Understanding Business

Topics: Consumer protection, United States, Business ethics Pages: 2 (596 words) Published: January 19, 2014
Understanding business
The business related laws in the United States intend to foster free, fair, balanced and effective business practices. Laws protecting consumers in the United States disallow unfair, deceptive and anti-competitive business practices. Despite significant legislative differences from one state to another, a major premise is that deceptive and unfair business practices are unethical and inappropriate (Cartewr, 2009). These laws constitute critical legal underpinnings for ethical business practices and fair treatment of consumers in the market (Nickels & McHugh, 2013). An important law is the Federal Trade Commission Act. The sole function of such a law is safeguarding consumers’ rights through promotion of free, fair and vigorous competition. The Federal Trade Commission Act has a mandate to review acquisitions and mergers. It also limits the presence of businesses that can possibly lead to high prices and reduced innovation. It limits non-competitive conduct in the market place by preventing emergence of monopolies and oligopolies. The act promotes competitive practices in areas with a high consumer impact such as real estate, healthcare, technology, consumer products, oil and gas. The act prohibits deceptive practices that target people including banks. For example, the Federal Deposit Insurance Act empowers its board to take appropriate action against any unfair business practices that are likely to cause injury to consumers especially acts that they may not reasonably avoid. These laws have played a major role particularly by providing consumers and state agency with a tool against abuse and fraud in the marketplace. The adoption of features associated with Federal Trade Commission Act permits many states to prohibit certain unfair and deceptive business practices (Carter, 2009). However, United States’ laws enacted with intention of protecting consumers from unfair and deceptive practices have major weaknesses that make them...

References: Carter L.C. (2009). Consumer protection in the States. A 50-State Report on Unfair and Deceptive Acts and practices Statutes. Retrieved from http://www.nclc.org/images/pdf/car_sales/UDAP_Report_Feb09.pdf
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2013). Understanding business. New York, NY: McGraw-Hill Irwin.
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