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Simple English definitions for legal terms
fair dealing
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A quick definition of fair dealing:
Term: Fair Dealing
Definition: Fair dealing means conducting business in an honest and open way, especially when someone in charge of a company is involved. It also means that when someone is in charge of other people's money, they must tell everyone involved about any personal benefits they might get from a transaction. In Canada, fair dealing is similar to fair use, which means using someone else's work in a reasonable and fair way without breaking the law.
A more thorough explanation:
Fair dealing refers to the conduct of business with full disclosure, usually by a corporate officer with the corporation. It is a legal term that is used to describe the actions of a fiduciary who transacts business in a way that all interested parties are fully informed of the potential benefits and any other material information about the transaction.
For example, if a corporate officer is considering a business deal that could potentially benefit them personally, they must disclose this information to all interested parties, such as shareholders or board members. This ensures that everyone involved is aware of the potential conflict of interest and can make an informed decision about whether or not to proceed with the deal.
In Canadian law, fair dealing is similar to the concept of fair use in the United States. It allows for the use of copyrighted material for certain purposes, such as research, private study, criticism, review, or news reporting, without the permission of the copyright holder.
An example of fair dealing in action would be a student using a small excerpt from a copyrighted book in their research paper. As long as the use is for a specific purpose and does not harm the market value of the original work, it is considered fair dealing.