...conversant with the foods they eat and are aware of the nutrition, there is a need for regulation in relation to food labeling. This is made possible by the Food and Drug administrators, which has extended the compliance data to May in 2018, where all the restaurants are required to disclose the specific diet info for the typical menu items for precise eateries and parallel retail food stores. Extension of the food labeling rule has been seen by many as very beneficial in that it will ensure reduction of costs to the covered establishments which are associated with the extension of the compliance date by one year. The regulation by the FDA is in place because it will promote the well-being of the consumers who will be aware of the products they consume. Consequently, consumers will be more aware of the specific nutrients in the foods they consume in the respective restaurants. Food labeling will also ensure that restaurants are more transparent to the customers, where they will have to reveal all the nutrients information of the foods they offer to the clients visiting them. The provision of information concerning the nutrients will greatly assist in also the pricing, where restaurants will have to provide prices that are relative to the type of food nutrients they offer in their...
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...Fast Food Regulations People need food for energy and to stay active. When you eat healthy, you stay healthy and active and running. People need to eat fruits and vegetables and a good source of protein to stay going right. Fast food is not good food,for people to eat everyday. Most of the fast foods that people eat each day isn't the real type of food. Fast food restaurants usually don't use real food ingredients, they usually use other ingredients such as milk, breading, flour, etc. There should be fast food regulations to reduce BMI/obesity,reduce ads to kids,and remove unhealthy ingredients. We need to reduce BMI/obesity by eating less unhealthy thing like fast food and junk. Grover says " they found that the annual fast food transactions increased". This means that the numbers of fast food increased because people are eating more than they need. Grover states that:" They found that the average number of annual transactions increased." This means that the amount of fast foods increased. We need to reduce BMI/obesity by eating less junk food....
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...“Do we need more regulation on food? Why or why not?” Food regulation is a developing concept that constantly requires attention and iteration in order to minimize food safety and health risk and best manage and communicate these risks. Food Regulation is the production, processing, distribution, retail, packaging and labeling of food items and constituents that are governed by a mass of laws, regulation, codes of practice and guidance. Similarly, food safety is a scientific discipline describing handling, preparation and storage of food to prevent foodborne illness. Though similar, the differentiating factor is that food safety informs food regulations. Consider food safety as the assessment and food regulation as the management and communication domains to reduce risks. The current piece will evaluate the scope of food regulation and look at how it has been developing over the years. The current piece highlights the mechanism of food regulation, explores major players and shares several differentiated case studies to further navigate food regulation problems and implementations. Over the course of history, food regulations, both proposed and implemented, have represented the primary concerns that arose during a certain period of time. Food regulation has been enforced since 300 BCE and since then, one of the most important food regulations was enacted in 1906 through the Pure Food and Drugs Act. The Pure Food and Drugs act prohibited interstate commerce...
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...a business from selling the same item to one company for a different price while selling the same item to another company for a different price. This protects smaller businesses by limiting the large company's ability to command discriminatory discounts through its purchasing power. (Robinson-Patman Act, 2014) Federal Trade Commission Act enforces the other three antitrust laws by preventing unfair competition and deceptive practices. This act discourages businesses from entering into unlawful competition. B1. Industrial regulation deals with the government regulation of a business pricing in certain markets. It helps to decrease the control of oligopolies, prevent conspiracy and increase competition among companies. This regulation helps the consumer know that oligopoly businesses are prevented from charging unfair prices. B2. The justification for industrial regulation is to prevent monopoly power from becoming abusive. This regulation allows the consumer to benefit from the reduced price of a natural monopoly (public utilities) while avoiding the cut in yield linked with an free monopoly. The government tries to form rates which cover the...
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...The Food and Drug Law Institute, which was founded in 1949, is a non-profit organization that provides a marketplace for discussing food and drug law issues through conferences, publications and member interaction. The range of this organization includes drugs, food, animal medications, biologics, medical devices, tobacco and dietary supplements. The Food & Drug Law Institute goals are to keep attorneys and litigators at all experience levels, regulators, compliance experts, and food and dietary supplements industries current on the changing trends in enforcement, litigation, and compliance. The FDLI (Food and Drug Law Institute) mission and ethical principles are to train and educate its stakeholders on topical food and drug laws; act as a liaison to promote networking as a means to develop professional relationships and idea generation; and ensure an open, balanced marketplace of ideas to inform innovative public policy, law, and regulation. The role of the Food and Drug Law Institute and as well as the Food and Drug Administration is to ensure informed conversation and problem solving in critical areas of food and drug law policy and regulation. Another role of this organization is intended to enhance the safety of regulated products and increase consumer’s confidence in those products. This also includes with the combination of private standards, public laws and regulations. FDLI is not considered as an advocacy organization and does not promote positions for regulations...
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...investment decisions will help determine the productivity6 level, cost, and future cash flow. The plan is to expand the low-calorie frozen, microwavable food company which is currently facing increased cost for the major ingredients of the product. This paper will outline a plan that managers in this company could follow in anticipation of raising prices when selecting pricing strategies for making the products response to a change in price less elastic. Next, this paper will examine the major effects that government policies have on production and employment, predict the potential effects that government policies could have on the company, determine whether or not government regulation is needed to ensure fairness along with identifying the major reasons for government involvement in a market economy, provide two examples of government involvement, examine the major complexities that would arise under expansion via capital projects and propose key actions that the company could take in order to prevent or address these complications. Lastly, this paper will suggest the substantive manner in which the company could create a convergence between the interest of stockholders and managers and indicate the most likely impact to profitability of such a convergence. Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less...
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...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...
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...University Regulating the Market When it comes to the business world, there are two types of regulations that must be taken into account and understood. The first is industrial regulations and the second it social regulations. The part they play for businesses has the ability to affect the market in what can be deemed both beneficial and harmful ways. Industrial regulations by definition, is the governments old-fashioned way of regulated prices as well as the products provided to consumers in certain industries (Author, 2011, pg. __) Once industrial regulation is understood, the question of why it exists comes into play. Based on the theory mentioned in our textbook called “public interest theory of regulation,” we see that industrial regulation is important because it allows the government to keep natural monopolies from charging prices that would only be needed if there were several companies all producing the same products and competing with one another (2012, pg. __). The main reason for these industrial regulations: to keep these natural monopolies from harming both their consumers as well as society. For example, electricity, gas, and cable television are some of the entities that are affected by these regulations in regards to market structure. (Need to do part 3 and 3a. of section A) Turning to another type of regulation found in the business world, we find social regulations is defined as the governments interest in what condition products and services that businesses...
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...The four major pieces of legislation collectively known as the Antitrust Laws are the Sherman Act (1890), Clayton Act (1914), Federal Trade Commission Act (1914) and the Cellar-Kefauver Act (1950). The Sherman Act was the first Anti-trust law put in place. It was designed to break up existing monopolies that were already in place. The act stated that it was illegal to contract inhibit trade. It also made it illegal to try and monopolize industries or to have a monopoly of an existing industry. While the intentions were admirable this act was extremely vague and had very little clarity. Both the legal system and businesses were unclear as to what was legal and what was illegal. In an effort to provide more clarity and definition the Clayton Act was passed in 1914. This act was far more defined the Sherman Act and provided more structure and definition regarding legal versus illegal behavior. This Act specifically outlawed the practice of price fixing and the use of tying contracts. The Clayton Act also prohibited a company from buying out a competitor in order to reduce or prevent competition. The last major component of this legislation was the provision that stated that it was illegal for to be “interlocking directorates”. For example the CEO of a company cannot sit on the board of Directors of its competitor. This legislation made this conflict of interest illegal. Also in 1914 the Federal Trade Commission Act was passed. This legislation the government agency known as the Federal...
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...Industrial Regulation is the regulation on an entire industry by the government. This form of regulation exists to safeguard industry prices and to prevent the formations of monopolies. One of the key reasons of industrial regulation is to protect the consumer from being taken advantage of. Industrial regulation can affect the market by passing on higher prices to the consumer as a result of higher production costs. Do to the lack of competition in certain industries industrial regulation could lead to x Inefficiency in the market place. This form of regulation could also affect the market by keeping a monopoly in power long after natural monopoly conditions have expired. The regulation of natural monopolies affects the market by protecting consumers from high prices. Regulations are put into place, allowing monopolies to receive fair profits and returns on their business enterprises. The entities that are affected by industrial regulation in terms of market structure are natural monopolies and oligopolies. Natural monopolies are affected by industrial regulations through perfect competition. When you have monopolies new business are not allowed into the industry and with the firm that has the industry monopolized that one firm is the consumer’s only option. The other market structure affected is by industrial regulation is the oligopoly. Oligopoly is a group of a few large firms controlling an industry. Regulations affect this market structure by deterring the firms within...
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...and Global Business Applications Introduction: The study of government regulation and the competitive environment for business is relevant to all those who study business. All business candidates need to understand how the competitive environment will impact their employers and businesses. Task: Write an essay (suggested length of 2–3 pages) that describes the relationship between regulation and market structures and how regulation affects the market. A. Define industrial (i.e., economic) regulation. Industrial Regulation happens when government commissions regulate the rates or prices of natural monopolies. 1. Explain why industrial regulation exists. In a market structure of perfect competition industrial regulation is not required because there is a lot of competition and this encourages competing industries to make good use of resources, also the price of their goods are determined by the price the market will bear and consumers benefit. Whereas in a monopolistic competition there exists a market structure that could allow competitive monopolies, duopolies, oligopolies, and monopolies to charge higher than competitive prices or the use inefficient use of resources and limited supplies, creating an environment that is not conducive to the benefit of the consumer. . (McConnell, Brue & Flynn, 2012) 2. Explain how industrial regulation affects the market. Industrial regulation affects the market by keeping prices for natural monopolies such as public...
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...multiple companies that would lead to reduced competition. Federal Trade Commission Act of 1914: This act created the Federal Trade Commission which works with the Justice Department to enforce antitrust laws. This enables the FTC to investigate unfair competitive practices, hold hearings on complaints, and issue cease-and-desist orders when it finds potentially illegal activities. Celler-Kefauver Act of 1950: There was a loophole in the Clayton Act in Section 7 that allowed firms to acquire physical assets from another firm, effectively reducing competition. The Celler-Kefauver Act closed this loophole. B. Discuss the intended purpose of industrial (i.e., economic) regulation as it applies to the following market structures: 1. Oligopoly Oligopolies can be regulated by price regulation. This helps to reduce the market power of...
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...producers of low calorie microwavable food have been expecting a change in price and they want to choose the price strategy which would make their product less elastic and responsive to changes in the prices, then the company should make careful analysis of the entire market situation. The company should look for the substitute goods in the market and their pricing strategy. Higher the number of substitutes are available, higher will be the chance of rise in elasticity of our low calorie microwavable food. The buyers should not have many options to buy from the market. However, if there are only few substitutes available, then the producers may keep the price high in the market of their product. It is also determined by the market power of the producer. Market power is determined by the elasticity of demand of the product. The firm can set higher mark-up over their marginal cost if they know that customers will not shift to another product in case of price increase. Hence, the firm or the producer should consider the cross price elasticity of demand of their product. Another factor to be considered while setting up prices of their product in the market is that of government policies in the economy. Fiscal policy would determine the taxes and other components of aggregate demand. If the firms have set higher taxes, then people would have less disposable income available with them and they would like to spend less on such less calorie microwavable food items because such items are not...
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...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...
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...legislation. The Clayton Antitrust Act ○ passed to prohibit mergers and acquisitions when those would substantially lessen competition. ○ enabled state attorney generals the ability to prosecute and enforce federal antitrust laws. ○ outlawed price discrimination, regulated stock acquisitions, and tying contracts ○ The Robinson - Pitman Act amended the Clayton Antitrust Act by banning discriminatory business practices. Celler-Kefauver Act 1950 ○ passed to regulate the acquisition of firms that were not in direct competition ○ limited mergers that would result in less competition in a market (Research Paper by Eveningepiphany. (n.d) B. Discuss the intended purpose of industrial (i.e., economic) regulation as it applies to the following market structures: 1....
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