Government & Business Chapter 4

Where does our money go???

defense currency welfare foreign relations transportation housing health education Federal Responsibilities:

State Responsibilities: state criminal codes working conditions regulation of property industry business public utilities

Local responsibilities: police fire health regulations education public transportation housing

Inter vs. Intra Interstate Commerce- business dealings involving companies in more than one state. Trucking companies that cross state lines Intrastate Commerce- business dealings involving companies that do business in only one state.

Government Protection Worker Protection Contract Enforcement –Contract: an agreement to exchange goods or services for something of value, usually money. –Written or unwritten –Must contain 4 elements: agreement, competent parties, consideration, & legality

Contract Basics Valid, enforceable contracts must contain: 1.Agreement: an offer must be made, and an acceptance must occur. 2.Competent Parties: Those entering into the contract must be of legal age and must be mentally competent. 3.Consideration: Something of measurable value must be exchanged by the parties involved. 4.Legality: The contract must be for a product or service that may be legally sold.

Protection of Intellectual Property Intellectual Property- intangible with no physical characteristics. Includes: Patents Copyrights © Trademarks ™

Patent- gives the inventor the sole right to make, use, or sell the item for 17 years.

Copyright- protects the creative work of authors, composers, and artists. Life + 50 years Current stat rate= 9.1 cents/song or 1.75 cents a minute (whichever is longer)

Trivia Question: If I sing “Happy Birthday” in its original tune & words at a restaurant or sporting event, do I owe someone copyright royalties?

YES!!!! Written by sisters Mildred & Patty Hill in 1893 Originally was called “Good Morning to All” Lyrics to “Happy Birthday” appeared in a songbook in 1924 Became a hit in musicals & Broadway plays Jessica Hill (the youngest sister) filed suit in 1934 and claimed rights to tune & lyrics Copyrighted until 2030

Trademark- a word, letter, or symbol linked with a specific company or product. Also known as a logo Includes company names, team emblems, & label designs

Government’s Involvement in the Free Enterprise System Regulates utilities Prevents unfair business practices

Utilities Public Utility- an organization that supplies a service or product vital to all people. Telephone Water Electricity

Unfair Business Practices Monopoly- exists when a business has control of the market for a product or service. Provides for competition Antitrust laws- prevent other unfair business practices such as false advertising, deceptive pricing, and misleading labeling.

Governmental Assistance Provide data to businesses (ex. Census) –Bureau of Labor Statistics –Department of Agriculture –Department of Commerce Small Business Administration (SBA) Government purchases –Building schools, roads, military supplies Government employs

How are they able to assist? Taxes –Income tax is largest source of revenue for federal government –Corporate income taxes (based on business profits) –Local property taxes –Sales tax Borrowing –Bonds Fines (traffic violations) Fees & licenses