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PRDV205: Business Law and Legal Procedures

Unit 9: BUSINESS REGULATION   Government regulation is always a topic of debate within the business community.  In the immediate wake of Enron's massive accounting fraud, for example, US legislators passed the Sarbanes-Oxley Act (SOX) in 2002 to require publicly traded corporations to be more diligent in their reporting and auditing practices.  Many corporations have since elected to operate as privately held companies to avoid SOX regulations.  Other corporations maintain that they must devote so much of their resources to complying with SOX that they can barely sustain profitability.  Government regulations are passed all the time, and it is important that company owners and managers are aware of these changing regulations - those that already exist, those that are currently being created, and those that are being proposed for future removal.  All regulation developments have the potential to affect businesses and their employees.

Unit 9 Time Advisory
This unit should take you approximately 2 hours to complete.

Unit9 Learning Outcomes
Upon successful completion of this unit, you should be able to:
- explain significant regulatory schemes affecting business; - identify requirements for public companies under Sarbanes-Oxley Act; and - assess the impact of government regulation on business.

9.1 Antitrust and Trade   - Reading: Foundations of Business Law and the Legal Environment: “Chapter 28, Section 1: History and Basic Framework of Antitrust Laws in the United States” Link: Foundations of Business Law and the Legal Environment: “Chapter 28, Section 1: History and Basic Framework of Antitrust Laws in the United States” (PDF)

 Instructions: Read the textbook introduction to the history and
basics of antitrust law.  Note that in many countries, antitrust
laws are referred to as competition laws.  As you read, pay special
attention to the discussion of the Sherman Antitrust Act and its
development.  

 Reading this textbook section should take approximately 1 hour.  

 Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-ShareAlike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution, as requested by the work’s original creator or
licensee.

9.2 Securities and Corporate Regulation   - Web Media: YouTube: The Saylor Foundation’s “Federal Securities Regulation in the United States” and “State Securities Regulation in the United States” Link: YouTube: The Saylor Foundation’s “Federal Securities Regulation in the United States” (YouTube) and “State Securities Regulation in the United States” (YouTube)

 Instructions: Click on the links above and watch both videos.  Pay
particular attention to the distinct yet overlapping roles the
federal government and state governments play in the regulation of
securities transactions in the United States.  

 Note that the video on federal securities regulation also covers
the material you need to know for subunits 9.2.1-9.2.3, found
below.  You can refer to those subunits for additional guidance on
how to approach your viewing of this video.  

 Watching these videos and pausing to take notes should take
approximately 45 minutes.

9.2.1 The Securities Act of 1933   Note: This topic is covered by the Saylor YouTube video titled “Federal Securities Regulation in the United States” that was assigned under Subunit 9.2 (above).  For this subunit, review the video’s description of the key provisions of the Securities Act of 1933, particularly the registration requirements for securities.

9.2.2 The Securities Exchange Act of 1933   Note: This topic is covered by the Saylor YouTube video titled “Federal Securities Regulation in the United States” that was assigned under Subunit 9.2 (above).  For this subunit, pay special attention to the video’s description of the key provisions of the Securities Exchange Act of 1933, particularly regarding the oversight of securities exchanges and broker-dealers of securities.

9.2.3 Investment Advisers and Mutual Funds   Note: This topic is covered by the Saylor YouTube video titled “Federal Securities Regulation in the United States” that was assigned under Subunit 9.2 (above).  For this subunit, pay special attention to the video’s description of the key provisions of the Investment Advisers Act of 1940, particularly the registration rules and other requirements related to investment advisers.

9.2.4 The Sarbanes-Oxley Act   - Web Media: YouTube: The Saylor Foundation’s “The Sarbanes-Oxley Act” Link: YouTube: The Saylor Foundation’s “The Sarbanes-Oxley Act” (YouTube)

 Instructions: Click on the link above and watch the entire video. 
This video will present you with an overview of the Sarbanes-Oxley
Act, passed by the US Congress and signed by President George W.
Bush in 2002.  This law was introduced to address situations in
which publicly traded companies were engaging in the misuse and
misreporting of accounting and financial information.  The
Sarbanes-Oxley Act attempts to correct prior corporate abuses by
enforcing stronger penalties that hold corporation executives,
lawyers, and accountants personally responsible for violations and
more stringent reporting requirements.  As you watch this video,
consider how the provisions of this act might affect companies –
including, perhaps, your own.  

 Watching this video and pausing to take notes should take
approximately 30 minutes.

9.3 Environmental Law   - Reading: Government Regulation and the Legal Environment of Business: “Chapter 14, Section 5: Environmental Law” Link: Government Regulation and the Legal Environment of Business: “Chapter 14, Section 5: Environmental Law” (PDF)

 Instructions: Read this textbook overview of environmental law in
the United States.  While environmental considerations have been
part of the law throughout history, these considerations have become
more prominent beginning in the 1960s, as public concerns about air
and water pollution have grown.  By the 1970s, the US government had
created a range of statutes and regulations addressing diverse
environmental issues such as hazardous waste, pesticides, noise
control, and radiation.  As you read, familiarize yourself with the
various laws addressing environmental issues that have been passed
over the last fifty years.  

 Reading this textbook section should take approximately 45
minutes.  

 Terms of Use: This text was adapted by The Saylor Foundation under
a [Creative Commons Attribution-NonCommercial-ShareAlike 3.0
License](http://creativecommons.org/licenses/by-nc-sa/3.0/) without
attribution, as requested by the work’s original creator or
licensee.