Study Guide to accompany Canadian Business and the Law, 5th edition

Chapter 2

CHAPTER 2
THE CANADIAN LEGAL SYSTEM
Objectives
After studying this chapter, you should have an understanding of
• the impact of the Canadian legal system on business
• the role of constitutional law in protecting commercial rights and freedoms
• the government’s law-making powers under sections 91 and 92 of the Constitution Act,
1867
• the executive’s formal and political functions in regulating business
• the judiciary’s role in assessing the constitutionality of legislation
• the classifications of law
• how administrative law affects business

Learning Outcomes
•
•
•
•
•
•
•

Understand the Canadian legal system and its relationship to business (page 23)
Understand the three branches of government: legislative, executive, and judicial
(page 24)
Understand the three levels of government: federal, provincial, and municipal
(page 26)
Understand the law-making jurisdictions of each level of government (page 26)
Understand the impact of the Canadian Charter of Rights and Freedoms on business decisions (page 32)
Understand the difference between common law and statute law and how each is created
(pages 26, 38)
Understand how administrative law affects business (page 42)

Chapter Summary
Canadian society is bound by a set of constitutional values, many of which insist on the importance of the individual and the right to freedom from unreasonable government interference. These values restrain how government operates at all levels—federally, provincially, and municipally. Constitutional law plays an important role in how government does its job by constraining how the three branches of government exercise power. Each branch of government has its own work to do. The legislative branch creates statutes. The executive branch is responsible for the ceremonial features of government and for day-to-day operations, including formulating and executing government policy, as well as for administering all departments of government. The judiciary has a significant role in scrutinizing the legislative and executive branches of government and can be an important resource for those who believe they have been unreasonably limited, such as in how they are
© 2014 Nelson Education Limited

16

Study Guide to accompany Canadian Business and the Law, 5th edition

Chapter 2

permitted to carry out business, or unfairly treated by a government officer, board, or tribunal. The judiciary also adjudicates on private disputes. The Constitution places mandatory limits on the power of the legislature to pass any law it sees fit. The court, as required by the Constitution, insists that the power of government be exercised in a manner that is within that body’s “jurisdiction,” as defined by the Constitution Act, 1867, and consistent with the values and principles contained within the Charter. The judiciary itself is bound by the rules of precedent to help ensure that any given legal dispute is resolved in a manner that is consistent with decisions in previous similar disputes. An important part of precedent involves the court system since only a higher court can bind a lower court. Judges also have discretion, accorded to them by the rules of equity, to ensure that each matter before them is justly resolved. Canadian law is organized according to classifications reflecting the nature of the legal problem at issue: domestic/international, substantive/procedural, public/private, and common law/civil law. Administrative law provides protection by ensuring that a fair process accompanies any regulatory decisions that affect a business or any other activity.

© 2014 Nelson Education Limited

17

Study Guide to accompany Canadian Business and the Law, 5th edition

Chapter 2

Study Outline
Use this outline to prepare a complete set of notes for this chapter.
The Legislative Branch of Government—page 25
______________________________________________________________________