Chapter 1: The Canadian Legal System

Transcript Chapter 1: The Canadian Legal System

Chapter 12 Regulatory Requirements

Summary of Objectives

 To identify bylaws, codes and statutes relevant to hospitality businesses  To examine licensing procedures and requirements  To discuss consumer protection legislation  To identify duties of hospitality industry operators associated with the tax system Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Building Codes

 The enforcement of provincial building codes is delegated to the municipalities for • building permits • building inspections • occupancy permits

Fire Codes

Health and Food Regulations

 Federal statutes include the

Food and Drug Act

, the

Meat Inspection Act

, and the

Agricultural Products Act

 The

Sale of Goods Act

Environmental Protection

 The

Hazardous Products Act

(federal) – involves the handling and transportation of hazardous or toxic waste  There is also provincial and territorial legislation for the storage and disposal of such material Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Intellectual Property

 The federal Copyright Act protects the authors and creators of the following subject areas and may require that user fee payments be made to them.

Municipal Bylaws and Zoning

 These laws govern residential and commercial use of property  They also govern business activities such as hours of operation or number of patrons permitted per square foot  Public roads and parks are also regulated by these laws Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Licences and Permits

 A licence is a government authorization to do something. The licensee must achieve at least minimum standards to be granted the licence in the protection of the public interest.

 A permit is also a government authorization but is less involved with the meeting of specific requirements than licensing.

Granting Bodies

 These bodies are the creations of enabling legislation and are governed by the rules of administrative law: • Boards • Tribunals • Commissions

Public Notice of Licence Applications

 The relevant board advertises the time and place of a hearing on the application in a local newspaper.

 This procedure gives the public an opportunity for input into the board’s decision.

Grounds for Refusal

 An applicant’s technical qualifications are examined by the board.

 The character of the applicant may or may not be relevant to the application for a licence. For example: • An applicant’s criminal record for an offence related to the area of the application • No criminal record on the part of the applicant but known links to criminals Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Public Interest

 An application for a licence may be refused if it is in the public interest to do so.

 Licences may also be suspended or revoked based on legitimate complaints or follow up inspections.

Decisions and Appeals

 Usually an internal review of the decision process is provided by boards  An application for judicial review can be based only upon the following grounds: • An error of jurisdiction • An error of law on the face of the record • An error of natural justice Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Responsibilities of Licensee

 An applicant usually qualifies for a licence by meeting criteria and paying fees.

 Renewal of the licence should be carried out prior to expiry.

 Transfer of a licence is not automatic and therefore it should be made a condition of a sale.

Liquor Licences

 Provincially-regulated licences exist for • mini bar licences • arena licences • special occasion licences • delivery licences • manufacturer licences • manufacturer’s agent licences • sales licences Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Consumer Protection

 Historically,

caveat emptor

applied  Now, consumer protection legislation protects the interests of the consumer: • Goods must be fit for the stated purpose • Goods must be of merchantable quality Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Competition Act

 This is a federal statute giving the government broad investigative powers  It criminalizes such practices as • price fixing • restraint of trade • false or misleading advertising • predatory pricing Copyright © 2007 by Nelson, a division of Thomson Canada Limited

Other Federal Laws

 Consumer protection is further extended by • the Hazardous Products Act • the Pest Control Products Act • the Explosives Act • the Motor Vehicle Safety Act • the Food and Drugs Act

Taxation

 Residents of Canada are taxed on income earned inside and outside Canada.

Statutory Remittances for Employees

 Employers must remit at source on behalf of employees • federal and provincial or territorial income tax • employment insurance premiums • CPP or QPP contributions

GST and PST

 Goods and services tax must be paid by suppliers engaged in commercial activity, unless they are exempt.

 Provincial sales tax applies to retail activity and the rates vary. Alberta does not levy PST.

 Municipalities levy property taxes as well as taxes on licensed businesses.

Directors’ Liability

 Directors may be jointly and severally liable for the torts or other wrongs of a company, including liability for • unpaid employee wages • unpaid taxes