Chapter 1 Introduction to Law August 29th 2014 1 5 How Law Affects Business Disciplines Learning Objectives Identify the relevance of law to business disciplines Understand the relevance of law to the study of business Identify how the rule of law protects people form harmful business practices Sarbanes Oxley Act Imposes stringent oversight requirements on accounting and auditing firms Seeks to ensure o Competence o Compliance with security laws o Conduct consistent with generally accepted accounting principals GAAP Securities and Exchange Commission U S Securities and Exchange Commission s SEC mission o Protect investors and to maintain a fair market o Enforce accounting and auditing policies o Pursue charges of accounting fraud o Oversee private regulation of the accounting profession o Enforce prohibitions against insider trading and other types of securities fraud such as Ponzi schemes Ponzi Scheme Type of investment fraud similar to pyramid scheme Financial Transactions and Management Financial Transactions o Truth in Lending Act TILA Requires lenders to provide accurate information concerning costs involved in offers of credit o Regulation Z Implements the Truth in Lending Act o Title VII of the Civil Rights Act Prohibits discrimination related to protected characteristics in hiring and employment practices Management Marketing Marketers must be particularly attuned to tort law consumer protection law and intellectual property law Federal Trade Commissions FTC Federal agency that protects consumers anti trust and false advertising
View Full Document
Unlocking...