Government Regulation

which laws protect business agreements?

-breaches -uniform commercial code

how does the government protect creative properties?

-copywright law -patent act of the U.S. -trademark -freedom of information act

how does the government regulate production processes?

-national environmental policy act -clean air act -clean water act

how does the government protect against illegal business practices?

-sherman act - federal trade commission act - clayton act

trademark/ landham act

brand name, trade name or trade characteristics protected by the government

interstate commerce

business that takes place across state lines

intrastate commerce

business that takes place within states

securities act

establishes transparency and fraudulent activity w/ tradeable securities

fair labor standard act

establishment of minimum wage

uniform commercial code

ethical code to follow when dealing w/ contracts and transactions.

social security act

insurance program fro retired, disabled and unemployed

securities exchange act

laws governing the stock market, mutual funds market, bonds market and anything that can be traded( protects buyer and seller)

enron

led to the bankruptcy of the Enron Corporation, an American energy company-Most of the top Enron's earnings had been overstated by several hundred million dollars. Enron shares were worth $90.75 at their peak in August 2000 and dropped to $0.67 in January 2002. Top Enron executives sold their company stock prior to the company's downfall. Lower-level employees were prevented from selling their stock due to 401k restrictions and many subsequently lost their life savings. Enron paid the top 140 executives $680 million in 2001. Kenneth Lay received $67.4 million and Jeffrey Skilling received $41.8 million.

copyright law

original works of authorship (movies, music, etc.)

sherman act

outlaws monopolistic activity including trusts

federal trade commission act

outlaws unfair methods of competition and activities and practices that affect commerce

patent act of the U.S

prevents inventions and ideas from being duplicated or stolen

family and medical leave act

protection from losing your job for family and medical leave

clean air act

protects emissions that are emitted into the atmosphere

occupational safety and health act

protects employee's/consumer's safety in workplace (form hazardous works)

sarbanes-oxley act

protects investors from fraudulent accounting activity

fiscal policy

refers to taxes and expenditures- manipulated by federal government

clean water act

regulates activity that pollutes water

national environmental policy act

regulates business activity ad development to protect all natural environments

monetary policy

relates to money, credit and other financial assets, financial markets- manipulated by the federal reserve

freedom of information act

right to as consumer to request non-confidential information from a business

Price fixing

rival companies maintaining competing prices at certain level. protected against because it causes extertion ans eliminates demand and decreases consumer's options

trust

rival companies trust each other by promising not to compete. govenrment protects against because decreased competition leads to decrease inconsumer's disposable income

collusion

secret and illegal cooperation among rival companies in order to cheat others. gov. protects beacuse it forces prices to to go up which causes inflation

bernie madoff

stockbroker who ran his multibillion-dollar firm as a grand-scale Ponzi scheme. He is currently serving a 150-year prison sentence. part of SEC

clayton act

supports and clarifies sherman act --> price fixing, price discrimination, etc.

federal income tax

used to pay for highways, defense and social security

local taxes

used to pay for streets, libraries and parks

monopoly/ oligopoly

1-3 business that control supply and manipulate price. gov. protects against because they eliminate competition which hurts consumer's disposable income

what are the 3 levels of government?

1. federal 2. state 3.local

how is the economy stabilized?

1. full employment 2. control of inflation 3.stable prices

what are the Roles of Government in business?

1. maintaining competition 2. maintianing legal and social framework 3. stabilize the economy 4. redistribute income 5. providing goods and services 6. correcting for externalities

employee retirement income security act

a federal law that protects interest of employee benefit and plans

what levels of gov, pay for education?

all three

breaches

any violation of a written agreement