...States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? Competition Law I do believe that the competition law is effective because it helps businesses because it can protect the company’s position in the marketplace due to anticompetitive mergers and business practices. This enables markets to work more for the interest of the consumer and in return expand their profits. Businesses that practice unfairly, like offering discounts at a predatory level, abusing a position, unfair trading conditions or involving themselves in an anti-competitive behavior will face a fine based on their annual turnover. What they are doing is exposing themselves to damaging actions. In an open market you have aggressive competition by both the individuals and the businesses. The benefits of lower prices, high quality and greater innovation. So you need to be able to stay up to date with the laws policies. Some of the benefits of the competition law are for starters enables you to identify and new changes and opportunities and you business. Also helps you in return to make sure that you are complying with the latest rules. Some other benefits are trademark policies. One could be looking at infringement by unfair use of the rights the trademark is attached to. Trade defamation is another example as to how this law protects a business. This charge can either be civil or criminal, as it is a false communication...
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...mICROECONOMICSMBM1010 Economics for Managers Coursework Submission Deadline: 3 p.m., Wednesday 7th December 2010 Name | email | Phone | Akhil | aas12@aber.ac.uk | 07424637952 | Subin | sub19@aber.ac.uk | 07438887215 | Tia | alp29@ aber.ac.uk | 07966523032 | Nagesh | nam15@aber.ac.uk | 07466838654 | Gavin | gaa@ aber.ac.uk | 07814767239 | | Date | Time | Venue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The coursework is a teamwork project, each team submitting a combined report. An important part of the exercise is, in meeting as a team, to choose an industry or market for the topic (see below); to decide on and allocate the research work needed; and to organize the drafting of individual sections of the report, and their integration into a cohesive final product. Your report should include an executive summary, introduction and background information in addition to your analysis and conclusions. All references and data sources should be clearly cited within the text. Also, as an Appendix to the report, you should include a contract, to which each member of the group has agreed, detailing the allocation of work. Each member of the group should also separately...
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...Fair Balanced and Competitive Business Practices Abstract The United States has many laws to further fair, balanced and competitive businesses. I believe these laws are useful and are put into place to protect businesses, organizations and consumers. These laws help protect against copyrighting, discrimination, insider trading and trademarking. Businesses must engage in ethical business practices which include abiding by government laws in order to be more successful and profitable. Bovee & Thill (2012) says that there is a great amount of concern regarding the ethics of business leaders, both current and future and the public seems to agree. The changing nature of business from manufacturing to knowledge technology has called for new levels of regulation on the part of federal agencies. Fair Balanced and Competitive Business Practices Business enterprises play an important role in the society. However, these enterprises could exploit other players in the market or affect consumers’ welfare in one way or another. In a bid to promote fair and competitive business practices, the United States formulated and implemented antitrust laws. Among them are the Sherman Act of 1890, Federal Trade Commission Act, and 1914’s Clayton Act (Broder, 2012). Over the years, these laws have proved adequate, suitable, and relevant in the business world. The primary objective of the aforementioned laws is to promote fairness and competition among businesses. In other words, these laws...
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...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...
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...MONOPOLY While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if it is the sole seller of its product. – its product does not have close substitutes. The key difference: A monopoly firm has market power, the ability to influence the market price of the product it sells. A competitive firm has no market power. WHY MONOPOLIES ARISE The fundamental cause of monopoly is barriers to entry. Barriers to entry have three sources: – Ownership of a key resource. The government gives a single firm the exclusive right to produce some good. Costs of production make a single producer more efficient than a large number of producers. Monopoly Resources Although exclusive ownership of a key resource is a potential source of monopoly, in practice monopolies rarely arise for this reason. Government-Created Monopolies Governments may restrict entry by giving a single firm the exclusive right to sell a particular good in certain markets. Patent and copyright laws are two important examples of how government creates a monopoly to serve the public interest. Natural Monopolies • An industry is a natural monopoly when a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms. A natural monopoly arises when there are economies of scale over the relevant range of output. Example: 1000 homes need...
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...The Competition Act 89 of 1998 (“the Act”) was used as reference Caption: Momentum Group Limited v African Life Health (Pty) Ltd (CAC) 58/CAC/Dec05 Heard in the Competition Appeal Court Decided 14 February 2006. Judgment written by Malan AJA. Davis JP and Mailula AJA concurring. Facts: This case dealt with the review and appeal of the decision of the Competition Tribunal. The applicants in the case are Momentum Group Limited (“MGL”) and two non-executive directors, L. Dippenaar and J Burger, who are the CEO and CFO of First Rand Limited (“FRL”), respectively. The Chairperson of the Competition Tribunal, the Acting Commissioner of the Competition Commission and African Life Health (Pty) Ltd (“ALH”) were respondents. The case concerned a large merger between MGL and ALH, MGL being the acquiring firm and ALH the target firm. The Competition Tribunal (“the Tribunal”) raised concern about the dual directorship held at operating and holding company level between the acquiring firm, MGL, and its parent firm, FRL, and one of FRL’s subsidiary’s, Discovery Holdings. FRL holds 65.6% shares in Discovery and wholly owns MGL. MGL and ALH operate in the medical scheme administration sector. The Competition Commission recommended that the merger be approved unconditionally after which it was referred to the Tribunal in terms of s 14A of the Act for approval. The Tribunal imposed a condition on the merger that prohibited cross directorship between Discovery and MGL. The Tribunal...
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...certain manufacturers and thereby impairing competition that otherwise would take place. Defenders of slotting allowances have asserted that, among other things, they cover the cost of introducing new products to the marketplace and thereby tend to foster entry and innovation”. (ftc.gov 2001) While the Department of Justice concludes that the practice of slotting allowance is not an antitrust issue there is a possibility that there may be issues in the future with anticompetitive exclusion. Slotting allowance is a practice used by manufacturers and retailer to stock certain products on the shelves. It was most prevalent in supermarkets but spread to other store i.e. electronic stores and computer stores. For example, Microsoft pays a fee to have an end cap (spot at the end of an aisle) to display their product only. Some feel that it is an exclusivity practice that leaves out smaller businesses that cannot compete with the fees required by retailers. The process was for manufactures to introduce new product to customers. But it is now a wide spread practice to charge a fee to keep their mature (older) products on the shelf. The practice allows for retailers to build their market power. Pros and cons of slotting allowances: 1) Pros a) It helps to improve distribution efficiency b) Signals the quality of new product c) Retailers are able to screen the product for their stock d) Better use of limited space e) Increase the number of new...
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...perfectly competitive markets, market participants have no market power. A firm with total market power can raise prices without losing any customers to competitors. Market participants that have market power are therefore sometimes referred to as "price makers" or "price setters", while those without are sometimes called "price takers". Significant market power occurs when prices exceed marginal cost and long run average cost, so the firm makes economic profits. A firm with market power has the ability to individually affect either the total quantity or the prevailing price in the market. Price makers face a downward-sloping demand curve, such that price increases lead to a lower quantity demanded. The decrease in supply as a result of the exercise of market power creates an economic deadweight loss which is often viewed as socially undesirable. As a result, many countries have anti-trust or other legislation intended to limit the ability of firms to accrue market power. Such legislation often regulates mergers and sometimes introduces a judicial power to compel divestiture. A firm usually has market power by virtue of controlling a large portion of the market. In extreme cases—monopoly and monopsony—the firm controls the entire market. However, market size alone is not the only indicator of market power. Highly concentrated markets may be contestable if there are no barriers to entry or exit, limiting the incumbent firm's ability to raise its price above competitive levels...
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...Analysis No. 1: Competitive Intelligence Predicament 1. Central Problem The central problem of the case is the possession of a competitor’s information that can be beneficial to the company in terms of competitive advantages. 2. Objective The objective of the case is to be able to judge whether to utilize the provided information to the advantage of the company although wrongfully obtained. 3. Areas of consideration Areas to be considered are the legality of the document obtained, the benefits of the information contained in the document, the manager’s reaction should the task is not accepted, higher managements point of view in such an action – do they tolerate or not, the legal consequences should the document be utilized, and the impact to the organization should the illegal act is found out. Also consider if this is a test of honesty for you – if you would accept to do the task. 4. Alternative Course of Action The alternative course of action is simply not to utilize the information. 5. Recommendation Competitors data obtained in an unethical manner, at worse illegally, is punishable by corporate laws. The recommended action is not to use the information. In most multinational companies a corporate compliance virtue is formed into each employee, wherein each decision made must be in accordance to what is legally right. Corporations with no established corporate virtue, had been fined, and at worst closed down due to unfair business practices. Sustainability...
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...Measuring the Effectiveness of Business Practice Laws Jennifer Torres Fuentes DeVry University Measuring the Effectiveness of Business Practice Laws In the world of business, laws that are intended to protect and ensure fairness amongst competitors and consumers have their ups and downs when it comes to how effective they really are. There are various policies and procedures that are put in place in an attempt to promote fair, balanced and competitive business practices, whose effectiveness suffers because of a lack of enforcement to their terms. Until society as a whole owns up to how badly we have reverted into unethical and demoralized behavior, the effectiveness of laws put into place to encourage us to practice socially responsible behavior will not be effective. When the needs of the many supersedes the needs of the few, only then will these laws, policies and procedures put in place to encourage socially responsible behavior being to have any real effect. The Federal Trade Commission (FTC) enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation. The Commission has enforcement or administrative responsibilities under more than 70 laws. They are grouped in three categories: (a) Statutes relating to both the competition and consumer...
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...Law relating to unfair trade practices Definition: An unfair trade practice means a trade practice, which, for the purpose of promoting any sale, use or supply of any goods or services, adopts unfair method, or unfair or deceptive practice. Unfair practices may be categorised as under: 1. FALSE REPRESENTATION The practice of making any oral or written statement or representation which: * Falsely suggests that the goods are of a particular standard quality, quantity, grade, composition, style or model; * Falsely suggests that the services are of a particular standard, quantity or grade; * Falsely suggests any re-built, second-hand renovated, reconditioned or old goods as new goods; * Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have; * Represents that the seller or the supplier has a sponsorship or approval or affiliation which he does not have; * Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; * Gives any warranty or guarantee of the performance, efficacy or length of life of the goods, that is not based on an adequate or proper test; * Makes to the public a representation in the form that purports to be- * *# a warranty or guarantee of the goods or services, a promise to replace, maintain or repair the goods until it has achieved a specified result, if such...
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...Consumer Protection Act 1986: After liberalization of economic policy, consumer goods have flooded the market as never before. Both foreign and India companies are introducing new products and brands with glossy and fancy packing as the middle and lower income groups are taking loans to-Companies still do not pay attention to the quality of their products and also do not value customer satisfaction. Very often a customer may get taken in by a misleading advertisement making tall claim as to the high quality and after-sales service. The consumer may discover later that the goods purchased by him are not up to the claims made by the manufacturer. Companies are not willing to invest in efficient after-sales service so long as their sales keep increasing. Newspaper columns can be seen to be full of complaints and many companies do not care to rectify the complaints. To enable the consumer to have his right to a deal, the consumer protection Act was passed in 1986. The Act promises to rectify all that and make accountant both the manufacture; s and providers of service. It provides for toe setting up of quasi-judicial bodies at district, state and national label for quick and inexpensive redressal of consumer grievances. Three groups-the consumer, registered voluntary consumer associations and the central and state government is covered by this facility. In case a group of person is seeking similar redressal, a class action suit can be filed or may be treated as a public interest petition...
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...January 1, 2012 8:52 PM Chapter 44 Lecture Note # 1 by Spring Walton Note edited by Spring Walton on 01/03/2012 08:07PM Chapter 44 Consumer Protection I. Introduction Consumer law issues include those of contracts (including UCC sales), torts, crimes, and product liability, often acting as a backup to the failures and shortcomings of those other areas of the law. All of them provide some measure of consumer protection, yet none stand alone as being complete. They are interdependent and, as such, students must be aware of the big picture of consumer protection. This chapter covers the fourth major set of venues within a quadripartite of remedies available to a wronged or injured consumer. First, there is criminal law. Victims of consumer fraud and similar offenses have always been able to seek state-supported sanctions against wrongdoers. This venue may provide some ephemeral satisfaction for the victim and may even, at least temporarily, protect society from further harm. But criminal law does not truly make the victim whole. As a matter of fact, most of the miscreants convicted of consumer fraud are also judgment proof, i.e., they have no assets from which civil judgments can be satisfied. The second area of consumer protection is found in tort law and the permutations of intentional tort, negligence tort, and strict liability. These remedies can and do provide meaningful substance to civil correction of wrongdoing...
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...country, they will look at the political stability of the country which will determine whether they open the store or not. Great Ormond Street is also affected by political stability. If the country has good stability, Great Ormond Street will be able to get funding for their charity and hospital. Also if the country is stable, people will have more money to donate to GOSH. If the country is unstable, it will affect the decisions that the charity makes. Government support Government support means the way the government helps out the community by giving their support in order to help others. Things such as funding come from the government to help businesses grow. Tesco isn’t really helped out by the government as it is a well-recognised business that has established itself to become one of the most successful food stores in the UK and the world. The government will hardly ever fund Tesco as they are a multi-billion pound company. The government tend to only help Tesco out with planning permission for new stores. When Tesco want to open a new store it has to go through the government...
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...accounting firm, Ernst and Young, were hired to audit code compliance by making spot checks at Nike factories. In that audit was information concerning Nike factory conditions and how the workers were being mistreated. The audit claimed that Nike workers in Southeast Asia were exposed to toxic chemicals, subjected to physical, verbal, and sexual abuse, forced to work an illegal excess overtime at minimum wage, and suffered poor hygiene. Nike, trying to save their company spent many years claiming that these accusations were false. However, when people compared claims from Nike to the audit, they found some of the details to be inaccurate and/or misleading. Marc Kasky, a California resident and activist, sued Nike for unfair and deceptive practices under California's Unfair Competition Law. Kasky alleged that Nike made "false statements and/or material omissions of fact" concerning the working conditions under which its products are manufactured. Nike filed a demurrer, contending that Kasky's suit was absolutely prohibited by the First Amendment. The California Supreme Court dismissed the case as “improvidently granted.” However, late in 2003 Kasky and Nike announced a settlement. In return for Kasky dropping the case, Nike agreed to give $1.5 million to an industry-friendly factory monitoring group. Analysis Kasky, in my opinion, was correct and had good intentions when he sued Nike. He wasn’t in it for the money, instead he believed in human rights and he advocated for change...
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