Entrepreneurship

What are the advantages of Incorporation?

1) allows businesses to raise money by selling stock. 2) Lenders are more willing to lend money to corporations than to sole propriwtorships or partnerships. 3) the personal assets of shareholders may not be taken to pay the debts of the corporation.

What are the disadvantages of a Limited Liability Company?

1)the type of businesses may be limited by state law. 2) a single owner cannot establish an LLC. 3) many states limit the life of an LLC to 30 years.

Rulemaking steps (4)

1. Agency posts notice in federal registrar 2.Business/Interest groups in the industy comment 3. Agency reviews comments, either adjusts and repeats process or they publish 4. If published and B/I groups disagree, they go to court

Drafting a contract tips (5)

1. Avoid ambiguities (nude artist) 2. terms you don't understand 3. Multiple words meaning the same thing 4. Unrealistic absolutes 5. Defined Terms (capital letters)

Corp Formalities (6)

1. Forming the board 2. Filing articles 3. Adopting bylaws 4. Holding meetings and keeping minutes 5. Signing resolutions 6. Filing taxes

Lack of consideration (3)

1. Just a favor one way 2. Claiming past value 3. Promise to do something illegal

What invalidates a contract? (5)

1. No consideration 2. No mental capacity (minor, impaired, surgery, alcohol) or duress 3. No meeting of the minds (mustang example) 4. Unconscionable contract - fine print, element of surprise, scam 5. Force Majeure - Latin for "Act of God"

Integration Clause

A clause in a contract that indicates that the contract is meant to embody all of the terms of the parties' agreement. No more changes once this is added.

Articles of Incorporation

A written legal document that defines ownership and operating procedures and conditions for the business

Express Contact

All details are expressed (orally or in writing)

Capital Accounts

Allow LLCs to make ongoing accountings of member contribution. Vote worth adjuster, those who can vote

Mitigation

Breached contract, but you do what you can to lessen the ensuing damages Roommate example

Sherman Act

Competitors cannot get together to set prices to a certain level

UCC Battle of Forms

Consistencies stay in contract Difference fall out and gaps filled by UCC

Who/what do regulations protect (5)?

Consumers (uneducated, first-timers) General Marketplace Protect Employees Honest Business Environment

What state is the preferred state for public companies?

Delaware - longest (most stable) history of case law and precedent

DBA

Doing Business As; it's a form with the intent to alert the public about a new enterprise or business - often required to let the public know about the new business

UCC Implied warranties (3)

Exist in all transactions unless a written contract excludes them (disclaimers) 1. Implied warranty of title - you own what you buy 2. Implied warranty of Fitness for a Particular Purpose - if recommended for your purpose it must work 3. Implied warranty of Merchantability - it is the quality expected from that type of merchant - genuine

Course of dealing

Flower shop example No contract in writing but the pattern of business shows agreement

Non-monetary damages

Injunction - stop secret formula from getting posted before it gets posted on the internet Specific Performance - Beyonce super bowl performance example

Which political policy passes more regulations?

Liberal (Democrats)

Zoning Laws

Local governments often establish zoning regulations that control what types of buildings can be built in specific areas

What does piercing the corporate veil mean?

Loosing the liability protections of a corp or LLC due to failure to maintain formalities

Statute of Frauds (5)

Must be in writing to be enforceable: 1. Over a certain dollar amount $500 2. Performance won't happen for more than a year 3. Real Estate Contracts 4. Agreeing to pay another party's debt 5. Pre-nups

What state has the most favorable corporate statute?

Nevada - no corp state income tax, privacy of owners, limited residency requirement

Written Agreement

Not all EC's are WA's, all WA's are EC's

Elements of a Contract

Offer/Counteroffer Acceptance - Assent: signature, handshake, "I agree" Consideration - something of value given by each party. A promise to do something is enough

Boilerplate Provision

Preprinted general terms found at the end of every contract 1. Integration clause - complete final agreement. Replaces prior oral terms or negotiations 2. Choice of law - naming where litigation will occur (home court advantage)

What is an "S" election?

Refers to an IRS section (not "small") Allows the corp to be taxed as partnership (flow-through) Has to happen in first 6 months

Monetary Damages (4)

Restitution - restore the party to where they were before (refund) Reliance - the amount of money you spent in reliance on a contract (getting car in other state example) Consequential Damages - Lost profits, lost business (domino effect) Liquidated Damages - Putting a dollar amount on a breach

Major regulations affecting business (3):

Sarbanes-Oxley (Corporate Compliance) Graham-Leach/Blylie/HIPAA,FERPA (Privacy) ObamaCare (Affordable Care Act)

Implied in fact contract

Social Customs (eating in a restaurant)

If your bylaws for your corporation have gaps, what fills in the gaps?

State Laws. Also set minimum requirements (no changing voting rights without all vote owners)

UCC

Uniform Commercial Code Gap filler for business done without written contracts Contains stuff like shipping terms, rejection of goods, etc

UPA (4)

Uniform Partnership Act Gap filler for Partnerships 1. Partners have equal share of profits and losses 2. Partners will not compete with business of the partnership 3. All partners have rights to inspect the books of the partnership 4. Any partner can bind the partnership

Key tip for signing a contract for a business

WRITE THE BUSINESS NAME AND TITLE next to your signature

Damages

You can control some damages by agreeing in advance Called Allocation of Risk Negotiate in advance to balance the risk (Walmart and tech company example

12. Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting? a. Sarbanes-Oxley Act b. Robinson Patman Act c. Ethics Officer Responsibility Act d. Sherman Antitrust Act e. Enron Financial Responsibility Act

a

14. Top managers tend to focus on _____ because their jobs and personal identity are often connected to quarterly returns. a. financial performance b. employee satisfaction c. ethical performance d. the board of directors' recommendations e. adherence to the code of conduct

a

46. ​The support of top management is essential to the successful effectiveness of an ethics and compliance program. a. True b. False

a

8. For an ethics and compliance program to properly function, a. consistent enforcement and disciplinary action are essential. b. employees must be monitored using any means necessary. c. it is not necessary to set measurable program objectives. d. the same program should be used in all countries of operation, regardless of cultural differences. e. the company must wait until after misconduct occurs to develop a means of preventing it.

a

When two or more entrepreneurs go into business together they generally sign this to set down in writing the rights and responsibilities of each of the owners...

a Partnership agreement

What is a partnership?

a business owned by two or more people

Contract

a legally binding agreement between 2 or more persons or parties

Provisional Patent Application

allows inventor one year to research details of an idea prior to filing a patent

45. Companies should model their ethics training and communication initiatives after those of their competitors'. a. True b. False

b

5. _____ are formal statements that describe what an organization expects of its employees in terms of ethical behavior. a. Mission statements b. Codes of conduct c. Policies on confidentiality d. Environmental policies e. The Federal Sentencing Guidelines for Organizations

b

31. One of the main reasons employees do not report observed misconduct is a. apathy. b. most employees do not observe any misconduct. c. fear of retaliation. d. laws and regulations do not protect employees. e. hotlines do not work well.

c

The Federal Food, Drug, and Cosmetic Act of 1938

covering food, drugs, and cosmetics, this law bans selling products that are impure, improperly labeled, falsely guarenteed, unhealtful

35. With regard to ethics, training and communication initiatives should reflect a. the structure of the board of directors. b. the organization's stock performance. c. the organization's size. d. the unique characteristics of an organization. e. the self-interest of the CEO.

d

What are dividends?

distributions of corporate profits to the shareholders.

1. In the "bad apple-bad barrel" analogy, the bad barrel refers to a. unethical employees. b. a corrupt society. c. a criminal organization. d. indifferent management. e. an unethical corporate culture.

e

11. The Federal Sentencing Guidelines for Organizations require federal judges to increase fines for organizations that continually a. hire employees later found to be unethical. b. implement a compliance instead of a values orientation. c. fail to install a Federal Sentencing Guidelines program. d. fail to report ethics program activities. e. tolerate misconduct.

e

17. When measuring the effectiveness of an ethics program, it is important to a. hire an ethics officer. b. perform a financial audit. c. adopt a compliance orientation. d. establish rules for compliance. e. get input from employees.

e

18. What is a major problem organizations tend to have when implementing organizational ethics program? a. They fail to adopt formal corporate codes of ethics. b. The government's requirements for ethics programs are too ambiguous. c. Wall Street investors demand that companies take illegal action to increase profits. d. Financial problems make ethical conduct impossible to pursue. e. Top managers don't integrate codes, values, and standards into their firms' corporate cultures.

e

33. Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct? a. Conduct orientation b. Values orientation c. Coercive orientation d. Obedience orientation e. Compliance orientation

e

The Fair Credit Billing Act of 1974

helps consumers correct credit card billing errors

what is the Federal Trade Commission do?

it deals with issues that touch the economic life of every American. The FTC administers most of the Lost dealing with fair competition and pursues vigorous and effective law enforcement.

Clayton Act

it is illegal for a business to require a customer to buy exclusively from it/ force a customer to purchase one good in order to be able to purchase another good

Robinson-Patman Act

it is illegal to discriminate by charging different prices to different people

what is a patent?

it is the grant of a property right to an inventor to exclude others from making, using, or selling his or her invention.patents are issued by the US Patent and Trademark Office and last for 20 years. During this period, no business or individual can copy or use the patent an invention without the patent holder's permission.

what is consideration?

it is what is exchanged for the promise.

what is capacity?

it means the parties are legally able to enter into a binding agreement.

what is an agreement?

it occurs when one party offers or agrees to do something that the other party accepts.

what is a copyright?

it's a form of intellectual property law protects original workers authorship, including literary, dramatic, musical, and artistic works copyright laws do not protect facts, ideas, systems, or methods of operation. A copyright list the publisher of the work in the year in which the work was published. Copyrights remain in effect for 70 years after the death of the author.

Joint and Several Liability

liability that a person or business either shares with other tortfeasors or bares individually

what is legality?

means that a contract cannot have anything in it that is illegal or that would result in illegal activities.

Trademark

name, symbol, or special mark used to identify a business or brand of product

Copyright

protects work of authorship, remains in effect for 70yrs after the death of author

The Truth-In-Lending Act of 1968

requires all banks to calculate credit costs in the same way

The Consumer Product Safety Act of 1972

sets safety standards for products other than food and drugs

Licenses

state and local governments require some business to have this, training may be required

What is liabilty?

the amount owed to others

The company's officers are responsible for..

the day-to-day management of the corporation.

Patents

the grant of a property right to an inventor to exclude others from making, using, or selling his/her invention

Intellectual Property

the original creative work for an artist/inventor, no one can use someone else's original work to make money

what is the finance charge?

the total cost a borrower must pay for a loan including all interest and fees.

the Federal Food, Drug, and Cosmetic Act of 1938

this law bans the sale of impure, improperly label, falsely guaranteed, and unhealthful foods, drugs, and cosmetics. the FDA has the power to force producers to stop manufacturing products that are unsafe.

the Consumer Product Safety Act of 1972

this law sets safety standards for products other than food and drugs.

Wheeler-Lea Act

unfair or deceptive actions or practices by businesses that may cause an unfair competitive advantage are banned

What are the disadvantages of a sole proprietorship?

1) It can be difficult to raise money for a sole proprietorship; you are the only person investing money. 2) you bear the burden of all the risks. 3) If sole proprietorship fails and debts remain, the entreprenur's personal assets may be take to pay what is owed.

What are the disadvantages of a partnership?

1) Some do not want to share responsiblilities and profits with other people. 2) They fear being held legally liable for the errors of their partners. 3) Can lead to disagreements and can end bitterly.

39. What is the role of an ethics officer within an organization? What are his or her duties? To whom does the FSGO guidelines recommend that the ethics officer report?

Ethics officers are usually responsible for assessing the needs and risks to be addressed in an organization-wide ethics program, developing and distributing a code of conduct or ethics, conducting training programs for employees, establishing and maintaining a confidential service to answer questions about ethical issues, making sure the company is complying with government regulations, monitoring and auditing ethical conduct, taking action on possible violations of the company's code, and reviewing and updating the code. FSGO guidelines suggest the ethics officer report to the board of directors rather than the general counsel.

what is registration?

It gives businesses or individuals the exclusive right to profit from what they have created.

What are the advantages of a Limited Liability Company?

It is not subject to the rules for an S corporation and goes further in providing the benefits of partnership taxation and limited personal liability for all the owners of the business.

What is an S corporation?

a corporation organized under Subchapter S of the Internal Revenue Code. An S corporation is not taxed as a business. The indiidual shareholders are taxed on the profits they earn, as they would be in a partnership.

What is a board of directors?

a group of people who meet several times a year to make important decisions affecting the company.

what is a contract?

a legal binding agreement between two or more persons or parties.

What is a Limited liability Company?

a legal form of business that offers the limited liabilty protection of a corporationto its owners.

what is a share of stock?

a unit of ownership in a corporation

16. What is one of the goals of ethics training? a. To completely eliminate any chances of misconduct. b. To identify key risk areas employees will face. c. To make the company look good to stakeholders. d. To comply with legal requirements. e. To train employees on how to address every ethical situation they encounter.

b

2. Which of the following statements about codes of conduct is false? a. They are formal statements of what an organization expects of its employees. b. They address every ethical issue that an employee may face. c. They help employees determine what behaviors are acceptable. d. They provide rules and guidelines for employees to follow. e. They should be specific enough to be reasonably capable of preventing misconduct.

b

20. Which of the following is a common mistake made in implementing an ethics program? a. Setting specific program objectives b. Developing materials that are not understandable by the average employee c. Adapting a firm's ethics program to its international operations d. Allowing lower-level employees to make ethical decisions e. Having one person take responsibility for implementing the ethics program

b

23. Which of the following statements about training is false? a. It can educate employees about the firm's policies and expectations, as well as about relevant laws and regulations and general social standards. b. It can dictate personal ethics on the job so employees no longer have differences in beliefs. c. It can make employees aware of available resources, support systems, and designated personnel who can assist them with ethical and legal advice. d. It can empower employees to ask tough questions and make ethical decisions. e. It can affect the influence of organizational culture, coworkers and superiors, and opportunity.

b

34. Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead. a. stock market b. board of directors c. middle managers d. customers e. stakeholders

b

42. The best way to develop an ethical corporate culture is to provide character education to existing employees or hire employees with good character and sensitize them to ethical issues.​ a. True b. False

b

7. A(n) _____ orientation creates order by requiring that employees identify with and commit to specific required conduct, whereas a(n) _____ orientation strives to develop shared standards. a. obedience; values b. compliance; values c. legal; values d. values; compliance e. values; obedience

b

what is the Antitrust legislation?

beginning in 1890, laws were created that made monopolies in certain industries legal. a monopoly is called also called a trust, so these laws were called antitrust laws. Antitrust law also ban other types of business activities that do not promote competition.

13. _____ may be more inclined to engage in unethical organizational conduct because of social isolation that creates insensitivity and a lower level of motivation to regulate ethical decision making. a. Low-level employees b. International managers c. Top managers d. Government officials e. Fortune 500 companies

c

15. What is one of the responsibilities of an ethics officer? a. Prosecuting illegal activities b. Signing off on financial documents c. Monitoring and auditing ethical conduct d. Conducting employee performance evaluations e. Answering the ethics hotline

c

24. Which of the following is true about a compliance orientation? a. Employees are more likely to accept a compliance orienation over a values orientation. b. A compliance orientation is superior to a values orientation. c. A compliance orientation can aid in organizational ethical decision-making. d. The most successful companies have adopted a compliance orientation. e. The use of legal terms, statutes, and contracts builds trust and shared values.

c

43. What is the difference between a code of ethics and a code of conduct? ​ a. ​A code of conduct consists of general statements that serve as principles and as the basis for rules of conduct. b. ​A code of ethics consists of formal statements that describe what an organization expects of its employees. c. ​A code of ethics is more comprehensive than a code of conduct. d. ​A code of conduct serves the general public. e. ​A code of ethics tends to elicit less debate about specific actions.

c

6. Because a corporation can be considered a moral agent, it is therefore a. obligated to perform philanthropic responsibilities. b. required to have an ethics officer. c. responsible to society for its actions. d. required to adopt moral philosophies. e. willing to act ethically.

c

9. Which of the following is the most comprehensive? a. Code of values b. Code of conduct c. Code of ethics d. Statement of values e. Statement of principles

c

What is a corporation?

a business that has the legal rights of a person but is independent of its owners.

What is a sole proprietorship?

a business that is owned exclusively by one person.

What are the advantages of a sole proprietorship?

1) The government excercises very little colntrol over sole proprietorships. 2) Usually the only forms of government regulation for a sole proprietorship is accurate tax records and certain employment in the U.S.

What are the disadvantages of a corporation?

1) You will need the assistance of a lawyer. 2) Establishing a corporation can be costly. 3) Are subjet to much more goernment regulation. 4) Income is taxed twice.

What are the advantages of a partnership?

1) You will not have to come up with all of the capital alone. 2) Any losses the business incurs will be shared by all of the partners. 3) Face very little government regulation.

38. What are the major features of a successful ethics training program and communication systems? Think of an example of a company with strong employee ethics training.

1. Identify key risk areas employees will face. 2. Provide experience in dealing with hypothetical or disguised ethical issues within the industry through mini-cases, online challenges, DVDs, or other experiential learning opportunities. 3. Let employees know wrongdoing will never be supported in the organization and employee evaluations will take their conduct in this area into consideration. 4. Let employees know they are individually accountable for their behavior. 5. Align employee conduct with organizational reputation and branding. 6. Provide ongoing feedback to employees about how they are handling ethical issues. 7. Allow a mechanism for employees to voice their concerns that is anonymous, but provides answers to key questions (24-hour hotlines). 8. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma they do not know how to resolve.

Where do laws come from? (4)

1. Legislative branch creates bill 2. President has veto power: yes or no (if no - L.Branch can 2/3 vote to bypass veto) 3. Judicial decides if its constitutional 4. Executive enforces law with administrative (regulatory) agencies

36. What are some of the ways that organizations can develop effective ethics programs?

1. Standards and procedures, such as codes of ethics, that are reasonably capable of detecting and preventing misconduct 2. High-level personnel who are responsible for an ethics and compliance program 3. No substantial discretionary authority given to individuals with a propensity for misconduct 4. Standards and procedures communicated effectively via ethics training programs 5. Systems to monitor, audit, and report misconduct 6. Consistent enforcement of standards, codes, and punishment 7. Continuous improvement of the ethics and compliance program

37. How can ethical dilemmas and behavioral simulations help employees make more ethical decisions?

Many feel "hands on" training when employees are forced to confront actual or hypothetical ethical dilemmas helps them understand how their organization would like them to deal with potential problems. Lockheed Martin, for example, developed training games that include dilemmas that can be resolved in teams. Each team member offers his or her perspective, thereby helping other team members fully understand the ramifications of a decision for coworkers and the organization.

40. Discuss the advantages and disadvantages of implementing an ethics program with a compliance orientation versus one with a values orientation. Is one better than the other at maintaining an ethical organization?

Research into compliance- and values-based approaches reveals both types of programs can interact or work toward the same end, but a values orientation has the added benefit of sparking ethical reasoning among employees. Values-based programs increase employees' awareness of ethics at work, integrity, willingness to deliver information to supervisors, use of reporting mechanisms, and perception that ethical decisions are being made. Compliance-based programs are linked to employees' awareness of ethical risks at work and a clear understanding of rules and expectations that facilitates decision making. In the final analysis, both orientations can be used to help employees and managers; however, a values-based program is the foundation of an organizational ethical culture.

How are regulations promulgated (created)?

Rulemaking: Administrative agencies process to pass regulations. Also called Notice and Comment Rulemaking

19. Which of the following is an advantage of a values-based ethics program over a compliance-based one? a. Employees learn to make decisions based on values such as fairness, compassion, respect, and transparency. b. Diverse employees no longer have differing values. c. It requires employees to identify with and commit to specific required conduct. d. A values orientation uses legal terms, statutes, and contracts that teach employees the rules and penalties for noncompliance. e. Unlike values-based programs, compliance-based programs cannot prevent misconduct.

a

22. Organizations can become "bad barrels" because ​ a. the pressure to succeed creates opportunities that reward unethical decisions. b. employees do not have the expertise needed to make ethical decisions. c. management does not understand complex ethical decisions. d. they do not allow employees to pursue their own individual values. e. the majority of their employees are unethical.

a

3. A strong ethics program includes all of the following elements except a. a clause promising good stock market performance. b. a written code of conduct or ethics. c. formal ethics training. d. auditing, monitoring, enforcement, and revision of standards. e. high-level personnel to oversee the program.

a

32. The ultimate "stick" associated with the FSGO is fines or probation, which involves on-site observation by consultants, monitoring of the company's ethical compliance efforts, and a. reporting to the U.S. Sentencing Commission on the company's progress in avoiding misconduct. b. installation of an ethics hotline. c. payment of any penalties levied. d. appointment of an appropriate high-level manager to oversee the company's program. e. divestiture of all assets.

a

4. In the absence of ethics programs, employees are likely to make decisions based on a. their observations of how their coworkers and superiors behave. b. how they and their family members behave at home. c. whatever they can get away with. d. their educational backgrounds. e. what they did at their previous organizations.

a

41. Which document serves the general public and also addresses distinct groups such as stakeholders?​ a. ​Statement of values b. ​Code of conduct c. ​Code of ethics d. ​Federal Sentencing guidelines e. ​Ethics policies

a

44. The FSGO encourages federal judges to reduce or eliminate fines for firms with extensive compliance programs that make due diligence attempts to abide by ethical and legal standards. a. True b. False

a

47. The ​most effective hotlines operate on an anonymous basis and are supported 24 hours a day, 365 days a year. a. True b. False

a

48. One common problem found with corporate codes of ethics is that the codes were written too legalistically. ​ a. True b. False

a

10. At the heart of the Federal Sentencing Guidelines for Organizations is a a. "tit-for-tat" philosophy that punishes wrongdoing. b. foundation based on the Golden Rule philosophy. c. Iron Fist philosophy that severely punishes wrongdoing. d. carrot-and-stick philosophy that rewards efforts to improve ethics. e. utilitarian philosophy of the greatest good for the greatest number.

d

21. Aurico is a company that offers ethics hotline maintenance for organizations. Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy? a. Code of conduct b. Enforcement of standards, codes, and rules c. Delegation of authority to ethical persons d. Systems for monitoring, auditing, and reporting misconduct e. Ethics training

d

26. In the long run, a(n) ______ orientation may be better for companies, perhaps because it increases employees' awareness of ethics issues at work. a. code b. obedience c. compliance d. values e. individual

d

27. Which of the following is not a main goal of successful ethics training programs? a. Identify key risk areas that employees will face. b. Align employee conduct with organizational reputation and branding. c. Provide a hierarchy of leadership for employees to contact when they are faced with an ethical dilemma that they do not know how to resolve. d. Allow employees to solve ethical issues using their best judgment. e. Allow a mechanism for employees to voice their concerns that is anonymous, but allows for the provision of feedback to key questions.

d

28. The individual responsible for implementing disciplinary action for violation of a firm's ethics standards is usually the a. CEO. b. president. c. immediate supervisor. d. ethics officer. e. Chairman of the board.

d

29. To ensure that an ethics program addresses the needs of the average employee, it should include all of the following except a. feedback from employees across the firm. b. a question-and-answer section. c. additional resources for guidance. d. lengthy legal documents. e. checklists, illustrations, and cartoons where appropriate.

d

30. ____ serve as a central contact point where critical comments, dilemmas, and advice can be assigned to the person most appropriate for handling a specific case. a. Training programs b. Mission statements c. Codes of conduct d. Hotlines e. Boards of directors

d

25. A _____ generates an ethical program that creates order by requiring that employees identify with and commit to specific required conduct using legal terms and statutes. a. values orientation b. code of conduct c. statement of values d. code of ethics e. compliance orientation

e

What is the board of directors responsible for?

electing the corporation's officers, determining their salaries, setting the corporation's rules for conducting business, and decides how much the corporation should pay in dividends.

what is a provisional patent application?

it allows inventor one year to investigate the feasibility, marketability, and potential license interest of an invention before deciding to file a formal patent application.this gives the inventor the right to use the term patent pending and a head start on other inventors who may file for the same invention.

what is intellectual property?

it is the original, creative work of an artist or inventor and may include such things as songs, novels, artistic designs, and inventions.

what are some kinds of activities the FTC monitors?

it monitors false or misleading advertisements, price setting by competitors, price discrimination, and misrepresentation about the quality composition or place of origin or product.

what is the Justice Department's antitrust division do?

it takes legal action against any business it believes has tried to monopolize any industry. It also prosecutes businesses that violate antitrust laws, which can lead to the large fines and jail sentences.

zoning laws

local governments often extrapolation zoning regulations that control what type of buildings can be built in what areas. zoning laws help keep neighborhoods safe for its residents.

The corporation is responsible for..

paying taxes, enters into contracts, and may be held liable for negligence.

licenses

state and local governments require some businesses to have licenses. If you own a business and requires a license you and your employees may need to complete training requirements. You also need to have regular inspections by state and local authorities.

what is the annual percentage rate?

the finance charge calculated as a percentage of the amount borrowed. these numbers help consumers evaluate alternatives and determine the best option.

what does the Antitrust Division of the Justice Department and the Federal Trade Commission do?

they are two government agencies that work to make sure competition remains fair.

what is the Wheeler-Lea act?

this law bans unfair or deceptive actions or practices by businesses that may cause an unfair competitive advantage. For example false advertising. Under this Act, businesses are also required to warn customers about possible negative features of their products.

the Fair Credit Billing Act of 1974

this law is part of the truth- in- lending act and helps consumers correct credit card billing errors. this law also gives the consumer a method for resolving problems relating to product quality.

what is the Sherman Act?

this law makes it illegal for competitors to get together and set prices on the products or services they sell. In this actt discussing prices with competitors is illegal.

what is the Robinson-Patman Act

this law protects small businesses from unfair pricing practices. It makes it illegal to discriminate by charging different prices to customers.

the truth-in- leading act of 1968

this law requires all banks to calculate credit costs in the same way.when a consumer gets a loan, the lender must provide two types of information about the loans cost the finance charge and the annual percentage rate.

what is the the Clayton Act

this law states that it is illegal for business to acquire a customer to buy exclusively from it or to purchase one good in order to be able to purchase another good.

consumer protection laws

variety of laws and government agencies protect the public against harmful products. You have to make sure that the products you manufacture or sell meet all consumer protection standards.