Business Laws That Protect Both The Business And Customer

794 words - 4 pages

Even though there are some people who think laws are useless and unfair; laws are designed to protect businesses and customers. Without the laws we would risk business practices being dishonest and unfair. The Antitrust Laws are in place to protect us from business practices being dishonest and unfair. The antitrust laws make it illegal to conspire to restrain trade and commerce in any marketplace, regardless of size (SBA.GOV). These laws address conspiring to fix market place prices, price discrimination, conspiring to boycott, conspiring to allocate markets or customers and monopolization. Objectives of the antitrust laws are to keep prices from being high, making sure the quality is acceptable and making sure businesses have strong incentives to operate smoothly.
Three of the laws are: The Sherman Act which was passed by congress in 1890. "The purpose of the [Sherman] Act is not to protect businesses from the working of the market; it is to protect the public from the failure of the market. The law directs itself not against conduct which is competitive, even severely so, but against conduct which unfairly tends to destroy competition itself. This focus of U.S. competition law, on protection of competition rather than competitors, is not necessarily the only possible focus or purpose of competition law. For example, it has also been said that competition law in the European Union (EU) tends to protect the competitors in the marketplace, even at the expense of market efficiencies and consumers." Federal Trade Commission Act was established in 1914, its purpose is to protect customers against unfair, deceptive or fraudulent practices. FTC also provides education on rights and responsibilities to customers and businesses. When a customer or business feels that they have been treated unfair or deceived the FTC allows them to file complaints so that the issue can be investigated and resolved. And then there’s The Clayton Act of 1914, amended by the Robinson-Patman Act of 1936, prohibits discrimination among customers through pricing and disallows mergers, acquisitions or takeovers of one firm by another if the effect will "substantially lessen competition. It is also to strengthen to Sherman Act by covering illegal acts that weren’t included in the Sherman Act. Breaking these laws could result in fines or jail time, they are created to maintain control and protect businesses and consumers.
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