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JOURNAL QUESTIONS FOR 3.4.13CHOOSE TWO TO ANSWER!
• Why is it important for consumers to know what is in food products?
• What kinds of things do you need to know before signing a contract on a house or car?
• Some trademarks like Nike’s have become status symbols. Why else might people look for a favorite trademark when buying something?
AGENDA
• Hand in homework• Code of Ethics• Social Responsibility
• Chapter 5.1 Notes• On your own!• Utilize my note-taking guide• Slides 3-29
• Chapter 5 Case Analysis• Slide 30• Work with a partner• Submit today!
LAWS THAT REGULATE BUSINESSES
• Government Regulation of Business• Regulations are rules that government
agencies issue to implement laws.
• 6 areas of law that affect businesses:• Corporate Law• Tax Law• Intellectual Property Law• Consumer Law• Commercial Law• Licensing and Zoning Law
CORPORATE LAW
• Corporate law regulates how businesses can set themselves up to operate as companies.• There are laws regulating 3 kinds of business
ownership:• Sole proprietorship• Partnership• Corporations
SOLE PROPRIETORSHIP
• Sole Proprietorship is a business owned by a single individual, or proprietor. • Easy to start• Check with state and local officials about licenses, zoning
regulations, etc.• Advantages?• Disadvantages?
PARTNERSHIPS
• Partnerships are associations of two or more persons who jointly own a for-profit business• Governed by the Uniform Partnership Act• Must be two or more persons• Partners must share the profits from their business
• Advantages?• Disadvantages?
CORPORATIONS
• Corporations are businesses formed under state or federal statutes that are authorized to act as a legal person• Advantages?• Disadvantages?
TAX LAW
• Tax law regulates how much money businesses must pay the government to help provide services for the public• The type of ownership managers choose for their
businesses often depends on the types of taxes involved• Taxes are monies paid by corporations and
individuals and used to fund government programs and services, such as highways and schools
INCOME TAX
• Income Tax is a tax levied against a business’s profits• A percentage of what a business has earned
PROPERTY TAX
• Property Taxes are taxes levied against the property, buildings, or land owned by a business• Based on an assessed valuation (worth)
WITHHOLDING FEDERAL TAXES
• Businesses also collect taxes from workers• Businesses withhold income taxes from
employees’ earnings and send them to the federal government
INTELLECTUAL PROPERTY LAWS
• Intellectual property laws protect the inventions and new ideas of businesses• 3 kinds of intellectual property protections:• Patents• Trademarks• Copyrights
PATENTS
• Patents are documents the federal government issues to inventors and companies that gives them the exclusive right to make, use, and sell their inventions for 17 years
TRADEMARKS
• Trademark a word, name, symbol, or slogan a business uses to identify its own goods and set them apart from others• Companies apply to the federal government’s
patents and trademark office to establish a new trademark• Registered trademarks are good for 10 years and
can be renewed every additional 10 years
COPYRIGHTS
• Copyright is the protection provided to a creative work• Literary works, musical compositions, plays, dances,
paintings, movies, maps, computer programs• The owner is the only one allowed to reproduce,
sell, or allow others to use it• US Copyright Office grants copyrights which last
for the holder’s life plus 70 years. After that, it becomes part of the “public domain.”
CONSUMER LAW
• Consumer law protects individuals against business activities that might be harmful to them• It is important for consumers to understand
consumer laws so they know their rights when dealing with businesses
FEDERAL TRADE COMMISSION
• FTC is an agency of the federal government that will take action against a company if it receives enough consumer complaints to establish a “pattern of wrongdoing.”• Used Car Rule – requires dealers to tell customers
important information about a used car• Telemarketing Sales Rule – helps protect consumers from
being bombarded with unwanted telemarketing calls by placing limitations on companies that sell or promote by telephone.
FOOD & DRUG ADMINISTRATION
• FDA protects consumers against problems with mislabeled and impure foods, drugs, cosmetics, and medical devices.• FDA approves all new drugs before they are sold.
COMMERCIAL LAW
• Commercial law regulates how businesses enter into contracts with other businesses and with consumers• Uniform Commercial Code is the basic
commercial law document
CONTRACTS
• Contracts are agreements between two parties to carry out a transaction, such as the sale of goods from a seller to buyer• Create obligations between the parties that can
be enforced in a court of law• Must follow very specific rules to stand up in court
BUSINESS SALES CONTRACTS
• Business sales contracts are often short, simple documents that meet the requirements of the Uniform Commercial Code
LICENSING AND ZONING LAW
• State and local governments use licensing as a way to limit and control people who plan to enter certain types of businesses• Government may deny your application, take
away a license, issue warnings, suspend, or completely revoke a license• Local governments regulate businesses through
building codes and through zoning ordinances and regulations