Business laws in the United States create the legal framework that governs how companies are formed, operated, regulated, and held accountable. These laws promote fair competition, protect consumers and investors, and ensure ethical corporate conduct. Below are some of the most influential business laws shaping the American economy.
1. The Sherman Antitrust Act (1890)
The Sherman Antitrust Act was the first federal law designed to promote competition and prevent monopolies. It prohibits contracts, combinations, or conspiracies that restrain trade and outlaws monopolization.
This law laid the foundation for modern antitrust enforcement and has been used to break up or regulate major corporations that dominate markets unfairly.
2. The Securities Act of 1933
Passed in response to the 1929 stock market crash, the Securities Act of 1933 requires companies issuing securities to provide full and accurate financial disclosures to investors.
Its main goal is transparency—ensuring that investors receive truthful information before purchasing stocks or bonds.
3. The Securities Exchange Act of 1934
The Securities Exchange Act of 1934 regulates the secondary trading of securities (stocks traded after initial issuance). It also created the U.S. Securities and Exchange Commission (SEC) to enforce federal securities laws and oversee stock exchanges.
This Act combats insider trading, market manipulation, and fraud in financial markets.
4. The Fair Labor Standards Act (1938)
The Fair Labor Standards Act (FLSA) established minimum wage, overtime pay requirements, recordkeeping standards, and restrictions on child labor.
It remains a cornerstone of employment law and affects nearly every employer in the United States.
5. The Sarbanes–Oxley Act (2002)
Enacted after major corporate scandals like Enron and WorldCom, the Sarbanes–Oxley Act strengthened corporate governance and financial reporting requirements.
It requires CEOs and CFOs to personally certify the accuracy of financial statements and imposes strict penalties for corporate fraud.
6. The Uniform Commercial Code (UCC)
The Uniform Commercial Code is not a federal law but a standardized set of business rules adopted (with variations) by all 50 states. It governs commercial transactions such as:
- Sale of goods
- Negotiable instruments (checks)
- Secured transactions
- Commercial leases
The UCC ensures consistency in business transactions across state lines.
Why These Laws Matter
Together, these laws:
- Protect consumers and investors
- Ensure fair competition
- Regulate financial markets
- Safeguard workers’ rights
- Promote transparency and accountability
They form the backbone of the American business environment, supporting both economic growth and public trust.
