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Week 7 – Reflection Paper

Reflection Paper #7

Business Law

This week’s agenda reviewed the topics of cyber law and privacy, consumer protection, starting a business, corporations, and intellectual property. Our society is very tech savvy and we tend to use the internet for many things in our day to day lives. There are certain laws that pertain to the world wide web similar to those laws we have set forth in reality. Everything that we see as consumers on the internet is subject to equal treatment, or rights if you will, just as humans have equal rights. Net Neutrality can be described as, “the principle that all information flows on the internet must receive equal treatment,” says the authors of Introduction of Business Law (Beatty, Samuelson and Abril). However, any user-generated content that is made public to all users is regulated to prevent harm. There are some downsides to the internet and its public use, the First Amendment to the Constitution allows for freedom of speech therefore people can say, video, write, anything that they want regardless of who it may hurt. The Communication Decency Act of 1996 protects the ISP’s and the websites from information that may have been provided by users, as long as they do not edit or encourage the behavior. Consumer protection has been set in place by the FTC Act and it helps to prevent hacking; also similar are the regulations set in place by CAN-SPAM preventing unsolicited emails to consumers. Once we offer our insight, videos, and photos on line the consumer loses their privacy. The fourth amendment, “prohibits unreasonable searched and seizures of individuals by the government” (Beatty, Samuelson and Abril). Amongst these privacy statutes there are a few that are very important: ECPA Act of 1986, COPPA Act of 1998, and FISA.

When starting a business there are options for what type of business you would like to become. A sole proprietorship is an unincorporated business owned by one person, while a well-developed corporation are regulated by law. Within a corporation each person is responsible for their own acts, and contrary to the sole proprietorship the business does not end when the proprietor passes away. S-Corporations and Close Corporations are both special types of corporations that are subject to certain tax regulations and benefits. A Limited Liability Company offers easy formation, flexibility, transferability of interests, and duration. There are definite changes if they chose to go public, they are at risk for a process called piercing the veil, and they could potentially face legal uncertainty when compared to a corporation. General partnerships are created when a co-owner, or a general partner enter into, “an unincorporated association of two or more co-owners who operate a business for profit” (Beatty, Samuelson and Abril). Limited Liability Partnerships, Professional Corporations, and Franchises all offer individual benefits to the individuals and the businesses they create. These different types of businesses are created to ensure that the needs of the founders and the business are being met.

“No matter where the company actually does business, it may incorporate in any state,” says authors Beatty and Samuelson (Beatty, Samuelson and Abril). Once the company decides to incorporate they are responsible for abiding by all laws that have been developed in that state. Once a company has selected a location to incorporate then they must prepare and file the charter, or the articles of incorporation. After the incorporation is complete they select directors and officers, produce bylaws, and designating any foreign corporations or offices. If a corporation is not successful it can be dissolved in a few ways; the shareholders can agree or vote to terminate or the courts can pierce the corporate veil. “Shareholders have neither the right nor the obligation to manage the day to day business or an enterprise,” compared to the directors (Beatty, Samuelson and Abril).

Congress has empowered two federal agencies to enforce consumer laws:

1. Federal Trade Commission (FTC)

2. Consumer Financial Protection Bureau (CFPB)

There are several unfair and deceptive acts or practices performed by companies; deceptive advertisement, abusive acts, bait and switch, telemarketing, unordered merchandise, and door-to-door sales. Usury Statutes regulate state maximum interest rates on several types of loans such as a home mortgage or a payday loan. Consumer reporting agencies are business that supply consumer reports to third parties, but are regulated by FCRA and FACTA. The Equal Credit Opportunity Act also has regulations in which they cannot discriminate toward any consumer because of race, color, religion, national origin, sex, marital status, age, or if they are using welfare assistance. Under CPSA and the CPSC there are evaluations on all products to prevent injuries or death.

Intellectual property now has the same value as physical property, “new ideas- for manufacturing, processes, computer programs, medicines, books – bring both affluence and influence” (Beatty, Samuelson and Abril). Design, plant, and utility patents are granted by the government that permit the inventor the exclusive use of an invention for a certain time frame. There are also copyrights, which identifies that the holder owns the particular expression of an idea rather than the underlying idea or method of operation. Many businesses are known or are recognized by a well known saying or logo, these help the firm distinguish themselves from other firms and are considered a trademark. There are also laws and regulations that protect against trademark infringement as well as international treaties.

Everyday people all over the world are using the internet; for work, entertainment, education, sales, and even exploitation. I think it is very important to understand that even though the world wide web is traditionally used in a non-threatening way there are people out there who use the internet for volatile and inappropriate things. “The Children’s Online Privacy Protection Act of 1998 is a federal statute protecting the privacy of children online” (Beatty, Samuelson and Abril). As a mother or a six-year-old I am in a position where I am only in so much control of what he sees, learns, and hears online. My only option is to not allow him to use the internet or monitor every website he uses by setting passwords and page blocks. There are still people out there have found ways to infiltrate these websites and gain information on the children including their names, location, age, and even physical appearance. I believe that laws like these are imperative for the safety of our children as they are naïve and innocent and should not be taken advantage of.

Each and every day employers utilize the internet to search their applicants online; browsing through social media sites and search engines. The internet allows these companies to investigate the applicants without the applicants even knowing. Even though it is illegal to discriminate against applicants this screening process has essentially allowed the employer to take a look at the applicant and pass judgment on them without anyone knowing. Additionally, if an applicant is hired the company then can use, “technology to monitor what they do and say on the job and even in their spare time” (Beatty, Samuelson and Abril).

I understand that the First Amendment allows for freedom of speech, even on the internet; but what I do not understand is how there can be accusations, slander, and defaming statements made about people without having any repercussions. My understanding is that if there is not a direct threat than the opinions are legal. However, there have been many circumstances of cyber bullying in which children, teens, and even adults have taken their own lives due to this “freedom of speech”.

References

Bibliography Beatty, Jeffrey, Susan Samuelson and Patricia Abril. Introduction to Business Law. Boston: Cengage Learning, 2016. Lewis, C. S. Mere Christianity. New York: Harper Collins Publishers, Inc. , 2005.