Bài giảng Economics - Chapter 2 The Legal and Regulatory Environment

Chapter TwoThe Legaland Regulatory Environment2-1Business LawThe rules and regulations that govern the conduct of business including federal, state and local laws.Sources of LawConstitutional law Law based on the Canadian ConstitutionCommon law The law judges establish while deciding disputes.Statutory law Laws enacted by a federal or provincial legislature.Administrative law Regulations passed by provincial and federal tribunals2-2The Court System2-3Violations of federal lawsConstitutional lawDisputes between citizens of different countriescopyright, patent, and trademark infringementBankruptcyTax lawDisputes between the federal and provincial governmentsFederal Courtshandle cases involvingViolations of provincial lawsProbate--the processing of willsFamily law Small claims (up to $10 000)Civil law Criminal law Young Offenders lawProvincial Courtshandle cases involvingDispute ResolutionLawsuitsMediationArbitration2-4Criminal Health Care Fraud Cases in Selected U.S. States 1993-972-5Source: “Prosecuting health care fraud,”USA Today, February 23, 1999, p. 5B.The Elements of a Contract2-6IntentionConsiderationVoluntaryAgreementTypes of PropertyReal real estate and everything permanently attached to itPersonal everything elseIntellectual property generated by a person’s creative activities (e.g., musical works, art work, computer software)2-7Patents Granted to Computer Companies2-8Source: money/msnap072.htmMost U.S. patents granted in 19982,6821,6321,934IBM(USA)NEC(Japan)Canon(Japan)GRANTEDSource: IFI/Plenum DataThree Bankruptcy ProceedingsVoluntary Assignment Bankrupt person initiates proceedingsProposal to Creditors Debtor makes a proposal to the creditors through a Licensed Trustee to work out a payment planCreditor Petitions 1. If debts > $1 000 or Court for Receiving 2. If Act of bankruptcy Order < 6. Months2-9Laws Regulating CompetitionCompetition Act Is intended to maintain and (1986) encourage competition in Canada in order to promote the efficiency and adaptability of the Canadian Economy.Competition Tribunal Act Decides issues and disputes (1986) that involves the regulations of the Competition Act, but not labour issues2-10Solve the Dilemmaa. What were some of the legal issues between R.E.M. and Hershey Foods?b. How do you think this dispute should have been resolved?c. What could Hershey Foods do in the future to avoid legal problems like the R.E.M. dispute?2-11Explore Your Career OptionsWhat are some career opportunities in the legal profession?2-12Additional Discussion Questions and Exercises1. What are the functions of the Competition Tribunal?2. What is the purpose of the Sale of Goods Acts?The main remedy for business disputes is a lawsuit. What other resolution methods are possible?2-13Chapter 2 Quiz2-141. Regulations passed by provincial and federal agencies are considered to be which type of law? a. administrative law b. common law c. constitutional law d. statutory law2. Which of the following is an example of intellectual property? a. land b. software designs c. automobiles d. inventory