Chapter 6 Lesson 2: Legal System at Work

The role of the legal system in business is to:

• regulate business practices and ensure compliance with laws

• increase profits for businesses

• create marketing strategies

• manage employee relations

Which of the following laws is designed to prevent unfair competition and corruption in business?

• Sherman Act

• Federal Trade Commission Act

• Clayton Act

• All of the above.

The Sherman Act outlaws:

• monopolistic practices

• environmental pollution

• tax evasion

• money laundering

Antitrust laws are aimed at preventing which of the following?

• Unfair price increases

• Elimination of competition

• Both A and B

Administrative law impacts businesses by:

• Regulating business practices and ensuring compliance with laws.

• Providing financial support to businesses.

• Offering marketing strategies for business growth.

• Creating competition among businesses.

Match the following administrative agencies with their functions:

• Securities and Exchange Commission (SEC)

• Oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.

• Environmental Protection Agency (EPA)

• Prevents anticompetitive, deceptive, and unfair business practices, enhancing informed consumer choice and public understanding of the competitive process.

• Federal Trade Commission (FTC)

• Regulates business activities that relate to human health and the environment.

The Federal Trade Commission (FTC) plays a role in business regulation by:

• enforcing antitrust laws and promoting consumer protection

• managing monetary policy and interest rates

• overseeing national defense and security

• regulating environmental standards and policies

The purpose of environmental laws according to the passage is:

• To protect natural resources and ensure sustainable development.

• To promote industrial growth and economic development.

• To restrict human activities and limit technological advancements.

• To encourage urbanization and infrastructure development.

Which act protects air quality and offers incentives to businesses that use energy-efficient technologies?

• The Clean Air Act.

• The Energy Policy Act.

• The Environmental Protection Act.

• The Pollution Prevention Act.

The role of the Environmental Protection Agency is to:

• regulate and enforce national pollution control standards

• manage the country's monetary policy

• oversee the national defense

• control the education system