Government Regulation of Business Regulations are rules that government agencies issue to implement laws. Businesses spend a lot of time and money making sure they comply with laws and regulations and do not face unwanted liability.
Six Important Areas of Law 1.Corporate law 2.Tax aw 3.Intellectual property law 4.Consumer law 5.Commercial law 6.Licensing and zoning law
Corporate Law How is the business organized? Sole proprietorships Partnerships –Uniform Partnership Act – governs general partners requires them to by owned by two or more parties and share in the profits. Corporations
Tax Law Taxes are monies paid by corporations and individuals used to fund government programs and services. Income tax –Taxes axed levied against a businesss profits. Property tax –Taxes levied against the property, buildings, or land owned by a business. Withholding Federal Taxes –Businesses collect taxes from workers
Intellectual Property Laws Businesses are protected by intellectual property laws Patents –Document issued by the federal government to inventors and companies that gives them the exclusive rights to make, use, and sell their inventions for 17 years.
Intellectual Property Laws Trademarks –Word, name, symbol or slogan a business uses to identify its own goods and set them apart from others. –Good for ten years. Copyrights –Protection provided for a creative work, such as literary works, musical compositions, plays, dances, paintings, movies, maps, and computer programs. –Good for the holders life plus 70 years.
Consumer Law Consumers are individuals who buy goods and services for their own use. Federal Trade Commission (FTC) –Takes action against a company if it receives enough consumer complaints to establish a pattern of wrongdoing. –Sales rules created by FTC Used Car Rule – requires dealers to tell customers important information about a used car.
Commercial Law Contracts –Agreement between two parties to carry out a transaction (ex: Sale of goods from seller to buyer) –Anyone entering into a contract must know what is in the contract and ensure it is properly prepare. –Often difficult to break and can be taken to court if broken. –Uniform Commercial Code – specified requirements for a contract.
Licensing and Zoning Law Regulates who can operate a businesses and where owners can set up shop Licensing –Way to limit and control people who plan to enter certain types of businesses (i.e. restaurants) Building codes –Regulate business through physical features or structures of building Zoning –Regulates where a building can be built through ordinances (commercially zoned areas versus residential)
Employment Law Regulate the relationship between companies and their workers and gives workers significant rights and benefits. –Equal Employment Opportunity (EEO) laws –Occupational safety and health laws –Wage-hour laws –Benefits laws –Labor relations laws
Equal Employment Opportunity Title VII of the Civil Rights Act of 1964 –Companies cannot discriminate against an employee because of race, color, religion, sex, or national origin. –EEOC can sue a company that discriminates against an employee. Age Discrimination in Employment Act –Protects workers 40-70 years of age. Americans with Disabilities Act –Cannot discriminate based on disabilities and illnesses (blindness or diabetes) and must provide reasonable accommodations
Occupational Safety and Health Laws Sets standards for keeping workers clean and free of hazards, such as unsafe machinery and dangerous chemicals. Businesses must keep records of employee illness, injuries, and deaths, and report them. Occupational Safety and Health Administration (OSHA) inspectors visit workplaces every year to make sure they comply with regulations.
Wage-Hour Laws Fair Labor Standards Act (FLSA) (Wage- Hour Law) protects workers: –Sets the. number of hours employees can work in a week without receiving overtime pay –Prohibits companies from employing children under 14 –Sets the minimum wage companies can pay their workers
Benefits Laws Social Security Act Employee Retirement Income Security Act Unemployment Insurance Laws Workers Compensation Laws Family and Medical Leave Act (FMLA)
Labor Relations Laws National Labor Relations Act –Companies must at least listen to what their unions say they want for their members in terms of wages, hours, and conditions of employment (such as safety in the workplace) Unions –Groups of workers who collectively bargain for rights such as higher wages and better working conditions.