Verified Document

Competition Legal Environment Research Paper

CSR The economic system of the United States is based on the fundamental principle that the free market, with limited government intervention, is the most efficient economic system. Free markets do a better job of creating and distributing wealth than other economic systems. Yet, there still needs to be some government influence on the markets because only government can serve as a counterweight to business, to protect the interests of both consumers and investors. It is along these lines that most government regulation of business exists. There are a couple of key classes of laws that the U.S. has to further a balanced, fair and competitive economic system. The first of these are the antitrust laws, another class is securities laws and there is also a section of basic criminal law that deals with business as well. This paper will explore the legal environment in the context of promoting competitive markets.

Antitrust Legislation

The rise of monopolies in the late 19th century led to uncompetitive business practices on the part of companies that were in monopoly or near-monopoly positions. This gave rise to a particular government respond, antitrust legislation. The first such law was the Sherman Act of 1890, and this has been bolstered by several subsequent laws. The Federal Trade Commission Act in 1914 created the FTC, which is the enforcement body for anticompetitive practices. The FTC works with the Department of Justice in order...

Another major law in 1914 was the Clayton Act, which remains in force to this day (FTC, 2014). For example, mergers and acquisitions must be approved by the authorities to ensure that markets remain competitive both in terms of product/service markets and in regional areas as well. The preservation of competition is a benefit to free markets, despite the occasional need for government intervention to enforce the preservation of competition.
Securities Laws

A free market benefits strongly from having free and open capital markets that bring together those with capital and those who need capital to invest in their businesses. To that end, there are a number of securities laws to ensure that America's capital markets function well, have integrity, and this encourages investors to make their capital available to firms in need of it. The most basic of these laws are the Securities Act of 1933, the Securities Exchange Act of 1934, and now the Sarbanes-Oxley Act of 2002. These laws govern how securities markets within the U.S. function, and they create the Securities Exchange Commission as the primary enforcement body for securities laws (SEC.gov, 2014).

Other Laws

There are other laws within the bounds of criminal law that seek to enforce efficient, trustworthy and competitive markets. U.S. Code Chapter 47, for…

Sources used in this document:
References

FTC. (2014). The antitrust laws. Federal Trade Commission. Retrieved March 21, 2014 from http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws

Lenzner, R. (2008). Bernie Madoff's $50 billion Ponzi scheme. Forbes. Retrieved March 21, 2014 from http://www.forbes.com/2008/12/12/madoff-ponzi-hedge-pf-ii-in_rl_1212croesus_inl.html

SEC.gov. (2014). The laws that govern the securities industry. Securities Exchange Commission.. Retrieved March 21, 2014 from https://www.sec.gov/about/laws.shtml
Cite this Document:
Copy Bibliography Citation

Related Documents

Legal Immigration Is Good for the United States
Words: 1929 Length: 6 Document Type: Research Paper

Legal Immigration Is Good for the United States With the United States opening its boarders to thousands of legal immigrants each year, immigration has become one of the most hotly debated issues in the country. However, what has largely fueled this debate has to do with the impact of both illegal and legal immigrants on the United States' economy, crime rates as well as education and environment. While some continue to

Legal Structure and Management of a National Level Sporting Organization...
Words: 2976 Length: 10 Document Type: Essay

Legal Structure and Management of a National Level Sporting Organisation Sports activities in the world today are becoming more popular and are attracting huge crowd. This is one of the reasons that have made sponsors to come in so as to help such clubs that are not able to support themselves financially. Through sponsoring, the sponsor is able to market and advertise its products within the stadium where the club is

Competition Regulation and Competition: An
Words: 1022 Length: 3 Document Type: Essay

In this case, the average total cost will continue to decline as the scale of production increase, because fixed (or overhead) costs are being spread over higher and higher levels of output" (Natural monopoly, 2010, Tutor2U). According to economic theory, it is efficient to allow for a natural monopoly because competition would require too large of a diversion of available resources for a competitor. When natural monopolies exist, they

Legal Nurse Consultant Business Plan
Words: 5420 Length: 20 Document Type: Term Paper

(Chizek, 2003) The Role legal nurse consultant may provide service in a number of roles, including but not limited to: Consulting expert Testifying expert Facility-based investigator Trainer and in-service presenter Peer reviewer Quality improvement, risk management, claims management Liability insurance marketer and clinical resource" (Chizek, 2003) As standards of care constantly change, medical and nursing staff must keep informed of current standard to develop and/or modify policies and procedures, which must be maintained and secured indefinitely. In the

Legal Aspects and Considerations
Words: 2766 Length: 9 Document Type: Term Paper

Legal Aspects and Considerations "Coaches should pursue opportunities for professional development to keep abreast of best practices, safety, and legal issues within their chosen sport(s)" (Schaefer, 2008, Risk Management Tips Section, ¶ 5). Challenges for Coaches During 2006, Bill Baker, a Sahuarita High School football coach in Chandler, Arizona resigned from his coaching position following a 2005 post-game incident which involved him and a player the previous fall. In the newspaper account, "Coach

Legal Issues and Legal Structure
Words: 5046 Length: 15 Document Type: Term Paper

LEGAL ISSUE, STRUCTURE, and ANALYSIS A. LEGAL ISSUES-LIMITED PARTNERSHIP. According to Black's Law Dictionary (1991), a limited partnership is a "type of partnership of one or more general partners who manage business and who are personally liable for partnership debts, and one or more limited partners, who contribute capital and share in profits but who take no part in running business and incur no liability with respect to partnership obligations beyond contribution"

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now