TEST BANK FOR BUSINESS
LAW IN CANADA, 13TH
CANADIAN EDITION BY
RICHARD YATES | COMPLETE
Q&A
,Type: Solutions Manual
Resource: Business Law in Canada
Edition: 13th Edition
Author(s): Richard A. Yates
Teresa Bereznicki-Korol
Trevor Clarke
, 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 MEANING OF A “sophisticated client” understands the role of the lawyer, and their own role as client.
“SOPHISTI- This involves knowing when and how to hire a lawyer, the costs involved and what can be
CATED CLIENT” done if the lawyer is not meeting your expectations. Good business 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.
The client is the ultimate decision maker, but makes those decisions with the advice of a
number of experts, of which the lawyer is one. If clients deem other business factors to be
of greater importance, they may choose to accept some legal risk, but it is an informed
EXAMINE THE ROLE OF THE decision. Lawyers must follow the instructions of their clients unless they are illegal or
LAWYER 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.
Legal aid may be available for people with low income, but the eligibility varies 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.
DESCRIBE Law is a self-governing profession, with provincial law societies that serve this function. Fee
LEGAL AID complaints are dealt with differently from province to province. Complaints about a lawyer’s
conduct are dealt with through the law society, which will have a resolution process that could
include mediation, investigation and formal hearings, with penalties for wrongdoing. Claims
for compensation are subject to limitation periods, as is any other action.
Professional and ethical obligations of lawyers are set out in rules of professional conduct
established by each province’s law society. The vast majority of lawyers meet these standards,
but as with any profession, there are a few that do not. If this occurs, the client needs to take
OUTLINE THE appropriate action on a timely basis.
PROCEDURE TO FOLLOW There is no code of conduct for business people, and there have recently been a number of well
TO COMPLAIN ABOUT publicized examples of breaches of ethical conduct by high profile business people. This affects
YOUR LAWYER 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
DISCUSS THE ETHICS OF preparing a code of conduct for their employees. It needs to include issues such as conflicts of
LAWYERS 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
LAW IN CANADA, 13TH
CANADIAN EDITION BY
RICHARD YATES | COMPLETE
Q&A
,Type: Solutions Manual
Resource: Business Law in Canada
Edition: 13th Edition
Author(s): Richard A. Yates
Teresa Bereznicki-Korol
Trevor Clarke
, 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 MEANING OF A “sophisticated client” understands the role of the lawyer, and their own role as client.
“SOPHISTI- This involves knowing when and how to hire a lawyer, the costs involved and what can be
CATED CLIENT” done if the lawyer is not meeting your expectations. Good business 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.
The client is the ultimate decision maker, but makes those decisions with the advice of a
number of experts, of which the lawyer is one. If clients deem other business factors to be
of greater importance, they may choose to accept some legal risk, but it is an informed
EXAMINE THE ROLE OF THE decision. Lawyers must follow the instructions of their clients unless they are illegal or
LAWYER 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.
Legal aid may be available for people with low income, but the eligibility varies 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.
DESCRIBE Law is a self-governing profession, with provincial law societies that serve this function. Fee
LEGAL AID complaints are dealt with differently from province to province. Complaints about a lawyer’s
conduct are dealt with through the law society, which will have a resolution process that could
include mediation, investigation and formal hearings, with penalties for wrongdoing. Claims
for compensation are subject to limitation periods, as is any other action.
Professional and ethical obligations of lawyers are set out in rules of professional conduct
established by each province’s law society. The vast majority of lawyers meet these standards,
but as with any profession, there are a few that do not. If this occurs, the client needs to take
OUTLINE THE appropriate action on a timely basis.
PROCEDURE TO FOLLOW There is no code of conduct for business people, and there have recently been a number of well
TO COMPLAIN ABOUT publicized examples of breaches of ethical conduct by high profile business people. This affects
YOUR LAWYER 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
DISCUSS THE ETHICS OF preparing a code of conduct for their employees. It needs to include issues such as conflicts of
LAWYERS 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
