Legal Aspects
Learning Resources
Ethics Track Assignment
To find the correct "Track", search for #337323 and then click VIEW IN FRAMES. The links will be along the left hand side and the questions to answer will be at the top.
To find the correct "Track", search for #337323 and then click VIEW IN FRAMES. The links will be along the left hand side and the questions to answer will be at the top.
Topic Review
These are some of the topics that may be encountered in this unit:
1.Types of business entities
a.Sole proprietorship
i.Easy to start
ii.Owner is business
iii.Owner makes all business decisions
iv.Owner personally liable for business debts
v.Owner declares all profits on personal income tax statements
b.Partnership
i.Two or more parties
ii.Partners share responsibility for decisions & debts in agreed proportion
iii.Both parties fully responsible for business debts
iv.Partnership files income tax statements but does not pay taxes
v.Partners divide profit and pay income tax on it
c.Corporation
i.Separate legal entity
ii.Owners called shareholders
iii.State statutes govern how a corporation is formed
iv.Article of incorporation (or charter) required
v.Shareholders elect board of directors who manage business and hire officers who do day-to-day management
vi.Shareholders not liable for corporation’s business debts
2.Your ethical and social responsibilities
a.General principles of fairness & honesty should guide a business
b.Unethical behavior can cause boycotts, negative publicity, loss of business and/or government action
c.Areas affected by ethical and social responsibility
i.Organizational relationships
1.vendors
2.business partners
ii.Employment relations
1.employee recruitment
2.employee retention
iii.Consumer welfare
1.quality of goods
2.safety of goods
3.fairness of price
iv.conflicts of interest
v.compliance
vi.A code of ethics can encourage appropriate behavior
3.Business laws that can affect you
a.Government and society protect the welfare of its citizens through laws governing how business is done
b.Example laws
i.Business registration
ii.Licensing, training, and education requirements
iii.Zoning and building codes
iv.Taxes
v.Worker rights
vi.Consumer rights
vii.Health and environmental issues
viii.Insurance coverage
ix.Contracts
4.Laws governing business—where do they come from?
a.U.S. and State Constitutions
b.Federal, State and local statutes
i.Creation of administrative agencies
1.IRS
2.Equal Opportunity Commission
3.Administrative law
ii.NYS Assembly
iii.NYS Department of Taxation and Finance
iv.NYS Department of Labor
c.Commercial Law
i.UCC (Uniform Commecial Code)
d. Precedent
e. Common Law
a.Unfair competition is regulated
i.Trademark infringement
ii.Stealing trade secrets
iii.Making false statements about a product
iv.Unauthorized use of copyrighted or patented material
b. Antitrust regulations
i.Sherman Anti-trust act
ii.Clayton Act
c.Price discrimination
d.Securities laws require investors have access to information
e.Consumer Protection
i.Consumer Credit Protection Act: “Truth in Lending Act”
ii.Magnusson-Warranty Act
iii.Flammable Fabrics Act
7.Tax consequences
a.Businesses pay taxes to several levels of government on profit (revenues – expenses)
i.Profit tax paying requirements of sole proprietorships, partnerships, and corporations differ
b.Real estate taxes
c.Sales taxes collected
d.Income taxes/social security taxes collected
e.Matching social security tax payment
f.Failure to pay taxes can result in penalties and/or interest owed or even criminal punishment
8.Insurance—what’s needed, how much needed
a.Types of insurance
i.Property and casualty insurance
1.covers fire, natural disasters, theft and other property damage
2.costs of insurance can be minimized by
a.smart construction
b.smoke alarms
c.sprinklers
3.co-insurance is sometimes required
4.extended coverage available for
a.hurricanes
b.winds
c.explosion
d.hail
e.riots
f.smoke
g.falling aircraft
ii.burglary, robbery & theft insurance
iii.insurance for employee theft and shoplifting
iv.Automobile insurance
1.Liability insurance
2.Collision damage
3.Comprehensive
v.Business liability insurance
vi.Product liability insurance
vii.Unemployment insurance
viii.Workers compensation insurance
9.EOE, discrimination and sexual harassment
a.EEOC
i.Title VII
ii.Age discrimination Act of 1967
iii.Americans with Disabilities act of 1990
iv.Equal pay act of 1963
b.Sexual Harassment
i.Quid pro quo
ii.Hostile environment
iii.Affects work
iv.Treatment may be justified in some cases
10.Contracts—call your lawyer
a.Definition of a contract
b.Contracts can be oral or in writing unless covered by the Statute of Frauds
i.Sale of goods > $500
ii.Longer than 1 year to complete
c.Elements of a contract
i.Offer/Acceptance/Mutual Agreement (intent)
ii.Legality
iii.Capacity
iv.Consideration
v.Use an attorney for protection
b. negligence = wrong was committed through carelessness
c. strict liability = because of the seriousness of an activity engaged in, a party will be held responsible
regardless of how carefully they proceded. (A company transporting explosives, for
example)
1.Types of business entities
a.Sole proprietorship
i.Easy to start
ii.Owner is business
iii.Owner makes all business decisions
iv.Owner personally liable for business debts
v.Owner declares all profits on personal income tax statements
b.Partnership
i.Two or more parties
ii.Partners share responsibility for decisions & debts in agreed proportion
iii.Both parties fully responsible for business debts
iv.Partnership files income tax statements but does not pay taxes
v.Partners divide profit and pay income tax on it
c.Corporation
i.Separate legal entity
ii.Owners called shareholders
iii.State statutes govern how a corporation is formed
iv.Article of incorporation (or charter) required
v.Shareholders elect board of directors who manage business and hire officers who do day-to-day management
vi.Shareholders not liable for corporation’s business debts
2.Your ethical and social responsibilities
a.General principles of fairness & honesty should guide a business
b.Unethical behavior can cause boycotts, negative publicity, loss of business and/or government action
c.Areas affected by ethical and social responsibility
i.Organizational relationships
1.vendors
2.business partners
ii.Employment relations
1.employee recruitment
2.employee retention
iii.Consumer welfare
1.quality of goods
2.safety of goods
3.fairness of price
iv.conflicts of interest
v.compliance
vi.A code of ethics can encourage appropriate behavior
3.Business laws that can affect you
a.Government and society protect the welfare of its citizens through laws governing how business is done
b.Example laws
i.Business registration
ii.Licensing, training, and education requirements
iii.Zoning and building codes
iv.Taxes
v.Worker rights
vi.Consumer rights
vii.Health and environmental issues
viii.Insurance coverage
ix.Contracts
4.Laws governing business—where do they come from?
a.U.S. and State Constitutions
b.Federal, State and local statutes
i.Creation of administrative agencies
1.IRS
2.Equal Opportunity Commission
3.Administrative law
ii.NYS Assembly
iii.NYS Department of Taxation and Finance
iv.NYS Department of Labor
c.Commercial Law
i.UCC (Uniform Commecial Code)
d. Precedent
e. Common Law
- Federal Agencies
- Office of Civil Rights
- U.S. Patent and Trademark Office
- Federal Communications Commission
- Food & Drug Administration
- Small Business Administration
- Internal Revenue Service
- Federal Trade Commission
- State
- Department of Labor
- Attorney General
- Local
a.Unfair competition is regulated
i.Trademark infringement
ii.Stealing trade secrets
iii.Making false statements about a product
iv.Unauthorized use of copyrighted or patented material
b. Antitrust regulations
i.Sherman Anti-trust act
ii.Clayton Act
c.Price discrimination
d.Securities laws require investors have access to information
e.Consumer Protection
i.Consumer Credit Protection Act: “Truth in Lending Act”
ii.Magnusson-Warranty Act
iii.Flammable Fabrics Act
7.Tax consequences
a.Businesses pay taxes to several levels of government on profit (revenues – expenses)
i.Profit tax paying requirements of sole proprietorships, partnerships, and corporations differ
b.Real estate taxes
c.Sales taxes collected
d.Income taxes/social security taxes collected
e.Matching social security tax payment
f.Failure to pay taxes can result in penalties and/or interest owed or even criminal punishment
8.Insurance—what’s needed, how much needed
a.Types of insurance
i.Property and casualty insurance
1.covers fire, natural disasters, theft and other property damage
2.costs of insurance can be minimized by
a.smart construction
b.smoke alarms
c.sprinklers
3.co-insurance is sometimes required
4.extended coverage available for
a.hurricanes
b.winds
c.explosion
d.hail
e.riots
f.smoke
g.falling aircraft
ii.burglary, robbery & theft insurance
iii.insurance for employee theft and shoplifting
iv.Automobile insurance
1.Liability insurance
2.Collision damage
3.Comprehensive
v.Business liability insurance
vi.Product liability insurance
vii.Unemployment insurance
viii.Workers compensation insurance
9.EOE, discrimination and sexual harassment
a.EEOC
i.Title VII
ii.Age discrimination Act of 1967
iii.Americans with Disabilities act of 1990
iv.Equal pay act of 1963
b.Sexual Harassment
i.Quid pro quo
ii.Hostile environment
iii.Affects work
iv.Treatment may be justified in some cases
10.Contracts—call your lawyer
a.Definition of a contract
b.Contracts can be oral or in writing unless covered by the Statute of Frauds
i.Sale of goods > $500
ii.Longer than 1 year to complete
c.Elements of a contract
i.Offer/Acceptance/Mutual Agreement (intent)
ii.Legality
iii.Capacity
iv.Consideration
v.Use an attorney for protection
- types of torts (wrong of one individual against another individual)
b. negligence = wrong was committed through carelessness
c. strict liability = because of the seriousness of an activity engaged in, a party will be held responsible
regardless of how carefully they proceded. (A company transporting explosives, for
example)