Legal Aspects of Business
Taxes, Laws, and Acts
Federal Unemployment Tax Act
• Provides unemployment compensation for people who’ve lost their jobs
• Payroll tax
• Paid by employers on employee wages
Securities and Exchange Commission
• Regulates securities and protects investors
Federal Communications Commission
• Regulates radio, TV, wire, satellite communications
• Both within and out of the U.S.
Sherman Act
• Anti monopoly
• Eliminates merging of companies
Federal Trade Commission
• Protects against false advertisement and restricts unfair competition
Taxes
Proportional, Regressive, Progressive
• Proportional-same percentage for all classes
• Regressive-higher income pay lower percentage taxes, lower income pays higher taxes
• Progressive- higher income pays higher taxes
Internal Revenue Service
• Tax collection and enforcement
Food & Drug Administration
• Regulates food and medication to assure safety
Age Discrimination Act in Employment Act
• Prohibits employee discrimination from ages 40-70
Licensing, Public Franchise, Building Codes,
Zoning
• Licensing-permit to operate
• Public franchise-a right granted from the gov. to carry out specific commercial
activities.
• Building codes-regulation for construction
• Zoning-regulates different types of land use for development
Social Security Act
• Deducts 6.2% from the employee and the employer each paycheck
Equal Employment Opportunity Commission
• Handles workplace discrimination
Types of Bankruptcy
• A legal proceeding that involves a person or
business that is unable to pay outstanding debts
• Chapter 7-individuals
• Chapter 11- companies
• Chapter 13- need court approval and courts
monitor your finances
State & Local Regulations
Interstate & Intrastate
• Interstate-trade between states and outside of
• Intrastate- trade within the states
Types of Taxes
Income, Sales, Excise, Property
• Income-largest annual source of income levied on personal income by the gov.
• Sales-tax on retail goods and services
• Excise- tax on specific goods (ex. Gas)
• Property- annual amount paid by the landowner to the local gov.
Environmental Protection Agency
• Protects humans and environmental health
Wheeler-Lea Act
• Prohibits false advertisements i.e. food, drugs, cosmetics
Fair Labor Standards Act
• Regulates minimum wage, working hours, child labor, overtime, working conditions
National Labor Relations Act
• Protects the rights of workers to form unions
Clayton Act
• Prohibits merger to lessen competition
• In addition to the Sherman anti-trust act
Robinson-Patman Act
• Prohibits anti-competitive practice by producers specifically price discrimination
Federal Aviation Administration
• Enforces air safety and traffic control
• Inspects and rates aircrafts and pilots
Americans with Disability Act
• Prohibits discrimination against people with disabilities and employment,
transportation, public accommodations, communications
The Electronics Communications Privacy Act
• Restricts the government to tap into computer databases
Occupational Safety & Health Laws
• Health and safety regulations in the workplace
American Civil Liberties Union
• Organization of lawyers that defend the civil rights of U.S citizens
Right to Work States
• Can’t be forced to join a labor union