Course 2 - 208 - Principles of Regulatory Guidelines

Question 1

What is a regulation?

Answer 1

a regulation is a rule created by an administrative body that is used to appropriately implement directives supporting the law. We use regulations to put into practice the specifications imposed by the law, creating a means to apply the authority granted by a piece of legislation.

Question 2

What is a Regulatory Authority? What is the purpose of a Regulatory Authority?

Answer 2

A Regulatory Authority is a government agency that has been assigned the power to enforce statutes, to develop and oversee regulations that have the force of law, and to assist the public in complying with laws and regulations. Regulatory authorities are commonly designated to enforce standards and safety, to oversee the use of public goods and services, and regulate a variety of business activities.

Some agencies are charged with enforcing specific statutes passed by a legislative body and are given little discretion in their actions. Others are delegated broader authority and wider discretion to develop regulations and enforcement guidelines. These regulations have the force of law within the agency’s statutory authority. Perhaps most importantly, they have the power to act quickly when necessary to respond to difficult or demanding circumstances in the best interests of the public.

There are several regulatory agencies and several important laws that are an integral part of the retail industry. Following are some of the key agencies and guidelines that carry a prominent role in the retail environment. It is also important that you develop a strong understanding in each of these areas, as they will certainly come into play on a consistent basis over the course of your career.

Question 3

What is the Sarbanes-Oxley Act?

Answer 3

The Sarbanes-Oxley Act of 2002 introduced highly significant legislative changes to our financial practices and the way that businesses are corporately governed. Passed in response to a number of major corporate and accounting scandals that resulted in a decline of public trust in accounting and reporting practices, this legislation is highly relevant and wide ranging. It establishes new and/or enhanced standards for all public companies throughout the United States, the management within those companies, and the practices of public accounting firms.

Sarbanes-Oxley introduced stringent new rules intended to protect investors by improving the accuracy and reliability of corporate disclosures, discouraging and punishing corporate accounting fraud and corruption, and protecting the interests of company employees.

Question 4

What are some of the factors that lead to the establishment of Sarbanes-Oxley?

Answer 4

Boardroom failures in which Board members charged with overseeing financial reporting either did not fulfill their responsibilities or did not have the expertise to understand the complexities of the business.

Audit Committee members who were not truly independent of company management.

Conflicts of Interest between external auditors serving as financial overseers for investors and the companies they audited. Many consulting agreements were far more lucrative than the auditing arrangements, and also including non-audit and consulting work for the companies they were charged with auditing.

Conflicts of Interest by members of the Securities industry. The conflicting roles of securities analysts who make recommendations regarding the selling and purchasing of company stocks and bonds, and investment bankers who provide company loans and manage company mergers, acquisitions and other company business ventures. Making recommendations to others on whether they should buy or sell stock while providing lucrative investment banking services to these companies creates significant potential for conflicts of interest.

Mismanagement of corporate stock option and bonus practices as part of executive compensation packages. Stock options were not being treated as compensation expense by some companies, encouraging this form of compensation, which combined with the volatility in stock prices resulted in pressures to better manage earnings.

Poor and improper banking practices. Providing large loans without understanding the risks of the company led to significant issues with those banks and bank clients/investors.

Improper and unethical investor trading of securities by brokers, dealers, and advisors.

Board members that were not invested in the companies, or who only held stock granted to them as part of their membership.

Question 5

What are the Federal Sentencing Guidelines? What lead to the creation of this legislation?

Answer 5

In November of 1991 the United States Congress enacted the U.S. Federal Sentencing Guidelines legislation, which has had a dramatic impact on corporate America. One of the primary reasons that the enactment of these guidelines became necessary was a lack of a clear crime sentencing and enforcement policy for corporate entities that were in violation of federal laws.

The courts were having difficulty finding meaningful and uniform ways to sentence corporations that were in violation of these laws, which were reflected by broad interpretations and inconsistent sentencing. The purpose of the Guidelines legislation was to establish rules that would fashion a uniform sentencing policy for convicted defendants in the federal court system, and further create incentives for corporations to develop or modify their own compliance/ethics programs.

Question 6

What is the U.S. Sentencing Commission?

Answer 6

he United States Sentencing Commission is an independent agency within the judicial branch of the federal government. Resolving the disparity in sentencing and establishing a certainty of punishment are primary objectives of the Commission. Its principal purposes are to:

Establish sentencing policies and practices for the federal courts, including guidelines regarding the appropriate form and severity of punishment for offenders convicted of federal crimes;

Advise and assist in the development of effective and efficient crime policy; and

Serve as an information resource to collect, analyze, research, and distribute a broad array of information on federal crime and sentencing issues.

Question 7

According to the Federal Sentencing Guidelines legislation, what are some of the elements considered to be part of an effective compliance program?

Answer 7

Compliance standards and procedures, such as a Code of Ethics and/or a Code of Conduct.

Oversight by high level personnel, such as a Compliance or Ethics officer.

Appropriate care when delegating authority.

Effective communication of standards and procedures through training programs and/or other initiatives.

Appropriate auditing/monitoring systems to ensure compliance, and proper reporting mechanisms such as an Employee Hotline program.

Establishment and enforcement of internal disciplinary mechanisms.

Swift and appropriate response following detection and report of such incidents.

Question 8

What is OSHA’s primary mission?

Answer 8

The United States Occupational Safety and Health Administration (OSHA) is an agency of the U.S. Department of Labor. Created under the Occupational Safety and Health Act, its mission is to prevent work-related injuries, illnesses, and deaths by issuing and enforcing standards for workplace safety and health.

Question 9

What are the prominent strategies that compel OSHA initiatives?

Answer 9

Strong, fair and effective enforcement programs and practices. This establishes the foundation for OSHA’s efforts to protect the safety and health of the nation’s working men and women. OSHA seeks to assist the majority of employers who want to do the right thing while focusing enforcement resources on sites in more hazardous industries, especially those with high injury and illness rates.

Outreach, education, and compliance assistance. These programs enable OSHA to play a vital role in preventing on-the-job injuries and illnesses. OSHA offers interactive tools to help employers and employees address specific hazards and prevent injuries. They offer free workplace consultations to help establish safety and health programs, a Hotline program, and a variety of publications in print and online.

Partnerships and cooperative programs. These programs enable employers, and any and all other institutions or organizations that share an interest in workplace safety and health to collaborate with OSHA to prevent injuries and illnesses in the workplace. Goals address training and education, enforcement and recognition, outreach and communication, and promoting dialogue on workplace safety and health.

Question 10

What are OSHA’s Voluntary Protection Programs?

Answer 10

Established in 1982, OSHA’s Voluntary Protection Programs recognize and partner with businesses that exhibit excellence in occupational safety and health. Seen most frequently in the retail environment within distribution centers and similar support facilities, this program is committed to excellence in employee protection above and beyond the requirements of OSHA standards. VPP participants develop and implement systems to effectively identify, evaluate, prevent, and control occupational hazards that will prevent employee injuries and illnesses. In return, OSHA removes participants from inspection lists and does not issue citations for standards violations that are promptly corrected.

By meeting performance-based criteria, the VPP participant is expected to use a comprehensive system encompassing the specific needs of the particular workplace. Annual self-evaluations measure success and identify areas needing improvement. OSHA also conducts a thorough on-site evaluation to judge how well the site’s protective system is working, including a review of site injury/illness rates. Continuous improvement is expected. Management leadership and employee participation, in addition to company self-evaluations, are key elements of this process. Approval into VPP is OSHA’s official recognition of the outstanding efforts of employers and employees who have achieved exemplary occupational safety and health.

Question 11

What is the primary responsibility of the U.S. Securities and Exchange Commission?

Answer 11

The United States Securities and Exchange Commission, commonly referred to as the SEC, is a government agency whose primary responsibility is to enforce federal securities laws and regulate the securities industry/stock market.

Question 12

What are the core concepts that the objectives of the SEC are based upon?

Answer 12

Companies that are publicly traded must tell the public the truth regarding their businesses, the securities that they are selling, and the potential risks involved in investing.

Those that sell and trade securities (Brokers, dealers, and exchanges) must treat investors fairly and honestly, putting investors’ interests first and foremost.

Simply stated, the mission of the U.S. Securities and Exchange Commission is to protect investors, enforce related laws and regulations, promote stability, and maintain fair, orderly, and efficient capital markets.

Question 13

What are the four primary divisions of the SEC?

Answer 13

Corporate Finance which oversees the disclosures made by public companies as well as mergers and other such transactions.

Trading & Markets oversees self-regulatory organizations (Such as the New York Stock Exchange), broker-dealer firms, and investment bankers. This division also interprets proposed changes to regulations and monitors operations of the industry.

Investment Management oversees investment companies and investment advisors. They assist in interpreting laws and regulations, review investment advisor filings, assist in enforcement matters, and advise the Commission on adapting SEC rules to new circumstances.

Enforcement works with the other divisions to investigate violations of securities laws and regulations and to bring action against violators. Investigations are generally conducted in private. The SEC can bring civil action in U.S. District Court, or an administrative proceeding which is heard by an independent administrative law judge. The SEC does not have criminal authority, but may refer violations to state or federal prosecutors.

Question 14

What is the Electronic Data Gathering, Analysis and Retrieval system?

Answer 14

The Electronic Data Gathering, Analysis and Retrieval system, otherwise known as EDGAR® is a web-based reporting system that performs automated collection, validation, indexing, acceptance, and forwarding of submission by companies who are required by law to file forms with the Securities and Exchange Commission. Its primary purpose is to increase the efficiency and fairness of the securities market for the benefit of investors, corporations, and the economy in general by accelerating the receipt, acceptance, distribution, and analysis of corporate information filed with the SEC.

Question 15

What are some of the primary responsibilities of the U.S. Department of Labor?

Answer 15

The United States Department of Labor is responsible for the development, nurturing, and promotion of wage earners, job seekers and retirees of the United States by improving work conditions, advancing employment opportunities, protecting retirement and health care benefits, wage and hour standards, unemployment insurance benefits, helping employers find workers, strengthening collective bargaining initiatives, and other related programs and services. Many states across the country also have such departments.

Question 16

What are some of the Department of Labor programs that apply directly to the retail industry?

Answer 16

Wages & Hours - The Fair Labor Standards Act (FLSA) establishes standards for wages and overtime pay. It requires employers to pay employees who are not otherwise exempt at least the federal minimum wage, and overtime pay of 1 ½ times their regular rate of pay. It further establishes restrictions for workers under 16, and additional limits for those under 18 years of age in certain jobs and job functions. The Wage and Hour Division also enforces labor standards of the Immigration and Nationality Act that applies to aliens authorized to work in the U.S. under certain visa programs.

Workplace Safety & Health - The Occupational Safety and Health Administration (OSHA) falls under the Department of Labor. Safety and health conditions in most private industries are regulated by OSHA or OSHA-approved state programs. All employers must comply with the regulations and standards disseminated by OSHA, and have a duty under the Occupational Safety and Health Act to provide their employees with work and workplaces free from recognized hazards.

Employee Benefit Security - The Employee Benefits Security Administration (EBSA) administers a wide range of fiduciary, disclosure, and reporting requirements on pension and welfare benefit plans, and on others having dealings with these plans, under the Employee Retirement Income Security Act. Preempting many similar state laws, employers and plan administrators must fund an insurance system to protect certain kinds of retirement benefits. EBSA further administers reporting requirements for continuation of health care provisions required under the Comprehensive Omnibus Budget Reconciliation Act (COBRA), and health care requirements on plans under the Health Insurance Portability and Accountability Act (HIPPA)

Unions & Union Membership - Administered by the Office of Labor-Management Standards (OLMS), The Labor-Management Reporting and Disclosure Act (also known as the Landrum-Griffin Act) deals with the relationship between unions and their members. It protects union funds and promotes union democracy by requiring labor organizations to file annual financial reports, the filing of reports regarding labor relations practices, and establishing standards for the election of union officers.

Employee Protection - Most labor and public safety laws, and many environmental laws mandate whistleblower protections for employees who report violations of the law by their employers. Such protections may include job reinstatement and reimbursement of back wages.

Military Services - The Veteran’s Employment and Training Service (VETS) administers the Uniformed Services Employment and Reemployment Rights Act, which grants those who serve in the armed forces the right to reemployment with the employer that they were with when they entered military service, to include those called up from the reserves or National Guard.

Polygraph Protection - The Wage and Hour Division administers protection under the Employee Polygraph Protection Act, which bars most employers from using lie detector tests on their employees. The use of polygraph tests is only permitted in very limited circumstances mandated under this Act.

Garnishment of Wages - Garnishment of employee wages by employers is regulated under the Consumer Credit Protection Act, which is administered by the Wage and Hour Division.

Family & Medical Leave - Administered by the Wage and Hour Division, the Family and Medical Leave Act requires employers of 50 or more employees to allow up to 12 weeks of unpaid, job-protected leave to employees for the birth or adoption of a child, or in the event of a serious illness of the employee, or the spouse, child, or parent of an employee.

Question 17

What is the purpose of a statute?

Answer 17

A regulation is a rule created by an administrative agency that interprets a specific statute in a way that is appropriate and relevant to an agency’s purpose and powers as a means to apply the statute accordingly. In other words, they are a means to implement, interpret, specify, or enhance a law enforced or administered by a governmental body. A regulation is a secondary form of government legislation used to properly and appropriately implement the circumstances set forth in a primary piece of legislation as a means to support the law.

Statutes, which are created by the U.S. Congress and by state legislators, attempt to lay out the ground rules of the law. When disputes arise over the meaning of statutes, state and federal courts issue court opinions that further interpret the statutes, a process referred to as “case law”.

Question 18

What is the Federal Register?

Answer 18

The Federal Register is a daily publication used by the United States government that contains most routine publications and public notices of government agencies.

Question 19

What is the U.S. Code of Federal Regulations?

Answer 19

The Code of Federal Regulations (CFR) is the publication that documents the general and permanent rules published in the Federal Register by the executive departments and agencies of the federal government. Divided into 50 titles that represent broad areas subject to federal regulation, each volume of the CFR is updated once each calendar year.

Question 20

What are the two primary types of property?

Answer 20

Real Property is generally considered to be land, and typically anything that might be erected on, growing on, or affixed to that land to include buildings and other structures, crops, and other amenities. This would further include the associated rights and obligations associated with that property.

Personal Property is anything other than land that can be the subject of ownership. Personal property may also be referred to as “movable” property. This would further include stocks, money, patents, copyrights, trademarks, and intangible property.

Question 21

What is Intellectual Property?

Answer 21

The concept of intellectual property is built on the belief that certain products of human intellect should be afforded the same protective rights that apply to physical property. It refers to creations of the mind such as inventions, musical and literary works, images, and designs; as well as copyrights, trademarks and related rights.

Under intellectual property laws, the holder of any of these “properties” has certain rights associated with such ownership. Many forms of intellectual property cannot be simply summarized on a balance sheet as an asset, but the merits of such property tend to be reflected in other ways. For example, its value may be represented as an exclusive right to develop, use, and/or promote a creation or idea.

Question 22

What is a Patent?

Answer 22

A Patent is basically a government license that gives the patent holder exclusive rights to an invention, process, or new design. It designates the right to exclude others from making, using, or selling the patented item in the U.S. without express permission from the patent holder. Patents are granted by the U.S. Patent Office and grant the owner 20 years of exclusive rights to the subject matter.

Question 23

What is a Copyright?

Answer 23

A Copyright is granted for creative and artistic works (such as books, music, paintings, photographs, movies, etc.) and grants the copyright owner the exclusive right to control reproduction or adaptation of their works for a designated time period (for example, the copyright for a piece of literature or other artistic work is for the life of the creator plus 70 years).

Question 24

What is a Trademark?

Answer 24

A Trademark is a distinctive sign, name, symbol, or other brand identification that is used to distinguish the products or services of a specific business, officially registered and legally restricted to the use of the particular trademark owner. Company names and products are often registered. Trademark rights have developed as consumers have come to associate these goods with a particular source, to protect the consumer from being deceived as to the origin of the goods bearing the mark or other device.

Question 25

What is an Industrial Design Right?

Answer 25

An Industrial Design Right protects the creation of a shape, appearance, style or design of an item or the pattern used to produce a product or commodity. Design patents remain valid for 14 years from the time of patent in the United States.

Question 26

What is a Trade Secret?

Answer 26

A Trade Secret is non-public information regarding the practices or knowledge of a specific business, and might include any valuable information that provides that business with an advantage over competitors who do not have that information. Trade secrets may include formulas, processes, plans, programs, tools, techniques, and other items not generally known or readily accessible to those outside of the company.

Question 27

What is the Electronic Payments Association?

Answer 27

NACHA – The Electronic Payments Association, formerly the National Automated Clearing House Association, is a not-for profit organization that develops electronic solutions—operating rules and business practices for the Automated Clearing House (ACH) Network, and for electronic payments for Internet commerce, electronic bill and invoice presentation and payment, financial electronic data interchange, electronic benefits services, and other electronic interchange services.

Question 28

What is the Automated Clearing House?

Answer 28

Automated Clearing House (ACH) is the name given to the electronic network for financial transactions in the United States. The ACH Network facilitates commerce electronically by serving as an efficient, reliable and secure payments system. ACH processes both credit transactions (such as direct-deposit payroll payments, and payments to contractors and vendors) and debit transactions (such as insurance premiums, mortgage loans, and other bills).

Question 29

What are the Primary Responsibilities of NACHA?

Answer 29

Rule Making for the ACH Network and other Payment Systems. NACHA provides the legal foundation for the ACH network, establishing rules and guidelines to ensure that the network infrastructure, applications and enforcement are consistent with processing payments in a secure, reliable, and efficient manner.

Providing and Supporting Education Programs. NACHA educates its direct members, the regional payments associations, and the public through a diverse offering of conferences, workshops, teleconferences, and related publications.

Facilitating the Development of New Payment Applications. NACHA develops new payments applications through a process that measures the impact on all network participants, and is responsive to the priorities of depository financial institutions.

Risk Management initiatives. Development and implementation of a risk management framework and related risk management tools for the network that covers requirements prior to origination, ongoing origination requirements, enforcement of initiatives, and ACH Operator risk mitigation services.

Enhancing Member Communications. NACHA promotes and consistently communicates the value and best uses of electronic payments to depository financial institutions and their customers through marketing, public relations, and education.

Marketing Electronic Payment Services. NACHA actively promotes the value and use of electronic payments through educational materials, events, speaking engagements, advertising, and other promotions. Additionally, NACHA coordinates the annual Direct Deposit and Direct Payment campaign, highlighting the benefits of Direct Deposit for payroll, pension, and Social security payments.

Regulatory and Government Relations Issues. NACHA establishes and maintains formal relationships with key industry audiences, including the Federal Reserve System and the U.S. Department of the Treasury and responds expeditiously to regulatory and government relations issues.

Question 30

What is the Fair Credit Reporting Act?

Answer 30

The Fair Credit Reporting Act (FCRA) regulates the collection, dissemination and use of consumer credit information. Promoting the accuracy, fairness and privacy of consumer information, it serves as an important base for consumer credit rights in the United States. The Fair Credit Reporting Act falls under the jurisdiction of the Federal Trade Commission.

The entire banking system absolutely depends upon fair and accurate credit reporting. Inaccurate credit information directly impairs the efficiency of the banking system, and unfair credit reporting methods further undermine public confidence. As a result, an elaborate evaluation system was developed for investigating credit standing, credit capacity, character, and general reputation of consumers.

Question 31

Some key aspects of the Fair Credit Reporting Act would include:

Answer 31

You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.

You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:

A person has taken adverse action against you because of information in your credit report;

You are the victim of identity theft and place a fraud alert in your file;

Your file contains inaccurate information as a result of fraud;

You are on public assistance;

You are unemployed but expect to apply for employment within 60 days.

All consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies.

You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you must pay for it.

You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous.

Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.

Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.

Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need—usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.

You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer.

You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on.

You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.

Identity theft victims and active duty military personnel have additional rights.

Question 32

What is the mission of the Department of Transportation?

Answer 32

Established by an act of Congress in 1966, the mission of the Department of Transportation is to develop and coordinate an efficient and economical national transportation system that meets the needs of our national interests, the environment, and national defense. It is the primary agency in the federal government with the responsibility for shaping and administering policies and programs to protect and enhance the safety, adequacy, and efficiency of the transportation system and services by effectively managing transportation programs, providing leadership in the resolution of transportation problems, and developing national transportation policies and programs.

Question 33

Some of the agencies that fall under the Department of Transportation that we may deal with in the retail environment would include…

Answer 33

The Federal Highway Administration – The Federal Highway Administration (FHWA) coordinates highway transportation programs in cooperation with states and other partners to enhance the country’s safety, economic vitality, quality of life, and the environment. This program provides funds for general improvements and development of safe highways, bridges, and roads. The FHWA also manages a comprehensive research, development, and technology program.

The Federal Motor Carrier Safety Administration - Formerly a subdivision of the Federal Highway Administration, the primary mission of the Federal Motor Carrier Safety Administration is to prevent commercial motor vehicle-related fatalities and injuries. Contributions involve ensuring safety in motor carrier operations through strong enforcement of safety regulations targeting high-risk carriers and commercial motor vehicle drivers; improving safety information systems and commercial motor vehicle technologies; strengthening commercial motor vehicle equipment and operating standards; and increasing safety awareness.

The Federal Aviation Administration – The FAA oversees civil aviation, and includes the issuance and enforcement of regulations and standards related to the manufacture, operation, certification, and maintenance of aircraft. It also regulates a program to protect the security of civil aviation, and enforces regulations under the Hazardous Materials Transportation Act for shipments by air. The FAA develops air traffic rules, allocates the use of airspace, and provides for the security control of air traffic to meet national defense requirements.

The Federal Railroad Administration - With the responsibility of ensuring railroad safety throughout the nation, the FRA employs inspectors to monitor railroad compliance with federally mandated standards including track maintenance, inspection standards, and operating practices. The FRA conducts research to evaluate projects in support of its mission to enhance the railroad system as a national transportation resource.

The Maritime Administration - The Maritime Administration (MARAD) promotes development and maintenance of the United States merchant marine, sufficient to carry the Nation’s domestic waterborne commerce and a substantial portion of its waterborne foreign commerce. MARAD also seeks to ensure that the United States enjoys adequate shipbuilding and repair service, efficient ports, effective water and land transportation systems, and reserve shipping capacity in time of national emergency.

The Saint Lawrence Seaway Development Corporation - The SLSDC operates and maintains a safe, reliable and efficient waterway for commercial and noncommercial vessels between the Great Lakes and the Atlantic Ocean. The SLSDC also oversees operations safety, vessel inspections, traffic control, and navigation aids on the Great Lakes and the Saint Lawrence Seaway. Important to the economic development of the Great Lakes region, SLSDC works to develop trade opportunities to benefit port communities, shippers and receivers, and related industries.

The National Highway Traffic Safety Administration - The NHTSA is responsible for reducing deaths, injuries, and economic losses resulting from motor vehicle crashes and related incidents. NHTSA sets and enforces safety performance standards for motor vehicles and equipment, and provides grants to conduct effective local highway safety programs. NHTSA investigates safety defects in motor vehicles, sets and enforces fuel economy standards, helps reduce the threat of drunk drivers, promotes the use of safety belts, child safety seats and air bags, investigates odometer fraud, establishes and enforces vehicle anti-theft regulations and provides consumer information on motor vehicle safety topics.

The Pipeline and Hazardous Materials Safety Administration - The PHMSA oversees the safety of shipments of hazardous materials throughout the United States and 64 percent of the nation’s energy that is transported by pipelines. PHMSA is dedicated solely to the elimination of transportation-related deaths and injuries in hazardous materials and pipeline transportation, and by promoting transportation solutions that enhance communities and protect the natural environment.

Question 34

What is the Americans with Disabilities Act?

Answer 34

The Americans with Disabilities Act of 1990 (ADA) is a wide-ranging civil rights law that prohibits discrimination on the basis of disability. It provides similar protections against discrimination to Americans with disabilities as the Civil Rights Act of 1964, which made discrimination based on race, religion, sex, national origin and other characteristics illegal.

Question 35

Key provisions of the Americans with Disabilities Act would include…

Answer 35

Title I: Employment – All employers with 15 or more employees must provide qualified individuals with disabilities equal opportunity to benefit from the same employment-related opportunities available to others, including but not limited to hiring, advancement, training, pay, and other terms and conditions of employment. It restricts questions that can be asked about an applicant’s disability before a job offer is made, and requires that employers make reasonable accommodations to the known physical or mental limitations of otherwise qualified individuals with disabilities.

Title II: Public Services & Activities - State and local governments are required to give those with disabilities an equal opportunity to benefit from all programs, services, and activities to include but not limited to public education, employment, transportation, recreation, health care, social services, courts, voting, and other public agendas. They are required to follow specific architectural standards regarding new construction and alteration of public buildings, relocate programs or otherwise provide access in inaccessible older buildings, and communicate effectively with people who have hearing, vision, or speech disabilities. Public transportation authorities may not discriminate against people with disabilities in the provision of their services. Furthermore, they are required to make reasonable modifications to policies, practices, and procedures where necessary to avoid discrimination, unless they can demonstrate that doing so would fundamentally alter the nature of the service, program, or activity being provided.

Title III: Public Accommodations - Businesses and other service providers that provide “public accommodations” (which includes retail businesses) must comply with basic requirements that prohibit exclusion, segregation, and/or biased treatment of those with disabilities. They must comply with specific requirements related to architectural standards for new and altered buildings; reasonable modifications to policies, practices, and procedures; effective communication with people with hearing, vision, or speech disabilities; and other access requirements. Reasonable modifications must be made in existing buildings where it is within the resources of the business. Training related to professional, educational, or trade-related programs must be provided in a place and manner accessible to people with disabilities, or alternative accessible arrangements must be offered where necessary and appropriate. Facilities such as factories, distribution centers, and warehouses must also comply with the ADA’s architectural standards for new construction and alterations. This Title required alterations to thousands of stores and other facilities nationwide, and has had a significant impact on those with disabilities as well as the retail community in general

Title IV: Telecommunications - This requires that all telecommunications companies in the U.S. take the necessary steps to ensure telephone and television access for people with hearing and speech disabilities. It requires common carriers (telephone companies) to establish telecommunications relay services (TRS). TRS enables callers with hearing and speech disabilities who use telecommunications devices and callers who use voice telephones to communicate with each other through a third-party communications assistant. Today, many TRS-mediated services are provided over the Internet using broadband services. The Federal Communications Commission (FCC) has set minimum standards for TRS services. Title IV also requires closed captioning of federally funded programming.

Question 36

What is the purpose and mission of the Drug Enforcement Administration?

Answer 36

The Drug Enforcement Administration (DEA) is a law enforcement agency serving under the U.S. Department of Justice. Established in 1973 under President Richard Nixon, its purpose was to create a single federal agency to enforce federal drug laws and coordinate U.S. drug control activities. The DEA is tasked with fighting the war on drugs, and is the lead agency for domestic enforcement of illegal drug trade while holding sole responsibility for coordinating U.S. drug investigations abroad. The mission of the DEA is to enforce the controlled substances laws and regulations of the United States and bring those involved in the growing, manufacture, and/or distribution of controlled substances appearing in or destined for illicit traffic in the United States to the criminal and civil justice system. Additionally, the DEA supports non-enforcement programs aimed at reducing the availability of illicit controlled substances on the domestic and international markets.

Question 37

Primary responsibilities of the DEA would include…

Answer 37

Enforcement of laws pertaining to the manufacture, distribution, and dispersion of legally produced controlled substances. Working in cooperation with federal, state, and local law enforcement officials on mutual drug enforcement efforts.

Investigation and preparation for the prosecution of major violators of controlled substance laws, as well as the pursuit of drug-related suspects who perpetrate violence in our communities and terrorize citizens through fear and intimidation.

Management of a national drug intelligence/training program designed to collect, analyze, and disseminate strategic and operational drug intelligence information.

Seizure and forfeiture of assets derived from, traceable to, or intended to be used for illicit drug trafficking.

Coordination and cooperation with federal, state, and local agencies, and with foreign governments, in initiatives designed to reduce the availability of illegal drugs on the U.S. market through methods such as crop eradication, crop substitution, and various training programs.

Question 38

What is the mission of the Environmental Protection Agency?

Answer 38

The Environmental Protection Agency (EPA) is charged with protecting human health and welfare and safeguarding the natural environment. In the wake of growing concern and public demand for cleaner air, water, and land, the EPA was founded in 1970 under President Richard Nixon. The EPA carries the primary responsibility for setting and enforcing standards under a variety of environmental laws working with state, local, and (Native American) tribal governments. The agency is also responsible for conducting environmental research, assessment, and education; with more than half of the staff consisting of engineers, scientists, and analysts assigned the task of repairing the damage already imparted on our natural environment and establishing new criteria that could guide environmental protection efforts moving forward.

Question 39

Primary responsibilities of the Environmental Protection Agency would include…

Answer 39

Development and enforcement of environmental laws and regulations - The EPA works to develop and enforce regulations regarding environmental laws. They are responsible for researching and setting national standards for a variety of environmental programs, while delegating to the individual states the responsibility for issuing permits and for monitoring and enforcing compliance. Where standards are not met, EPA can issue sanctions and take other steps to assist the states in reaching the desired levels of environmental quality.

Offering financial assistance - The EPA provides financial grants to states, non-profit organizations, and educational institutions in support of research that will improve the scientific basis for decisions on national environmental issues and help the EPA achieve its goals. The agency supports environmental education projects that enhance public knowledge and awareness to help make informed decisions that affect environmental quality.

Conducting environmental research - The EPA works to assess environmental conditions as a means to identify, understand, and solve current and future environmental problems by integrating the work of scientific partners; providing leadership in efforts to address emerging environmental issues and advancing the science and technology of environmental management.

Sponsoring partnerships and programs - The EPA works with industries, businesses, non-profit organizations, and state and local governments to establish environmental protection programs and energy conservation efforts.

Furthering environmental education - The EPA advances educational efforts to develop an environmentally conscious and responsible public, and to inspire responsibility in caring for the environment.

Providing environmental information through various publications - Through both written materials and their Website, the EPA informs the public about issues, concerns, opportunities and related activities.

Question 40

What is the mission of the Federal Trade Commission?

Answer 40

Established by the Federal Trade Commission Act under President Woodrow Wilson in 1914, the Federal Trade Commission (FTC) is charged with the promotion of consumer protection and is responsible for the prevention and/or elimination of anti-competitive business practices.

The FTC is the only federal agency with both protection and competition jurisdiction, covering broad sectors of the economy and touching the economic life of every American. Although originally enacted to “Bust the Trusts”, the Commission has been delegated responsibility for the development and enforcement of numerous statutes and regulations. The FTC pursues effective law enforcement initiatives, promotes consumer’s interests, develops policies, and shapes educational programs for both businesses and consumers nationwide.

FTC investigations may involve a single company or an entire industry. If the results of an investigation reveal unlawful conduct, compliance may be pursued through a consent order, by filing an administrative complaint, or by initiating federal litigation. In numerous cases, this authority is employed to combat consumer deception or fraud. Truth in advertising laws and price-fixing violations are also administered by the FTC. Additionally, the FTC has rulemaking authority (known as “Trade Rules’) that addresses concerns regarding industry-wide practices.

Question 41

What is the Bureau of Consumer Protection?

Answer 41

The Bureau of Consumer Protection was established to protect consumers against unfair, deceptive or fraudulent business practices, enforcing a variety of consumer protection laws and trade regulations. Responsibilities include individual company and industry-wide investigations, litigation, rulemaking proceedings, and educational initiatives.

Question 42

What are the seven divisions of the Bureau of Consumer Protection?

Answer 42

The Division of Advertising Practices enforces all the various federal truth-in-advertising laws.

The Division of Consumer and Business Education plans, develops, and implements programs aimed at encouraging informed consumer choice and competitive business practices in the marketplace through various publications and websites.

The Division of Enforcement conducts a wide variety of law enforcement activities to protect consumers, including compliance initiatives, conducting investigations, and prosecuting cases involving unfair or deceptive marketing and advertising practices; and enforcing consumer protection laws, rules, and guidelines.

The Division of Financial Practices is responsible for developing policy and enforcing laws related to financial and lending practices affecting consumers. It also is responsible for most of the agency’s consumer privacy program.

The Division of Marketing Practices responds to fraudulent marketing practices. It enforces federal consumer protection laws on behalf of the Commission to stop and prevent marketing scams, freezes assets and obtains compensation for scam victims, and works to file related administrative cases to stop these scams.

The Division of Planning and Information helps consumers get the information they need to protect themselves, and gives FTC attorneys and other consumer protection law enforcers the information and support they need to take action.

The Division of Privacy and Identity Protection oversees issues related to consumer privacy, credit reporting, identity theft, and information security. The Division enforces related statutes and regulations, engages in outreach and policy development, and educates consumers and businesses about emerging privacy, credit reporting, and information security issues, as well as identity theft prevention and assistance.

Question 43

What is the Bureau of Competition?

Answer 43

the Bureau of Competition seeks to prevent mergers and/or other business practices that would negatively impact fair competition in the marketplace. By protecting competition, the Bureau promotes consumers’ freedom of choice and fosters opportunity for businesses by ensuring a level playing field among competitors.

The Bureau fulfills this role by reviewing proposed mergers and other business practices for possible improprieties, and recommending formal law enforcement action to protect consumers when necessary and appropriate. The Bureau also serves as a research and policy resource on competition topics and provides guidance to business on complying with the antitrust laws.

Question 44

What are the primary responsibilities of the Bureau of Competition?

Answer 44

Merger Enforcement - Reviewing mergers to determine those that have the potential to harm consumers; investigating those that may be inappropriate; and recommending enforcement action when necessary and appropriate to protect competition and consumer interests. Enforcement activity focuses primarily on mergers between direct competitors (known as “horizontal” mergers), because these may be most likely to harm consumers. However, the Commission will also examine mergers that involve firms at different levels of the same industry (known as “vertical” mergers) as well. Many mergers can actually benefit consumers, but others can impose significant costs in the form of higher prices and reduced product quality. FTC challenges can save consumers hundreds of millions of dollars every year.

Other Antitrust Enforcement Issues - The FTC receives numerous inquiries and complaints from customers and competitors concerning possible antitrust law violations that do not involve mergers. The Bureau of Competition evaluates each inquiry or complaint, and will open formal investigations where and when appropriate. Significant attention is focused on agreements between or among direct competitors, because these pose the greatest risk of harm to competition. Under the antitrust laws, companies may not limit competition in ways that hurt consumers. A company cannot monopolize or try to monopolize an industry through unfair practices—tactics that either unreasonably exclude firms from the market, or significantly impair their ability to compete.

Research and Policy Studies - Congress created the FTC as a source of expertise and information on the economy. Consistent with this role, the Bureau regularly analyzes important competition-related topics. The Bureau of Competition also works to inform the business community about antitrust enforcement policies to facilitate compliance with the law.

Question 45

What is the Bureau of Economics?

Answer 45

The Bureau of Economics helps the FTC evaluate the economic impact of Federal Trade Commission actions by providing economic analysis and investigative support regarding antitrust and consumer protection issues, incidents, and legislation. They further analyze the impact of government regulation on competition and consumers and provide economic analysis of market processes in relation to antitrust, consumer protection, and regulation.

Question 46

What are the primary responsibilities of the Bureau of Economics?

Answer 46

Providing Economic Advice for Enforcement - The Bureau of Economics provides guidance and support to the FTC’s antitrust and consumer protection enforcement activities. In the antitrust area, they participate in the investigation of alleged inappropriate acts or practices, and provide advice on the economic merits of alternative antitrust actions. In the consumer protection area, they provide economic support and analysis of potential FTC actions in both cases and rulings handled by the Bureau of Consumer Protection.

Studying the Effects of Legislative Action - The Bureau of Economics participates in the FTC’s advocacy activities. At the request of lawmakers or other officials, comments or testimony may be provided to assist the legislative consideration of pending bills or to assist agency rulemaking proceedings. Similarly, briefs may be presented to federal or state courts to advocate policies that will enhance both competition and consumer choice.

Analyzing Market Processes - The Bureau of Economics also conducts economic analysis of various markets and industries, focusing on the economic effects of regulation and on issues important to antitrust and consumer protection policy.

Question 47

What is the National Labor Relations Board?

Answer 47

Established in 1935 through the passage of the National Labor Relations Act, the National Labor Relations Board (NLRB) was created to administer laws governing relationships between unions and employers in the private sector. The purpose of the National Labor Relations Act was to protect the rights of both employees and employers, to encourage collective bargaining, and to deter those labor and management practices which might harm the general welfare of those working in the private sector, American businesses, and the U.S. economy in general. The statute ensures the rights of employees to organize and bargain collectively with their private sector employers, and to engage in (or refrain from) other protected activities, with or without the support of unions.

Question 48

What are the primary functions of the National Labor Relations Board?

Answer 48

The National Labor Relations Board is organized into two primary components: a five-member governing Board, and the Office of the General Counsel; all of whom are appointed by the President with the consent of the U.S. Senate. Field offices across the United States conduct investigations and carry out the objectives of the NLRB. The primary functions of the NLRB include:

To prevent, investigate and remedy unlawful labor practices by either employers or unions. Unfair labor practices may involve union-related situations or other protected activities.

To establish whether certain groups of employees desire labor representation; and if so, which union best suits the needs of the employees. The NLRB also conducts elections for labor union representation.

Question 49

In order to improve the quality of their health and safety programs, a company takes diligent steps working with OSHA to effectively identify, evaluate, prevent and control occupational hazards that will help to prevent employee injuries and illnesses in their Distribution Centers. As a result, the company receives OSHA’s official “Star” recognition for exemplary safety and health management. This program is known as the:

Answer 49

Voluntary Protection Program

Question 50

The purpose of this legislation was to establish rules that would fashion a uniform sentencing policy for convicted defendants in the federal court system, and further create incentives for corporations to develop or modify their own compliance and ethics programs:

Answer 50

d. U.S. Federal Sentencing Guidelines

Question 51

Upon overhearing a confidential conversation in which company executives are finalizing a deal to purchase a smaller retail company, an employee immediately buys substantial stock in the smaller company in anticipation that the stock will increase significantly once the purchase is announced. What government agency would be involved in protecting investors and enforcing any laws that might have been violated as a result of the incident?

Answer 51

b. The U.S. Securities and Exchange Commission (SEC)

Question 52

If you were to write a book on the basic principles of retail fraud and wanted to hold the rights to control reproduction and/or adaption of the book, what type of property rights would you attempt to receive?

Answer 52

b. A Copyright