Term
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Definition
is the exchange of resources and the method of transport for
• Foreign
• Interstate (or domestic)
• Indian |
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Term
| what is interstate commerce exchange of resource/ methods for? |
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Definition
• Foreign
• Interstate (or domestic)
• Indian |
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Term
| Fed regulation on comerce? |
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Definition
| o No limit on fed. Authority to regulate commerce except interstate qualification |
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Term
| sources of state/ local gov't regulatory authority |
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Definition
• 10th amendment (what isn’t federal responsibility is local)
• Police powers; authority of states to regulate in order to protect health, safety, morals, and general welfare |
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Term
| state laws can't.... (infringing on others*) |
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Definition
| o State laws cant violate the commerce clause or attempt to take power away from the FED |
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Term
| who regulates what? (3 types) |
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Definition
o Exclusively Federal: Areas where national uniformity is essential (FAA/ airport closings)
o Exclusively state and local; intrastate activities with no substantial effect on interstate commerce (ridesharing; massage parlors)
o Dual regulation; federal regulation may overrule state regulation but states can set higher standards (minimum wage; environment) |
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Term
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Definition
| Areas where national uniformity is essential (FAA/ airport closings) |
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Term
| Exclusively state and local; |
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Definition
| intrastate activities with no substantial effect on interstate commerce (ridesharing; massage parlors) |
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Term
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Definition
| Dual regulation; federal regulation may overrule state regulation but states can set higher standards (minimum wage; environment) |
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Term
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Definition
Bumping prices way up as result to rapid/ extreme demand—often happens during natural disasters
• A rapid increase in prices following a shock to supply or demand |
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Term
| laws/ legal basis (price gouging) |
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Definition
| • Legal basis; states have police powers and use that authority to regulate price gouging |
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Term
| motivations (pric egouging) |
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Definition
| consumer protection; fairness/ equity; seems unethical |
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Term
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Definition
o Often applies only to certain goods/ circumstances
o 55% of economics say we should not enforce regulations that discourage price gouging in wake of natural disaster |
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Term
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Definition
| In California, price increase is limited to 10% over pre-emergency price |
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Term
| arguments in favor of PRICE GOUGING |
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Definition
• Discourages hoarding before/ after emergencies
• How else would we allocate scarce resources? First come first serve?
• Actual price gouging occurs less frequently than suspected, but the cost to taxpayers of monitoring is high
• Ignores the market… if no one wants to pay $50/ gallon for gas, seller will have to lower price or make no profit |
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Term
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Definition
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Term
| difference between bi/uni laterl |
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Definition
Mutual promises v. one promise
Less obligation under a unilateral contract |
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Term
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Definition
contain one promise intended to motivate behavior
Promise to pay a bonus if employee meets goal
Offer a reward for stolen goods |
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Term
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Definition
mutuality of obligation; most common type
Purchasing goods from a store; ordering food at a restaurant |
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Term
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Definition
A car repair shop offers a quote, but you don’t have to accept (unilateral)
Once repair work begins, however, you are bound to contract (bilateral) |
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Term
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Definition
• Express contract’ developed in conjunction with all interested parties
All parties’ acceptance of contract terms is “mutual assent”
• Implied-in-fact contracts; originate via non-verbal or non-written means
Visiting an ER or using a taxi implies you will pay cost
Harder to prove than express contract |
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Term
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Definition
eveloped in conjunction with all interested parties
All parties’ acceptance of contract terms is “mutual assent” |
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Term
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Definition
Visiting an ER or using a taxi implies you will pay cost
Harder to prove than express contract |
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Term
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Definition
• A person’s ability to be held to a contract is their capacity
• Three groups have insufficient capacity to fulfill contracts (who?)
MINORS
Mental incapacity
Intoxication
• Voidable contracts; at least one party may cancel without penalty or liability |
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Term
| • Three groups have insufficient capacity to fulfill contracts (who?) |
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Definition
| minors, mental incapacity, intoxication |
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Term
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Definition
| at least one party may cancel without penalty or liability |
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Term
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Definition
• Physical or mental incapacity
• Fraud; falsehood offered to secure agreement
• Misrepresentation; similar to fraud but with no provable intent to deceive
• A mistake of fact or mistake of law
• Unconscionability occurs when a contract’s terms are extremely unjust or unfair and one party may not have understood them
• Duress is the use of physical or economic force (or threat there of) to secure agreement
• Undue influence is leveraging your position to take advantage of someone else
• Frustration of purpose occurs when an external, unforeseen event undermines one or both contract parties’ purpose for entering contract
• Impossibility is similar but occurs when an event undermines a party’s …. GET THIS |
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Term
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Definition
| occurs when a contract’s terms are extremely unjust or unfair and one party may not have understood them |
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Term
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Definition
| is the use of physical or economic force (or threat there of) to secure agreement |
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Term
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Definition
| is leveraging your position to take advantage of someone else |
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Term
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Definition
| occurs when an external, unforeseen event undermines one or both contract parties’ purpose for entering contract |
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Term
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Definition
| similar to fraud but with no provable intent to deceive |
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Term
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Definition
| similar but occurs when an event undermines a party’s …. GET THIS |
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Term
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Definition
• Failing to uphold all of, or part of, contract
• Consequences may include;
Lawsuit/ ADR
Financial settlement
Specific performance |
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Term
| consequences of non-performance |
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Definition
Lawsuit/ ADR
Financial settlement
Specific performance
• Rescission
treating contract as if it never existed; frequently seen in the insurance industry
Auto lease company terminating insurance due to fraud or misrepresentation
Health insurance companies terminating coverage due to non-disclosure pre-existing conditions (limited |
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Term
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Definition
treating contract as if it never existed; frequently seen in the insurance industry
Auto lease company terminating insurance due to fraud or misrepresentation
Health insurance companies terminating coverage due to non-disclosure pre-existing conditions (limited |
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Term
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Definition
Auto lease company terminating insurance due to fraud or misrepresentation
Health insurance companies terminating coverage due to non-disclosure pre-existing conditions (limited |
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Term
| consumer w/o buying something? |
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Definition
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Term
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Definition
| according 2 most laws=someone who buys something (state laws) |
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Term
| core idea (consumer protection) |
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Definition
| • The exchange of resources is not “unchecked.” Governments try to protect consumers to ensure transactions are conducted with due care |
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Term
| federal regulatory agencies |
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Definition
FTC (fed trade commssion),
o FAA, USDA, SEC, FDA, etc. |
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Term
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Definition
• Mission: regulate unfair or deceptive practices
• An ‘independent’ agency
o Five commissioners with presidential appointment
o Congressional budget oversight
• Issues Advisory Opinions and Industry Guides
• Enforces several laws |
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Term
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Definition
• Most Common: Consent Order
• Less Common: Cease and Desist Order
o Like an injunction, some product seems to be harmful, stop selling
• If firm does not agree to consent order, the dispute goes before an administrative law judge
• Options:
o Civil Fines (up to $10,000 per violation)
o Consumer Refunds and Damages
o Public Disclosure of Violation
o Contract Terminations
o Corrective Advertising |
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Term
| options for FTC enforcemnt |
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Definition
o Civil Fines (up to $10,000 per violation)
o Consumer Refunds and Damages
o Public Disclosure of Violation
o Contract Terminations
o Corrective Advertising |
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Term
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Definition
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Term
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Definition
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Term
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Definition
• ‘Do Not Call’ Registry
• annualcreditreport.com
• FTC Complaint Assistant
• Consumer Sentinel Network |
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Term
| FTC (by the numbers) STATS |
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Definition
• Budget of about $300 million (2012)
• About 1,100 employees (over half are lawyers)
• In 2014:
o $38 million returned to consumers
o $28 million returned to US Treasury |
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Term
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Definition
• Capital is key to economic growth
• Federal government regulates credit and lending industries with FTC and other agencies |
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Term
| CREDIT REGULATION (who does it?) ACTS |
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Definition
• Truth in Lending Act (1968): Mandates cost of credit disclosure (financed charges and fees)
• Fair Credit Reporting Act (1970): grants rights to borrowers denied credit o Must be told name of credit agency that denied them o Copy of report o Ability to make corrections o Three days notice before investigative consumer report
• Equal Credit Opportunity Act (1975): prevents discrimination on basis of sex, marital status, age, race, etc.; illegal to redline o A lending industry may feel that a single female may have it harder to pay for a loan, therefore would not want to give her a loan, this prevented it
• Fair Debt Collection Practices Act (1978): establishes rules for debt collectors
• Consumer Financial Protection Act (2010): created a new bureau to regulate consumer financial products; overlaps with other agencies o See consumerfinance.gov o Budget is about $600 million o About 1,800 employees |
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Term
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Definition
Mandates cost of credit disclosure (financed charges and fees)
• |
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Term
| 70 fair credit reporting act |
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Definition
grants rights to borrowers denied credit
o Must be told name of credit agency that denied them
o Copy of report
o Ability to make corrections
o Three days notice before investigative consumer report |
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Term
| 75 equal credit reporting act |
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Definition
prevents discrimination on basis of sex, marital status, age, race, etc.; illegal to redline
o A lending industry may feel that a single female may have it harder to pay for a loan, therefore would not want to give her a loan, this prevented it |
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Term
| 78 fair debt collection practices act |
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Definition
establishes rules for debt collectors
• |
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Term
| 10 consumer financial protection act |
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Definition
created a new bureau to regulate consumer financial products; overlaps with other agencies
o See consumerfinance.gov
o Budget is about $600 million
o About 1,800 employees |
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Term
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Definition
• Regulatory capture
o Like the SCC, passes laws for themselves and not consumers
o This is easy to do because there is a lot of money in stake
• Overlap and redundancy
o Between federal agencies
o Between federal and state agencies
o Between federal agencies and state attorneys general |
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Term
| core idea (consumer protection) |
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Definition
• Some consumer and firm protections exist exclusively in the legal system- bankruptcy laws- and are lined with dispute resolution
Bankruptcy:
• Legal question of how to fairly resolve debts that cannot realistically be repaid |
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Term
|
Definition
• Legal question of how to fairly resolve debts that cannot realistically be repaid
• Not administered by FTC or regulatory agencies, but by FEDERAL courts (*exam question)
• Enumerated (it is specifically said in the constitution) power of congress
• Bankruptcy Act of 1898 gave firms legal protection from creditors
• Bankruptcy Act of 1978 prohibits employment discrimination of bankrupt individuals
• Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 shifted filings toward Chapter 13 from Chapter 7 |
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Term
| regulatory capture (critism of credit reg) |
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Definition
Like the SCC, passes laws for themselves and not consumers
o This is easy to do because there is a lot of money in stake |
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Term
| overlap/ redundancy (critism of credit reg) |
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Definition
Between federal agencies
o Between federal and state agencies
o Between federal agencies and state attorneys general |
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Term
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Definition
| gave firms legal protection from creditors |
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Term
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Definition
| prohibits employment discrimination of bankrupt individuals |
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Term
| • Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 |
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Definition
| shifted filings toward Chapter 13 from Chapter 7 |
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Term
| administered by who? not who? ******** (bankruptcy) how to fairly resolve debts that can't be realistically repaid |
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Definition
| • Not administered by FTC or regulatory agencies, but by FEDERAL courts (*exam question) |
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Term
| beginning of bankruptcy (bankrupt. begins) |
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Definition
• Process starts with filing a bankruptcy petition
o Voluntary: filed by debtor
o Involuntary: filed by creditor(s) |
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Term
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Definition
• Named for chapter in US federal bankruptcy law
• Individuals:
o Chapter 7 and Chapter 13
• Firms
o Chapter 7 and Chapter 11 |
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Term
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Definition
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Term
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Definition
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Term
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Definition
• Most extreme form of bankruptcy; for individuals:
o Can keep some assets; rest is liquidated to pay debts
o Unsecured debt ay be discharged by court
• There is no collateral with unsecured debt
• Ex: credit cards, personal lines of credit
o Certain debts cannot be discharged- mortgages, auto loans, unpaid taxes, child support, outstanding fines, and student loans
o Remains on credit report for 10 years
o Harms ability to receive credit in the future
• Most extreme form of bankruptcy; for firms:
o May cease operation; can continue (temporarily) if court appoints a trustee
o Court has authority to sell portions of firm, including IP (remember patent trolls?)
o Court disposes of assets and uses proceeds to pay creditors (secured first, then all others)
o Firm is ultimately liquidated |
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Term
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Definition
• Less extreme form of bankruptcy for firms
o Also known as “reorganization”
o Firm enters bankruptcy protection, retains control of business (debtor in possession) but must execute a reorganization plan with court’s approval
o If firm does not offer a plan with specific timeframe, creditors may do so
o If plan is approved, creditors must cease debt collection
o Stock delisted from exchanges
o Secured creditors paid first; unsecured paid second |
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Term
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Definition
• Less extreme form of bankruptcy for individuals
o Individual seeks protection; outlines a plan to repay debts over time (3-5 years)
o Keeps most property; creditors cant seek additional repayment during bankruptcy (e.g., can halt foreclosures)
o Stays on credit report; but easier to borrow money
o Encouraged by Bankruptcy Abuse Prevention Act of 2005 |
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Term
| chapter 13 bankruptcy examples |
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Definition
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Term
| chapter 11 bankruptcy examples |
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Definition
o Bloomingdales
o American Apparel
o Kmart
o Samsonite
o Skymall
o Rhythm and Hues |
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Term
| chapter 7 bankruptcy examples |
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Definition
o Napster
o Circuit City
o Hollywood Video
o Hostess Brands
o Steve and Barry’s |
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Term
| Largest U.S. bankruptcies |
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Definition
1. Lehman Brothers (2008)
2. Washington Mutual (2008)
3. Worldcom (2002)
4. GM (2009)
5. CIT Group (2009)
6. Enron (2001)
7. Conesco (2002)
8. MF Global (2011)
9. Chrysler (2009)
10. Thornburg Mortgage (2009) |
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Term
| most extreme of individuals and firms (bankruptcy) |
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Definition
|
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Term
| less extreme for firms(bankruptcy) |
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Definition
|
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Term
| less extreme for indies (bankruptcy) |
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Definition
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Term
| core idea (consumer protection) |
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Definition
| Governments attempt to protect consumers by ‘nudging’ them to make rational choices. This approach is complicated and sometimes ineffective |
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Term
| overview of consumer protection |
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Definition
• France once banned potatoes for causing “leprosy, syphilis, narcosis, rampant sexuality, and death”
• FDA and some states forced Four Loko off the market in 2009-2010
• Eggs are regulated by two agencies (FDA, USDA)
o Why by two agencies?
• Nutrition concerns, what constitutes a grade A egg
• Process of getting eggs in the market place
• Personal favorite: National Raisin Reserve
• Started in 1949 to prevent collapse of raisin prices
• Declared unconstitutional in 2015(8-1 vote by Supreme Court)
o It was because it is a cartel, supreme court did not like that
o Violated the taking clause without fair compensation |
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Term
| two agencies reg. eggs/ why? |
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Definition
(FDA, USDA)
o Why by two agencies?
• Nutrition concerns, what constitutes a grade A egg
• Process of getting eggs in the market place |
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Term
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Definition
Started in 1949 to prevent collapse of raisin prices
• Declared unconstitutional in 2015(8-1 vote by Supreme Court)
o It was because it is a cartel, supreme court did not like that
o Violated the taking clause without fair compensation |
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Term
| weird regs/ consume protect |
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Definition
France once banned potatoes for causing “leprosy, syphilis, narcosis, rampant sexuality, and death”
• FDA and some states forced Four Loko off the market in 2009-2010
• Eggs are regulated by two agencies (FDA, USDA)
National Raisin Reserve |
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Term
| context for reg/ consumer protect (why reg?) |
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Definition
| Regulation is often aimed at shielding consumers from negative |
|
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Term
| externalties (what do they create?) |
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Definition
conflict between gov't and market
coercive/ nudge |
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Term
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Definition
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Term
|
Definition
• Nudge: efforts to steer consumers toward rational choices; not mandates/bans
• Example: obesity; the rationale:
o People are irrational
o Cumulative irrationality raises incidence of obesity
o Some cost of obesity falls on non-obese (externality)
o Thus, government must act to reduce obesity
• Why do some people ‘eat irrational’?
o Bounded willpower; status-quo bias
• Nudge regulations that follow?
• Results on efficacy are mixed
o Food Pyramid altered after ~20 years
o 6 studies found no link between calorie disclosure and consumption; two find it as opposite effect
• Why the poor results?
• Some factors:
o ‘Health halo”
• You put a healthy food on the menu and advertise as low fat, low calorie count, and people will get it and add something on top of it
• Like ordering a salad with a side of fries or dessert
o ‘Choice architects’ are fallible
• Which way do we nudge people?
o Regulatory capture
o Cherry-picking data
• Reported countries with higher cholesterol, this makes a movement |
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Term
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Definition
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Term
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Definition
• o People are irrational
• o Cumulative irrationality raises incidence of obesity
• o Some cost of obesity falls on non-obese (externality)
• o Thus, government must act to reduce obesity |
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Term
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Definition
| bounded will power/ status quo bias |
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Term
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Definition
Passed by city council, July 2007; first ban in the US sold as a public health measure
• Takes effect, September 2008
• Made permanent by amending City Plan, 2010
• Community Health Councils touts reduction in obesity, 2013
what is it?
• Zoning restriction against expansions or new “stand-alone fast-food restaurants”
• Applies only to parts of south LA; population ~700,000
• But:
• o How to define “stand-alone”
• o How to define “fast-food restaurants” |
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Term
| what is FFB (fast food ban) |
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Definition
• Zoning restriction against expansions or new “stand-alone fast-food restaurants”
• Applies only to parts of south LA; population ~700,000
• But:
• o How to define “stand-alone”
• o How to define “fast-food restaurants” |
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Term
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Definition
| “Any establishment which dispenses food for consumption on or off the premises, and which has the following characteristics: a limited menu, items prepared in advance or prepared or heated quickly, no table orders, and food served in disposable wrapping or containers.” |
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Term
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Definition
According to a new study, after FFB took effect:
o South LA had fewer individual or small-chain restaurants (those with seating >10)
o South LA had significantly more small food stores (those with <2000 sq. ft.) |
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Term
| was FFB a failure? if yes... WHY |
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Definition
Wrong Premise: South LA actually had fewer fast food restaurants per capita to begin with, not more
• Ambiguous Research: Studies fail to show that fast food exacerbates obesity and that grocery stores reduce obesity
• Loophole: Only “free-standing” structures banned, so shared-space restaurants could still open
• Zoning law didn’t impact…
o Metabolism (unaffected by the ban)
o Excess consumption of SSBs, candy and baked goods (all of which can be bought at markets and grocery stores)
• Local food environment doesn’t matter if people can drive or take public transit to buy food they want |
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Term
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Definition
When an authority limits a subordinate’s choices and freedom, supposedly for the subordinate’s own good
o When an authority assumes they know better than the subordinate and attempts to change the subordinate’s behavior
Motivations?
• Examples?
• o Speed limits
• o Helmet laws
• o Soda bans
• o Salt bans
• o Rules against swimming pools with no lifeguard on duty
• o Laws against drugs
• o Nutrition labels
• Conflicts between values:
• o Exercising liberty to make personal choices, and
• o Limiting negative externalities from personal choices
• Paradox:
• o Paternalistic motivations assume an individual won’t act in their best interest; but if a person doesn’t know what’s in their best interest, how can an unknown government official(s)? |
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Term
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Definition
• o Speed limits
• o Helmet laws
• o Soda bans
• o Salt bans
• o Rules against swimming pools with no lifeguard on duty
• o Laws against drugs
• o Nutrition labels |
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Term
| motivations of paternalism |
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Definition
|
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Term
| conflicts between values of paternalism |
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Definition
Exercising liberty to make personal choices, and
Limiting negative externalities from personal choices |
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Term
|
Definition
| Paternalistic motivations assume an individual won’t act in their best interest; but if a person doesn’t know what’s in their best interest, how can an unknown government official(s)? |
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Term
| core idea (anti-trust laws) |
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Definition
| • Antitrust laws represent some of the most substantial regulation of firms. These laws attempt to limit actual or perceived anti-competitive behavior. |
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Term
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Definition
• Late 18th/ Early 19th century: Federal gov’t breaks up steel, oil, banking, and rail monopolies
• ’82: Breakup of AT&T; drops antitrust case against General Mills, Kellog, and General Food
• 1998: Antitrust lawsuit against Microsoft-- Netscape
• 2013: Apple—fixing Ebook prices |
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Term
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Definition
• “Trust” … “monopoly”
• Monopoly traits:
o Sole supplier
o Determines price
o Maximizes profit
o Prevents competition by setting high barriers of entry |
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Term
|
Definition
o Sole supplier
o Determines price
o Maximizes profit
o Prevents competition by setting high barriers of entry |
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Term
| THOERY of MONOPS (2 views) |
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Definition
|
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Term
| Economic view (theory of monops) |
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Definition
o Not all monopolies are bad and antitrust regulations may be government failures
• Formation of a monopoly does not mean competition is eliminated forever
• Antitrust laws sometimes protect inefficient firms
• Public policy is inconsistent; after all, the government grants a lot of monopolies |
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Term
| consumer view (theory of monops) |
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Definition
• Consumer view; antitrust laws generate positive societal outcomes
o Limit abuse of power by firms
o Decentralize market power
o Increase competition—location, human capital, demand
o Foster consumer liberty |
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Term
|
Definition
o Patents, copyrights, and trademarks
o K-12 public schools
o Public utilities
o The US postal service |
|
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Term
| inconsistency w/ (gov't granted) MONOPS |
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Definition
o Gov’t sues Microsoft for antitrust violations—alleging they stifled competition
o But the US gov’t bans some forms of competition against the postal service (e.g., first class mail) |
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Term
| primary laws involving MONOPS |
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Definition
o Sherman Act (1890) and Clayton Act (1914)
o Enforced by FTC, DOJ, state gov’ts |
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Term
|
Definition
• Fines and imprisonment
• Injunctions
• Seizure by federal government
• Treble damage
Allows court to TRIPLE actual damages against infringing firm—why? Increase the damages
Fun fact; difference between actual and treble damage is taxable |
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Term
|
Definition
| anti competitive behaviors |
|
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Term
| which anti competitive behaviors do monopoly laws focus on? |
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Definition
| price fixing, predatory pricing, mergers, (collusion) |
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Term
|
Definition
Coordination of pricing to benefit producer(s)
Types:
• Vertical; producer sets price at retail level (might be ok)
• Horizontal; competitors conspire to set max/ min price
Enforcement; DOJ, FTC< and states have jurisdiction to sue; penalties include fines (<$1 million) and/ or prison (<10 years)
Biggest case; auto suppliers
DOJ has sued and collected about $1.6 billion in fines for price fixing
Investigation found:
• Execs met in secret, often in remote locations
• Conspired to “rig bids, fix prices, and allocate the supply of auto parts to U.S. manufacturers”
form of collusion (may be) |
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Term
|
Definition
• price fixing and predatory pricing may be forms of collusion
occurs when 2+ firms reduce competition by conspiring to control supply, prevent new entries, control prices, etc. |
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Term
|
Definition
Anheuser-Busch wants to merge with miller and coors
TYPES:
• Vertical; firm combines with upstream (suppliers) or downstream (retail) elements
• Horizontal; firm acquires competitor or another firm that produces a complimentary good
• Market enhancing ***
• Conglomeration |
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Term
|
Definition
form of collusion
Selling a good at a price low enough to harm competitors (undercutting)
Cash reserves and access to credit allow large firms to engage in this practice
ENFORCEMENT: lawsuits; FTC/ DOJ; hard to prove…
• Price must be below cost
• Must show price causes harm and hurts competition
Example: LePage sues 3M for predatory conduct over sales of transparent tape
• 3M had rebate program to clients; LePage said this was unfair
• Jury awarded LePage $22,828,899 in 2002 for violation of Sherman Act
• 3M appealed; circuit court sided with LePage and said pricing below cost was irrelevant |
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Term
| price fixing and predatory pricing may be forms of? |
|
Definition
|
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Term
|
Definition
• Vertical; firm combines with upstream (suppliers) or downstream (retail) elements
• Horizontal; firm acquires competitor or another firm that produces a complimentary good
• Market enhancing ***
• Conglomeration |
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Term
|
Definition
| firm combines with upstream (suppliers) or downstream (retail) elements |
|
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Term
|
Definition
| firm acquires competitor or another firm that produces a complimentary good |
|
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Term
| market enhancing (extension) merger |
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Definition
| Firm acquires another to expand into new products or regions |
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Term
| conglomeration (merger type) |
|
Definition
firms with no relationship combine
• They might do this because there is a company with funds and another company that has the possibility of bankruptcy and with them merging this can create more money for the firm |
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Term
|
Definition
lawsuits; FTC/ DOJ; hard to prove…
• Price must be below cost
• Must show price causes harm and hurts competition |
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Term
|
Definition
LePage sues 3M for predatory conduct over sales of transparent tape
• 3M had rebate program to clients; LePage said this was unfair
• Jury awarded LePage $22,828,899 in 2002 for violation of Sherman Act
• 3M appealed; circuit court sided with LePage and said pricing below cost was irrelevant |
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Term
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Definition
• Vertical; producer sets price at retail level (might be ok)
• Horizontal; competitors conspire to set max/ min price |
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Term
| enforcement of price fixing |
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Definition
| DOJ, FTC< and states have jurisdiction to sue; penalties include fines (<$1 million) and/ or prison (<10 years) |
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Term
| biggest case of price fixing |
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Definition
= AUTO
• Execs met in secret, often in remote locations
• Conspired to “rig bids, fix prices, and allocate the supply of auto parts to U.S. manufacturers”
(1.6 bill in fines?) |
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Term
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Definition
Allows court to TRIPLE actual damages against infringing firm—why? Increase the damages
Fun fact; difference between actual and treble damage is taxable |
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Term
| PRIVACY ISSUES (ex's- general) |
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Definition
identity theft,
gov't surveillance,
theft of trade secrets/ intellectual property,
personal data integrity (health/ financial/ etc),
unauthorized data shoring |
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Term
| identity theft (privacy issue) |
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Definition
• Social security number is used for a loan
• Sometimes of people who may be deceased—some sort of criminal reason |
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Term
| gov't surveillance (privacy issue) |
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Definition
| • From companies we deal w/ every day; phone companies, FB, etc. |
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Term
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Definition
| • Privacy is linked with personal rights and freedoms but, because of technology, is increasingly difficult to maintain- and regulate. |
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Term
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Definition
• Ability to selectively disclose personal information to others
o Like a certain “right to exclude”
• Dimensions:
o What others know about you
o What they do with it
• You don’t want them to misuse it
o How they obtained information
• There are laws that have to do with what is illegal and legal for the police and FBI for when they need to get information on if they think you committed a crime |
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Term
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Definition
Like a certain “right to exclude”
• Dimensions:
o What others know about you
o What they do with it
• You don’t want them to misuse it
o How they obtained information
• There are laws that have to do with what is illegal and legal for the police and FBI for when they need to get information on if they think you committed a crime |
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Term
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Definition
• A privilege or a right…and what kind of right?
o A privilege can be taken away
o May be a basic right independent of all others
o May be a derivative right sourced in higher law principles
• Property
• Liberty
• That is limited in some ways where people can take information about you
• Bodily integrity
• A right to control what you have over your body
o Creations of your mind, intellectual property
o You have a right over your own body
• Privacy is not explicitly stated in the constitution |
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Term
| derivative right (privacy) |
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Definition
• Property
• Liberty
• That is limited in some ways where people can take information about you
• Bodily integrity
• A right to control what you have over your body
o Creations of your mind, intellectual property
o You have a right over your own body |
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Term
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Definition
| independent of all other rights |
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Term
| bodily integrity (privacy) |
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Definition
• A right to control what you have over your body
o Creations of your mind, intellectual property
o You have a right over your own body |
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Term
| legal/ judicial aspects/ history of PRIVACY |
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Definition
• Privacy is not explicitly stated in the constitution
• Supreme Court: privacy is derived from other rights
o Griswold v. Connecticut (1965) made it illegal to keep married couples from using birth control because it violated “marital privacy”
• Privacy rights since used to legalize birth control, abortion, and same sex marriage |
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Term
| Where is only enivros in which PRIVACY can exist? |
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Definition
those that are somewhat predictable (you can link cause/effect)
o If I do X, my information is safe
o If I don’t do X, my information is not safe
• If you cant link the cause and effect you don’t have control over the privacy
• Your ability to control privacy is different. Not all countries in the world have the same privacy, they have different governments where they can decide on what they want |
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Term
• Two ways to violate privacy (that may trigger regulations)
(privacy) |
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Definition
o Non-consent: you share information and assume it goes no further, but that person/firm shares the information with a 3rd party anyway
o Non-control: person/firm/government limits your ability to keep information private, therefore limiting your personal liberty |
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Term
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Definition
| you share information and assume it goes no further, but that person/firm shares the information with a 3rd party anyway |
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Term
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Definition
| person/firm/government limits your ability to keep information private, therefore limiting your personal liberty |
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Term
| gov't routinely violates PRIVACY.. HOW? |
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Definition
o Strip searches
o Forced drug testing
o Releasing names of accused criminals but not accusers
o Mandatory tax filing (gov't must know)
• How much money you make
• How much you spent
• How much land you acquired
o Surveillance programs
• Tweets
• Facebook status’s |
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Term
| third party doctrine (privacy) |
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Definition
: if you voluntarily give data to businesses, you have “no reasonable expectation of privacy.”
o Legal doctrine, not actual law
o Circumvents 4th amendment rights
o Government uses third-party Doctrine (TPD) to justify surveillance, putting GPS on suspect vehicles, etc.
• If we did not do it, the harm would be great –government
o Also refer to “nothing to hide” principle |
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Term
| gov't used WHAT to justify surveillance/ putting GPS on suspect vehicle, etc (privacy) |
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Definition
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Term
| 3rd party doctrine was used for what by govt? (privacy) |
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Definition
| gov't used WHAT to justify surveillance/ putting GPS on suspect vehicle, etc |
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Term
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Definition
| • There are hundreds of privacy protection laws in effect at the federal and state levels, but they struggle to keep up with technology and consumer trends |
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Term
| major federal laws (regarding privacy) |
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Definition
HIPPA 96
• Identity Theft & Assumption Deterrence Act (1998)
CAN-SPAM act (03) |
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Term
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Definition
o Applies to healthcare plans and providers
o Limits sharing of health information without patient consent |
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Term
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Definition
o Regulates e-mail spam
o Mandates sender include opt-out/unsubscribe option
o Firms can’t sell opt-out lists to other firms |
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Term
| • Identity Theft & Assumption Deterrence Act (1998) |
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Definition
o Made ID theft a federal crime, punishable with a fine (<$250,000) and prison (<15 years)
o Includes actual and attempted ID theft
o Established person (not just creditors) as the victim |
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Term
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Definition
• California has a LOT of privacy protection laws
• California Electronic Communications Privacy Act (CalECPA) in 2015
o Law enforcement must get a warrant before obtaining electronic communications data
o Restricts law enforcement’s ability to obtain data from electronic devices
• Exceptions: owner’s consent, stolen phone, belief of imminent danger |
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Term
| revenge porn laws (privacy) |
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Definition
• CA passed in 2013; 26 states total
• Regulatory issues:
o Defining the term
o Reporting
o Removal
• Process of removing
o Prosecution
• Fine, jail time, etc.?
• Some stats…
o 2013 McAfee Study: 1 in 10 ex-partners have threatened that they would expose risqué photos of their ex
o These threats are carried out nearly 60% of the time
• First conviction in CA: November 2014 |
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Term
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Definition
• Many unresolved questions
• Recent developments (literally 2 weeks ago)
o Congressional hearings after FAA failed to comply with law requiring drone regulations
• Drones and wildfires: interfered with the helicopters because they wanted to drop water. The drone would see how fast the fire was spreading, etc.
o CA enacted law making it illegal to fly a drone over private property to record pictures, video, sound, or “other physical impression.”
o And hey…is it legal to shoot at a drone over your house? |
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Term
| revenge porn laws reg issues |
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Definition
o Defining the term
o Reporting
o Removal
• Process of removing
o Prosecution
• Fine, jail time, etc.? |
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Term
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Definition
o 2013 McAfee Study: 1 in 10 ex-partners have threatened that they would expose risqué photos of their ex
o These threats are carried out nearly 60% of the time |
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Term
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Definition
o A person can request old or outdated information to be removed from search results
• Like Google, if they request
o Search provider must comply
o Material still there, just does not appear in results
• Decided by European Court of Justice in ~2010
• Nothing in law in the US
• EU courts have requested unfavorable news stories be de-linked (!)
o Maybe there is a news article that is not favorable to EU government
o You can have something petitioned to be taken off but you might not win |
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Term
| summary of nature of privacy |
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Definition
o A privilege or a right… and what kind of right?
o Privacy is not explicitly stated in the constitution
o SC: privacy is derived from other rights
o Privacy rights since used to legalize birth control. Abortion, and same-sex marriage
o Privacy only exists in environments that are somewhat predictable (you can link cause/ effect)
o Two ways to violate privacy (that may trigger regulations)
• Non-consent;
• Non-control;
o Of course, gov’t routinely violates privacy
o Third Party Doctrine |
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Term
| core idea (regulatory capture) |
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Definition
| • A consequence of regulation is that government agencies will simply do what businesses want, rather than serve the public good |
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Term
| defintion (regulatory capture) |
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Definition
• Occurs when regulators are “captured” by the very industry they are supposed to regulate
• Other terms
o Crony Capitalism
• The government is too close to the business world
• The laws and regulations are to protect the consumers
o Rent-seeking
• You are trying to extract from the political system
• The rent you are trying to get out of the government could be less regulation
• Through lobbying, money, etc
• Some type of benefit you are trying to extract from the system
• Higher airline prices, so your profit is higher |
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Term
| examples (regulatory capture) |
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Definition
• Until the 1970s, federal government regulated airfare prices, benefiting airlines more than consumers
o High prices, and that is what they got
o More competition for airlines
o It was easy for airlines to lobby the prices
• Agriculture industry driving nutrition guidelines
o Raisins, corn
• Corn industry winning ethanol subsides
o Use corn for fuel, this was driven by the corn industry
• Tech industry lobbying to water down privacy laws
• Appliance makers lobbying for Energy Star regs
o These energy star would go to government to try to get them to get consumers to purchase these energy efficient items
o Before they would buy the non-efficient less expensive appliances so this industry went to the government to try to promote consumers to get energy efficiency to increase their profit |
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Term
| regulatory capture in developING nations |
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Definition
o Fewer checks and balances
o Fewer property rights
o Usually involves bribery, government contracts, etc.
• This results in jail time |
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Term
| regulatory capture in developED nations |
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Definition
o More checks and balances; more bureaucracy
• This results in more people that can be bribed
o Tends to be reflected in seeking favorable regulations
• Get hired
• Donate to campaigns for officials
o Can be “checked” by citizens voting out corrupt officials and withholding business from corrupt firms
• If this regulatory capture happens, where it does not protect you as a consumer, where do you go, you don’t have that much resource |
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Term
| why occur? (regulatory capture) |
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Definition
social dimension,
Regulators part of the FAA or whatever, are people they have to all regulate the same thing, what happens though they tend to work in the same circles.
• What happens when you see these people at social events?
o Business class and political class overlap; many of these people travel in the same circles and attend similar events
o This builds trust and loyalty and removes adversarial relationship (which is somewhat needed to regulate firms)
o Can also lead to hiring exchanges between firms and government agencies
• You want to hire a past government official
populist dimension,
o If people think markets aren’t fair, they turn to government for solution
• Creates more losers than winners
o Government attempts to regulate firms, who are often willing to comply-for a cost
o To appease the masses, governments often push regulations but grant business favors at the same time
political dimension
o Because of business/political overlap AND
o Institutional characteristics (businesses can support politicians’ campaigns; politicians can support business through favorable laws)
o Government agencies can be “captured” by special interests and de-emphasize the general welfare in favor of interests’ demands
• Its not just one corn man that wants the move, but the whole corn industry that will want to influence an official to be on their best interest |
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Term
| social dimension (regulatory capture) |
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Definition
o Regulators part of the FAA or whatever, are people they have to all regulate the same thing, what happens though they tend to work in the same circles.
• What happens when you see these people at social events?
o Business class and political class overlap; many of these people travel in the same circles and attend similar events
o This builds trust and loyalty and removes adversarial relationship (which is somewhat needed to regulate firms)
o Can also lead to hiring exchanges between firms and government agencies
• You want to hire a past government official |
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Term
| populist dimension (regulatory capture) |
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Definition
o If people think markets aren’t fair, they turn to government for solution
• Creates more losers than winners
o Government attempts to regulate firms, who are often willing to comply-for a cost
o To appease the masses, governments often push regulations but grant business favors at the same time |
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Term
| political dimension (regulatory capture) |
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Definition
o Because of business/political overlap AND
o Institutional characteristics (businesses can support politicians’ campaigns; politicians can support business through favorable laws)
o Government agencies can be “captured” by special interests and de-emphasize the general welfare in favor of interests’ demands
• Its not just one corn man that wants the move, but the whole corn industry that will want to influence an official to be on their best interest |
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Term
| o Crony Capitalism (regulatory capture) |
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Definition
• The government is too close to the business world
• The laws and regulations are to protect the consumers |
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Term
| o Rent-seeking (regulatory capture) |
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Definition
• You are trying to extract from the political system
• The rent you are trying to get out of the government could be less regulation
• Through lobbying, money, etc
• Some type of benefit you are trying to extract from the system
• Higher airline prices, so your profit is higher |
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Term
| • Until the 1970s, federal government regulated airfare prices, benefiting airlines more than consumers |
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Definition
o High prices, and that is what they got
o More competition for airlines
o It was easy for airlines to lobby the prices |
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Term
| • Appliance makers lobbying for Energy Star regs |
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Definition
o These energy star would go to government to try to get them to get consumers to purchase these energy efficient items
o Before they would buy the non-efficient less expensive appliances so this industry went to the government to try to promote consumers to get energy efficiency to increase their profit |
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Term
| occurs in devloping and developed nations? |
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Definition
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Term
| Who regulates regulators? (regulatory capture) |
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Definition
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Term
| issues w/ CONGRESS regulating regulators (regulatory capture) |
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Definition
o Congress is political and can be bought/sold
• Money is all over the place
• Congress can be influenced by money just like elected officials
o Even an objective legislator cant possibly know every single regulation and agency
o Regulators/agencies know congress isn’t always “watching”
o This arrangement is a barrier to ethical behavior |
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Term
| issue w/ the PEOPLE regulating regulators (regulatory capture) |
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Definition
o Voters rarely have a direct say in regulatory matters
o Public comments can and are ignored
o Voters tolerate some bad regulations if they get “good” regulations elsewhere |
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Term
| core idea (commerce clause) |
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Definition
| • The federal government’s authority to regulate the exchange of resources rests in the Commerce Clause of the Constitution |
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Term
| quote (commerce clause) CONGRESS COMMERCE REGULATION |
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Definition
| “Congress shall have power… to regulate commerce with foreign nations, and among the several states, and with the Indian tribes” |
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Term
| what does "regulate" mean? [2 meaning] (commerce clause) |
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Definition
• “To control by rule or method”
o Government should ‘control’ commerce (active role)
• “To make regular”
o Government should not prevent flow of resources (passive role) |
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Term
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Definition
| o Government should not prevent flow of resources (passive role) |
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Term
| "to control by rule or method" |
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Definition
| Government should ‘control’ commerce (active role) |
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Term
| • Wrong Premise: (FBB failure reason) |
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Definition
| South LA actually had fewer fast food restaurants per capita to begin with, not more |
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Term
| • Ambiguous Research: (FBB failure reason) |
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Definition
| Studies fail to show that fast food exacerbates obesity and that grocery stores reduce obesity |
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Term
| Loophole: (FBB failure reason) |
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Definition
| only “free-standing” structures banned, so shared-space restaurants could still open |
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Term
| Zoning law didn't impact (FBB failure reason) |
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Definition
o Metabolism (unaffected by the ban)
o Excess consumption of SSBs, candy and baked goods (all of which can be bought at markets and grocery stores) |
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Term
| TRANSIT ISSUE (FBB failure reason) |
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Definition
| • Local food environment doesn’t matter if people can drive or take public transit to buy food they want |
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Term
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Definition
o Sole supplier
o Determines price
o Maximizes profit
o Prevents competition by setting high barriers of entry |
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Term
| exceptions to labor trust laws (anti-trust law) |
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Definition
• Not all organizations have to abide by antitrust laws…
o Government agencies exempt
o Labor unions
o Utilities- electricity, natural gas, cable TV, water- receive monopoly status in exchange for government oversight (public utility commissions, local franchise agreements, etc.) |
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Term
| recent cases (anti trust law) |
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Definition
o December 2011: AT&T withdraws bid for T-Mobile amid opposition from DOJ, FTC, and FCC
o April 2013: Anheuser-Busch InBev settles with DOJ over proposed merger with Groupo Modelo by agreeing to sell U.S. rights to Corona
o August 2013: DOJ files lawsuit to block merger of American Airlines and US Air |
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Term
| why poor results of efforts to "NUDGE" people into eating healthier |
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Definition
o ‘Health halo”
• You put a healthy food on the menu and advertise as low fat, low calorie count, and people will get it and add something on top of it
• Like ordering a salad with a side of fries or dessert
o ‘Choice architects’ are fallible
• Which way do we nudge people?
o Regulatory capture
o Cherry-picking data
• Reported countries with higher cholesterol, this makes a movement |
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Term
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Definition
| Reported countries with higher cholesterol, this makes a movement |
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Term
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Definition
• You put a healthy food on the menu and advertise as low fat, low calorie count, and people will get it and add something on top of it
• Like ordering a salad with a side of fries or dessert |
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Term
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Definition
| These laws attempt to limit actual or perceived anti-competitive behavior. |
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Term
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Definition
| All parties’ acceptance of contract terms |
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Term
| • Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 |
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Definition
| shifted filings toward Chapter 13 from Chapter 7 |
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Term
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Definition
• Truth in Lending Act (1968):
• Fair Credit Reporting Act (1970): grants
• Equal Credit Opportunity Act (1975):
• Fair Debt Collection Practices Act (1978):
• Consumer Financial Protection Act (2010): |
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