when you have completed this chapter, you will be able to: identify the different kinds of laws that...
TRANSCRIPT
When you have completed this chapter, you will be able to:
Identify the different kinds of laws that affect businesses.
Describe the different kinds of laws that protect workers on the job.
Explain how tax laws affect business profits.Explain the differences between copyrights,
patents, and trademarks.Describe the different laws that protect workers
on the job.Explain the importance of the National Labor
Relations Act.
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Congress and state legislatures pass laws that regulate business.
Regulations are rules that government agencies issue to implement the laws.
Businesses have to make sure that they comply with laws and regulations.
CHAPTER 5: BUSINESS LAW
LAWS THAT REGULATE BUSINESSES 5.1
Government Regulation of Business
There are six important areas of law that affect business operations.
Corporate LawTax LawIntellectual Property LawConsumer LawCommercial LawLicensing and Zoning Law
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Corporate LawCorporate law regulates how businesses can set
themselves up to operate as companies.Regulations are rules that government agencies
issue to implement the laws.Businesses have to make sure that they comply
with laws and regulations.
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Corporate Law.The three kinds of business entities or legal forms
of ownership are:
Sole proprietorship Partnership Corporation
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Corporate LawA sole proprietorship is a business run by a
single individual.
CHAPTER 5: BUSINESS LAW
Advantages:Control entire
businessKeep all profitsMake decisions
quicklyPay fewer taxes
Disadvantages:Full responsibility for the
businessFull liability for all debtsOwner could become ill or
disabled
Government Regulation of Business
Corporate LawA partnership is an association of two or more persons
who jointly own a for-profit business.According to The Uniform Partnership Act, a “person”
can be a corporation, an organization, or an individual.
CHAPTER 5: BUSINESS LAW
Advantages:Combine their
talents and financial resources
Share decision making responsibilities
Pay less taxes than a corporation
Disadvantages:Full responsibility for
business debtsDisagreementsBind each other to
contractual agreements with others
Government Regulation of Business
Corporate LawA corporation is a business formed under state or federal
statutes that is authorized to act as a legal person.A corporation exists apart from its owners and can be taxed and
sued like an individual.
CHAPTER 5: BUSINESS LAW
Advantages:Stockholders receive a
share of the profitsNo management
responsibilitiesRaise money by selling
stockEasier time getting
credit
Disadvantages:Must comply with more
federal lawsRegister with a state gov’t.
agencyDouble taxation (taxes on
profits and also to state and federal government)
Government Regulation of Business
Tax LawTax law regulates how much money businesses
must pay the government to help provide services for the public.
Taxes are monies paid by corporations and individuals and are used to fund gov’t. programs and services (e.g., highways, the military, and schools).
We will look at three types of taxes:Income TaxProperty TaxWithholding Federal Taxes
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Tax LawIncome Tax is a tax levied against a business’s
profits.Property Tax is a tax levied against property,
buildings, or land owned by a business; they are based on an assessed valuation.
Withholding Federal Taxes is money that businesses collect from workers; income taxes are withheld from employees’ earnings.
Managers make location decisions based on taxes in a particular area.
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Intellectual Property LawIntellectual property law regulates how
businesses can protect inventions and new products.
Protections include:PatentsTrademarksCopyrights
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Intellectual Property LawPatents: gives exclusive right to make, use, and
sell an invention for 17 years.Trademark: a word, name, symbol, or slogan a
business uses to identify its own goods and set them apart from others.
Copyright: protection for creative works (literature, music, plays, dances, paintings, movies, maps, computer programs…); confers sole right to reproduce, sell, or allow use by others; lasts for the holder’s life plus 70 years.
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Consumer LawConsumer law protects individuals against
business activities that might be harmful to them.Regulatory agencies include:
Federal Trade Commission (FTC) takes action against companies when there is a “pattern of wrong doing.”
Food and Drug Administration (FDA) protects consumers against problems with mislabeled and impure foods, drugs, cosmetics, and medical devices; approves new drugs before they can be sold.
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Commercial LawCommercial law regulates how businesses enter
into contracts with other businesses and with consumers.
The basic law document that governs these dealings is called the Uniform Commercial Code.
A contract is an agreement between two parties to carry out a transaction, such as the sale of goods from a seller to buyer; a contract creates an obligation between the agreeing parties.
CHAPTER 5: BUSINESS LAW
Government Regulation of Business
Licensing and Zoning LawLicensing laws regulate who can go into certain
businesses.Zoning laws regulate where they can establish
operations. Local governments establish building codes
(ordinances) that may regulate such things as maximum height, minimum square feet of space, or types of materials used for construction.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsIn this section you will learn:
The five major kinds of employment lawsThe three major federal equal employment opportunity
lawsThe importance of occupational safety and health lawsHow the Fair Labor Standards Act protects workersFive benefits laws with which companies must complyHow labor relations laws protect workers’ rights
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment Laws
In the early part of the twentieth century, employees were at the mercy of companies with respect to amount of salary, dangerous working conditions, and discriminatory hiring practices.
In the 1930’s Congress and state legislatures passed employment laws that regulated the relationship between companies and their workers, and give workers significant rights and benefits.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsCompanies must comply with five major kinds of employment laws:
Equal Employment Opportunity (EEO) laws prohibit discrimination against workers.
Occupational safety and health laws require compliance with federal, state, and local government standards.
Wage-hour laws establish minimum wage, overtime, and child labor standards.
Benefits laws guarantee certain benefits.Labor relations laws protect the right to organize unions to
bargain collectively for better wages and working conditions.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsEqual Employment Opportunity (EEO) Laws :
The Civil Rights Movement of the 1960’s resulted in Title VII of the Civil Rights Act of 1964.
Under Title VII, companies were prohibited from discrimination on the basis of race, color, religion, sex, or national origin.
Title VII created the Equal Employment Opportunity Commission which could sue employers on behalf of workers.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsEqual Employment Opportunity (EEO) Laws :
The Age Discrimination in Employment Act protected employees between ages 40 and 70 against discrimination.
The Americans With Disabilities Act (ADA) prohibits discrimination against persons with disabilities.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsOccupational Safety and Health Laws :
The Occupational Safety and Health Act created the Occupational Safety and Health Administration (OSHA).
OSHA sets for keeping workplaces clean and free of hazards.
OSHA routinely visit workplaces to ensure compliance with government regulations.
Employees can request an OSHA inspection due to suspected violations.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsWage-Hour Laws :
In 1938 Congress passed the Fair Labor Standards Act (FLSA) also known as the Wage-Hour Law.
It addresses overtime, minimum wage, and child labor standards.
Employing children under age 14 is prohibited.
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsBenefits Laws
There are five different benefits laws: Social Security Act (1935): retirement income and health
insurance (Medicare) Employee Retirement Income Security Act (ERISA):protects
retirement fund money Unemployment Insurance Laws: financial assistance during
unemployment; 2 criteria Worker’s Compensation Laws: workers are insured against
illness, injury, or death on the job Family and Medical Leave Act (FMLA): employees get up to 12
weeks of unpaid leave
CHAPTER 5: BUSINESS LAW
WORKERS AND THE LAW 5.2
The Importance of Employment LawsLabor Relations Laws :
The National Labor Relations Act (NLRA) give employees the right to form unions.
Unions are groups of workers that collectively bargain for higher wages and better working conditions.
The NLRA says that companies must bargain “in good faith.”Three of the most powerful unions are the Teamsters (diverse
group; started with freight drivers), the National Education Association, and AFL-CIO (The American Federation of Labor and Congress of Industrial Organizations) which is a federation of over 50 labor unions from pilots to teachers.
CHAPTER 5: BUSINESS LAW
CHAPTER 5: BUSINESS LAW
THE END