Government & Business

Chapter 4

Where does our money go???

•defense•currency•welfare•foreign relations•transportation•housing•health education

Federal Responsibilities:

State Responsibilities:

•state criminal codes•working conditions•regulation of property•industry •business•public utilities

Local responsibilities:

•police•fire•health regulations•education•publictransportation•housing

Inter vs. Intra

Interstate Commerce- business dealings involving companies in more than one state.

• Trucking companies that cross state lines

Intrastate Commerce- business dealings involving companies that do business in only one state.

Government Protection

• Worker Protection

• Contract Enforcement– Contract: an agreement to exchange goods

or services for something of value, usually money.

– Written or unwritten– Must contain 4 elements: agreement,

competent parties, consideration, & legality

Contract Basics

Valid, enforceable contracts must contain:1. Agreement: an offer must be made, and an

acceptance must occur.2. Competent Parties: Those entering into the

contract must be of legal age and must be mentally competent.

3. Consideration: Something of measurable value must be exchanged by the parties involved.

4. Legality: The contract must be for a product or service that may be legally sold.

Protection of Intellectual Property

Intellectual Property- intangible with no physical characteristics.

Includes:

Patents

Copyrights ©

Trademarks ™

Patent- gives the inventor the sole right to make, use, or sell the item for 17 years.

Copyright- protects the creative work of authors, composers, and artists.

• Life + 50 years

• Current stat rate= 9.1 cents/song or 1.75 cents a minute (whichever is longer)

Trivia Question:

If I sing “Happy Birthday” in its original tune & words at a restaurant or sporting event,

do I owe someone copyright royalties?

YES!!!!

• Written by sisters Mildred & Patty Hill in 1893• Originally was called “Good Morning to All”• Lyrics to “Happy Birthday” appeared in a

songbook in 1924• Became a hit in musicals & Broadway plays• Jessica Hill (the youngest sister) filed suit in

1934 and claimed rights to tune & lyrics• Copyrighted until 2030

Trademark- a word, letter, or symbol linked with a specific company or product.

• Also known as a logo• Includes company names, team emblems,

& label designs

Government’s Involvement in the Free Enterprise System

• Regulates utilities

• Prevents unfair business practices

Utilities

Public Utility- an organization that supplies a service or product vital to all people.

Telephone

Water

Electricity

Unfair Business Practices

Monopoly- exists when a business has control of the market for a product or service.

• Provides for competition

Antitrust laws- prevent other unfair business practices such as false advertising, deceptive pricing, and misleading labeling.

Governmental Assistance

• Provide data to businesses (ex. Census)– Bureau of Labor Statistics– Department of Agriculture– Department of Commerce

• Small Business Administration (SBA)

• Government purchases– Building schools, roads, military supplies

• Government employs

How are they able to assist?

• Taxes– Income tax is largest source of revenue for federal

government– Corporate income taxes (based on business profits)– Local property taxes– Sales tax

• Borrowing– Bonds

• Fines (traffic violations)• Fees & licenses