Canadian Business and the Law

Question: Discuss about theCanadian Business and the Law. Answer: Legal Risk To claim the amount of loan, i.e. $150,000, it is important to show the bank a legal risk management report. According to Section 3 (1), which states that this act will be applied to all the bodies incorporated under the Canadian Corporation and the business law. The legal Risk which will be involved in this situation, i.e. the sailing of a 46 sailboat from Halifax to Bridgewater, under the company name Bluenose Team Sails, with about 4-12 customers, is directly dependent upon the sailboat and arrangements as done by Sullivan and Willow. Not only this, the guests will be participating, along with the captain from Lunenberg to Mahone Bay, getting trained (including the process of using lifesaver) throughout the day. (Justice laws, 2015)(Justice laws, 2010) Before, making the booking too, a customer will be required to provide a certain percentage of the total amount at the time of deposit, which is non refundable in nature. In this situation, Section 5 of the corporation act will be a pplied as it states certain norms, which are to be followed. They are: The incorporators should not be less than 18 years old, He or she should not be of unsound mind, And he should not have a status of being bankrupt The company has to follow Section 6, which states the process of Articles of Association. Therefore, the major aspect, which is to be considered regarding the legal things is the procurement of the ship or the sailboat, and the commitment to actually get al the things done as promised by the both of the men. Evaluation As per the sections mentioned above, the risk will be involved regarding the fact that while getting the sailboat, it is an important aspect to consider all the duties and the processes, which will be involved before getting the ship. The company will have to bear all the customs in order to use the sailboat to be used for the purpose of travelling to multiple locations. Not only this, Sullivan and Willow are planning to provide the transport facility to its customers from their respective location in Nova Scotia to Bridgewater, in exchange of some money. Even if these things are procured by Sullivan and Willow, the major thing where the legal aspect will be mattering a lot is to procure the license of travelling with these people to multiple locations. Any company who is willing to have cruise or sailing of boat as their business, it is important to take up the permission from the government, i.e. basically, the grant to continue the business operations in the long run. The company had even decided to get designer shorts, t-shirts, etc from a European Supplier. Risk is being involved as the brand name was not known to them. Hence, it is to be considered as a risk factor. For this purpose, the company even has to pay a certain amount of fee to get the license. Not only this, the risk of not completing the whole service to be given to the customers, there might be legal issue regarding this fact and hence, it becomes an important task for the company to make sure that they are actually fulfilling all the necessary promises. (thecanadianencyclopedia, 2012) Risk Management Plan To manage these risks, the management has to make sure that the compliance aspect regarding the corporation law is to be managed in an efficient manner. Sullivan and Willow can actually take up some of the policies as offered by the government and other private agencies regarding the process of insurance. These insurance would make sure that if by any chance, in the long run, the company, owned by Sullivan and Willow, had to face either of the things, these insurance company would actually help in claiming most of the amount, depending upon the premium paid by the company for the purpose of covering its risk.These insurance policies has been one of the major reasons for almost all the companies to make sure that they are safeguarding the interests of all its operational activities. In this manner, the company across the world will not have to face any sort of a difficulty. It greatly depends upon the fleet size of each company in the sailing sector. As the prime motive to establish t his business is to basically make sure that the leadership qualities of these two people would be tested in the best possible manner. Hence, it can be said that Insurance is one of the most efficient ways to make sure that the risk regarding all the operational activities is mitigated. (Duggan, 2012) Implementation In order to implement the plan, both Sullivan and Willow have to make sure that they are involved with the process of marketing. Marketing is one of the ways, with the help of which they can actually meet the target of getting 4-12 customers in order to execute the process of sailing. Sullivan, being an experienced member of Sailboat, decided to be the captain, along with the maintenance of the boat. On the other hand, willow was to hire three interns every summer, as the crew. Risk is involved in this scenario as well, as only these two people were being considered to look after the boat and the operational activities. Crew members should be hired, not only in summers, but on a regular basis. They should target the prime audience, especially the people in their late thirties. The customers were even allowed to consume alcohol, while enjoying the scenic beauty. Hence, it can be said that to implement the plan, the company will have to introduce the process of advertising and marketin g. These processes can be involved with the Internet and hoardings. Hence, we can come to the conclusion that implementing the idea is an important aspect, which is to be considered by the both the owners of the company. (Canadabusiness, 2011) References thecanadianencyclopedia. (2012). Corporation Law. Retrieved July 29, 2016, from www.thecanadianencyclopedia.ca: https://www.thecanadianencyclopedia.ca/en/article/corporation-law/ Duggan, A. (2012). Canadian Business Law Journal. Retrieved July 29, 2016, from www.carswell.com: https://www.carswell.com/product-detail/canadian-business-law-journal/ Canadabusiness. (2011). Legal issues for small business . Retrieved July 29, 2016, from www.canadabusiness.ca: https://www.canadabusiness.ca/eng/page/2695/ Justice laws. (2015). Canada Business Corporations Act. Retrieved July 29, 2016, from laws-lois.justice.gc.ca: https://laws-lois.justice.gc.ca/eng/acts/C-44/page-2.html#h-6 Justice laws. (2010). Canada Corporations Act . Retrieved July 29, 2016, from laws.justice.gc.ca: https://laws.justice.gc.ca/eng/acts/C-1.8/page-1.html