Part 1 – Introduction to the Law

Chapter 3 – Business

Regulation

Prepared by Michael Bozzo, Mohawk College

© 2015 McGraw-Hill Ryerson Limited 3-1

Administrative law Administrative tribunals

Government regulation of business and professionals

Regulatory controlThe hearing process

Types of administrative law Appeals Process

© 2015 McGraw-Hill Ryerson Limited 3-2

Overview

Administrative lawIncludes laws, rules, decisions, directives of

boards, agencies, officials, and commissionsIncludes all levels of government

Administrative tribunalsAgencies created by legislation to regulate

activities or do specific things

© 2015 McGraw-Hill Ryerson Limited 3-3

Introduction

ProcessStatute creates the board, commission,

or agency to supervise an activitySets out broad policy guidelines for the

regulation of the activitySometimes boards can be in conflict

with each other

© 2015 McGraw-Hill Ryerson Limited 3-4

Introduction

Regulation of Business and ProfessionsMuch of business activity is regulated Important that businesses are aware of such

regulationFailure to comply can lead to closing of business

or penaltiesMost professions are regulated by self governing

bodies Law Societies, College of Physicians and Surgeons,

etc.

Government Regulation

© 2015 McGraw-Hill Ryerson Limited 3-5

Professions and Skilled Service ProvidersProfessionals: usually a self governing bodyBusiness persons or trades: branch of a

particular ministry of the government handles regulation

Policy goalsCertification or entry requirementsEducation/training process set upRegistration or licensing process

Body has the right of revocation of licenses

Regulatory Control

© 2015 McGraw-Hill Ryerson Limited 3-6

Authority Bodies have power to deny or revoke the rights of a

person to practice a profession or engage in a trade May be empowered to levy sanctions and/or

penalties Natural Justice

Such powers must comply with natural justice Notice of charges against a member Opportunity to prepare and present a case Right to a decision with reasons which can be appealed

to the courts and overturned if unreasonable

Hearing Process

© 2015 McGraw-Hill Ryerson Limited 3-7

Federal government has passed laws that affect business practicesThese laws create many licensing and

compliance requirements for business• Weights and measures, packaging

Set ground rules for how business can be done and not done• Advertising, discrimination, competition

Broad Policy Administrative Law

© 2015 McGraw-Hill Ryerson Limited 3-8

EmploymentLabour Relations Legislation

Union certification, collective bargaining, etc.

Human Rights BoardsPay EquityEmployment StandardsWorkers Compensation

Broad Policy Administrative Law

© 2015 McGraw-Hill Ryerson Limited 3-9

Securities Regulation Issuance of securitiesRegulation of investment dealers and brokersProtection from unfair or fraudulent practices

Control of Supplies and ServicesEnergy boards, gas boards, agricultural boardsTelecommunications, inter-provincial

transportation, banking, commercial activities

Broad Policy Administrative Law

© 2015 McGraw-Hill Ryerson Limited 3-10

Municipal Regulation Delegated by provincial governments

to municipalitiesLand Development

Planning legislation Zoning by laws

Broad Policy Administrative Law

© 2015 McGraw-Hill Ryerson Limited 3-11

Quasi-judicialAdministrative boards decisions are quasi-

judicial in natureDecisions must be reached in a fair and just

mannerRequires an appeal process to ensure natural

justiceSome provide for internal appeal process

Appeal Process

© 2015 McGraw-Hill Ryerson Limited 3-12

Judicial ReviewIf no appeal process exists then decision is

final and binding unless the decision or process is flawed

If decision or process is flawed can appeal to courts for judicial review of the decision

Usually not overturned unless patently unreasonable, biased decision maker or rules of natural justice not followed

Appeal Process

© 2015 McGraw-Hill Ryerson Limited 3-13

PurposeBoards established to regulate activities,

professions, and various tradesEstablish registration and licensing systemSet up to regulate and control activitiesAppeals allowed under judicial review

© 2015 McGraw-Hill Ryerson Limited 3-14

SUMMARY