Goals Chapter 5
Identify the different kinds of laws that affect
businesses.
Describe the different kinds of laws that protect
workers on the job
Explain how tax laws affect business profits
Explain the differences between copyrights,
patents, and trademarks
The Main Idea – Chapter 5
This chapter discusses many different laws and
their effects upon businesses
5.1- Describes laws that affect business operations
Government Regulation of Business
•
•
Federal, state and local
governments enforce
these laws
Fines, penalties, loss of
license, even jail for not
following laws:
Regulations
Rules that government
agencies issue to
implement laws.
Six areas of law that affect business operations:
Corporate law
Tax law
Intellectual property law
Consumer law
Commercial law
Licensing and zoning law
You teach the class…six areas of business law
Create a poster with:
– Term and definition
– List of at least three examples that go further into
topic so you can teach us about it
– If your topic has a vocab word associated with it, be
sure to teach us about it.
– Graphic illustration(s)
Begin your poster with “Government Regulations: your
group’s law
1. Corporate Law
Some businesses have thousands of
employees and some just have the owner.
Laws regulating the three types of business
ownership:
– Proprietorships
– Partnerships
– Corporations
Corporate Law – Sole proprietorship
•
Simplest kind of business
to start up
•
All you have to do is start
doing business and you
are a sole proprietor!
•
Must file proper paperwork
to be legal
Sole proprietorship
Business owned by a
single individual, or
proprietor.
What are some advantages and
disadvantages to being a sole proprietor?
Corporate Law – Partnership
• Must sign a
partnership
Partnership
agreement
Two or more persons who
• Pays less taxes than
a corporation
jointly own a business
What are some advantages and
disadvantages of a partnership?
Corporate Law – Corporation
• Must fill out Articles
of Incorporation
• Corporations exist
apart from its
owners and can be
taxed/sued as it
were an individual
Corporation
Business formed under
state or federal status and
is authorized to act as a
legal person.
What are some advantages and
disadvantages of a corporation?
Advantages of Corporations
Limited liability
Ability to raise
money by
selling stock
Business does
not end when an
owner dies
Disadvantages of Corporations
Double taxation
More government
regulation
1. Income is taxed.
2. Stockholders pay taxes on
profits issued to them
Difficult and
costly to start
Figure 6.1
U.S. Sole
Proprietorships,
Partnerships, and
Corporations
Debate time!
Once formed into 4 groups, you will be
either representing THE GOVERNMENT or
CORPORATIONS
You and your group will prepare to debate
against another group on why you feel
strongly on the following:
Corporations – Anti taxes
Government – Pro taxes
-1st affirmative speech. 3 min
Cross examination 2 min
-1st negative speech. 3 min
Cross examination 2 min
-2nd affirmative speech. 3 min
Cross examination 2 min
-2nd negative speech. 3 min
Cross examination 2
--4 minute rebuttal prep—
-Negative rebuttal. 2 min
-Positive rebuttal. 2 min
2. Tax Law
Taxes are monies paid by corporations and
individuals and are used to fund gov’t
programs and services. – highways, schools
Tax law – Income Tax
• Businesses pay many
taxes, but the most
important one is I.T.
• If the I.T rate is 30%,
how much will a
business pay that
made $200,000 in a
year?
• $60,000!!!!!
Income tax
A tax levied against a
business’s profits.
Tax law – Property tax
• Based on an
assessed valuation
according to a tax
assessor.
Property tax
Taxes levied against the
property, buildings, or
land owned by a
business.
Partner up – someone you haven’t worked
with
Imagine that you own a pizzeria. You have
invented an oven that cooks pizza til the crust is
perfect and only takes one minute.
Recently, a former employee quit and opened her
own pizzeria and she knows how to make your
special oven.
How will you keep her from copying your oven?
With your partner…
First learn the characteristics of a patent,
copyright and trademark
Prepare a list of at least five patents, five
copyrights, and five trademarks owned by
companies and nonprofit organizations.
Explain how these assets contribute to the
success of the organization.
Be able to discuss why intellectual property is
important
Git off
mah
yaard!
Protection of Intellectual Property
Intellectual Property – is purely intangible
with no physical characteristics – no one
can touch it. But it still is someone’s
property.
Examples are patents, copyrights and
trademarks.
Patents
• When individuals or
companies create new
products, they may
obtain a patent.
• What happens after 17
years?
patent
Gives the inventor the
exclusive right to make,
use and sell their
inventions for 17 years.
Trademarks
Businesses register company
names, team emblems, and
label designs with the patent
and trademark office.
Trademarks can be very
valuable. ® trademarks are
good for 10 yrs and can be
renewed after those 10 yrs
They are also called logos
Forced to shave logo
trademark
A word, name, symbol, or
slogan a business uses to
identify its own goods to
set them apart from others
Copyrights
Copyright protection lasts
for the life of the person
receiving the copyright.
It also extends 70 years
after the person’s death!
copyright
Protects the creative work
of authors, composers,
and artists.
Copyright
Copyright Infringement
Copyright OK!
Queen 1981 “Under
Pressure
Marva Whitney’s 1967
“Unwind yourself”
Vanilla Ice 1989 Ice Ice
Baby
vs
The 45 King’s 1987 “900
Number”
DJ Kool 1996 “Let me clear
my throat”
Mac Miller 2011 “Party on
5th Ave”
Contract Enforcement
Contracts are another
example of government
protection.
Contracts can be written
or unwritten.
4 main parts of a contract
must happen for it to be
valid:
contract
An agreement to
exchange goods or
services for something of
value, usually money
Contract Basics
1. Agreement - An offer must be made, and
acceptance must occur.
2. Competent Parties – Those entering into
the contract must be of legal* age and must
be mentally competent.
* 47 states must be 18 years old. Nebraska
and Alabama 19, America Samoa (a US
territory) – 14! Mississippi – 21!
Contract Basics
3. Consideration – Something of measurable
value must be exchanged by the parties
involved.
4. Legality – The contract must be for a
product or service that may be legally sold;
also, no fraud or deception exists in the
agreement.
Again – Main parts of a contract
Agreement
Competent Parties
Consideration
Legality
One of your most important clients is late paying
your recent invoice because of a computer
problem. Since your client has not paid you, you
cannot pay all of your bills. However, you could get
by if you did not pay your rent for the month.
Decision Making What are some ways of handling
this situation so that you maintain relationships with
your clients, landlord, and other vendors while
acting ethically?
Answer
Answers might suggest that being honest with
everyone up front will help you maintain good
relationships. It would also be appropriate to let
your client know that their late payment is
affecting you.