Page 178 - Business Principles and Management
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Chapter 7 • Legal Aspects of Business
FIGURE 7-1 Types of Practices Prohibited by the Federal Trade Commission
1. Any act that restrains trade.
2. Any monopolies except those specifically authorized by law, such
as public utilities.
3. Price fixing, such as agreements among competitors.
4. Agreements among competitors to divide territory, earnings, or
profits.
5. Gaining control over the supply of any commodity in order to create
an artificial scarcity.
6. False or misleading advertising.
7. Imitation of trademark or trade name.
8. Discrimination through prices or special deals.
9. Pretending to sell at a discount when there is no reduction in price.
10. Offering so-called free merchandise with a purchase when the price
of the article sold has been raised to compensate for the free
merchandise.
11. Misrepresentation about the quality, the composition, or the place
of origin of a product.
12. Violation of one's guarantee of privacy of information on the Internet,
including e-mail.
FIGURE 7-2 Laws promoting fair practices that benefit businesses and
consumers are enforced by government agencies.
Some Federal Agencies That Regulate Business
AGENCY AND REGULATION
FEDERAL AVIATION ADMINISTRATION
Safety standards, airplane accidents, and take-offs and landings
FEDERAL COMMUNICATIONS COMMISSION
Radio, television, telephone, telegraph, cable, and satellite communications
FOOD AND DRUG ADMINISTRATION
Foods, drugs, medical devices, cosmetics, and veterinary products
NUCLEAR REGULATORY COMMISSION
Nuclear power plants
SECURITIES AND EXCHANGE COMMISSION
Stocks and bonds
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