'For Hectorx' please

Running Head: Reflection Paper

Reflection Paper

Walden University

BUSI-2001-3 Business Law

Instructor: Michael Cutchen

Running Head: Reflection Paper

Abstract

The purpose of this paper is to reflect on the various theories, concepts, and strategies presented in BUSI-2001-3 Business Law, at Walden University in partial fulfillment of the class. The questions presented here are in an effort to determine whether this author believes if there is too little regulation and protection for business in the United States or whether there is too much regulation slowing down the efficiency and reducing the profitability of business in this country?

Running Head: Reflection Paper

Is there is too little regulation and protection for business in the United States or is there too much regulation slowing down the efficiency and reducing the profitability of business in this country? In deriving at a reasonable response to these questions one must take into consideration of how government intervenes within our society in reference to laws that regulate the conduct of business.

The Uniform Commercial Code (UCC) “is a group of laws governing commercial or business transactions throughout the United States. The UCC has made key changes to the common law principles of contracts to accommodate the needs of people dealing with one another in the modern business world.” (Cutchen, 2010)

Everyone knows the right thing to do but in the stress of competition and the desire to be successful, rules sometimes get bent and temptation gets the upper hand.  It became apparent in the early part of this century that some regulation of business was required and the government had to step in to protect the public from the robber barons of those days.  We have come a long way since then but we still need reminders once in a while.  The reminder can come from our customers, from ourselves or from the government.

Codes (regulations) act as reminders, they can provide guidance in ethically ambiguous situations like the ubiquitous conflict-of-interest cases.  Insider information, favors, tips, gifts,

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meals and entertainment are in reality bribes of various degrees.  They are part of business practice.  A code can define the boundaries.  It will also give the means to do the right thing.

A code specifies the social responsibility of business when no one seems to know what the rules are.  This applies to relationships between managers and employees as well as between the organization and its stakeholders.  Problems involving affirmative action and sexual harassment are lessened.  Codes have been shown to improve behavior and to increase public trust.   It is true that codes by their nature must be broad and amorphous.  They cannot cover

every situation.  But they will improve with use as we learn from interpreting them and adapting them to situations just as we do with other laws and regulations we deal with in everyday society.  Recognizing ethical problems is made easier with a well understood code.  The most serious criticism is that they are difficult to enforce.   The law does that and that is precisely what we want to keep to a minimum. 

Government regulation is necessary to enforce the rules of the market and to protect the public from anticompetitive practices like monopolies, fraud in advertising, dishonesty and deception.  This kind of regulation should be supported by business.  “Deregulation can go too far and lead to unfair competition.  When government and business cooperate in planning and financing there is enhancement of social efficiency and competition, reduction of  monopoly, improvement in research and stimulation of ailing industries.” (Beauchamp, T.L and N.E. Bowie, 1993)

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Government also looks after environmental and ethical problems that industry alone cannot handle.  Fear of government interference revolves around the worry that government is biased against business and that it takes away power from business and arrogates it to itself.  It is too susceptible to special interest groups.  It may also be seen as too paternalistic, knowing better what is good for us than we do for ourselves, such as the requirement for seat belts and baby seats in cars.

Governmental regulation, then, is neither a complete blessing nor a complete curse.  Properly formulated regulations applied in the appropriate situations can help assure proper

corporate behavior. But the complete job of business ethics cannot be done by regulatory action any more than by case law in the courts. 

The economic system in the United States is a private enterprise system. The success of a business in the private enterprise system is dependent upon the quality and price of the goods and services the business offers. “Government regulation is designed to protect the rights of individual businesses. Regulation protects the rights of individual businesses to compete, and protecting competition also protects consumers, employees, and stockholders.” (Peritz, Rudolph, 1996)

Government has the authority to regulate business if, the regulation is needed, and the regulation is reasonable. We need government regulation of business for many reasons. First,

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Government also looks after regulation is important to protect the general public. Secondly, regulation protects small businesses and allows them to grow.

Government regulations “are enforced by administrative agencies which are created by legislatures, and they have the power to write regulations, enforce statutes and regulations, and conduct judicial hearings regarding statutes and regulations they create. Administrative agencies have a great deal of power within the area they control. Individuals may pursue enforcement if they suffer damage as the result of a violation of government regulation.”(Goldman, 2007)

People disagree about how much government ought to intervene in markets, but almost all agree that certain conditions are necessary for a well-functioning market. Where these conditions are not adequate, government may need to intervene to correct the problems created.

People want a "good" society, usually meaning prosperity, stability, equity, etc. A market economy seems to be an important part of a "good" society in the modern world, in that it seems to produce prosperity and a relatively broad distribution of the things produced.

In conclusion, there continues to be a wealth of information that could be provided in determining whether there is too little regulation and protection for business in the United States or whether there is too much regulation slowing down the efficiency and reducing the profitability of business in this country? However, after extensive research in these areas and looking outside of the box of politics, it is the opinion of this author that too little regulation and protection of businesses in the United States possibly does exist when taking into consideration the enormous amount and diversity of businesses which are occurring daily.

The United States is one of the most culturally diverse nations in the world, with these diverse cultures and the human creative minds, it is only reasonable to assume that the government cannot possibly create specific laws and regulations to cover all the areas of conduct that occur in business daily.

Yet, the government, in this authors’ opinion should be applauded for their constant endeavors to regulate those who would do ill in the administration of conducting business and protect the everyday citizen and merchants. The government is a government because we as Americans have chosen to set it in place to alleviate the ills of our society the best ways that we can through appointment, the voting booths, and legislation.

If there is too much regulation slowing down the efficiency and reducing the profitability of business in this country, then those who make these complaints need to stop whining and go to the voting booths. Despite complaints, the government's rules serve the public well for the majority of the time, and though some may feel there is too much regulation slowing down the efficiency and reducing the profitability of business in this country, others such as I do not.

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References

Beauchamp, T.L and N.E. Bowie, (1993) Ethical Theory and Business, fourth edition.

Cutchen, Michael, (2010) Lecture Notes Chapter 5, Business Law 2001-3, Walden University.

Goldman, A., & Sigismond, W. (2007). Business law: principles and practices (7th ed.). Boston: Houghton Mifflin

Peritz, Rudolph, (1996) J. R. Competition Policy in America, 1888–1992: History, Rhetoric, Law. New York: Oxford University Press.