Chapter 8
Legal Issues Facing Start-Ups
I. PROTECTING YOUR IDEAS
How do you protect a marketable idea for a product or service?
II. WHAT ARE YOU TRYING TO PROTECT?
The group of laws that affects how ideas are protected is called intellectual property.
III. PATENTS
A. A patent is
B. A patent lasts for 21 years.
C. There are four rules to determine if a product is patented.
1.
2.
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3.
4.
IV. THE PROCESS
A.
B.
C. Confirm
D.
V. THE PATENT SEARCH
A. Patent-applied-for status means
B. If the PTO declares that one’s claims are accepted, the patent is patent-pending status
until the patent is issued.
VI. COPYRIGHTS
A. A copyright
B. A copyright lasts for 50 years.
C. After 50 years, the work goes into public domain--
VII. TRADEMARKS
A. A trademark is
B. Trademarks are followed by the registered trademark symbol ®.
C. A service mark is
VIII. LAWS AFFECTING STARTING UP YOUR BUSINESS
Certain legal requirements are fundamental to your ability to do business.
IX. PERMITS AND LICENSES
A.
B. Certain professions require licenses
X. CONTRACTS
A. A contract is
B. A contract must contain four parts to be binding.
1.
2. Consideration-3. Capacity-4.
XI.
CHOOSING A LOCATION
Where should you locate your business?
XII. CONTRACTS
A. Cities typically designate particular areas, or zones.
B. Laws that relate to the actual construction of a facility are called _______________.
XIII. LEASING
A. A lease is
B. The lessee is
C. The ownership rights belong to the ____________.
Handling Government Regulations
I. BUSINESS LAWS
II. LAWS THAT AFFECT EMPLOYEES
There are many laws that affect the hiring, firing, and paying of employees.
III. LAWS AGAINST DISCRIMINATION OF HIRING
A. The Equal Employment Opportunity Commission (EEOC)
B. The EEOC ensures that employers do not discriminate based on
IV. WRONGFUL TERMINATION
When an employee is fired for wrongful reasons, it is called wrongful termination.
V. EQUAL PAY ACT OF 1963
This act states that all employers must pay men
VI. FAIR LABOR STANDARDS ACT
A. The Fair Labor Standard Act established a
B. Children under 16 cannot work
VII. OCCUPATIONAL SAFETY AND HEALTH ACT
OSHA was passed in 1970 to ensure safe and healthy employee working conditions.
VIII. DEALING WITH TRADE ISSUES
Key trade laws were created to preserve competition and fairness in the workplace.
IX. PRICE DISCRIMINATION
Price discrimination occurs
X. CONSUMER PROTECTION
Most laws are designed to protect consumers.
A.
B.
C.
D.
XI. THE FOOD AND DRUG ADMINISTRATION
The FDA
XII. THE CONSUMER PRODUCT AND SAFETY COMMISSION
The CPSC
XIII. THE CONSUMER PRODUCT AND LABELING ACT
A. The Consumer Product and Labeling Act requires
B. It also requires that a product’s size and weight be on the label.
XIV. THE UNIFORM COMMERCIAL CODE
A. The Uniform Commercial Code (UCC) applies
B. The UCC covers everything from sales to bank deposits and investment securities.
XV. FORMATION OF CONTRACTS
A valid contract includes the terms of
XVI. WARRANTIES AND PRODUCT LIABILITY
A warranty of merchantability assures
XVII. TRUTH IN LENDING
A. The Truth in Lending Act requires those who give credit to reveal all the terms and
conditions of their credit agreement.
B. The Truth in Lending Act is regulated by the ______ and applies to anything
purchased over a period of time greater than four months.
XVIII. TRUTH IN ADVERTISING
A.
B. Sales prices only may be offered
C. Price comparisons must include
D. Bait-and-switch advertising
XIX. PAYING TAXES
All business owners whose goal is to make a profit are responsible for certain taxes.
A. Sales tax: a percentage of the price of an item that goes to a state or local government.
B. Payroll tax: deducted from employee earnings.
C. FICA: Federal Insurance Contribution Act, also known as social security.
D. The Federal Unemployment Tax Act (FUTA): designed to help workers who are
temporarily unemployed.
E. Business Income Tax: federal and possibly state and local taxes on the income a
business earns.
XX. GETTING LEGAL ADVICE
A.
B.
C.
D.
E.
F.