This document discusses various types of regulations that protect businesses and the public. It outlines regulations around patents, copyrights, trademarks, food and drug laws, product safety laws, data privacy laws, licensing, franchising, building codes, and zoning laws. The key purpose of these regulations is to protect intellectual property, consumer safety, privacy, fair competition, and proper land use.

1. Chapter 7.2
Regulations
Protection Business
and the Public
JARED NEUGEBAUER

2. Patents
 A patent is an agreement in which federal government gives an
inventor the sole right for 20 years to make, use, and sell an
invention or process
 It is a protection that is rewarded for the time and money invested to
create the new product
 Some patents are revoked or denied by the Patent and Trademark
Office because they can be unfair

3. Copyrights
 Copyrights are similar to a patent in that the federal government
gives an author the sole right to reproduce, publish, and sell literary
or artistic work for the life of the author, typically, plus 70 years
 Can’t publish/reproduce this work without permission
 Can have photocopying of copyright material for fair use
 Also covers electronic methods for distributing creative work
 They are regulated by the federal Copyright Office

4. Trademarks
 Trademarks are a distinguishing name, symbol, or special mark
placed on a good or service that is legally reserved for the sole use
of the owner
 Eamples:
 Nike “swoosh”
 McDonald’s “golden arches”
 Sony “Walkman”
 Nintendo’s “Game Boy”

5. Food and Drug Regulations
 The Food and Drug Administration administers the Federal Food,
Drug, and Cosmetic Act
 These are laws that prohibit sales of impure, improperly labeled,
falsely guaranteed, and unhealthful food, drugs, and cosmetics
 If a product violates this they may have to stop their sales or notify the
public of the potential harm

6. Nonfood Product Regulations
 Laws require labels on many products if danger exists from product
use
 Example:
 Health warning message on cigarette packages
 Consumer Product Safety Act
 When products already sold are found to have a dangerous defect,
businesses are legally required to recall, repair, or stop selling the
products
 Warranty Act
 What sellers will do if their product is defective

7. Information Regulations
 Information liability is the responsible for physical or economic injury
arising from incorrect data or wrongful use of data
 Similar to product liability
 Electronic Communications Privacy Act make it a crime for any
unauthorized person to access a major computer system and view, use,
or change data
 Cookies are files of information about the user that some Web sites
create and store on the user’s computer

8. State and Local Regulations
 Interstate commerce is defined as business operations and
transactions that cross state lines, such as products produced in one
state and sold in another
 Intrastate commerce is defined as business transacted within a
state

9. Licensing
 Licensing is a way to limit and control those who plan to enter
certain types of businesses
 Businesses are regulated by granting of licenses and inspections by
government officials
 Common licensing examples:
 On restaurants and beauty salons
 Licenses on use of property, like computer software

10. Public franchising
 A public franchise is a contract that permits a person or organization
to use public property for private profit
 Examples:
 Bus lines
 Installing electric power or cable for television

11. Building Codes and Zoning
 Building codes control the physical features of structures
 May specify:
 Max height
 Min square feet of space
 And types of materials that can be used
 Zoning regulations specify which land areas may be used for homes
and which areas may be used for different types of businesses