LEGAL AND ETHICAL ISSUES Ch. 6

THE ROLES OF GOVERNMENT  “The stability of a government and its policies shape the political climate of a country”  What are some characteristics of a stable government?  How does the government directly affect you?

STRUCTURE OF THE U.S. GOVERNMENT  3 Branches – Executive, Legislative, Judicial  The power to make changes that affect the country is split between the branches.  System of Checks and Balances: Prevents any one branch from becoming too powerful

EXECUTIVE BRANCH  Includes:  Office of the President  Vice President  Cabinet  Responsible for carrying out laws  Each president’s ADMINISTRATION has different programs that impact business.  USDA (Department of Agriculture) – part of the executive branch

LEGISLATIVE BRANCH  Includes:  U.S. Congress (Senate and House of Representatives)  Makes the laws  2 senators per State  Number of representatives depends on the size of the State  Members of Congress vote on laws and regulations  Lobbyists (rd. pg. 138)

JUDICIAL BRANCH  Interprets, applies, and administers the laws  Made up of courts  Important – when the legislative or executive branches enact laws or regulations that negatively affect businesses, those businesses my appeal to the Judicial Branch.

THE ROLES IF SERVICE PROVIDER & CUSTOMER  Our government spends a lot of money to keep us safe and to ensure our general well-being.  Businesses that provide products and services for government installations, projects, or institutions must adhere to certain guidelines.  WHY?

THE ROLE OF REGULATOR  The government acts as a REGULATOR to protect consumers, employees, investors, and the environment and this affects businesses.  THEY MUST COMPLY OR FACE CONSEQUENCES

HOW DO THEY PROTECT CONSUMERS?  CONSUMERS:  Specific service providers must be LICENSED  Zoning protects quality of life  Health departments – inspect restaurants  Food and Drug Administration (FDA) – regulates the labeling and safety of food, drugs, and cosmetics sold in the U.S.  Consumer Product Safety Commission (CPSC) – oversees the safety of products like toys, electronics, and household furniture.

HOW DO THEY PROTECT WORKERS?  Equal Employment Opportunity Commission (EEOC) – responsible for the fair and equitable treatment of employees with regard to hiring, firing, and promotions.  Occupational Safety and Health Administration (OSHA) – sets guidelines for workplace safety and environmental concerns  Ex: construction workers must wear helmets

HOW DO THEY PROTECT INVESTORS?  Securities and Exchange Commission (SEC) – regulates the sale of stocks and bonds. They issue licenses to brokerage firms and financial advisers.  Protects form deceptive practices

HOW DO THEY PROTECT THE ENVIRONMENT?  Environmental Protection Agency (EPA) – protects human health and the environment.  Monitors and reduces air pollution and water pollution  Oversees recycling and hazardous waste disposal

ENFORCERS OF THE PRIVATE-ENTERPRISE SYSTEM  Federal Trade Commission (FTC) – responsible for enforcing the principles of a private enterprise system and protecting consumers form unfair and deceptive business practices.  RUNS 3 BUREAUS:  Bureau of Consumer Protection  Bureau of Competition  Bureau of Economics

BUREAU OF CONSUMER PROTECTION  Enforces consumer protection laws and trade regulation rules  There are 6 divisions: (rd. pg. 143)  Advertising  Enforcement  Financial  Marketing  International  Planning and Information

BUREAU OF COMPETITION  Enforces the nations antitrust laws  Antitrust Laws (competition laws) – protect consumers from predatory business practices by ensuring fair competition exists in an open-market economy.

BUREAU OF ECONOMICS  Studies the impact of its actions (FTC) on consumers and reports its findings to Congress, the Executive branch, and the public.

MONITOR OF OUR ECONOMY  To ensure economic stability of the U.S. the government monitors our economy and controls our monetary supply through the Federal Reserve System (nation’s central bank).  Prices going up to fast – Increase interest rates (discourage borrowing)  Prices dropping – lower interest rates (encourage spending)

GROUP WORK  Work in pairs, choose a product recall that involved the FDA. You will conduct research to learn about this event. Based on what you learn, you will prepare an illustrated time line of what happened during the recall.  EXAMPLE: Timeline may first show how the problem came to light, then show the television newscasters reporting on it, and so forth. The timeline should show any changes that took place because of this recall. HOMEWORK: Workbook pages– Due Wednesday