1. The goal is to enhance thequality of life for society as a whole by setting the rules under which allbusinesses compete, so government regulates business in order to eliminate abuses and to controlconduct considered to be unreasonable. 2. Agencies may be run by a single administration who servesat the pleasure of the executive, either the President of the United States inthe case of federal agencies or the governor in case of state agencies. Themember of which are appointed for staggered terms, frequently of five years,may run agencies.
3. Regulatory agencies govern the economic activity ofbusiness by prescribing rules stating what should or should not be done inparticular situations. Also, regulatory agencies regulate a wide variety ofprofessions that serves the public. A few of the examples are barbers, doctors, and insurance agents. All of theprevious examples must meet the requirements set by the appropriate regulatoryagent.
Nonregulatory agencies, also called social regulatory agencies, dispensebenefits for social and economic welfare, and issue regulations governingdistribution of benefits. 4. The Office of Foreign Assets Control enforce economic andtrade sanctions imposed by the U.S. government by publishing lists namingthousands of individuals and organizations with whom American companies are prohibitedfrom conducting business.
OFAC also administers sanction programs againstforeign governments, such as those in North Korea and Sudan. 5. After investigating a problem, agencies will develop aproposed rule. The federal agency must publish a notice of the proposed rule inthe Federal Register.
This allows the parties opportunity to comment on theproposed rule. Another way, which has become more common, is notice and commentrule making. This is when the federal agency publishes a proposed rule but does not hold formal hearings. 6. The Federal Trade Commission prohibits “unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce.” The FTC was established, along with all the other antitrustlaws, because it is another way the government regulates business.
It also was established to help prevent unfair anddeceptive practices. It prevents businesses from false advertising. 7. The rule of reason approachis used with the Sherman Act and it means that the courts examine the rule on the anticompetitive effectof a particular activity on a case-by-case basis. The effect of the activity,not the activity itself, is the most important element in deciding whether theSherman Act has been violated. 8. The purpose of the Water Pollution and Control Act is torestore and maintain the proper chemistry of the U.S.
waters. It prevents the dischargeof pollutants into interstate and navigable waters. They set limits ondischarges, including pollutants into sewer systems; has the responsibility forwetlands protection; and can block or overrule the issuance of permits underthe law.
9. Banks and other lending institutions should requireenvironmental assessments of properties before making a loan and beforeforeclosing on the property. Also, before anyone buys or invests in theproperty, an investigation should be made to identify any environmental risksand determine expected cleanup costs. 10. CERCLA imposes liability for cleanup of waste to stateenvironmental agencies.