or contract is that there must be an offer and acceptance of the terms of that offer. Sales contracts normally
involve the sale of goods and include price terms, quantity and cost, how the terms of the contract will be
performed, and method of delivery.
Employment and Labor Law
Employment and labor law is a very broad discipline that covers a broad array of laws and regulations
involving employer/employee rights and responsibilities in the workplace. This law includes worker protection
and safety laws, such as OSHA, and worker immigration laws, such as the Immigration Reform and Control Act,
which imposes sanctions on employers for knowingly hiring illegal immigrants. Other notable areas of
employment and labor law include, but are not limited to, the National Labor Relations Act, which deals with
union and management relations, as well as Equal Opportunity in Employment laws, which provide workers
with protections against discrimination in the workplace, e.g., Title VII, the Americans with Disabilities Act, Age
Discrimination in Employment Act, and others.
Antitrust Law
Antitrust legislation includes both federal and state laws regulating companies’ conduct and organization. The
purpose of such regulation is to allow consumers to benefit from the promotion of fair competition. The main
statutes implicated by antitrust law are the Sherman Act of 1890, the Clayton Act of 1914, and the Federal
Trade Commission Act of 1914. These Acts discourage the restraint of trade by prohibiting the creation of
cartels and other collusive practices. Additionally, they encourage competition by restricting the mergers and
acquisitions of certain organizations. Finally, they prohibit the creation and abuse of monopoly power.
Actions may be brought in courts to enforce antitrust laws by the Federal Trade Commission (“FTC”), the U.S.
Department of Justice, state governments, and private parties.
Unfair Trade Practices and the Federal Trade Commission
The term “unfair trade practices” is broadly used and refers to any deceptive or fraudulent business practice
or act that causes injury to a consumer. Some examples include, but are not limited to, false representations of
a good or service including deceptive pricing, non-compliance with manufacturing standards, and false
advertising. The FTC investigates allegations of unfair trade practices raised by consumers and businesses,
pre-merger notification filings, congressional inquiries, or reports in the media and may seek voluntary
compliance by offending businesses through a consent order, administrative complaints, or federal litigation.
Securities Regulation
Securities regulation involves both federal and state regulation of securities and stocks by governmental
regulatory agencies. At times, it may also involve the regulations of exchanges like the New York Stock
Exchange, as well as the rules of self-regulatory organizations like the Financial Industry Regulatory Authority
(FINRA).
The Securities and Exchange Commission (SEC) regulates securities on the federal level. Other instruments
related to securities, such as futures and some derivatives, are regulated by the Commodity Futures Trading
Commission (CFTC).
10
Chapter 1 American Law, Legal Reasoning, and the Legal System
This OpenStax book is available for free at http://cnx.org/content/col30149/1.5