United States Constitution and the United States Legal System in Business Regulation.

Topics: Regulation, Law, State Pages: 2 (538 words) Published: July 28, 2008
Government Regulation
There have been various changes in government regulations over the last decade. Many people believe that the government interferes in the operations of businesses, and others feel as if there is not enough. The government has to regulate business, otherwise, anything goes. The economic functions of government tend to be viewed primarily as either public spending programs or revenue-generating activities that are used to pay for public spending. Another area in which the government has a philosophical influence on the economy is regulation. Regulation like other government activities can be analyzed within both a positive and a normative structure. In general, a case for government regulation can be made in instances in which the private sector of the economy could be expected to operate with less than optimal outcome. There are many vague laws and rules in regards to government regulations. This makes it hard for people to totally understand. This does not mean that regulation should never be used. Relatively, it means that one must take a realistic view of what regulation can hope to accomplish in light of the incentive structure of the public sector. Presumably, regulation is demanded because of some defect in the private sector incentive structure, but it would be naive to think that the public sector would be able to function flawlessly. Rather, the private sector incentive problems that give rise to the demand for regulation must be balanced against the public sector incentive problems that are sure to arise under government regulation According to the authors of Legal Environment of Business and Online Commerce, “Commercial speech, such as advertising, was once considered unprotected by the First Amendment. The Supreme Court’s landmark decision in Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, Inc.9 changed this rule. In that case, the Supreme Court held that a state statute prohibiting a pharmacist...
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