Week 3 Research Paper
The United States has several laws that are intended to further fair, balanced, and competitive business practices. Do you think that such laws are effective? If so, why? If not, why not? Be sure to provide evidence to support your position one way or the other.
Before the late 1800’s there were no laws to protect consumers and the process of competition. Often times, the consumers and the well being of all were not taken into consideration before these antitrust laws were put into act. The business owners were more often than less, only looking to make a profit no matter what that took. Thankfully, in 1890 Congress passed the first antitrust ...view middle of the document...
” (https://www.fdic.gov, 2014) When the Clayton Antitrust Act was put into law it defined more clearly what constituted illegal restraint of trade. These laws are still in effect today and if it were not for them, then more than likely we would not have the strong business foundation that we do in the United States, as well as the protection of consumers and business owners. (www.ftc.gov, 2014)
The antitrust laws proscribe unlawful mergers and from business practices. These laws are generally effective as control measures to ensure fair business practices are followed. Yet they have had about the same approach and objective since the time they originated. Determining the success or failure of specific legislation or regulations can be relative to what angle you are looking from. There objective has been to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up. (www.ftc.gov, 2014) If these laws and guidelines are not followed then the penalties can be severe such as being prosecuted and serving time for up to ten years. This ensures that we the people and as business owners have a fair equality. If it was not for these laws put into act I believe that we would not be the nation that we are today, as well as the consumers would more than likely not get treated fairly. With these anti-trust laws we are insured safeness from unreasonable trade, price discrimination, and unfair and anti-competitive business practice. (http://www.sba.gov/, 2014)
Many more laws and regulations have been enacted since the 1930s to protect workers and consumers further. It is against the law for employers to discriminate in hiring on the basis of age, sex, race, or religious belief. Child labor generally is prohibited. Independent labor unions are guaranteed the right to organize, bargain, and strike. All these laws are put in place to help keep everyone safe and protected. I believe that these laws that are put into act are extremely effective here in the United States, it is what helps make us the strong business country that we are. More often than less, for the most part people abide by these sets of guidelines. I feel as though that people do not want to go against the laws and risk the huge amount of consequences that come from not listening. (https://www.fdic.gov, VII. Abusive Practices — Federal Trade Commission Act, 2014)
It is not always easy to define when a violation of antitrust laws occurs. Interpretations of the laws have varied, and analysts often disagree in assessing whether companies have gained so much power that they can interfere with the workings of the market. It can be hard to see through a black and white perspective when it seems as though it has blurred grey in the middle. But it is very important for us, and the analyst to keep an eye on what is taking place and prevent from companies from becoming too big and...