ENT-Government regulation part 2

• Entrepreneurship
• Secondary Education

Which are the areas that the government regulate?

Answer in the chatbox.

Chapter 8.2:

Handling the government regulation

Pages 181-189

Objectives

Summarize the laws that regulate trade

Compare the truth in Lending and truth in advertising

Evaluate the tax laws

Introduction

In general, the American government allows businesses to compete in the marketplace with relative freedom. However, since the early 1800s, many laws have been enacted that regulate and restrict business practices. These key trade laws were created to preserve competition and fairness in the marketplace.

Task 1

 Categorize the laws listed under the heads Business Owner,

Employee, Consumer. You should determine who is affected by the law. Some laws may fit into more than one category.

Arrange the items into business owners, employees, and consumers: Equal opportunity, federal unemployment tax; price discrimination, consumer protection child labor, wrongful termination, sexual harassment, Americans with Disabilities act, FLMA family medical leave, equal pay for equal work, fair labor standards, workplace health and safety, uniform commercial code, truth in lending, truth in advertising, sales tax.

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What are the laws that regulate trade?

What is the charging of different prices for the same product or service in different markets or to different customers?

1. Fair labor standards
2. Price discrimination
3. Family Medical Act
4. Workplace Safety and health

What is a group of laws that
regulates commercial business transactions?

Truth in Lending

Those involved in retail businesses must familiarize themselves with the Consumer Credit Protection Act. This act requires

those who give credit to reveal all terms and conditions of their

credit agreements. As a result, it is called the Truth in Lending

Act. Like price discrimination laws, it is enforced by the Federal

Trade Commission.

Truth in advertising

The Federal Trade Commission is also concerned with protecting customers from false and misleading advertising. The laws that address this trade issue are sometimes called truth-in-advertising laws

Find the difference between truth in lending and truth in advertising.

Which among the following is involves
advertising at a very low price to attract customers who are
then persuaded to switch to a more expensive product?

1. Bait and switch advertising
2. Advertising
3. Switch advertising
4. Wrongful advertising

Which among the following is when you can not offer a reduced price on your product unless it has been offered to the public at the regular price for a period of time?

1. Bait and switch
2. Misleading ads
3. Sale price
4. Price comparisons

Tax laws

All for-profit business owners are responsible for certain taxes,

including sales, payroll, unemployment, and income tax.

In groups: Choose one of the following to research: sales tax, payroll taxes, federal unemployment tax, or business income taxes. Do Internet and book research on their chosen topic. Research the history of the laws, and the reasoning behind them. Create a summary of their findings.

Which among these is a tax you need to deduct from the earnings of people?

1. Income Tax
2. Sales Tax
3. Payroll tax
4. Excise duty

What are the different taxes paid by a corporate?

Give the laws that the government uses to regulate the businesses.