GOVERNMENT IN SOCIETY
Government plays a role in all economic systems. Your role as a citizen and voter has an effect on the decisions and actions taken by government. In a private enterprise system, government's role is much less extensive than in other economic systems. It is still a vital one. The role of government in the economy often changes as newly elected officials take office.
Roles of GovernmentAs issues facing society change, so must government change. There are some basic roles of government.
Government is mainly concerned with these areas:
Levels of GovernmentThe main goal of the federal government is to oversee the activities that involve
two or more states or other countries. In general, the Constitution gives the federal government the power to regulate foreign and interstate commerce.
Interstate commerce is business dealings involving companies in more than one state. The federal government would regulate a trucking company that ships products to several states.
State governments regulate business actions within their own borders. Intrastate commerce refers to business dealings involving companies that do business in only one state. A trucking company that hauls products only within a state's boundaries would be regulated by that state and not the federal government.
All states have assigned some of their legislative power to local governments. Local governments include county boards and city or town councils. Local governments provide services needed for an orderly society, such as police and fire protection.
GOVERNMENT PROTECTION ACTIVITIESGovernment protects your rights in a number of ways. Citizens are protected through police and fire-fighting services. The armed forces provide for national defense. National security is a chief concern of the federal government.
Worker ProtectionLaws have been established to help provide a safe work environment. As a worker, you have a basic right to safe working conditions. Safety standards for buildings, machines, and chemicals are set by government agencies. Government inspection and regulation of work areas help reduce the number of job-related
More government regulations result from the need to protect the basic human rights of workers. For example, you cannot be denied work because of your race, religion, sex, or age. Selection of someone for a job must be based on job requirements, training, and experience. Prejudices and personal biases must not affect a hiring decision.
Contract Enforcement
Contracts are another example of government protection. A contract is an agreement to exchange goods or services for something of value, usually money. It is a basic part of doing business. A contract may be written or unwritten. Certain elements must be included for the contract to be enforceable. Figure 4-2 highlights the main provisions of every enforceable contract.
Government plays a role in all economic systems. Your role as a citizen and voter has an effect on the decisions and actions taken by government. In a private enterprise system, government's role is much less extensive than in other economic systems. It is still a vital one. The role of government in the economy often changes as newly elected officials take office.
Roles of GovernmentAs issues facing society change, so must government change. There are some basic roles of government.
Government is mainly concerned with these areas:
- Providing services for members of society
- Protecting citizens, consumers, businesses, and workers
- Regulating utilities and promoting competition
- Providing information and support to businesses
- Buying goods and services
- Hiring public employees
- Raising revenue
Levels of GovernmentThe main goal of the federal government is to oversee the activities that involve
two or more states or other countries. In general, the Constitution gives the federal government the power to regulate foreign and interstate commerce.
Interstate commerce is business dealings involving companies in more than one state. The federal government would regulate a trucking company that ships products to several states.
State governments regulate business actions within their own borders. Intrastate commerce refers to business dealings involving companies that do business in only one state. A trucking company that hauls products only within a state's boundaries would be regulated by that state and not the federal government.
All states have assigned some of their legislative power to local governments. Local governments include county boards and city or town councils. Local governments provide services needed for an orderly society, such as police and fire protection.
GOVERNMENT PROTECTION ACTIVITIESGovernment protects your rights in a number of ways. Citizens are protected through police and fire-fighting services. The armed forces provide for national defense. National security is a chief concern of the federal government.
Worker ProtectionLaws have been established to help provide a safe work environment. As a worker, you have a basic right to safe working conditions. Safety standards for buildings, machines, and chemicals are set by government agencies. Government inspection and regulation of work areas help reduce the number of job-related
More government regulations result from the need to protect the basic human rights of workers. For example, you cannot be denied work because of your race, religion, sex, or age. Selection of someone for a job must be based on job requirements, training, and experience. Prejudices and personal biases must not affect a hiring decision.
Contract Enforcement
Contracts are another example of government protection. A contract is an agreement to exchange goods or services for something of value, usually money. It is a basic part of doing business. A contract may be written or unwritten. Certain elements must be included for the contract to be enforceable. Figure 4-2 highlights the main provisions of every enforceable contract.
These four elements—agreement, competent parties, consideration, and legality—are the basis for many legal disputes. An item seen as having different values (consideration) by different people can result in a legal dispute. Examples of contracts include a lease to rent an apartment, a credit card agreement, and documents that state the terms of a purchase.
Both consumers and businesses benefit from government enforcement of contracts. If you agree to have repairs made on your car for $65, the business firm must do the work as agreed upon. You must pay for the work when it is finished. If work is not done correctly or if you fail to pay, legal action can be taken to force the work to be corrected or force you to pay.
Legal System
Without enforcement, dishonest consumers or business owners could refuse to honor their agreements. Daily business activities would be very difficult.
The legal system enforces laws and government regulations. There are typically two types of cases that move through our legal systems, criminal cases and civil cases.
A criminal case is brought for violations of criminal laws. A business could be involved in a criminal case if it pressed charges against a customer or employee engaged in shoplifting. If a business violates criminal or regulatory laws, it could be a defendant in a criminal case.
Civil cases typically have a plaintiff who asks the courts to take action against a defendant. Businesses can both sue and be sued for a breach, or violation, of contract; liable, or damage caused by someone's action; or unauthorized use of copyrights, trademarks, or patents.
Unethical behavior can violate either criminal laws or government regulations. A business can be held responsible for products that that cause harm, unsafe working conditions, or failure to pay taxes.
Both consumers and businesses benefit from government enforcement of contracts. If you agree to have repairs made on your car for $65, the business firm must do the work as agreed upon. You must pay for the work when it is finished. If work is not done correctly or if you fail to pay, legal action can be taken to force the work to be corrected or force you to pay.
Legal System
Without enforcement, dishonest consumers or business owners could refuse to honor their agreements. Daily business activities would be very difficult.
The legal system enforces laws and government regulations. There are typically two types of cases that move through our legal systems, criminal cases and civil cases.
A criminal case is brought for violations of criminal laws. A business could be involved in a criminal case if it pressed charges against a customer or employee engaged in shoplifting. If a business violates criminal or regulatory laws, it could be a defendant in a criminal case.
Civil cases typically have a plaintiff who asks the courts to take action against a defendant. Businesses can both sue and be sued for a breach, or violation, of contract; liable, or damage caused by someone's action; or unauthorized use of copyrights, trademarks, or patents.
Unethical behavior can violate either criminal laws or government regulations. A business can be held responsible for products that that cause harm, unsafe working conditions, or failure to pay taxes.
PROTECTION OF INTELLECTUAL PROPERTYIntellectual property is purely intangible, with no physical characteristics—a person cannot touch it. Intellectual property includes patents, copyrights, and trademarks.
PatentsWhen individuals or companies create new products, they may obtain a patent. A patent gives the inventor the sole right to make, use, or sell the item for 20 years. A company that creates a new means to record programs from television could get a patent for this process. It would prevent other companies from making or selling recorders using this process.
CopyrightsA copyright protects the creative work of authors, composers, and artists. Copyright protection lasts for the life of the person receiving the copyright. It also extends for 70 years after the person's death. Examples of copyright statements can be found on the front pages of most books. Copyrights are identified with the symbol ©.
TrademarksA trademark is a word, letter, or symbol linked with a specific company or product. Businesses register company names, team emblems, and label designs with the government. A trademark can be very valuable. Many are famous all over the world and are often identified with a symbol, called a logo. Can you think of some logos that you see frequently?
PatentsWhen individuals or companies create new products, they may obtain a patent. A patent gives the inventor the sole right to make, use, or sell the item for 20 years. A company that creates a new means to record programs from television could get a patent for this process. It would prevent other companies from making or selling recorders using this process.
CopyrightsA copyright protects the creative work of authors, composers, and artists. Copyright protection lasts for the life of the person receiving the copyright. It also extends for 70 years after the person's death. Examples of copyright statements can be found on the front pages of most books. Copyrights are identified with the symbol ©.
TrademarksA trademark is a word, letter, or symbol linked with a specific company or product. Businesses register company names, team emblems, and label designs with the government. A trademark can be very valuable. Many are famous all over the world and are often identified with a symbol, called a logo. Can you think of some logos that you see frequently?