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:

• Federal Trade Commission (FTC)

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

• Environmental Protection Agency (EPA)

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

• 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.

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