Exam 1: Risk Management and Sources of Law

The law can affect a business both positively and negatively. It often prohibits actions that otherwise would be possible. However, it sometimes permits parties to do something that they could not otherwise do.

Bianca punched Mick. She now finds herself in court. The person arguing the case against her is Mick himself. It is safe to assume that the court is concerned with a private law issue, rather than a criminal law issue.

Which of the following statements is TRUE?

The Citizen's Coalition for Property Rights (the CCPR) believes that the Charter should protect the right to own property. Which of the following statements is TRUE?

Gamma Co has discovered that one of its products is potentially dangerous. That danger, however, is not great. There is only a small chance that someone will be hurt, and even if someone is hurt, the injury will not be life- threatening. Gamma Co therefore has decided to do nothing about the danger. It has employed a form of risk management known as

A provincial government recently enacted a statute that established a scholarship for "Aboriginal students who are enrolled at Canadian universities." Melissa, a university student whose ancestors were all born in England, believes that the scholarship is unconstitutional because it unfairly discriminates against her on the basis of her race. If Melissa brought that complaint to court, a judge would likely say that

Betta Inc has recently discovered that a defect in one of its products poses a risk of injury to consumers. Its only option, from a risk management perspective, is to eliminate the risk of liability by removing the product from the market.

Glimmer Co recently received a tax assessment with which it disagrees. It does not believe that it should be required to pay the full amount of the demand. If it challenges the assessment, the case will fall into the category of "public law" even though the company is a private corporation.

Omicron Inc claims that a municipal bylaw violates its right to equality under section 15(1) of the Charter. Section 15(1) states: "Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination" based on various grounds. The company will lose its argument because

Theta Motor Co manufactures the Presto, which is a type of compact car. It has discovered a design defect that affects the Presto. Identify and briefly explain situations in which it would be appropriate for the company to manage the risk by: (i) avoiding it, (ii) reducing it, and (iii) accepting it.

Because of the need to ensure that the fundamental rules for governing the country are kept up to date, the Constitution (unlike most statutes) is quite easily amended.

Lamda Corp is based in Vancouver, but sells products across Canada. Which of the following statements is TRUE with respect to Lamda Corp and the Charter?

Techniques for managing risks include

Suppose that there is a general feeling in certain parts of the country that judges should be elected, rather than appointed. A system of electing judges can be introduced only through a constitutional amendment. That means that

Quiet Corner Bookstore is something of a landmark. It was opened in 1908 and it has long served the needs of the community. The store's popularity is based not only on its reputation for excellent service, but also on the fact that it has always been run by members of the same family: the Meyers clan. In an age of increasingly anonymous chain stores, customers appreciate the personal touch that they receive at the Quiet Corner. Recently, however, the government has announced that it intends to expropriate the land upon which the store is located in order to build a highway through the neighbourhood. The Meyers family may, however, be able to defeat that plan, and save their store, by relying on a provision of the Charter that protects cherished property.

Omega Inc manufactures several types of widgets and sells them directly to consumers. One type of widget contains a design defect that creates a risk of injury. Briefly explain the steps that the company should take by way of risk management. Identify the sorts of additional facts that would be required for the purpose of effective risk management.

Alpha Corp has discovered that one of its products is potentially dangerous. It therefore has purchased liability insurance. It has employed a form of risk management known as

Which of the following statements is TRUE with respect to risk management and incorporation?

The rights and freedoms contained in the Charter are limited

Which of the following statements is TRUE with respect to the Charter?