It is no doubt that the chief economic force of one’s country is the private sector or business.  Yet, they still need the regulations from the government to make it work. In fact, the role of the US government in the business industry has similar years of existence with that of the country itself. Moreover, in order to regulate commerce, the Constitution is where the power of the government comes from.

Government’s Authority Over Business

Here are some of the ways in which the government may exercise its power over the businesses in the country:

Gives permission to operate

State government registration is actually needed by most businesses in order for them to operate. The business registration also gives the government to monitor those business companies.

Creates and enforces contracts

Businesses establish a contract with other businesses. And the enforcer of these contracts is the government.

In case one of the business fails to comply with what was stated under the contract, enforcement will be made under the legal system.

Protects consumer’s safety

The government also has the obligation to protect the consumers from vendors who failed to honor the guarantee. Or, in case the vendor sells a product that causes harm to the customer.

Categories: Business & Politics