JOURNAL QUESTIONS FOR 3.4.13 CHOOSE TWO TO ANSWER! Why is it important for consumers to know what is in food products? What kinds of things do you need.

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!

C H A P T E R 5 . 1

BUSINESSES, WORKERS, AND THE LAW

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

• 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

• 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

• 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

• 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

• 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

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

ACTIVITY

• Case Analysis