Following characteristics of the US legal system facilitate business activities:
Antitrust Laws
Ever since the early 1900's, the United States has had, and has actively enforced, a variety of antitrust laws which are much more elaborate and far reaching that those found in most other countries. These include laws prohibiting agreements in restraint of trade, laws prohibiting unfair trade practices, and laws prohibiting certain business acquisitions and mergers which would have an adverse effect on competition. These laws, which are intended in general to encourage competition, may have results that are surprising to the foreign businessperson. For example, it is a violation of the American antitrust laws to sell goods together with the imposition of a restriction on the prices at which the goods may be resold (Jay, 2000). Such resale price restrictions are, in general, invalid, and may subject the parties agreeing to them to liabilities.
Securities Law
Also since the early 1900's the United States and most states have enforced strict securities laws, which regulated the sale by business firms of their stocks, bonds, and other securities (Jay, 2000). In general, any arrangements made for raising investment capital in the United States should be considered poor possible application of federal or state securities laws.
Environmental and Consumer Protection Laws
In recent years, both federal and state governments have adopted a number of laws and have created agencies to administer regulations pertaining to the protection of the environment and of consumers. These laws are in a rapid state of development, and in planning U.S. operations concern should be for both the present and probable future impact.
Taxing Laws
The United States is largely a self-assessment taxing jurisdiction. The American honor system of reporting and paying taxes is, oddly enough, less abused, than the governmentally enforced systems in many other countries (Toni, 1997)...............
