is needed

Insurance
Definition: When dealing with insurance we are dealing with protection and coverage regarding the
actualization of en event dealing with persons, assets, or other wrong doings where compensations
of a monetary value is the norm

3 Types of Insurance:
1. Life insurance
Deals with your own person
Or a person that your entitled to have coverage for (Ex: a parent has life insurance on their
kids)
If someone pays your life insurance, make sure the plan is irrevocable (if revocable then the
plan passes down to your wife, mistress and so on..)

2. Property insurance (/fire insurance)

Fire insurance is critical when youre a landlord because its your only way that you can be
certain you can get a mortgagee

3. Professional Liability
Deals with all the faults with our personal and professional life (we all make mistakes)
Slander against corporate image
EX: arguments on social media, where you were saying hurtful and disrespectful things

Specific Clauses of Insurance

1. Interest
o We need to be able to demonstrate that we have a vested interest in the purpose of
the insurance
o We can insure anything but its depends on how much you want to pay and how much
risk you willing to take on
Not aloud to commit suicide within 2 years
Ex: they will do a crazy health assessment/ workup on the person before
2. Notion of a Rider
o Where you make changes to an insurance plan
o EX; Ontario Auto insurance modification
In order to remove the costs, they have allowed the insurance company to
lower the actual fees
They will provide the customer with the lowest priced insurance
plan but this means that what is insured if you get in an accident
will be very low coverage
They will cap the insurance (hint: you want to cap it to 2mill)
And will lower the health coverage
o EX: suppose you have a minor driving infraction (ex: texting while driving)
 o You can pay a fee where you are entitled once a year to have an offence
that will not count
3. Franchise Fee (deductible)
o The actual loss the insured party sustains
o The deducible = your losses

4. Subrogation
o The right of an issuer to recover the amount paid on a claim

5. Forfeiture Rule
o You cant have multiple insurance on the same asset
o Deals with the fact of personal benefits and personal offence
o We cannot with a insurance can have 2 or 3 insurances to cover one good and
benefit from all of them
o I cannot benefit from a crime
o People create false accusations

6. Co-insurance
o house properties
o You only get covered for the exact value proscribed in the agreement with a min %
of the market value of the property
o Min requirement is 90% (and you have to pay insurance premiums on this)

7. Notion of Duty to Disclose

- You need to reveal to the insurer all info that relates to the risk
o So when they ask you for your health condition you need to provide them with
that information
EX: if you say your not a smoker
make sure not to have any pictures on Facebook with a smoke
because this is how insurance companies figure this out
o EX: insurance companies will take a urine sample and will find any little health
problem and reject you

8. All risk Property Insurance

- An insurance that will cover and protect property (Ex: when you buy a house)
- Covers a series of risks for problems that could occur caused on the premise of the
property
o Includes:
Injury and property damage (Ex: texting while driving)
Personal injury (EX: employees getting hurt on the site)
Financial Loss and Injury (EX: your repairing something and someone
get hurt because of your repair
Property damage associated with the operation (EX: new developed
machines/innovations at businesses can cause damages sometimes
(MCdonalds fry machine).

Agency

Definition of agency 4 elements:

a) Its a relationship
- there is an agreement between 2 parties
b) When one party represents
- when someones being protected under the authority of someone else
c) In the formation of legal relations
- you create these obligations in law
 d) With outsiders
- third parties
- they may be someone you have a relationship

Definition (in other words): Relationship between the principle and an agent creating a legal
relationship with outsiders. [E.g. University of Ottawa (principle), professors (agent), students
(outsiders)]

4 Types of Agencies (creating an Agency):

1. By a Formal agreement
- Ex: ask someone to represent you for managing your property while your away
- Create either verbally or in writing
o Usually verbally
2. Agency by Necessity
- Where your required to act based on urgency
o (Ex: you leave this class and you get hit by the OC, your in a comma who speaks
for you?)
3. Agency by Ratification
- Dealing with a situation where the agent exceeds it authority and the principle ratifies it
- EX: prof asks students to paint the walls (no authority to do that)
4. Agency by Estoppel
- Relationship was created when the principle acts with outsiders concluding that an
agency relationship exists
- EX: going to the Canadian tire center and say Celine Dion will perform, but you dont
have relationship but your trying to bring other artists you know in.

Notion of Authority
- When you dealing with authority there are 2 kinds:
o 1. Actual Authority
Derives either from an expressed or implied (has to come with my task) term
Ex of someone with authority- a security guard
o 2. Apparent Authority
An agent appears to have power with an outsider because of his conduct or
statement made by the principal
Ratification
When the principal ratifies the excess of authority
You have authority but you go beyond that authority

Obligation of the Principal

a) to pay for all the fees of the agent
b) provide appropriate instructions (guide the agency appropriately, what do you ant and what
dont you want
c) provide appropriate training
d) protect against law suits (when the employer is sues they are not suing personally the
employee, the employer is responsible)
e) provide the tools and the equipment
f) compensate for reasonable expenses (motel 8 vs chateau laurier) What are reasonable
expenses? depends (EX: the school provides prof with 5000 to spend on professional
attire, is this right?)

Duties of the Agent

1. Fiduciary duty
- Highest standard of care
 - in a position of authority or trust and your required to act in the best interest of those
your working for
- you have to work with the most honest conduct and when your in authority people have
to be able to trust you with the power you possess (ex: cant use your authority/power
to control people)
o EX: fiduciary duty taken advantage of there are more female TEACHER
pedophiles in Ottawa than male teachers
2. Follow the Instructions
3. Work inside the authority
4. Act with diligence
5. You never compete against your principal
6. You never work for two principals
7. The principal is required to have all the information
8. The interest of the principal prevails over your personal interest

Liabilities:
Principal
Agent
Outsider
4 circumstances:
principal- the one with authority the boss
1. When the agent is inside the authority then the principal is liable
- Either implied or expressed the principal is liable
2. When the Agent exceeds the authority the agent is liable
- The only way this could be changed is when theres ratification by the principal
3. When theres a situation when the agent exceeds the authority and the outsider is
aware/knowledgeable
- Then the outsider will bear the loss with the agent (the outsider was aware)
4. When theres apparent authority (Im the principal and I have someone representing me,
and the person representing me said I had the authority to do something but I dont)
- The principle is liable if it his/her creation
- Breach of warranty of authority
o The agent is supposed to do A but he decides to do B so hes outside of the
authority, the agent will be liable unless the principal ratifies(takes the
responsibility) the authority, if he doesnt then only the agent is liable

Continuing power of attorney for property

- Legal doc in which a person gives someone else the legal authority to make decisions
about their finances
- A guardian of your property
- Individual has to be 16 or older to be a guardian

Incapacity
- No longer able to make decisions
- person is unable to understand the information that is relevant to making a decision
- or unable to see the reasonably foreseeable consequences of a decision or lack of decision

Personal Care
- Nutrition, clothing, shelter and hygiene