Term
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Definition
| created in 1970--conduct assessments and do research |
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Term
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Definition
1. primary standards set national ambient air quality standards
2. secondary standards set standards for other problems caused by dirty air
3. state implementation plans: 3 year grace period
4. allows citizens to bring suit against polluters or against EPA |
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Term
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Definition
provision that sulfur power plant emissions should decrease by 50%
--> different options available, if you are ahead of standards you must still keep pollution minimal |
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Term
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Definition
| technology forcing --> car industry given 6 years to lower car emissions |
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Term
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Definition
limitations- laws put in place and challenged
--> cost vs. benefit of eliminating soot |
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Term
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Definition
| EPA sets standards for any chemical in the air that has a 1/1 million chance of causing cancer |
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Term
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Definition
U.S. not partners in the Kioto Accord
--> US represents a majority part of consumption, China is catching up |
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Term
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Definition
| make all navigable waters swimmable and fishable by 1983 and eliminate discharge of pollutants by 1985 |
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Term
| Clean Water Act--industrial provision |
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Definition
All discharges into navigable water need EPA permission.
-->any single producer can only produce up to maximum with regard to available technology
-->water quality standards set for each industry |
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Term
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Definition
defined legal term--wildlife, wetness, etc.
--can't mess with the wetlands
--city must get permit for any waste-->get treatment for water before disposed |
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Term
| Safe Drinking Water Act (1974) |
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Definition
sets drinking water standards and leaves enforcement to teh states
--no lead pipes, annual consumer confidence report |
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Term
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Definition
can't dump in ocean without EPA permit
--set new standards for tankers
(1989--Exxon Valdez oil spill) |
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Term
| Resource Conversion and Recovery Act |
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Definition
sets rule for disposal of hazardous waste and ordinary garbage
1. no more open dumps (solid waste)- state permit for landfills
2. underground storage tanks must be tested, reported and removed if they are old
3. identify hazardous sites to best of your knowledge, EPA identifies what is/is not hazardous |
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Term
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Definition
owner of property/operator/purchaser are jointly and severally liable for cleanup
-->choose who to sue |
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Term
| Federal Insecticide, Fungicide and Rodenticide Act |
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Definition
| manufacturers must register all pesticides with EPA (hazardous) |
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Term
| Federal Food, Drug and Cosmetic Act |
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Definition
| maximum levels of pesticide residue in raw or processed food |
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Term
| Food Quality Protection Act |
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Definition
| set pesticide standards at levels safe for children |
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Term
| Toxic Substances Control Act |
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Definition
| if selling new chemical or old chemical for new reason then must inform EPA |
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Term
| National Environmental Policy Act (1969) |
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Definition
| requires all federal agencies to provide environmental impact statements |
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Term
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Definition
--list of species (EPA responsible for updating)
--prohibit sale/transfer
--can't take,harass, harm, kill, capture, modify the environment of an endangered species
--can't take from federal property |
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Term
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Definition
Federal Trade Commission
--important for businesspeople |
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Term
| Enforcement of Consumer Protection |
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Definition
1. voluntarily comply
2. administrative hearing
-->hearing with 5 judges
-->can go to court of appeals before supreme court |
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Term
| Consumer Protection Penalties |
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Definition
--fine for each violation of voluntary compliance
--fine for violating FTC order (seize & desist)
--fine for violating seize & desist order on other company of same industry |
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Term
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Definition
| advertisements that contain important misrepresentation or omissions that are likely to mislead |
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Term
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Definition
1. causes substantial consumer injury
2. cost/benefit analysis--harm outweights benefit
3. consumer could not reasonably avoid injury
---NO TEST: FTC determines practice violates public policy |
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Term
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Definition
| advertise certain product or special offer and then promote a different more expensive product once consumer responds (attempt to trick consumer) |
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Term
| Mail/Telephone Order Merchandise |
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Definition
-"do not call" registry
-exempt: politicians & charities |
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Term
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Definition
| right to cancel in 30 days |
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Term
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Definition
| no cost, can't raise price of giveaway |
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Term
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Definition
| no more than 6 months in any 12 month period (30 day lapse) |
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Term
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Definition
| conditions must be conspicuously set forth at outset of offer |
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Term
| distributors' and resellers' obligations |
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Definition
want you to sell w/ giveaway
--some retailers don't participate -->distributor can cut off retailer |
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Term
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Definition
| alluring but insincere offer to sell product or service which advertisement does not really indent to sell |
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Term
| discouragement of purchase |
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Definition
1. refusal to sell/show/demonstrate
2. disparaging the advertised product
3. limited availability
4. refuse to take orders for advertised merchandise
5. product not suited for purpose it was advertised
6. sales plan discourages sale of advertised product |
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Term
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Definition
1. use money for new product
2. failure to deliver advertised product in reasonable time
3. are they disparaging the advertised product?
4. delivery not suitable for purpose advertised |
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Term
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Definition
| before/after price comparison MUST be true |
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Term
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Definition
| seen elsewhere, prevailing market price--if claim to be cheapest then MUST be true |
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Term
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Definition
manufacturer suggested retail price
--RARE to find products sold at MSRP and if they claim to be MUST be true |
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Term
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Definition
Sold with other merchandise
--terms and conditions must be available at outset of offer
--can't jack up prices of products in offer |
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Term
| Consumer Product Safety Commission (CPSC) (1972) |
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Definition
Nixom ear, to protect public against unreasonable risk of injury or death
--associated with consumer product use
-->created due to child safety issues with toys |
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Term
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Definition
taking things off market
--mechanism of choice |
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Term
| Reporting obligations of manufacturer, retailer, distributor (initial contact--step 1 recall) |
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Definition
report to CPSC when certain number of accidents/deaths occur
--cooperative with the industry |
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Term
| Letter of Advice (step 2 recall) |
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Definition
| you have a problem, take this corrective action or contest this |
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Term
| Sanctions (step 3 recall) |
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Definition
DO NOT SELL SOMETHING THAT HAS BEEN RECALLED
civil- $8000 a sale up to max of $1.8 million (penalty)
criminal- individual can be fined up to $100,000-$250,000; company can be fined $200,000-$500,000 + 1 year imprisonment
injunctions--restraining order, sieze & desist
seizure--sieze & condemn |
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Term
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Definition
1. Locate noncomplying items ASAP
2. Remove items from possession of consumers in distribution chain
3. Communicate to consumers teh danger of the product |
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Term
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Definition
| news releases, direct notice, TV, newspaper, posters |
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Term
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Definition
can't try to "gain a monopoly
--punishable by jail
--enforced by Anti-Trust Division of Justice Dept
**poorly written, broad |
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Term
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Definition
different types of restraints (tie-in, price discrimination)
--only penalties are civil
--enforced by FTC
--exclusive dealing arrangements |
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Term
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Definition
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Term
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Definition
"gap-filler"
--FTC & Anti-Trust Division of Justice have "broad" powers |
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Term
| Rule of Reason (anti-trust) |
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Definition
| decide whether actions are "reasonable" based on company, market, business reasons RATHER than old laws |
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Term
| per se offenses (anti-trust) |
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Definition
considered an offense, no questions asked
(horizontal) |
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Term
| Horizontal Restraints among competitors |
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Definition
| defined as concerted actions among entities in actual or potential competition with one another |
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Term
| Price Fixing (horizontal) |
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Definition
sit down with competitors to decide "price" (applies to both min. and max. pricing)
--no contract
--WORST horizontal restraint
--cannot agree on a price range, book price, list of prices, terms and conditions of sale, limit the supply or set common standards |
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Term
| Allocation of Markets or Customers |
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Definition
| CANNOT agree with competitor to split market/customer base |
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Term
| Concerted Refusal to Deal |
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Definition
agreement not to sell/buy from a certain entity (customer boycott)
--no longer a per se offense |
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Term
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Definition
should be supervised by attorny
--circulate agenda
--discussion about industry/trade associations as a whole |
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Term
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Definition
| must sell my products at this price (MSRP)--channel conflict |
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Term
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Definition
give something to someone to sell for you (sales agent)
--consignor and consignee
--consignor sets the price |
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Term
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Definition
economic risk that company task
--insurance underwriters look at risk
--whatever you pay premium on, hoping that anything that goes wrong with that will be covered by payments made |
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Term
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Definition
something bad happens
--tree falls on your house |
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Term
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Definition
hurting someone else
--hit someone else's car
(REQUIRED) |
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Term
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Definition
| in case of car accident with your car |
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Term
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Definition
| risk pool-big pool of all people who can't get insurance and pay $$ |
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Term
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Definition
presented as investment
-- ^time ^cash value of insurance policy
-- $$ goes to premium, $$ goes to savings (life) |
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Term
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Definition
buy a policy for period of time
--when time expires, life insurance expires
--can be paid annually |
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Term
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Definition
must have something that is insurable
--have insurable interest as soon as you take 'title' of something
--parents & children, spouse & spouse, company & 'keyman' |
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Term
| insurance policy as contract |
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Definition
can be voided due to misrepresentation
--must be in writing
--must be written in plain language |
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Term
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Definition
insurance agents are EMPLOYED by the insurance company
--agents |
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Term
| application of insurance contract |
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Definition
owner makes application and pays premium
--insurance company can accept or decline |
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Term
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Definition
insurance company takes your money and issues you a "binder"
-only binds company if facts are not misrepresented |
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Term
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Definition
final statement of insurance
--what company will & will not cover
--cover up to "x" amount
--"exclusions" wont be covered |
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Term
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Definition
person who has risk that is covered
--beneficiary gets the money
--owner of policy is person that buys it |
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Term
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Definition
responsibility of insurance company to act in good faith when bad things happen
--"slow roll" reluctance of comp. to pay out
--insurance adjusters (independent) |
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Term
| Fair Packaging and Labeling Act (FPLA) (1967) |
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Definition
directs the FTC and FDA to issue regulations requiring that all "consumer commodities" be labeled to disclose net contents, identity of commodity, and the name and place of business of the product's manufacturer, packer or distributor.
--authorizes necessary additional regulations to prevent consumer deception |
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Term
| basic requirement of FPLA act |
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Definition
requires each package of household "consumer commodities" that is included in the coveraeg of the FPLA to bear a label on which there is:
--statement to identify commodity, name, place, net quantity of contents |
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Term
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Definition
| facilitate value comparisons and to prevent unfair or deceptive packaging and labeling of many household "consumer commodities" |
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Term
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Definition
national security
--Office of Foreign Assets Control, Bureau of Industry and Security, State Department |
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Term
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Definition
| shipping or taking an article out of the US, disclosing technical data to a foreign person, performing a defense service for a foreign person |
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Term
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Definition
| transferring title or ownership of something to a foreign person in or outside of the US |
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Term
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Definition
| export something to someone and then that someone exports it to someone else (who not authorized to receive shipment) |
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Term
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Definition
| military and non-military obligation |
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Term
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Definition
know who product is going to, where it is going, what it will be used for
-Ask ?s and look for red flags |
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Term
| Commerce Control List Categories |
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Definition
| Things that are usable for the average person and could be used for nefarious purposes. Chemicals, materials processing equipment, electronics, computers, telecommunications and security stuff, sensors, lasers, marine navigation equipment, propulsion and space ship equipment. |
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Term
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Definition
Fill out an application, it passes before the department of commerce and then pass it to the state department(this is where things usually get held up). If you get the license then you go ahead with the shipment.
If you want to move your manufacturing stuff over seas you have to be careful that it doesn’t violate any laws. (includes technology) |
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Term
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Definition
| The Arab league has a boycott of Israel. We like Israel therefore we have a law that we can not join the Arab League that is boycotting Israel. Sometimes the Arabs will slip a little clause into their contract with you, that says you will not do business with Israel. You have to say no and report it to the State department that you were asked to participate with the Arab League in the boycott against Israel. |
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Term
| Foreign Corrupt Practices Act |
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Definition
| Ex. Bribing a foreign country to change their tax laws in order to help your business. The FCPA states that we will not bribe corruptly to do something to influence a foreign official to do or omit to do an act that is in violation of their lawful duty or to secure any improper advantage in order to get business from them. We are one of the only countries in the world with this provision. |
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Term
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Definition
| you can give something to hasten an ordinarily ministerial act. So basically there are okay bribes and not okay bribes. Okay bribes are things that grease the wheel. Maybe to speed up the process. Wheel greasing is how things get done in many countries. |
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Term
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Definition
i. Applies to consumer loans only
ii. There must be a finance charge or more then four installments
iii. For loans less than $25,000 or secured by mortgage on real estate.
iv. Loan must be made by someone in the business of lending credit |
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Term
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Definition
i. In all Loans
1. Must be clear (plain English written for consumer), all information must be in a meaningful sequence.
2. Must disclose finance charges
3. Must disclose the annual percentage rate |
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Term
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Definition
| (beginning rate, super weirdly low amount of interest, must tell you how long that rate is going to be in effect. Must tell you what the new rate is going to be after the teaser rate) |
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Term
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Definition
a. Amounts and dates of purchases
b. Where you are at the beginning of the billing cycle.
c. The finance charges and late fees (if applicable)
d. The date by which a bill must be paid in order to avoid these charges.
e. What are the consequences of making monthly minimum payments? Do your best to pay it off! |
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Term
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Definition
1. Must give you the cash price and down payment amount.
2. The amount that is being financed.
3. An itemized list of all other charges (delivery, tax title and license, etc)
4. Number amount and due dates of payments.
5. The total amount of payment
6. Late payment charges, pre payment penalties and security for loan |
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Term
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Definition
(Sub prime loan means you are not the world’s most eligible money borrower. Considered higher risk, therefore you have higher interest charges.)
2. Can be no prepayment penalty if monthly payment can change in the first four years of the loan. (Can’t give you a penalty for tying to get out of it)
3. Must collect property taxes and homeowner’s insurance for all first mortgages. |
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Term
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Definition
| - (borrowing against the value of the house, aka the portion of the house that is already paid off, second mortgage) If the APR is more than ten points over the treasury rate. Or fees and closing costs are 8% or more of the loan amount (risky borrower) then the lender must tell the consumer within three days prior to the loan that you can back out. (People get buyer’s remorse) Also must be told he can lose his house. |
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Term
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Definition
| you can always rescind within three days of the loan if its not a first mortgage or within three years if the lender doesn’t give you all the information. Lender must comply with TILA (truth in lending act) |
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Term
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Definition
a. You have 60 days to complain, they have 30 days to respond.
b. Within two billing cycles but no more than 90 days the company must investigate and respond. (You’re wrong or you’re right)
c. If the customer requests at any time they are entitled to documentary evidence of what they owe. (Credit card company has to show you a receipt for what you bought)
d. In the period of time after you complain but before they respond they cannot cut you off.
e. The credit card company cannot report to credit agencies until ten days after their response. (must give you time to argue with them) |
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Term
| fair credit reporting act |
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Definition
a. They can only use your credit report for legitimate business needs
b. Must have your written consent
c. If information is ordinary credit then its obsolete after seven years (for ordinary default, ten for declaring bankruptcy)
d. Information and lifestyle (after three months can’t say what you were spending your money on)
e. Cannot get or send your medication record without consent
f. If the employer takes adverse action (like denying you a job) they have to tell you why and show you the report.
g. Credit agency must tell you the content of your file. (Why am I getting a bad credit rating) If you say it is incorrect the agency must investigate it and get back to you. |
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Term
| fair and accurate credit transactions act |
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Definition
| a. Consumers may by law request credit reports every year. (You should to make sure that you haven’t had your ID stolen) |
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Term
| fair debt collection practices act |
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Definition
a. The first time they call you they must give you a written notice of what they are after.
b. If you write to them telling them to “leave you alone” then they have to.
c. Cannot call a debtor that is represented by an attorney
d. Can’t call before 8am or after 9pm.
e. Can’t cuss at you
f. Can’t call you at work.
g. They can’t say that they’re attorneys or that they work for the government.
h. Can’t threaten debtors with prison or arrest.
i. Can’t make any other false or illegal threats, especially if they have no intention of doing something.
j. Can’t contact your acquaintances other then to find out your location. |
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Term
| Equal Credit opportunity Act |
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Definition
| can’t discriminate against a borrower for age, sex, religion, welfare, etc. |
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Term
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Definition
| – doesn’t apply to real estate rentals. Must give you all the information you would expect. (think of car leases) |
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Term
| non price vertical restraints |
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Definition
| Restrictions that avoid channel conflict. It is probably okay if there is no vertical pricing. Can’t mandate the price they sell at. The test is “rule of reason” |
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Term
| exclusive dealing agreements |
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Definition
If you have a requirements contract and you’re tying up the market (so that you buy up all the supply) then you are breaking the law according to the Clayton Act. (looked at on a case by case basis, rule of reason is used)
Territorial and customer restrictions – typically okay if its vertical. |
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Term
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Definition
| we will do business with you if you promise not to sell to someone else. The seller can however refuse to deal with someone if its something you do without conspiring. (you just decide you don’t want to deal with someone) |
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Term
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Definition
manufacturer buys its supplier. If there is only one supplier then you might have a problem. Also includes buying customers (distributers).
--Acquisition of competitors. Predatory pricing – start lowering prices because you know you can control the market and can put your competitors out of business. Use of exclusive dealing arrangements. |
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Term
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Definition
| Test for product market. Look at incremental price increases, if people will leave your product because of small price increases for another product that fills their need than that is part of the same product market. |
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Term
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Definition
| How far will you drive for a particular product? This defines the geographical market. |
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Term
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Definition
| Test of violation is a two-part test. 1) possession of monopoly power in the relevant market. 2) willful acquisition and maintenance of that power. |
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Term
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Definition
| Do you have the power to control pricing? Probably a monopoly. Does not require evil intent. All it has to be is “yea that’s what I wanted to do.” |
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Term
| willful acquisition or maintenance |
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Definition
| One must show that they wanted to create a monopoly, and acted in a manner to damage competition and there was a dangerous probability that they could drive their competition out of business. |
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Term
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Definition
| You can’t merge with a company if it would result in a massive drop in competition. They would make you divest. (ex. ATT had to divest) |
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Term
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Definition
| discriminate in how you charge a purchaser. Must be a different price for a good reason (quantities and price breaks). The sale has to actually happen. Price breaks (quantity discount) must be made available to everyone. |
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Term
| Grade and quality of price discrimination |
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Definition
| Is there a difference that justifies a price difference? Second line injury – created a price difference that makes the buyer sell at a higher price. |
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Term
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Definition
| (must result in injury to competition) injury is the primary line. Damaging competitors with price discrimination. |
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Term
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Definition
| Typically not liable unless they induce the violation (convinces you to discriminate price) |
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Term
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Definition
| Co-op arrangement must be affirmatively offered to everyone. Ex. Dell advertising “intel” inside. Co-op money payed to Dell to be in Dell’s advertisements. |
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