PowerPoint Presentation

Section 8.2
 Pages 128137
8.2
Handling Government
Regulations
What you’ll learn
 The
laws that affect the
hiring of employees
 The laws dealing with trade
issues
 The laws dealing with taxes
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Handling Government
Regulations
Why it’s important
 Handling
government
regulation is an ongoing
expense
 Learning regulations while
researching business can
prevent problems.
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Handling Government
Regulations
Key Terms
Equal Opportunity Employment
Commission
wrongful termination
price discrimination
Uniform Commercial Code
warranty of merchantability
bait-and-switch
FICA
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Handling Government
Regulations
I. BUSINESS LAWS
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Regulations
II. LAWS THAT AFFECT
EMPLOYEES
There are many laws that
affect the hiring, firing, and
paying of employees.
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Regulations
III. LAWS AGAINST
DISCRIMINATION OF
HIRING
A. The Equal Employment
Opportunity Commission
(EEOC) protects the rights
of employees.
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Regulations
B. The EEOC ensures that
employers do not
discriminate based on age,
race, color, national origin,
religion, gender, or physical
challenge.
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Regulations
IV. WRONGFUL
TERMINATION
When an employee is fired
for reasons, it is called
wrongful termination.
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V. EQUAL PAY ACT OF
1963
This act states that all
employers must pay men
and women the same wage
for the same work.
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Regulations
VI. FAIR LABOR STANDARDS
ACT
A. The Fair Labor Standard
Act established a minimum
wage and maximum
working hours.
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Regulations
B. Children under 16 cannot work
full time, unless employed by
their parents.
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VII. OCCUPATIONAL
SAFETY AND HEALTH
ACT
OSHA was passed in 1970 to
ensure safe and healthy
employee working
conditions.
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Regulations
VIII. DEALING WITH
TRADE ISSUES
Key trade laws were
created to preserve
competition and fairness in
the workplace.
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Regulations
IX. PRICE
DISCRIMINATION
Price discrimination occurs
when a business sells the
same product to different
people at different prices.
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X. CONSUMER PROTECTION
Most laws are designed to
protect consumers.
A. Unscrupulous sellers
B. Unreasonable credit terms
C. Unsafe products
D. Mislabeling of products
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Regulations
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XI. THE FOOD AND DRUG
ADMINISTRATION
The FDA researches and tests
new products, and inspects the
operations of food and drug
manufacturers.
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Regulations
XII. THE CONSUMER
PRODUCT AND SAFETY
COMMISSION
The CPSC creates safety
standards for products.
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Regulations
XIII. THE CONSUMER
PRODUCT AND
LABELING ACT
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A. The Consumer Product and
Labeling Act requires that
manufacturers truthfully list all
raw materials used in the
production of products.
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B. It also requires that a
product’s size and weight be
on the label.
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Regulations
XIV. THE UNIFORM
COMMERCIAL CODE
A. The Uniform Commercial
Code (UCC) applies to
sales transactions between
merchants.
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B. The UCC covers everything from
sales to bank deposits and
investment securities.
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Regulations
XV. FORMATION OF
CONTRACTS
A valid contract includes the
terms of price, place, delivery
date, and quantity.
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Regulations
XVI. WARRANTIES AND
PRODUCT LIABILITY
A warranty of merchantability
assures that a product is of at
least average quality and fit
for the purpose for which it
was intended.
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Regulations
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.
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B. The Truth in Lending Act is
regulated by the FTC and applies
to anything purchased over a
period of time greater than four
months.
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XVIII. TRUTH IN
ADVERTISING
Misleading ads are
illegal.
B. Sales prices only may be
offered after regular
prices have been
established.
A.
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C. Price comparisons must
include actual sold-for
amounts.
D. Bait-and-switch advertising
uses a lower priced item to lure
potential customers into a
store.
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XIX. PAYING TAXES
All business owners whose
goal is to make a profit are
responsible for certain taxes.
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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.
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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.
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E. Business Income Tax: federal
and possibly state and local
taxes on the income a business
earns.
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XX. GETTING LEGAL
ADVICE
A. American Bar Association
B. National Resource Center
for Consumers of Legal
Services
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Regulations
C. Commissioner of Patents and
Trademark
D. IRS
E. Local Library
F. Internet
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Regulations
End of Section 8.2