1. Laws that Regulate Businesses
Chapter 5 Lesson 1
Laws that Regulate Businesses

2. What You’ll Learn 6 laws that affect business operations
What proprietorships, partnerships, and corporations are.
How income and property taxes affect businesses.
Definitions of patents, trademarks, and copyrights
How the FTC protects consumers
Elements of business contracts

3. Initiation Answer the following question (You have 5 min.)
“How do you think laws affect business?”

4. Government Regulation of Business
Government passes many laws that regulate businesses and if they do not comply they face sanctions
Government affairs managers ensure that companies follow these laws
Regulations: rules that government officials issue to implement laws.

5. 6 Important Areas of Law Corporate
Regulates how businesses can form as companies
Tax
Regulates how much money businesses must pay the government to help the public
Intellectual
Regulates how businesses can protect inventions and new products
Consumer
Protects individuals against harmful business activities
Commercial
Regulates how businesses enter into contracts
Licensing and zoning
Regulate who can go into business and where they can establish operations.

6. Discussion Question
Why do you think businesses should have to pay taxes? Textbook Answer: To help the government pay for its operations and services for the public

7. Corporate Law Not all businesses are alike Type Sole Proprietorship
Partnership
Corporation
Description
Business owned by a single individual
Association of 2 or more people with joint ownership
Formed under state or federal statutes and acts as a legal person
Advantages
Easy to start
Shared responsibility
Stock
Limited Liability
Disadvantages
Full responsibility
Unlimited liability
Disagree how business should be run
More laws
More taxes

8. Intellectual Property Laws
Patents:
Document that gives inventors and companies the exclusive right to make, use, and sell their inventions for 17 years
Trademarks:
Word, name, symbol, or slogan a businesses uses to identify itself
Company owns it for 10 years
Any come to mind?
Copyrights:
Protection provided to creative work
No one else can publish that work for the owners lifetime plus 70 years

9. Discussion Question
Some trademarks, like Nike’s, have become status symbols. Why else might people look for a favorite trademark when buying something? Textbook Answer: Trademarks represent merchandise that consumers think are of higher quality

10. 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.
FDA:
Protects consumers against problems with mislabeled and impure foods, drugs, cosmetics, and medical devices.

11. Commercial Law Contracts: Business Sales Contracts:
An agreement between two parties to carry out a transaction
Each party becomes obligated to meet their responsibilities
Business Sales Contracts:
Short, simple documents that meet the Uniform Commercial Code
Managers are involved in assembling and reviewing contracts.

12. Licensing And Zoning Law
Governments can limit and control people who enter certain types of businesses
Can also take away a license from those not complying with laws and regulations
Zoning:
Regulate through business codes and zoning ordinances (where structures can be built)

13. Discussion Question
What is more important: Laws that protect consumers or laws that protect businesses? Explain your answer

14. Exit
Which type of law do you think is most important for government to implement on businesses and why?

15. Answer the following Questions
Assignment
Answer the following Questions
P.118 of Textbook
Fact and Idea Review #1-6
Critical Thinking #1 & 2
Case Analysis – Just answer questions (NO MEMO)
Page 119 of Textbook
Critical Thinking Question
COMPLETE SENTENCES
END OF PERIOD