businesses, workers, and the law chapter 5.1. laws that regulate businesses government regulation of...
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BUSINESSES, WORKERS, BUSINESSES, WORKERS, AND THE LAWAND THE LAW
CHAPTER 5.1CHAPTER 5.1
LAWS THAT REGULATE LAWS THAT REGULATE BUSINESSESBUSINESSES
Government Regulation of BusinessGovernment Regulation of Business RegulationsRegulations are rules that government are rules that government
agencies issue to implement laws.agencies issue to implement laws. 6 areas of law that affect businesses:6 areas of law that affect businesses:
Corporate LawCorporate Law Tax LawTax Law Intellectual Property LawIntellectual Property Law Consumer LawConsumer Law Commercial LawCommercial Law Licensing and Zoning LawLicensing and Zoning Law
CORPORATE LAWCORPORATE LAW
Corporate LawCorporate Law
Corporate law regulates how Corporate law regulates how businesses can set themselves up to businesses can set themselves up to operate as companies.operate as companies.
There are laws regulating 3 kinds of There are laws regulating 3 kinds of business ownership:business ownership: Sole proprietorshipSole proprietorship PartnershipPartnership CorporationsCorporations
Sole ProprietorshipSole Proprietorship
Sole ProprietorshipSole Proprietorship is a business is a business owned by a single individual, or owned by a single individual, or proprietor. proprietor. Easy to startEasy to start Check with state and local officials about Check with state and local officials about
licenses, zoning regulations, etc.licenses, zoning regulations, etc. Advantages?Advantages? Disadvantages?Disadvantages?
PartnershipsPartnerships
PartnershipsPartnerships are associations of two are associations of two or more persons who jointly own a for-or more persons who jointly own a for-profit businessprofit business Governed by the Uniform Partnership ActGoverned by the Uniform Partnership Act
Must be two or more personsMust be two or more persons Partners must share the profits from their Partners must share the profits from their
businessbusiness Advantages?Advantages? Disadvantages?Disadvantages?
CorporationsCorporations
CorporationsCorporations are businesses are businesses formed under state or federal formed under state or federal statutes that are authorized to act as statutes that are authorized to act as a legal persona legal person Advantages?Advantages? Disadvantages?Disadvantages?
Tax LawTax Law
Tax LawTax Law
Tax law regulates how much money Tax law regulates how much money businesses must pay the government businesses must pay the government to help provide services for the publicto help provide services for the public
The type of ownership managers The type of ownership managers choose for their businesses often choose for their businesses often depends on the types of taxes depends on the types of taxes involvedinvolved
Taxes are monies paid by corporations Taxes are monies paid by corporations and individuals and used to fund and individuals and used to fund government programs and services, government programs and services, such as highways and schoolssuch as highways and schools
Income TaxIncome Tax
Income TaxIncome Tax is a tax levied against a is a tax levied against a business’s profitsbusiness’s profits A percentage of what a business has A percentage of what a business has
earnedearned
Property TaxProperty Tax
Property TaxesProperty Taxes are taxes levied are taxes levied against the property, buildings, or against the property, buildings, or land owned by a businessland owned by a business Based on an assessed valuation (worth)Based on an assessed valuation (worth)
Withholding Federal TaxesWithholding Federal Taxes
Businesses also collect taxes from Businesses also collect taxes from workersworkers
Businesses withhold income taxes Businesses withhold income taxes from employees’ earnings and send from employees’ earnings and send them to the federal governmentthem to the federal government
Intellectual Property Intellectual Property LawsLaws
Intellectual Property LawsIntellectual Property Laws
Intellectual property laws protect the Intellectual property laws protect the inventions and new ideas of inventions and new ideas of businessesbusinesses
3 kinds of intellectual property 3 kinds of intellectual property protections:protections: PatentsPatents TrademarksTrademarks CopyrightsCopyrights
PatentsPatents
PatentsPatents are documents the federal are documents the federal government issues to inventors and government issues to inventors and companies that gives them the companies that gives them the exclusive right to exclusive right to makemake, , useuse, and , and sellsell their inventions for their inventions for 1717 years years
TrademarksTrademarks
TrademarkTrademark a word, name, symbol, or a word, name, symbol, or slogan a business uses to identify its slogan a business uses to identify its own goods and set them apart from own goods and set them apart from othersothers
Companies apply to the federal Companies apply to the federal government’s patents and trademark government’s patents and trademark office to establish a new trademarkoffice to establish a new trademark
Registered trademarks are good for Registered trademarks are good for 10 10 years and can be renewed every years and can be renewed every additional 10 yearsadditional 10 years
CopyrightsCopyrights CopyrightCopyright is the protection provided is the protection provided
to a creative workto a creative work Literary works, musical compositions, Literary works, musical compositions,
plays, dances, paintings, movies, maps, plays, dances, paintings, movies, maps, computer programscomputer programs
The owner is the only one allowed to The owner is the only one allowed to reproduce, sell, or allow others to use reproduce, sell, or allow others to use itit
US Copyright Office grants copyrights US Copyright Office grants copyrights which last for the holder’s which last for the holder’s life plus life plus 7070 years. After that, it becomes part years. After that, it becomes part of the “public domain.”of the “public domain.”
Consumer LawConsumer Law
Consumer LawConsumer Law
Consumer law protects individuals Consumer law protects individuals against business activities that might against business activities that might be harmful to thembe harmful to them
It is important for consumers to It is important for consumers to understand consumer laws so they understand consumer laws so they know their rights when dealing with know their rights when dealing with businessesbusinesses
Federal Trade CommissionFederal Trade Commission
FTC is an agency of the federal FTC is an agency of the federal government that will take action government that will take action against a company if it receives against a company if it receives enough consumer complaints to enough consumer complaints to establish a “pattern of wrongdoing.”establish a “pattern of wrongdoing.” Used Car RuleUsed Car Rule Telemarketing Sales RuleTelemarketing Sales Rule
Food & Drug AdministrationFood & Drug Administration
FDA protects consumers against FDA protects consumers against problems with mislabeled and impure problems with mislabeled and impure foods, drugs, cosmetics, and medical foods, drugs, cosmetics, and medical devices.devices.
FDA approves all new drugs before FDA approves all new drugs before they are sold.they are sold.
Commercial LawCommercial Law
Commercial LawCommercial Law
Commercial law regulates how Commercial law regulates how businesses enter into contracts with businesses enter into contracts with other businesses and with consumersother businesses and with consumers
Uniform Commercial Code is the Uniform Commercial Code is the basic commercial law documentbasic commercial law document
ContractsContracts
ContractsContracts are agreements between are agreements between two parties to carry out a two parties to carry out a transaction, such as the sale of transaction, such as the sale of goods from a seller to buyergoods from a seller to buyer
Create obligations between the Create obligations between the parties that can be enforced in a parties that can be enforced in a court of lawcourt of law
Must follow very specific rules to Must follow very specific rules to stand up in courtstand up in court
Business Sales ContractsBusiness Sales Contracts
Business sales contracts are often Business sales contracts are often short, simple documents that meet short, simple documents that meet the requirements of the Uniform the requirements of the Uniform Commercial CodeCommercial Code
Licensing and Zoning Licensing and Zoning LawLaw
Licensing and Zoning LawLicensing and Zoning Law
State and local governments use State and local governments use licensing as a way to limit and control licensing as a way to limit and control people who plan to enter certain types people who plan to enter certain types of businessesof businesses
Government may deny your application, Government may deny your application, take away a license, issue warnings, take away a license, issue warnings, suspend, or completely revoke a licensesuspend, or completely revoke a license
Local governments regulate businesses Local governments regulate businesses through building codes and through through building codes and through zoning ordinances and regulationszoning ordinances and regulations
ActivityActivity
Case Analysis
Chapter 5.2Chapter 5.2
Workers and The LawWorkers and The Law
The Importance of Employment LawsThe Importance of Employment Laws
Employment lawsEmployment laws regulate the regulate the relationship between companies and relationship between companies and their workers and give workers their workers and give workers significant rights and benefits, significant rights and benefits, including the right to work in a safe including the right to work in a safe environmentenvironment
There are strict penalties for There are strict penalties for companies who violate these lawscompanies who violate these laws
5 Employment Laws5 Employment Laws
Equal Employment Opportunity (EEO) Equal Employment Opportunity (EEO) lawslaws
Occupational safety and health lawsOccupational safety and health laws Wage-hour lawsWage-hour laws Benefit lawsBenefit laws Labor relations lawsLabor relations laws
Equal Employment Equal Employment Opportunity LawsOpportunity Laws
Title VII of the Civil Rights Act of 1964Title VII of the Civil Rights Act of 1964
Companies cannot discriminate against Companies cannot discriminate against an employee because of race, color, an employee because of race, color, religion, sex, or national originreligion, sex, or national origin
EEOC (Equal Employment Opportunity EEOC (Equal Employment Opportunity Commission) can sue a company that Commission) can sue a company that discriminates against an employeediscriminates against an employee
The employee can also take the The employee can also take the company to courtcompany to court
Age Discrimination in Employment ActAge Discrimination in Employment Act
Companies cannot discriminate Companies cannot discriminate against employees because of their against employees because of their age in hiring, promotions, or age in hiring, promotions, or retirementretirement
Workers between the ages of Workers between the ages of 4040 and and 7070 can sue employers for can sue employers for discriminationdiscrimination
Americans with Disabilities ActAmericans with Disabilities Act
Companies cannot discriminate Companies cannot discriminate against persons with disabilitiesagainst persons with disabilities
Companies cannot fire or refuse to Companies cannot fire or refuse to hire people because of certain hire people because of certain disabilities and illnesses, such as disabilities and illnesses, such as blindness or diabetesblindness or diabetes
Companies must also accommodate Companies must also accommodate a worker’s disabilitiesa worker’s disabilities
Occupational Safety and Occupational Safety and Health LawsHealth Laws
Occupational Safety and Health Occupational Safety and Health LawsLaws
Occupational Safety and Health Act sets Occupational Safety and Health Act sets standards for keeping workplaces clean standards for keeping workplaces clean and free of hazards, such as unsafe and free of hazards, such as unsafe machinery and dangerous chemicalsmachinery and dangerous chemicals
Businesses must keep records of Businesses must keep records of employee illnesses, injuries, and deaths employee illnesses, injuries, and deaths and submit them to the US Dept of Laborand submit them to the US Dept of Labor
OSHA inspectors visit workplaces to make OSHA inspectors visit workplaces to make sure they comply with regulationssure they comply with regulations
Wage-Hour LawsWage-Hour Laws
Wage-Hour LawsWage-Hour Laws
Wage-Hour laws establish minimum wage, Wage-Hour laws establish minimum wage, overtime, and child labor standards for overtime, and child labor standards for employeesemployees
Fair Labor Standards Act (FLSA) protects Fair Labor Standards Act (FLSA) protects workers in three ways:workers in three ways: Sets minimum wage companies can paySets minimum wage companies can pay Sets number of hours employees can work in a Sets number of hours employees can work in a
week without receiving overtime payweek without receiving overtime pay Prohibits companies from employing children Prohibits companies from employing children
under the age of 14under the age of 14
Benefits LawsBenefits Laws
Benefit laws guarantee that workers Benefit laws guarantee that workers will receive certain benefits regardless will receive certain benefits regardless of what happens to them on the jobof what happens to them on the job
Companies must comply with five Companies must comply with five different benefits laws:different benefits laws: Social Security ActSocial Security Act Employee Retirement Income Security ActEmployee Retirement Income Security Act Unemployment Insurance LawsUnemployment Insurance Laws Workers’ Compensation LawsWorkers’ Compensation Laws Family Medical Leave Act (FMLA)Family Medical Leave Act (FMLA)
Social Security ActSocial Security Act
Provide workers and their families with Provide workers and their families with income after retirement.income after retirement.
Supports disabled workers and the federal Supports disabled workers and the federal Medicare program, which provides health Medicare program, which provides health insurance for senior citizensinsurance for senior citizens
Employers and employees share the cost Employers and employees share the cost of SS taxes while the worker is employedof SS taxes while the worker is employed
When workers retire, they receive a When workers retire, they receive a pension based on their lifetime earningspension based on their lifetime earnings
Employee Retirement Income Security ActEmployee Retirement Income Security Act
ERISA protects the money put into an ERISA protects the money put into an employee’s retirement fund by employee’s retirement fund by companies and workerscompanies and workers
Not every company establishes this Not every company establishes this programprogram
Unemployment Insurance LawsUnemployment Insurance Laws
Provides workers with financial Provides workers with financial assistance during period of assistance during period of unemploymentunemployment
To be eligible for unemployment To be eligible for unemployment insurance, workers must meet two insurance, workers must meet two requirements:requirements: Must have lost their jobs through no fault Must have lost their jobs through no fault
of their ownof their own Must have worked a certain length of timeMust have worked a certain length of time
Employers must pay a certain amount Employers must pay a certain amount into unemployment for each workerinto unemployment for each worker
Workers’ Compensation LawsWorkers’ Compensation Laws
All states have laws that insure All states have laws that insure workers against injury, illness, or workers against injury, illness, or death because of job conditionsdeath because of job conditions
Employers are liable for an Employers are liable for an employee’s on-the-job injury no employee’s on-the-job injury no matter how the illness or injury matter how the illness or injury occursoccurs
Covers accidents even if they are the Covers accidents even if they are the fault of the worker!fault of the worker!
Family Medical Leave ActFamily Medical Leave Act
FMLA requires companies to give FMLA requires companies to give employees up to 12 weeks of leave employees up to 12 weeks of leave to care for a child, spouse, or parentto care for a child, spouse, or parent
Law only affects companies of 50 or Law only affects companies of 50 or more employeesmore employees
Companies don’t have to pay their Companies don’t have to pay their employees while they are on leave, employees while they are on leave, but must give them their jobs back but must give them their jobs back with no penaltieswith no penalties
Labor Relations LawsLabor Relations Laws
Labor Relations LawsLabor Relations Laws
Protect the right of employees to organize Protect the right of employees to organize into unions to bargain collectively for better into unions to bargain collectively for better wages and working conditionswages and working conditions
UnionsUnions are groups of workers who are groups of workers who collectively bargain for rights such as higher collectively bargain for rights such as higher wages and better working conditionswages and better working conditions
Companies must at least Companies must at least listenlisten to what to what unions say they want for their membersunions say they want for their members OrganizingOrganizing Collective BargainingCollective Bargaining StrikingStriking
Strikes are a union’s ultimate weaponStrikes are a union’s ultimate weapon
ActivityActivity
Chapter 5 Fact and Idea Review