ETHICAL DIVERSITY LAWS 2
TheSherman Act passed in 1890 is one of the antitrust laws that is anexpansive charter of economic independence purposed at preservingfree and unfettered competition as the basis of trade. The actoutlaws every combination, conspiracy or contract in restraint oftrade. This includes monopolization, however all these are definedas such only when unreasonable done. The Sherman Act does not forbidevery restraint of trade. This act is also a criminal law, soprosecution is possible done at times by the department of justice.
TheAct is meant to ensure that business people uphold fairness in tradein every way. The reality that a group of business people may cometogether to form a monopoly that will benefit them alone isprohibited. A new entrant into the business sector also has a chanceto provide an option that ought to ensure that prices are not kepthigh artificially. This in effect creates a vigorous businessenvironment that is conducive to growth. The competition in thebusiness sector is kept healthy by such kind of law.
Equalcredit opportunity act is meant for creditors to extend credit toevery individual who is creditworthy irrespective of color, religion,race, gender or national origin. This law forbids creditors policiesor practices that deliberately discriminate on the premises of any ofthese factors. This law does require lenders to inform loanapplicants of action taken on their applications.
Thislaw guarantees equal credit opportunities to creditworthy applicantsthat to require credit. The practices prohibited can be used againstpotential loan applicant providing a leeway to another candidateunfairly. This practice will in effect keep financial muscle only ina particular group, however the act distributes credit opportunityfairly and equitable to spur growth in the business sector that isgood for the country.
The"FederalTrade Commission Act"is a law meant to protect the consumer, regulating competition andunfair practices affecting commerce. This act is the foundation of federal trade commission that sole responsibility is empowered toenforce this law. The commission investigates Companies whethersmall, medium or large also seek redress for consumers if injured byany unethical practice.
Thefederal trade commission act regulates the business environment sothat the customers are guaranteed fair practices (Mann et al., 2007,p. 2). This ensures that the company provides services or goods thatmeet the set standards therefore avoiding penalties that arestipulated by the Commission. The business fraternity knows that thecommission investigates professionally ensures they adheres to theset standards in providing services or goods to the consumer creatingbusiness integrity that is good for the companies.
MannR. & Roberts B. (2007). BusinessLaw and the Regulation of Business.USA. Cengage Learning.