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As an entrepreneur, there are laws that affect
almost every aspect of your business.
Even the competition that business face is
regulated by the government
To make sure that competition is fair, the
government has enacted various laws to help
protect businesses.
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Antitrust Legislation – begin in 1890 created
to make monopolies in certain industries
illegal.
◦ Sherman Act – makes it illegal for competitors to
get together and set prices on the products or
services they sell.
◦ Clayton Act – law states that it is illegal for a
business to require customer to buy exclusively
from it or to purchase one good in order to be able
to purchase another good.
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Robinson-Patman Act – This law protects
small businesses from unfair pricing practices
Wheeler-Lea Act – This law bans unfair or
deceptive actions or practices by businesses
that may cause an unfair competitive
advantage.
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The Antitrust Division of the Justice
Department and the Federal Trade Commission
are two government agencies that work to
make sure competition remains fair.
Justice Department – takes legal action against
any businesses it believes has tried to
monopolize an industry.
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Federal Trade Commission – FTC deals with
issues that touch the economic life of every
American
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Patents – is the grant of property right to an
inventor to exclude others from making,
using, or selling his or her invention.
Copyrights – is a form of intellectual property
law that protects original works of
authorship, including literary, dramatic,
musical and artistic works.
Trademarks – is a name symbol, or special
mark used to identify a business or brand of
products.
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Licenses – state and local governments
require some businesses to have licenses –
beauty salons, restaurants, and health and
fitness centers etc.
Zoning Laws – local governments often
establish zoning regulations that control what
types of buildings can be built in what areas.
Like business and residential.
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The Federal Food, Drug and Cosmetic Act of
1938 – bans the sale of impure improperly
labeled, falsely guaranteed and unhealthful
foods, drugs and cosmetics.
The Consumer Product Safety Act of 1972 –
sets the safety standards for products other
than food and drugs. Can cause a product
recall.
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The Truth-in-Lending Act of 1968 – requires all
banks to calculate credit costs in the same way.
When consumer gets a loan the lender must
provide 2 types of info about the loan’s cost—the
finance charge and the annual percentage rate.
The Fair Credit Billing Act of 1974 – is part of the
Truth and Lending Act and helps consumers
correct credit card billing errors. Also gives the
consumer a method for resolving problems
relating to product quality.
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An entrepreneur you will need to decide when
you should seek advice and when you can
handle the situations on your own
◦ Hire an attorney – can help you with legal issues.
◦ Contracts - when entering legally binding
agreements between 2 or more persons or parties