GEB 1101 Lecture Notes - Lecture 14: Insider Trading, Business Ethics, Whistleblower
Document Summary
Federal trade commission (ftc) most influences business activities related to questionable practices that create disputes between businesses and their customers; takes action to stop false and deceptive advertising and labeling. The food and drug administration (fda) enforces regulations prohibiting the sale and distribution of adulterated, misbranded, or hazardous food and drug products. The environmental protection agency (epa) develops and enforces environmental protection standards and conducts research into the adverse effects of pollution. Sherman antitrust act passed in 1890 to prevent businesses from restraining trade and monopolizing markets. Clayton act prohibits price discrimination, tying and exclusive agreements, and the acquisition of stock in another corporation when the effect may be to substantially lessen competition or tend to create a monopoly. Sarbanes-oxley act which criminalized securities fraud and strengthened penalties for corporate fraud, requires corporation to establish codes of ethics for financial reporting.
