Business Law in Canada 12th Canadian Edition by Richard A. Yates Solution manual

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 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
TO FIND A
GOOD
LAWYER
R EVIEW
H OW
LAWYERS
BILL THEIR
CLIENTS
D ESCRIBE
LEGAL AID
O UTLINE THE
PROCEDURE
TO FOLLOW
TO COMPLAIN
ABOUT YOUR
LAWYER
D ISCUSS THE
ETHICS OF
LAWYERS
CODE OF
BUSINESS
CONDUCT
E XPLAIN HOW
Instructor’s Manual for Business Law in Canada, 12 th Edition
Copyright © 2020 Pearson Canada Inc.
4
behaviour on the part of all those associated with the business. This, in turn, can
enhance the long term success of the business.
Chapter 1: Managing Your Legal Affairs
Copyright © 2020 Pearson Canada Inc.
5
Answers to Questions
1. Explain the meaning of “sophisticated client”.
Sophisticated clients are confident, knowledgeable, up-to-date and understand the role of a
lawyer. As well, they know when to represent themselves and when to hire a lawyer, and the costs
involved when a lawyer is hired.
2. Why should the owner of a small business have a lawyer on “the team”?
A lawyer is an expert, providing relevant advice to the client, which allows the client to make an
informed decision.
3. Distinguish the role of the client from the role of the lawyer.
The client is the decision maker, who consults a number of experts, including lawyers, in order
to make decisions. Lawyers are experts in their field who provide advice, and who must follow
the instructions of the client.
4. “The elimination of ‘solicitor-client privilege’ would significantly undermine the integrity
of the Canadian legal system.” True or false? Explain your answer.
True. Solicitor-client privilege ensures full and frank disclosure between clients and their lawyers.
The value of the lawyer’s advice will be greatly reduced if it is based on incomplete information.
5. What are some examples of decisions that owners of small businesses make? What role can
a lawyer play with respect to the making of these decisions?
The legal form of the business, whether to buy an existing business or create a new one, what are
the relevant laws and regulations affecting the business and what constitutes compliance, issues
with regard to purchase or lease of business premises, funding of the business, contracts with
employees, suppliers and customers, intellectual property and, finally, sale of the business.
6. What role has the computer played with respect to the solicitor-client relationship?
Computers allow clients to research easily accessible legal information online, rather than having
to consult a lawyer for every decision.
7. “It is a good idea to hire a lawyer when you have been charged with a crime.” True or
false? Explain your answer.
True. The stakes are high. If convicted, you will be punished and have a criminal record.
8. When you are trying to find a lawyer to help you, what are some sources of lawyer’s
names?
Sources include referrals from friends or relatives, provincial law societies, lawyer referral
services, provincial branches of the Canadian Bar Association, advertisements and the Yellow
pages.
9. What is the primary purpose of an initial consultation with a lawyer?
To decide whether the lawyer is suitable for you to retain. If so, then the lawyer will decide if it
is agreeable to represent you.
Instructor’s Manual for Business Law in Canada, 12 th Edition
Copyright © 2020 Pearson Canada Inc.