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Note on Legal Forms of Business Organization and Liability and Negligence Law in Canada
This note describes the history, merits and limitations associated with the establishment of a sole proprietorship, a partnership and a corporate or limited liability company in Canada in 1999. It reviews the flexibility of each option and the relative liability assumed by the principal owners when choosing the form of organization. The question of liability is then examined further with emphasis on negligence, product liability and professional liability. The note also outlines the standard of care defense that is central to staving off liability lawsuits.