Type: Solutions Manual
Resource: Business Law in Canada
Edition: 13th Edition
Author(s): Richard A. Yates
Teresa Bereznicki-Korol
Trevor Clarke
,INSTRUCTOR’S MANUAL
Business Law in Canada
Thirteenth Edition
Richard A. Yates
Simon Fraser University
Trevor Clarke
Aurora College
Angus Ng
Northern Alberta Institute of Technology
Teresa Bereznicki-Korol
Northern Alberta Institute of Technology
, Business Law in Canada, Thirteenth Edition
Chapter 1
Managing Your Legal Affairs
Learning Objectives
LO 1.1 Explain the meaning of “sophisticated client”
LO 1.2 Examine the role of the lawyer
LO 1.3 Describe legal aid
LO 1.4 Outline the procedure to follow to complain about your lawyer
LO 1.5 Discuss the ethics of lawyers and of clients
Discussion
EXPLAIN THE A “sophisticated client” understands the role of the lawyer, and their own role as
MEANING OF
client. This involves knowing when and how to hire a lawyer, the costs involved
“SOPHISTI-
and what can be done if the lawyer is not meeting your expectations. Good business
CATED CLIENT”
decisions can only be made with consideration of appropriate laws, whether the
client is able to access that information for themselves, or through the services of
a lawyer. A sophisticated client also understands the importance of evidence, and
may change their procedures and those of the business in order to make sure the
evidence is there in the event of a dispute.
EXAMINE THE The client is the ultimate decision maker, but makes those decisions with the advice
ROLE OF THE of a number of experts, of which the lawyer is one. If clients deem other business
LAWYER factors to be of greater importance, they may choose to accept some legal risk, but
it is an informed decision. Lawyers must follow the instructions of their clients
unless they are illegal or unethical (although a lawyer may always resign).
The decision about when to hire a lawyer starts when decisions need to be made as
to how the business will be organized, and whether to create a new business or buy
an existing one. It allows business owners to minimize their risks and make sure
they are in compliance with all laws. This would also apply to decisions about the
premises, financing, existing or new contracts, intellectual property and, finally,
selling the business. For less significant decisions, clients may choose to inform
themselves, through the internet, or from the resources listed throughout this
textbook and in MyBusLawLab. Sophisticated clients will know when to do
research themselves and, if unable to obtain the information or understand the
information found, to seek legal advice. Small claims court trials are often
conducted, due to the relatively low monetary limits, unless the legal issues are too
complex for the client to handle themselves. Criminal matters should nearly always
be handled by legal counsel.
Finding an appropriate lawyer is difficult. Referrals from trusted friends or
associates with the same type of legal problems are good. Some provincial law
.
1
, Business Law in Canada, Thirteenth Edition
societies or branches of the Canadian Bar Association also have lawyer referral
services that provide names of lawyers who practice in specific areas of law. You
may have an initial consultation for little or no cost, and then decide if you wish to
pursue the matter and hire one of them. If not going through one of those services,
initial consultation costs will vary and should be confirmed with the lawyer in
advance. The lawyer you choose should be someone who you think may be suitable
to establish an ongoing relationship with your business.
Lawyers bill their clients for services either by a fixed fee, an hourly rate or by a
contingency fee based on a percentage of the money recovered on behalf of the
client. Clients are also responsible for paying disbursements, the lawyer’s out-of-
pocket expenses incurred, such as filing fees, long-distance telephone charges, etc.
Sometimes a lawyer will require a financial retainer to start a file, which operates
as a deposit against legal work performed.
DESCRIBE Legal aid may be available for people with low income, but the eligibility varies
LEGAL AID
from province to province, so it’s best to check with the administrators of the
program in your province. What types of legal services are covered also varies, and
it is generally not available for business issues. Duty counsel is often available at
no charge in criminal court to provide advice, but not representation.
OUTLINE THE Law is a self-governing profession, with provincial law societies that serve this
PROCEDURE function. Fee complaints are dealt with differently from province to province.
TO FOLLOW Complaints about a lawyer’s conduct are dealt with through the law society, which
TO COMPLAIN will have a resolution process that could include mediation, investigation and
ABOUT YOUR
formal hearings, with penalties for wrongdoing. Claims for compensation are
LAWYER
subject to limitation periods, as is any other action.
DISCUSS THE Professional and ethical obligations of lawyers are set out in rules of professional
ETHICS OF conduct established by each province’s law society. The vast majority of lawyers
LAWYERS meet these standards, but as with any profession, there are a few that do not. If this
occurs, the client needs to take appropriate action on a timely basis.
There is no code of conduct for business people, and there have recently been a
number of well publicized examples of breaches of ethical conduct by high profile
business people. This affects the public’s perception of the integrity of enterprises
in our country and the advisability of doing business here. Each business should
make a commitment to ethical behaviour by preparing a code of conduct for their
employees. It needs to include issues such as conflicts of interest, use of corporate
assets and opportunities, confidentiality, fair dealing, compliance with laws and
reporting of unethical or illegal behaviour within the business. It needs to reflect
the business’ core ethical values and principles, in order to encourage ethical
behaviour on the part of all those associated with the business. This, in turn, can
enhance the long term success of the business.
.
2
Resource: Business Law in Canada
Edition: 13th Edition
Author(s): Richard A. Yates
Teresa Bereznicki-Korol
Trevor Clarke
,INSTRUCTOR’S MANUAL
Business Law in Canada
Thirteenth Edition
Richard A. Yates
Simon Fraser University
Trevor Clarke
Aurora College
Angus Ng
Northern Alberta Institute of Technology
Teresa Bereznicki-Korol
Northern Alberta Institute of Technology
, Business Law in Canada, Thirteenth Edition
Chapter 1
Managing Your Legal Affairs
Learning Objectives
LO 1.1 Explain the meaning of “sophisticated client”
LO 1.2 Examine the role of the lawyer
LO 1.3 Describe legal aid
LO 1.4 Outline the procedure to follow to complain about your lawyer
LO 1.5 Discuss the ethics of lawyers and of clients
Discussion
EXPLAIN THE A “sophisticated client” understands the role of the lawyer, and their own role as
MEANING OF
client. This involves knowing when and how to hire a lawyer, the costs involved
“SOPHISTI-
and what can be done if the lawyer is not meeting your expectations. Good business
CATED CLIENT”
decisions can only be made with consideration of appropriate laws, whether the
client is able to access that information for themselves, or through the services of
a lawyer. A sophisticated client also understands the importance of evidence, and
may change their procedures and those of the business in order to make sure the
evidence is there in the event of a dispute.
EXAMINE THE The client is the ultimate decision maker, but makes those decisions with the advice
ROLE OF THE of a number of experts, of which the lawyer is one. If clients deem other business
LAWYER factors to be of greater importance, they may choose to accept some legal risk, but
it is an informed decision. Lawyers must follow the instructions of their clients
unless they are illegal or unethical (although a lawyer may always resign).
The decision about when to hire a lawyer starts when decisions need to be made as
to how the business will be organized, and whether to create a new business or buy
an existing one. It allows business owners to minimize their risks and make sure
they are in compliance with all laws. This would also apply to decisions about the
premises, financing, existing or new contracts, intellectual property and, finally,
selling the business. For less significant decisions, clients may choose to inform
themselves, through the internet, or from the resources listed throughout this
textbook and in MyBusLawLab. Sophisticated clients will know when to do
research themselves and, if unable to obtain the information or understand the
information found, to seek legal advice. Small claims court trials are often
conducted, due to the relatively low monetary limits, unless the legal issues are too
complex for the client to handle themselves. Criminal matters should nearly always
be handled by legal counsel.
Finding an appropriate lawyer is difficult. Referrals from trusted friends or
associates with the same type of legal problems are good. Some provincial law
.
1
, Business Law in Canada, Thirteenth Edition
societies or branches of the Canadian Bar Association also have lawyer referral
services that provide names of lawyers who practice in specific areas of law. You
may have an initial consultation for little or no cost, and then decide if you wish to
pursue the matter and hire one of them. If not going through one of those services,
initial consultation costs will vary and should be confirmed with the lawyer in
advance. The lawyer you choose should be someone who you think may be suitable
to establish an ongoing relationship with your business.
Lawyers bill their clients for services either by a fixed fee, an hourly rate or by a
contingency fee based on a percentage of the money recovered on behalf of the
client. Clients are also responsible for paying disbursements, the lawyer’s out-of-
pocket expenses incurred, such as filing fees, long-distance telephone charges, etc.
Sometimes a lawyer will require a financial retainer to start a file, which operates
as a deposit against legal work performed.
DESCRIBE Legal aid may be available for people with low income, but the eligibility varies
LEGAL AID
from province to province, so it’s best to check with the administrators of the
program in your province. What types of legal services are covered also varies, and
it is generally not available for business issues. Duty counsel is often available at
no charge in criminal court to provide advice, but not representation.
OUTLINE THE Law is a self-governing profession, with provincial law societies that serve this
PROCEDURE function. Fee complaints are dealt with differently from province to province.
TO FOLLOW Complaints about a lawyer’s conduct are dealt with through the law society, which
TO COMPLAIN will have a resolution process that could include mediation, investigation and
ABOUT YOUR
formal hearings, with penalties for wrongdoing. Claims for compensation are
LAWYER
subject to limitation periods, as is any other action.
DISCUSS THE Professional and ethical obligations of lawyers are set out in rules of professional
ETHICS OF conduct established by each province’s law society. The vast majority of lawyers
LAWYERS meet these standards, but as with any profession, there are a few that do not. If this
occurs, the client needs to take appropriate action on a timely basis.
There is no code of conduct for business people, and there have recently been a
number of well publicized examples of breaches of ethical conduct by high profile
business people. This affects the public’s perception of the integrity of enterprises
in our country and the advisability of doing business here. Each business should
make a commitment to ethical behaviour by preparing a code of conduct for their
employees. It needs to include issues such as conflicts of interest, use of corporate
assets and opportunities, confidentiality, fair dealing, compliance with laws and
reporting of unethical or illegal behaviour within the business. It needs to reflect
the business’ core ethical values and principles, in order to encourage ethical
behaviour on the part of all those associated with the business. This, in turn, can
enhance the long term success of the business.
.
2
