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AOF Entrepreneurship

Lesson 8Legal Issues

Teacher Resources

Resource Description

Teacher Resource 8.1 Sources: Government Regulations

Teacher Resource 8.2 Quiz: Legal Issues Businesses Face

Teacher Resource 8.3 Answer Key: Legal Issues Businesses Face Quiz

Teacher Resource 8.4 Presentation and Notes: Intellectual Property Protections (includes separate PowerPoint file)

Teacher Resource 8.5 Answer Key: Intellectual Property Analysis Scenarios Activity

Teacher Resource 8.6 Key Vocabulary: Legal Issues

Teacher Resource 8.7 Bibliography: Legal Issues

Copyright © 20092015 NAF. All rights reserved.

AOF EntrepreneurshipLesson 8 Legal Issues

Teacher Resource 8.1

Sources: Government RegulationsThe following articles will be required for students to complete Student Resource 8.3, Organizer: Government Regulations. At a minimum, preprint two articles from each of the different categories listed below. If computer access is available, you may also wish to provide the specific web address and allow students to read the articles online.

Consumer Product Safety Act of 1972 “Obama Plans to Expand Consumer Product Safety Commission”

http://ohsonline.com/articles/2009/05/05/obama-plans-to-expand-cpsc.aspx

“Reporting Requirements Under the Consumer Product Safety Act” http://www.lectlaw.com/files/bur15.htm

“Consumer Product Safety Act” http://en.wikipedia.org/wiki/Consumer_Product_Safety_Act

“About CPSC” http://www.cpsc.gov/en/About-CPSC/

Consumer Product Safety Improvement Act of 2008 (an addition and not amendment to CPSA) “Scrap the Consumer Product Safety Improvement Act”

http://www.forbes.com/2009/01/16/cpsia-safety-toys-oped-cx_wo_0116olson.html

“Businesses Rally Against CPSIA” http://www.consumerreports.org/cro/news/2009/04/businesses-rally-against-cpsia/index.htm

“The CPSIA Effect: A Screen Printer’s Perspective” http://impressions.issshows.com/shirt-printing-business/The-CPSIA-Effect-A-2319.shtml

“4th Anniversary of Consumer Product Safety Improvement Act” http://www.consumerfed.org/news/574

Sarbanes-Oxley “Sarbanes-Oxley Act (SOX)”

http://searchcio.techtarget.com/sDefinition/0,,sid182_gci920030,00.html

“The Impact of Sarbanes-Oxley on Companies, Investors, & Financial Markets” http://www.s-ox.com/dsp_getFeaturesDetails.cfm?CID=1141

“The Costs and Benefits of Sarbanes-Oxley http://www.forbes.com/sites/hbsworkingknowledge/2014/03/10/the-costs-and-benefits-of-sarbanes-oxley/

Zoning Regulations “Avoiding the Zoning Trap”

http://www.entrepreneur.com/management/operations/location/article79464.html

“Business Zoning” (focus on home businesses) http://www.entrepreneur.com/homebasedbiz/homebasedbasics/zoning/article38884.html


http://www.entrepreneur.com/homebasedbiz/homebasedbasics/zoning/article38884.html

http://www.entrepreneur.com/management/operations/location/article79464.html

http://www.forbes.com/sites/hbsworkingknowledge/2014/03/10/the-costs-and-benefits-of-sarbanes-oxley/

http://www.forbes.com/sites/hbsworkingknowledge/2014/03/10/the-costs-and-benefits-of-sarbanes-oxley/

http://www.s-ox.com/dsp_getFeaturesDetails.cfm?CID=1141

http://searchcio.techtarget.com/sDefinition/0,,sid182_gci920030,00.html

http://www.consumerfed.org/news/574

http://impressions.issshows.com/shirt-printing-business/The-CPSIA-Effect-A-2319.shtml

http://www.consumerreports.org/cro/news/2009/04/businesses-rally-against-cpsia/index.htm

http://www.forbes.com/2009/01/16/cpsia-safety-toys-oped-cx_wo_0116olson.html

http://www.cpsc.gov/en/About-CPSC/

http://en.wikipedia.org/wiki/Consumer_Product_Safety_Act

http://www.lectlaw.com/files/bur15.htm

http://ohsonline.com/articles/2009/05/05/obama-plans-to-expand-cpsc.aspx


“Home-Based Business Zoning Laws” http://www.sba.gov/content/zoning-laws-home-based-businesses

Fair Labor Standards “What Does the Fair Labor Standards Act Require?”

http://www.dol.gov/elaws/esa/flsa/screen5.asp

“Wages” (summary of federal laws) http://www.dol.gov/dol/topic/wages/

“Got Money? The Fair Labor Standards Act Can Help” (PDF file)http://www.compliance.gov/wp-content/uploads/2010/03/bulletin_fairlabor_jun04.pdf

Occupational Safety and Health Administration “OSHA: We Can Help”

http://osha.gov/workers.html

“OSHA: Employer Responsibilities” http://www.osha.gov/as/opa/worker/employer-responsibility.html

“OSH Act and OSHA Standards” http://www.labtrain.noaa.gov/osha600/mod02/0204----.htm

Board of Directors “The Board of Directors: Responsibility, Role, and Structure”

http://beginnersinvest.about.com/cs/a/aa2203a.htm

“Money & Company: CalPERS says it will vote to oust Bank of America’s board” http://latimesblogs.latimes.com/money_co/2009/04/californias-biggest-pension-fund-today-turned-up-the-heat-on-the-bank-of-america-corp-board-saying-it-will-vote-its-227.html

“Directors’ Roles Within a Corporation” http://www.allbusiness.com/business-planning-structures/business-structures/531-1.html


http://www.allbusiness.com/business-planning-structures/business-structures/531-1.html

http://latimesblogs.latimes.com/money_co/2009/04/californias-biggest-pension-fund-today-turned-up-the-heat-on-the-bank-of-america-corp-board-saying-it-will-vote-its-227.html

http://latimesblogs.latimes.com/money_co/2009/04/californias-biggest-pension-fund-today-turned-up-the-heat-on-the-bank-of-america-corp-board-saying-it-will-vote-its-227.html

http://beginnersinvest.about.com/cs/a/aa2203a.htm

http://www.labtrain.noaa.gov/osha600/mod02/0204----.htm

http://www.osha.gov/as/opa/worker/employer-responsibility.html

http://osha.gov/workers.html

http://www.compliance.gov/wp-content/uploads/2010/03/bulletin_fairlabor_jun04.pdf

http://www.dol.gov/dol/topic/wages/

http://www.dol.gov/elaws/esa/flsa/screen5.asp

http://www.sba.gov/content/zoning-laws-home-based-businesses



Quiz: Legal Issues Businesses FaceStudent Name:_______________________________________________________ Date:___________

Instructions: Answer each of the following questions in two to three full sentences.

1. How do corporations differ from partnerships in the way they file taxes?

2. When and how should a business register a fictitious business name (“doing business as”)?

3. What should you know about zoning regulations before starting a home-based business?

4. The Sarbanes-Oxley Act (SOX) was enacted in 2002, following scandals at the company Enron, where officials were found to be compliant in stealing money from the company and, in effect, the shareholders. Which types of businesses are impacted by SOX, and why does the small-business owner need to know about the regulations?



5. Name and briefly describe the purpose of two regulations (besides SOX and zoning regulations) that can affect small businesses, as well as the impact of those regulations on business.

6. Describe three different types of permits, licenses, or regulations that affect businesses, and what types of businesses each one applies to.

7. Explain the role and the responsibility of a company’s board of directors.




Answer Key: Legal Issues Businesses Face Quiz 1. How do corporations differ from partnerships in the way they file taxes?

General corporations (C corporations) file double taxes, because the corporation’s taxes are separate from its owners’ and officers’ personal taxes.

Partnerships, sole proprietorships, LLCs, and other special types of corporations (S corporations in particular) aren’t subject to double taxation, and their owners pay business taxes along with personal taxes. Partnerships file a special partnership form but may also file using 1040 forms.

2. When and how should a business register a fictitious business name (“doing business as”)?

Before a business operates under any other name from its owner’s name, it needs to file for a fictitious business license and announce its existence in the newspaper.

Businesses should do this before they open their doors. The process helps ensure that businesses use unique names and allows the government to keep track of existing businesses.

3. What should you know about zoning regulations before starting a home-based business?

Different municipal areas are zoned or restricted for different sorts of activities, such as industrial work, commercial businesses, or residential homes. Homeowners cannot open a commercial business from their home unless their home is zoned for commercial use or unless their business meets certain requirements. Some areas allow entrepreneurs to operate businesses from their homes as long as it does not impact their community and neighbors, but entrepreneurs should contact their local government to find out. Some of the restrictions concern increased traffic or visitors, hanging business signs, or other business-related activities that might disturb a residential community.

4. The Sarbanes-Oxley Act (SOX) was enacted in 2002, following scandals at the company Enron, where officials were found to be compliant in stealing money from the company and, in effect, the shareholders. Which types of businesses are impacted by SOX, and why does the small-business owner need to know about the regulations?

SOX contains provisions to increase corporate transparency and accountability for businesses that sell shares to the public. Among other provisions of the act, the requirements are that accounting files must be kept available for several years; officers are personally liable for extortion and financial crimes; and books are open for regular audits.

Small businesses need to be aware of the requirements and the new atmosphere of accountability, because even private shareholders as well as the government will be more attentive to bookkeeping errors and omissions. Additionally, if a business ever wishes to go public, it will need to have its records on hand and make them available for public scrutiny, which places an added burden on technology and accounting departments as well as on the business’s officers.



5. Name and briefly describe the purpose of two regulations (besides SOX and zoning regulations) that can affect small businesses, as well as the impact of those regulations on business.

Occupational Safety and Health (OSH) Act—OSHA oversees the regulations to protect workers’ health and safety on the job, which includes many types of regulations in different industries such as chemicals, construction, and more.

Consumer Product Safety Act—The Consumer Product Safety Act enforced by the Consumer Product Safety Commission provides regulations for many different types of products by setting standards for product safety testing before products are released to market, and it provides regulations for how safe different products must be.

Fair Labor Standards Act—This law requires companies to pay minimum wage and overtime pay, setting a maximum work week limit of 40 hours, and it limits child labor.

Board of directors—Corporations are required to have a board that oversees their strategic plans and accounting processes and makes sure the business is accountable to shareholders and abides by laws.

6. Describe three different types of permits, licenses, or regulations that affect businesses, and what types of businesses each one applies to.

Permits grant businesses the right to hold special events like concerts; licenses grant rights to engage in an activity, like serving food or liquor; certificates verify the rights and skills that businesses have.

Regulations control company behavior, such as requiring companies to retain a board of directors and pay employees a minimum wage, and requiring employees to take regular breaks.

7. Explain the role and the responsibility of a company’s board of directors.

A board of directors helps an entrepreneur by reviewing the budgets, providing strategic guidance and directions, and meeting regularly to discuss operations. They also resolve conflicts and may take on individual responsibilities.




Presentation Notes: Intellectual Property ProtectionsBefore you show this presentation, use the text accompanying each slide to develop presentation notes. Writing the notes yourself enables you to approach the subject matter in a way that is comfortable to you and engaging for your students. Make this presentation as interactive as possible by stopping frequently to ask questions and encourage class discussion.

This presentation introduces the different types of intellectual property protections, how to register them, and how companies license the intellectual property of others.

Presentation notes



Intellectual property can be a difficult concept. It refers to the intangible aspects of an invention, a creative work, a phrase, or an idea.

Common types of intellectual property include trademarks, patents, copyrights, and trade secrets. These are legal designations that help companies secure their rights to their own ideas and creative endeavors.

Intellectual property can be described by four characteristics:

• It is reproducible. It includes creative works that can be copied, reproduced, and plagiarized.

• It is intangible, meaning it is not physical. Phrases, ideas, processes, and designs are examples.

• It is unique or creative. Entrepreneurs who develop something new can prevent others from stealing their ideas and copying their products.

• It is protected. Intellectual property can be protected using patents, copyright, trademarks, and other legal agreements.

Presentation notes



A huge range of creative works have a copyright.

• Written: fiction, textbooks, articles, scripts, poems

• Artistic: paintings, sculptures, photographs, models, maps

• Software: programs, parts of program code

• Music: songs, parts of songs, instrumental works, jingles

• Other works of authorship: blueprints, board games, and more

Works are considered to be protected by copyright at the time they are created. However, authors will have an easier time defending their rights in court if they file the copyright with the Library of Congress.

To file a copyright, an applicant sends an application, two copies of the work, and the required filing fees (starting from $30) to the Library of Congress. The copyright lasts for the life of the author plus 70 years or, for works of corporate authorship, 120 years after creation.

Presentation notes



The copyright prevents others from using parts or all of the work without getting a license or permission from the author. The author of a work often earns his or her payment through licensing others the right to use the work in specific ways.

Copyright law also provides for certain cases where an author can use another author’s works if the work is significantly different from the original. Authors are also allowed to make parodies of originals under fair use.

However, as with many legal terms, the phrase fair use is intentionally vague, and lawyers or courts often have to decide on a case-by-case basis what constitutes fair use and where a work crosses the boundary into infringement (breaking the terms of the law).

Once a copyright expires, the work falls into the public domain and anyone can use it. Works created before 1923 are generally considered in the public domain, but there are some exceptions, particularly for unpublished works. The work of French painter Irene Lagut, pictured here, can be reproduced without permission because it was painted in 1922.

Presentation notes



An entrepreneur must register a trademark through the federal Patent and Trademark Office. An entrepreneur must fill out a form, show a drawing of the mark, present five examples of actual use of the mark, and pay the fee for filing. A federal attorney will examine the application to see whether the mark is suitable, and the entire process takes over a year to complete.

Four categories of trademarks exist:

• Coined mark—Represents a brand or company name rather than the name of the goods or services. Using a coined mark can allow the company to expand into a wide range of products and services (e.g., Mercedes and Kodak).

• Arbitrary mark—This mark is arbitrary in the way that it has a different meaning in standard language but is also applied to a product or a service (e.g., Apple).

• Suggestive mark—This mark also has a meaning in standard language but one that is applied to a product to suggest or describe some aspect of it (e.g., Honda Fit and Toyota Sequoia).

• Descriptive mark—This one differs from the others in that it’s a mark that has already become distinctive and well recognized by the public over time. The mark can be descriptive of a particular product or service (e.g., Kleenex, Scotch tape, and Band-Aid).

Presentation notes



A business that creates a new process or develops a new invention can file an application with the government for a patent. The patent allows the business to use the invention and prevents anyone else from making, using, or selling the invention for a specified amount of time. After that time period ends, anyone else can use the invention as well, and it is released into the public domain.

A business isn’t allowed to use a patent if doing so infringes on anyone else’s patent rights. Before filing for a patent, businesses must file a disclosure statement, making the invention known to the government and the public.

One of the most famous patents of all time was issued in 1876 to Alexander Graham Bell for his invention of the telephone.

“USPTO Telephone Patent No. 174465” image retrieved from http://commons.wikimedia.org/wiki/File:USPTO_Telephone_Patent_No._ 174465.jpg ; public domain image from historical article http://www.corp.att.com/history/inventing.html.

Wall phone image by C. E. Scribner retrieved from http:// commons.wikimedia.org/wiki/File:Bells_first_wall_teleph one_1877.jpg. Public domain image from “The Creation of the Telephone,” Telephony magazine, September 27, 1917.

Presentation notes


http://commons.wikimedia.org/wiki/File:Bells_first_wall_telephone_1877.jpg




http://www.corp.att.com/history/inventing.html

http://commons.wikimedia.org/wiki/File:USPTO_Telephone_Patent_No._174465.jpg




Patents may be complicated and require a lawyer, but some preliminary work can be done online at the US Patent Office. The business can file for one of three types of patents:

• Utility patents protect new processes, techniques, or machinery. Filing a utility patent costs $790, and the patent lasts 20 years.

• Design patents protect original designs in the appearance of an object, ranging from the design on an object to its shape. The filing costs $200 plus other fees and lasts 14 years.

• Plant patents protect new varieties of plants the same way utility patents do.

Businesses can also protect their ideas by filing an application stating they want to defend their right to use the idea but that they don’t intend to patent it. This agreement prevents other businesses from patenting the idea first.

Image by Chris Phutully retrieved from http://commons.wikimedia.org/wiki/File:The_%22Marilyn_Monroe%22_rose_(8624096100)_(3). jpg and reproduced here under the terms of the Creative Commons Attribution 2.0 Generic license (http:// creativecommons.org/licenses/by/2.0/deed.en ).

Presentation notes


http://creativecommons.org/licenses/by/2.0/deed.en

http://creativecommons.org/licenses/by/2.0/deed.en

http://commons.wikimedia.org/wiki/File:The_%22Marilyn_Monroe%22_rose_(8624096100)_(3).jpg




Companies want to keep their strategies, discoveries, and research and development secret to maintain an advantage over their competitors. This could include inventions that are still in development or the company’s future strategy for success. A competitor could take an entrepreneur’s idea, develop it into something new, and then patent the idea so that the original entrepreneur can no longer use it!

To prevent others from taking their new ideas and strategies, businesses keep trade secrets. There are two main ways to keep the secrets: first, they only share trade secrets with the people who absolutely need to know. Second, they require those who do need to know in order to do their work to sign a legally binding agreement that they will not reveal the secret to competitors or possibly even anyone outside the company. If someone betrays the agreement and reveals the secret anyway, that person can be sued or otherwise penalized for breaking the agreement—but by then it may be too late to prevent others from using the information.

The formula for Coca-Cola is one of the most famous trade secrets in history. This secret formula provides Coca-Cola with a competitive advantage over its competition, as there is no other soda that tastes like it. Colonel Sanders’ recipe for fried chicken is another famous trade secret. Both companies put many security measures in place to keep their formulas a secret!

Presentation notes



A license is an agreement between the rights holder (copyright, patent, or trademark holder) and someone who wishes to use the work. The license describes how and in what way the work can be used. It also explains how the rights holder will be compensated for the use of the intellectual property.

For example, a journalist may write a magazine article and sell first rights, which means that the publication will pay for being the first to print the article. Usually the license includes a period of exclusivity, and after that time expires, the journalist can resell the article to another publication.

A new form of licensing, Creative Commons (CC), helps artists on the Internet who want to share their work and let others have more freedom to use it. Creative Commons licenses allow various degrees of free and restricted uses for software developers, writers, artists, and anyone holding a copyright.

For example, a comic book author could apply a noncommercial attribution license that allows fans to draw the comic book characters, provided they give the author credit for creating the character and don’t try to sell the images of the characters.

In some cases, businesses want to simply buy all rights to a work or commission a worker to create intellectual property that the company owns. Employee contracts often state that anything produced on the job is a work for hire and any related copyright or patent is owned by the company, not the worker.

Presentation notes



To file a trademark or patent, an entrepreneur can visit the US Patent and Trademark Office at http:// www.uspto.gov/ . However, often businesspeople will need advice about exactly how to file.

Intellectual property laws in their basic forms aren’t so complex, but they can be complicated in the details. A lawsuit can cost a company a lot of money, so many entrepreneurs work with lawyers who specialize in IP to help them avoid any trouble and protect their work as needed.

Presentation notes


http://www.youtube.com/watch?v=ZUG9qYTJMsI&list=FL0bjj1gjSC0qCIU9Gih2neA

http://www.youtube.com/watch?v=ZUG9qYTJMsI&list=FL0bjj1gjSC0qCIU9Gih2neA



Answer Key: Intellectual Property Analysis Scenarios Activity

Answers may vary, but should include the following:

The Tech CompanyA tech start-up has launched its own new accounting software to help businesses keep track of their finances. It is selling the work using a new marketing slogan, “The software that makes math simpler.” In its sales efforts, the start-up is also publishing a monthly newsletter to keep in touch with potential clients.

What intellectual property is this business using, and what protections will it need?

The tech company is using a few different types of intellectual property. By creating its own accounting software, the company is definitely using intellectual property. The company has also created a new marketing slogan to help promote its sales. The tech company should make sure that it establishes and protects the copyright to its accounting software and its new slogan to prevent others from using them. The tech company could also choose to license their new software to other businesses if they wanted to make additional revenue.

The Landscaping BusinessA retail plant nursery has just launched a side venture providing landscaping design services to local homes and businesses. It specializes in planting several new varieties that thrive with minimal care, recently created by a well-known biogenetic research company. With each purchase in the nursery, the clerks give customers a brochure about the new service, which features photographs of the special plants, taken by local photographers.


There are several types of intellectual property presented in this scenario. The landscaping business is using intellectual property and so is the biogenetic research company. Depending upon the brochure, the landscaping business may wish to register its copyright so that other companies don’t reproduce it, and the well-known biogenetic research company should have a plant patent on its new plant varieties. The landscaping business could choose to earn additional revenue and license its brochure, allowing other businesses to use it. The local photographers who have pictures in the brochure should also protect their intellectual property.

The Furniture PainterA carpenter who sells specialty wooden furniture recently hired a painter to decorate the furniture with unique hand-painted designs. The company has created an online shop to market its work, which features photographs, written advertising copy, and a unique web design to attract customers.


There are several intellectual property concerns present in this scenario. The furniture painter should protect the copyright in the hand-painted designs so that others don’t reproduce them. The carpenter should get a design patent to protect some of the wooden furniture designs. The unique web design, photographs, and written advertising copy may also be protected by copyright.



The Space Systems CompanyThis company designs and builds satellites and rockets to fly beyond Earth’s atmosphere, into space and onto asteroids and planets. It is competing with a few other companies to create rocket ships that will take wealthy individuals into space and back. The company is crafting a large publicity campaign, targeting those customers. Since the processes are highly complex and competitive, the company also wants to make sure that its employees and contractors keep quiet about the work they are performing so that its secrets are not leaked to competitors.


The space systems company should register its copyright in its satellite and rocket designs. The company should also secure a design patent to protect the original designs and appearance of its satellites and rockets. The company should require that its employees sign a nondisclosure agreement to ensure that employees don’t share any of the company’s secrets with anyone outside of the company.




Key Vocabulary: Legal Issues

Term Definition

board of advisors An informal group of advisors with no legal sanctions that guides and provides direction to the entrepreneurs.

board of directors The formal group of elected advisors that set policy, help shape a business’s daily operations and growth strategy, and provide direction to the entrepreneurs.

compliance The act of adhering to regulations, laws, and standards established by government and private organizations.

Consumer Product Safety Act

The regulation of 1972 establishing a US Consumer Product Safety Commission charged with establishing standards and laws to test and ensure the safety of products offered for sale in the United States.

Consumer Product Safety Improvement Act

The law enacted in 2008 requiring safety testing for children’s toys and products, controversial for its impact on small businesses and secondhand stores.

copyright Legal protection for creative works such as writing, art, music, software, images, and video. Copyright can be filed with the Library of Congress and lasts for the life of an individual author plus 70 years.

Creative Commons licenses

An agreement the author applies to a work in order to allow others to use it more freely than a traditional copyright, trademark, or patent would allow.

doing business as (DBA) The name of a business venture; a sole proprietor or partnership may register the name to show it is doing business as the name.

excise tax Special inland taxes levied for sales of items such as cigarettes, alcoholic beverages, and gasoline, or for certain activities such as gambling or operating heavy vehicles on public roads.

Fair Labor Standards Act A federal law established in 1938 requiring companies to pay minimum wage and overtime pay, setting a maximum work week limit of 40 hours, and limiting child labor.

Federal Insurance Contributions Act (FICA)

The law that created the Social Security tax system that funds retirement accounts for US workers.



Term Definition

Form 1040 The tax form for individuals and sole proprietors to report annual financial information to the Internal Revenue Service.

Form 1065 The tax form (US Return of Partnership Income) for partnerships filing business income taxes.

Form 1120 The tax form (US Corporation Income Tax Return) for corporations filing business income taxes.

infringe To use intellectual property illegally without permission or license from the property rights owner.

intellectual property Creative works that can be used commercially and protected under law with copyright or with patent, trademark, or trade secrets protection.

Internal Revenue Service (IRS)

The US organization that regulates taxation and collects tax filings.

levy To impose or collect a fine or tax.

license An agreement in which an author of a work protected by trademark, patent, or copyright allows others to use certain rights to the work for compensation.

Medicare The US social system for providing medical insurance coverage to people aged 65 and over.

Occupational Safety and Health Administration (OSHA)

The federal organization that oversees health and safety regulations in workplaces, ensuring the health of employees and workers.

patent A set of exclusive rights issued to a person or company for manufacturing and selling a unique process or invention.

public domain Public ownership of creative works, allowing anyone to use and modify the works freely.

registered trademark A trademark that has been filed or registered with the US Patent and Trademark Office.

resellers Companies that buy and sell merchandise in retail or wholesale, and require a sales tax ID.



Term Definition

Sarbanes-Oxley Act (SOX) The US law of 2002 enforcing transparency and accountability for public companies.

service mark A type of trademark used for designating a service company.

trademark Protection for a company’s or entrepreneur’s right to identify itself or a product with a specific word, phrase, or name.

trade secret Information about a company’s processes, research, and inventions that can help it get an edge in the marketplace. Companies ask vendors or employers to sign nondisclosure agreements to prevent them from talking about these secrets.

work for hire An agreement specifying an employer’s right to own any works of authorship produced for the company during working hours.

zoning The process of establishing regions within a municipality to regulate the use of private land for such purposes as industrial work, commercial businesses, and residential homes.




Bibliography: Legal IssuesThe following sources were used in the preparation of this lesson and may be useful for your reference or as classroom resources. We check and update the URLs annually to ensure that they continue to be useful.

PrintHisrich, Robert D., Michael P. Peters, and Dean A. Shepherd. Entrepreneurship, 7th ed. New York: McGraw-Hill, 2008.

Lesonsky, Rieva. Start Your Own Business, 4th ed. Canada: Entrepreneur Media, 2007.

Meyer, Earl C., PhD, and Kathleen R. Allen, PhD. Entrepreneurship and Small Business Management, 2nd ed. Woodland Hills, CA: McGraw-Hill, 2000.

Online“10 Steps to Starting a Business.” SBA.gov, http://www.business.gov/start/start-a-business.html (accessed March 22, 2015).

“About the Licenses.” Creative Commons, http://creativecommons.org/about/licenses/ (accessed March 22, 2015).

“Business Structures.” IRS.gov, http://www.irs.gov/businesses/small/article/0,,id=98359,00.html (accessed March 22, 2015).

“Copyright Term Extension Act.” Wikipedia, http://en.wikipedia.org/wiki/Copyright_Term_Extension_Act (accessed March 22, 2015).

“Federal Insurance Contributions Act Tax.” Wikipedia, http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax (accessed March 22, 2015).

“Get Permission.” Copyright Clearance Center, http://www.copyright.com/ (accessed March 22, 2015).

“Public Domain.” Wikipedia, http://en.wikipedia.org/wiki/Public_domain (accessed March 22, 2015).

“Seller’s Permit.” BusinessNameUSA.com, http://www.businessnameusa.com/2.htm (accessed March 22, 2015).

Wasserman, Elizabeth. “The Pros and Cons of Setting Up a C Corp.” Inc., March 2, 2010, http://www.inc.com/guides/starting-a-c-corp.html (accessed March 22, 2015).

“What Is Sales Tax ID Number?” InfotaxSquare.com, http://www.infotaxsquare.com/view_article.php?title=What%20is%20sales%20tax%20id%20number?|InfoTaxSquare.com&id=86 (accessed March 22, 2015).


http://www.infotaxsquare.com/view_article.php?title=What%20is%20sales%20tax%20id%20number?%7CInfoTaxSquare.com&id=86

http://www.infotaxsquare.com/view_article.php?title=What%20is%20sales%20tax%20id%20number?%7CInfoTaxSquare.com&id=86

http://www.inc.com/guides/starting-a-c-corp.html

http://www.businessnameusa.com/2.htm

http://en.wikipedia.org/wiki/Public_domain%20

http://www.copyright.com/

http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax

http://en.wikipedia.org/wiki/Copyright_Term_Extension_Act

http://www.irs.gov/businesses/small/article/0,,id=98359,00.html

http://creativecommons.org/about/licenses/

http://www.business.gov/start/start-a-business.html

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