Are United States Business Laws Effective at Promoting Fair Business Practices

757 Words2 Pages
bulb-icon

Recommended: sherman antitrust act rockefeller

The United States ranks as the highest gross domestic product nation in the world (Wickipedia, Retrieved March 22, 2014). This ranking indicates that millions of people buy, sell, trade and perform business transactions daily within a multitude of industries and professions. In order to preserve the trust and integrity of our financial systems, it is imperative that the United States implement, regulate, and enforce business practices to remain relevant and effective within the constantly changing global economic marketplace.
The United States has a long history of ensuring fair and balanced business practices through legislation. The Interstate Commerce Act of 1887, began a shift in the economy from state commerce regulation to a national overall system of business practices. This act created the Interstate Commerce Commission which was the first independent regulatory agency of the United States. The Interstate Commerce Commission was designed to regulate the emerging railroad industry which crossed state lines and ensured fair competitive pricing.
Subsequently, various other business acts and mandates followed including Sherman Antitrust Act of 1890, the Federal Trade Commission Act of 1914, the Robinson-Patman Act of 1936, and the Celler-Kefauver Act of 1950. (Wickipedia, Retrieved March 22, 2014)
The Sherman Anti-trust Act of 1890 was established to promote fair business, eliminate monopolies, and protect competition. On September 26, 1914 the Federal Trade Commission was created by President Woodrow Wilson to encourage and enforce fair trade practices as well as halt deceptive advertising and pricing. The Robinson Patman Act of 1936 enforced unfair price discrimination and the Celler-Kefauver Act of 1950 reformed prior...

... middle of paper ...

...s. In addition, the agency offers loans to citizens whom are impacted by natural disasters and also provides counseling on international trade matters.
The United States government has a long history of implementing legislation for fair and balanced business practices. The resultant rating of being the number one gross domestic product nation in the world indicates that United States laws are effective.

Works Cited

(Retrieved March 22, 2014). Retrieved from Wickipedia: http://en.wikipedia.org/wiki/History_of_United_States_antitrust_law
(Retrieved March 22, 2014). Retrieved from sba.gov: http://www.sba.gov/about-sba/what_we_do/history
(Retrieved March 22, 2014). Retrieved from ftc.gov: http://www.ftc.gov/about-ftc/what-we-do
(Retrieved March 22, 2014). Retrieved from http://en.wikipedia.org/wiki/Comparison_between_U.S._states_and_countries_by_GDP_(nominal)

Show More
Related

  • Pro Immigration

    1106 Words  | 3 Pages

    June 25, 1798 . The Act was the first federal legislation that dealt with the

    Read More

  • To What Extent Did the Government Adhere to the Principles of Laissez Faire from 1865 to 1900

    1744 Words  | 4 Pages

    production on equal terms and conditions and under like circumstances. This is industrial liberty and lies at the foundation of the equality of all rights and privileges. . . ." In other words, it is right for government to intervene with the affairs of businesses to stop corruption and better the United States rather than allow wealthy industrialists to take away people's freedom.

    Read More

  • Monopolies In The Gilded Age

    1325 Words  | 3 Pages

    Unfortunately, these monopolies allowed companies to raise prices without consequence, as there was no other source of product for consumers to buy for cheaper. The more competition, the more a company is forced to appeal to the consumer, but monopolies allowed corporations to treat consumers awfully and still receive their business. Trusts were bad for both the consumers and the workers, but without proper representation, they could do nothing. However, with petitions, citizens got the first anti-trust law passed by the not entirely corrupt Congress, called the Sherman Act of 1890. It prevented companies from trade cooperation of any kind, whether good or bad. Most corporate lawyers were able to find loopholes in the law, and it was largely ineffective. Over time, the Sherman Anti-Trust Act of 1890, and the previously passed Interstate Commerce Act of 1887, which regulated railroad rates, grew more slightly effective, but it would take more to cripple powerful

    Read More

  • Gilded Age Dbq Essay

    1434 Words  | 3 Pages

    ...he government to the ordinary people as explained in July 5, 1892 by the Omaha Morning World –Herald (Doc F). Lastly, the laws for the regulation of businesses was enforces until President Theodore Roosevelt had also contributed by suing companies that violated the Sherman Anti-Trust Act.

    Read More

  • Theodore Roosevelt, A Brief Annotated Bibliography

    544 Words  | 2 Pages

    This is a description of the Sherman Act. It gives a brief history of the Act and explains its function.

    Read More

  • Presidents of the Progressive Era

    760 Words  | 2 Pages

    This forced industrialists and monopolistic corporations to consider public opinion when making business decisions, which benefited the consumer and helped grow the economy. One way that Wilson and Roosevelt tried protecting these smaller businesses was by removing trusts that were much bigger than they were. Under Wilson’s authority in 1814, the Clayton Anti-trust Act was passed, which abolished interlocking directorates. This law was passed as an amendment to clarify and supplement the Sherman Antitrust Act of 1890. When Roosevelt became president in 1901, he demanded a “Square Deal” that would address his principal concerns for the era- the three C’s: control of corporations, consumer protection, and conservation.... ...

    Read More

  • The Progressive Reformers

    1047 Words  | 3 Pages

    middle of paper ... ... Also, some railroads gave special rates to some shippers in exchange that the shippers continued doing business with the railroad company. In the Clayton Antitrust Act, it said no one in commerce could regulate rates of price between different buyers (Document E). It said that otherwise, this would create a monopoly in any line of commerce. However, the Elkins Act of 1903 pushed heavy fines on the companies that did that.

    Read More

  • Three Presidents Reform Policies from 1901-1920

    1846 Words  | 4 Pages

    In 1890 the Congress of the United States passed the Sherman Antitrust Act, this act was passed to promote Compton in the field where there may be a monopoly, by breaking up the company (Lowman 372). But it would not be until 1902 that this Act would be put to use, when Northern Securities Company was put on trial (Lowman 451). Theodore Roosevelt was the President at this time, and earned himself the nickname trustbuster, "because he used this tactic so frequent in his presidency. He put other policies in commission, which made it even easier to convict companies. One of these was the Expedition Act; the Act was put in place to speed up the antitrust cases in the courts" (Lowman 452).

    Read More

  • The Pros And Cons Of Welfare

    1039 Words  | 3 Pages

    ...usiness is well qualified. Well qualified business will most likely to run much better. Social regulations include anti discrimination laws, environmental regulations, and work-place safety rules (Katznelson 318). This helps a lot because of social regulations; jobs cannot hire employees because of their race, sex, sexual orientation. In addition, this regulation helps employee work in safe environments and not hazard places where they can become very ill or hurt. This is why regulations are important, they help the economy run properly when every individual is granted rights to help them work efficiently.

    Read More

  • Progessives and The Pure Food and Drug Act

    859 Words  | 2 Pages

    Many businesses used this new process to raise the price of their competitors. They did this by putting constraints on entry restrictions (Woods 1986). At the state level, other laws were put in place to support the Food and Drug Act mainly to help local and area producers who were and would be facing new nat...

    Read More

  • Pros And Cons Of American Rule

    706 Words  | 2 Pages

    The "American Rule" invites frivolous lawsuits and creates a bottleneck in the legal system. Because there is no substantial disincentive to file a lawsuit people at large find just about any reason to sue, especially businesses whom are presumed to

    Read More

  • The National Labor Relations Board

    1375 Words  | 3 Pages

    The ability for the federal government to regulate businesses’ activity is given in the Constitution. Article 1, Section 8 is known as the commerce clause; it states, “Congress shall have the Power…to regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes” (Reed, 173). Through the commerce clause, the government is able to regulate business activity by the use of administrative agencies, which is defined as “a governmental regulatory body that controls and supervises a particular activity or area of public interest and administers and enforces a particular body of law related to that activity or interest” (Administrative Agency, 1). There are two types of regulatory authority that agencies may possess; quasi-legislative and/or quasi-judicial. Quasi-legislative means that agencies can make rules and regulations that have the same impact as a law created by federal legislation. Quasi-judicial authority gives agencies the power to make rulings, just like in federal courts.

    Read More

  • Scott Szwast The Global Business Next Door Summary

    905 Words  | 2 Pages

    Many business owners and entrepreneurs are doubtful about the global opportunities available to their business. In other words, business owners don’t give consideration to the world markets, instead they tend think locally in terms of gaining customers. This doubt however is unfounded. The international trade commission reported that 70% of the world’s purchasing power and 95% of the world’s consumers are located outside of the United States, which means that there is a massive market that is currently untapped by 99% of business in America. In addition to doubt, there is the uncertainty about exporting to other countries, this uncertainty may stem from lack of knowledge about foreign trade and the international laws. A business owner may be uncertain about how, when, where, and to whom it is legal to ship their products. Although, this uncertainty is understandable it is not required for businesses that are conducting business legally within the United States, business owners should remain mindful of this so that they can push their uncertainties aside. The last factor that deters businesses from international trade is Fear. Fear that there will be unforeseen and uncontrollable issues with transporting goods such as: theft, loss, damages, diversions, and/or regulatory penalties that may be imposed on the business. Although, there is a

    Read More

  • The Origin of Standard Oil

    882 Words  | 2 Pages

    The dissolution of Standard Oil marked an important turning point in history for its adding of regulation against monopolies. The Sherman Anti-Trust Act, which brought an end to this excessive restraint by the company, allowed the Federal government to hold cases against trusts such as the one Standard Oil had. This turning point was the beginning of regulation against restraint or monopolies by other businesses.

    Read More

  • Roles And Functions Of Law In Business And Society

    897 Words  | 2 Pages

    William O. Douglas said, "Common sense often makes good law." Well that is what laws essentially are, rules and regulations that make sure common sense is followed. One could even say that laws are enforced ethics. Laws serve several roles and functions in business and society, and this paper will discuss those roles and functions.

    Read More

More about Are United States Business Laws Effective at Promoting Fair Business Practices

Open Document