...Industrial regulation is governmental oversight, guidelines, and enforcement designed to ensure protection of consumer pricing, approve mergers and acquisitions, and regulate market share activities related to a specific industry in order to promote competition and achieve allocative efficiency (McConnell, Brue & Flynn, 2011). Industrial regulation provides protection to the consumer by preventing the development of monopolized industries that allow for no consumer choice. The three main regulatory commissions of industrial regulation in the United States are: 1) Federal Trade Commission; 2) Federal Communication Commission; and the 3) Federal Energy Regulatory Commission. Federal Trade Commission. The Federal Trade Commission (FTC) investigates consumer complaints and concerns regarding unfair competition, fraud, and misleading practices in the marketplace. Federal Communication Commission. The Federal Communication Commission (FCC) is an independent agency of the United States governed by five presidentially-appointed commissioners. The commissioners serve a maximum term length of five years and no more than three commissioners can be affiliated with the same political party. The FCC is responsible for regulating communications in or initiating from the US. Communication channels that the FCC has jurisdiction over include television and radio airwaves, satellite and cable transmissions, and telegraph communications. The FCC was formed by Congress with the Communications...
Words: 1434 - Pages: 6
...considerations such as discrimination in the workplace. You also study regulatory compliance issues for an organization, as well as the associated business consequences. The readings focus on workers’ compensation, occupational safety, and other worker protection laws, with a specific attention to the Family and Medical Leave Act. This week also covers the collective bargaining agreements and labor law, as well as several laws and decisions a company must make regarding these labor law issues. In addition, you examine equal opportunity in employment and Title VII, including what comprises this significant law. You review regulatory laws, environmental protection and global warning, as well as antitrust laws and unfair trade practices. The readings focus on introductory concepts and the laws that support these concepts. Employment and Regulatory Risk OBJECTIVE: Differentiate between types of employment relationships and the associated legal considerations. Resources: Ch. 31 & 32 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues Content • Ch. 31: Employment, Worker Protection, and Immigration Laws o Introduction to Employment, Worker Protection, and Immigration Laws o Worker’s Compensation • Case 31.1 Workers’ Compensation: Medrano v. Marshall Electrical Contracting Inc. o Occupational Safety • Ethics Spotlight: Company Violates OSHA’s Safety Rule o Fair Labor Standards...
Words: 971 - Pages: 4
...Antitrust Laws and Competitive Business Practices The fair, balanced and competitive application of U.S. laws as applied to business practices Introduction Several laws have been enacted to provide protection to businesses in our free-trade market. There are times when trading within the free market does not demonstrate the fair, balanced and ethical conduct deserved in competitive business. Trying to compete in a market where practices aren’t regulated deprives businesses the benefits of competition, resulting in higher prices for products and services which in turn affect the economy. Unfair trade practices have been around for as long as trade itself. Unfair practices were under scrutiny as early as 470 B.C. Grain was so vital to Greece’s population that trade laws were enacted. A percentage of grain was taken by the state therefore taxes were applied to anyone not importing directly to Athens. Death applied to anyone restricting imports (http://www.ancient.eu/article/115/). The latter was definitely extreme but regulations now cover a broader range of violations with less severe consequences. The federal government enforces three major antitrust laws. These laws address unfair practices that deprive businesses the benefits of interstate and international trade. Federal antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. The Sherman Antitrust...
Words: 1264 - Pages: 6
...Antitrust September 17, 2009 Tonight’s Agenda Role Call Review of Last Week, Current Events Antitrust Case Study: DeBeers Wrap Up Review of Last Week “People of the same trade seldom meet together, even for merriment and division, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” -- Adam Smith “Perfectly Competitive Market” Consumers well-served. Receive goods at lowest price possible. Society able to choose among competing good with maximum efficiency. Firms that do not produce what consumers want at a fair price are quickly eliminated. Highly restrictive model applying stringent standards. Antitrust Perfect competition model is essentially static. Real world markets are extremely dynamic. Perfect competition model is unsuitable as a benchmark. Antitrust Laws Promote a competitive economy by prohibiting actions that restrain, or are likely to restrain, competition and by restricting the forms of market structure that are allowable. Limit the activities of firms that have legally obtained monopoly power. Intended to provide a general statutory framework to give the Justice Department, the FTC, and the courts wide discretion in interpreting and applying them. The Development of Antitrust Laws Trust was a device for pyramiding control over several operating companies. The Sherman Antitrust Act (1890)...
Words: 1801 - Pages: 8
...Anti-Trust Laws and the Consumer Anti-trust laws protect the consumer from unfair and deceptive trade practices. These laws were created to protect business owners, consumers and economic efficiency. In an open and free market, businesses must provide quality products and services to consumers as well as truthful representation of their goods and services. Misrepresentation results in inferior products and artificially inflated prices for the consumer and is at times accomplished through unlawful collusion between competitors. A fair and open market where businesses compete in a non-monopolistic environment brings economic efficiency as businesses are encouraged to find more efficient methods of production stay in the market. Inefficient firms that fail to understand consumer needs, eventually lose in the market. If open market competition was nonexistent, cartels and monopolies would be free to distort the allocation of society’s resources for economic profit in the long run. This would result in economic loss to consumers as well as competitive harm to the economy. In the United States, the basic federal antitrust laws are: The Sherman Act of 1890, the Clayton Act (1914) and the Federal Trade Commission Act of 1914. The Sherman Act prohibits the restraint of trade and the creation of monopolies and is an important part of economic legislation in the United States. The Sherman Act prohibits any agreement among competitors to fix prices, rig bids or engage in other...
Words: 3108 - Pages: 13
...Abstract The present paper is an analysis of the Antitrust law in Italy, and its relation with the conflict of interest. In this paper I have given a general introduction to the development of the Antitrust Law in the United States, and consequently in Europe and finally in Italy, and how it regulates the conflict of interest. It is mainly divided in three parts. The first part is an introduction, I have given a definition of what is a Trust, according to the Common Law, then I have explained how the corporate trusts were formed in America, and how and why the Antitrust Legislation was born, and how it has evolved. Therefore, I have discussed about the influence of the American Antitrust Law on the on the European Legislation covering this matter. In the second part, I have discussed about the Italian Antitrust Law, the monopoly of state and task of the Italian Competion Authority. In the third part, I have explained what is a conflict of interest and how the Italian Antitrust Law try to regulate it ( Frattini Law). At the conclusion I have mentioned some cases of conflict of interest in Italy, such as the one of the former Prime Minister Silvio Berlusconi, and how the former has not yet been solved. Keywords Trust, Antitrust Law Competition Authority Conflict of interest Frattini law Introduction Overview on the Antitrust Law in America and Europe The trust，definition Originally, a trust, in the Common law, is a relationship whereby property is held by one party for...
Words: 4447 - Pages: 18
...Introduction Antitrust laws are essentially a series of highly interpretable and ever-changing guidelines meant to encourage stable competition between businesses; in essence they are laws to protect against anti-competitive monopolists and conspiracies. What is US antitrust law? US antitrust law is essentially competition law. The term “antitrust” refers to the colossal trusts which were set up in the US in the late 1800s to control entire markets for petroleum, transport, banking, rail and other industry sectors. However, these trusts undermined free market economics by restricting competition, and the US antitrust laws were enacted to redress this issue. Consequently it is fair to say that defending the right of businesses to compete is the true purpose of antitrust law. An anticompetitive practice that is harmful to a business or its customers will find no antitrust law protection. The antitrust laws come only into effect when competitors collude with one another to undermine legitimate competition; or one of more competitors attempt to exclude another competitor to create or preserve a monopoly on their position; or if a proposed merger, acquisition or exclusive supplier agreement threatens to reduce competition in an unacceptable manner. In each of these instances there is a threat that the predatory corporate could increase prices without this having an effect on demand since the consumer has no-one else to purchase the goods from. This, in effect, distorts competition...
Words: 570 - Pages: 3
...A. There are four key sections of the federal legislation; known as the Antitrust laws that corresponds to the monopoly structure and conduct within the basic law. These laws are: the Federal Trade Commission Act, 1914, Clayton Act, 1914, Sherman Act, 1890, and the Celler-Kefauver Act, 1950. The Sherman Act is, “The Federal antitrust law of 1890 that makes a monopoly planned to restrain trade criminal offenses” (McConnell G-26). The Clayton Act is, “The Federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices” (McConnell G-3). The Federal Trade Commission Act is, “The Federal antitrust law of 1914 that strengthened the Sherman Act by making it illegal for firms to engage in certain specified practices” (McConnell G-3). The Celler Kefauver Act is, “The Federal law of 1950 that amended the Clayton Act by prohibiting the acquisition of the assets from one firm to another firm when the effect would be less competition” (McConnell G-2). (“Section 7 of the Clayton Act had a loophole whereby firms could accomplish their purpose by acquiring the physical assets rather than stock of a competing company” (McConnell G-2)). B. An Oligopoly is “A market dominated by a few large producers of a homogeneous or differentiated product” (McConnell 195). An Oligopoly has charge of its personal prices, output, and marketing choices. A pure monopoly comes into effect if a one firm is the only creater of a manufactured...
Words: 563 - Pages: 3
...Paper DeVry University The United States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other. Before the late 1800’s there were no laws to protect consumers and the process of competition. Often times, the consumers and the well being of all were not taken into consideration before these antitrust laws were put into act. The business owners were more often than less, only looking to make a profit no matter what that took. Thankfully, in 1890 Congress passed the first antitrust law, the Sherman Act as a “comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade.” This law states that, “This Act outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade. This includes agreements among competitors to fix prices, rig bids, and allocate customers, which are punishable as criminal felonies.” (www.ourdocuments.gov/, 2014) A law designed to restore competition and free enterprise by breaking up monopolies. The original intention of the Sherman Antitrust Act was to protect consumers from big businesses that were using unscrupulous means to raise prices artificially, such as intentionally producing too few goods to meet consumer demand and thereby driving up the products' value and price...
Words: 1440 - Pages: 6
...Antitrust Practices and Market Power | DeVry University | Eva Wise | Antitrust Policy consists of laws and government actions designed to prevent monopoly and promote competition. On June 23, 2011, the U.S. Federal Trade Commission initiated an antitrust probe into Google, the world’s largest search engine. FTC’s investigation entailed a broad probe into Google’s business practices and weather it was abusing its search power to drive traffic to its own properties over rival sites and services. After a nearly twenty month high-profile investigation, the federal government announced on January 3, 2013, that its dropping an “exhaustive” probe into Google as it found no evidence the company was abusing its search power. Google was investigated under violating the Sherman antitrust act. “The definitive antitrust statute, passed by Congress in 1890, that prohibits monopolies or unreasonable combinations of companies to restrict or in any way control interstate commerce. Specifically outlawed is two or more persons engaging in monopolistic practices, such as price fixing, although it does not outlaw price-fixing per se. It was amended in 1914 by the Clayton Act, which outlaws interlocking directorates and deals with acquisitions that aim to restrain or eliminate competition. (Your Dictionary Law)” “For example, one element of a duty-to-deal claim under the Sherman Act is proving that Google’s treatment of rival websites harms consumers; even the cleverest economist would be...
Words: 550 - Pages: 3
...Abstract Antitrust laws were put in place to make sure markets are free and open, which is the foundation of a vibrant economy (ftc.gov). The benefits of these laws are mainly for the consumer, and they infuse competition in any market space, which ultimately leads to good prices and high quality products and services. To better assert the fact that Antitrust Laws have in fact been enforced for the protection and benefit of the consumer, one must look at actual cases in which organizations have been investigated for violation of Antitrust Laws. In the following paper, I’ll be focusing on Apple’s antitrust investigation. Additionally, we’ll identify some costs associated with the antitrust behavior, and why Apple was investigated? To conclude, we’ll then shift our focus to weighing out whether or not monopolies and oligopolies benefit society, with at least looking at one study where they did benefit. Apple Gets Investigated and Charged Apple, which has an oligopoly market structure because of their number of competitors, pricing similarities and dependencies with other vendors, was hit with a huge fine for antitrust violations (in the 840 million range). Apple was investigated for helping facilitate a price hike in the e-book market space by colluding with major publishers. The U.S. Department of Justice said this conspiracy was designed to undercut online retailer, Amazon.com Inc’s dominance of the fast-growing e-book market (Reuters, 2013). However, what really drew attention...
Words: 1032 - Pages: 5
...harassment if the following occurs?: The athletic director tells a student that in return for staying on the team, that student must submit to sexual advances. A.Yes B.No Question 3 of 30 2.5/ 2.5 Points Which of the following trademarks would receive the strongest protection? A.a professional team's logo B.a college logo C.the Olympic symbol D.a commercial product such as a soft drink Question 4 of 30 2.5/ 2.5 Points "Trademark law" is the legal term for a word, name, symbol, or device that an organization uses to identify and distinguish its services from the services of another organization and to indicate the source of the service. A. True B. False Question 5 of 30 2.5/ 2.5 Points What type of things do sports organizations seek patent protection for? A.equipment B.apparel designs C.styles of play D.All of the above Question 6 of 30 2.5/ 2.5 Points What federal law prohibits discrimination in wages between employees on the basis of sex for equal work on jobs that require equal skill, effort, and responsibility under similar working conditions? A.Title VII B.equal protection C.ADA D.Equal Pay Act Question 7 of 30 2.5/ 2.5 Points Which of the following is permitted under the copyright law? A.selling portions of a copyrighted sport event for...
Words: 2210 - Pages: 9
... The federal government put together the antitrust laws as a way to make businesses compete fairly. These laws prevent monopolies, fixed pricing, they regulate trade and commerce and promote ethical production of products and services, at reasonable price points. The four major pieces of legislation that make up the antitrust laws are? The Sherman Antitrust Act, The Clayton Antitrust Act, the Celler-Kefauver Act of 1950, and the Federal Trade commission act. The Sherman Antitrust Act focuses on restraint and prevention of trade between foreign nations, prohibition of monopolies, and is the only US department of Justice that has the power to prosecute people that are in violation of this act. The Clayton Antitrust Act was passed to prohibit acquisitions and mergers that would lessen competition between companies, enabled state attorney generals the ability to prosecute and enforce federal antitrust laws. It also outlawed price discrimination, regulated stock acquisitions and tying contracts. The Clayton Antitrust Act was amended by The Robinson-Pitman Act that banned discriminatory business practices. The Celler Kefauver Act of 1950 was passed to regulate the acquisition of firms that were not in direct competition and limited mergers that would lessen competition in the market place. The Federal Trade Commission Act created the actual Federal Trade Commission and gave the commission the power to enforce US Antitrust legislation. B. The intended purpose of...
Words: 690 - Pages: 3
...Beltran Garza ID: 1586848 Group: 4Ai Cd. Universitaria de Nuevo León, November 16th 2015 CHAPTER 12 CONTRACTS AND SALES Introduction and Formation A contract is a promise or set of promises for breach of which the law fives a remedy, or the performance of which the law in some way recognizes as a duty. The three general sources of contract law for contracts entered into in the United States include common law, the Uniform Commercial Code, and the new sources of law evolving in response to e-commerce. Common Law The common law was the first law of contracts. It consists today of those traditional notions of law and the body of law developed by judicial decisions dealing with contract issues. Common law applies to contracts that have land or services as their subject matter. Contracts for the construction of a home and employment contracts are governed by common law. The Uniform Commercial Code (UCC) One of the problems with common law is its lack of uniformity, the states do not follow the same case decisions on contract law, and some states do not follow the Restatement. To address the uniformity, the National Conference of Commissioners on Uniform State Laws and the American Law Institute worked to draft a set of commercial laws appropriate for businesspeople, lawyers and lawmakers, the result of their efforts was the Uniform Commercial Code (UCC). * Article 2 of the UCC Governs contracts for the sale of goods and has been adopted in all states except...
Words: 12443 - Pages: 50
...Regulation and Law Business is something that is done day after day all over the country. It doesn’t matter if it’s someone buying a cup of coffee or an individual buying a new car, business should be fair for anyone and everyone. In order for business to be fair, the antitrust laws were made. Antitrust laws are the efforts to make businesses compete fair for everyone who is involved no matter what the business may be by the federal government. Antitrust laws help regulate trade and business by preventing price-fixing, monopolies, and unlawful restraints. This allows consumers and other business to not be taken advantage of while conducting fair ways of business. It also helps to promote the quality of goods and services while helping guarantee that customer demands are met by manufacturers. The four pieces of legislation are known as the Antitrust Laws which first consist of the Sherman Antitrust Act. The Sherman Antitrust Act focused on the hindrance and restraint of trade among states or and different countries while also working to prevent monopolies within different businesses. These violations come with heavy consequences and will be handled in an important way. If individuals who are suspected of violating this act end up being prosecuted, they can only be done so by the United States Department of Justice. Then there is the Celler-Kefauver Act of 1950 which focuses on some important details. One was to limit mergers that would result in a drop competition within a...
Words: 1671 - Pages: 7
