The cartel concept is important for the entrepreneur`s ability to create new start-ups that can compete with larger, more established companies (which might try to prevent competition). Table 3.1 summarizes the contributions of these acts in support of antitrust efforts. It is important to note that any deviation from these laws can lead to lengthy and costly legal problems. While it is for the courts to determine the underlying intent, legal implications, and consequences of Shkreli`s decision, evidence from this and other case studies shows that some business leaders have not developed ethical skills or internalized a moral compass that allows them to distinguish between right and wrong. The SEC has guidelines on what constitutes «reasonable efforts» with respect to these accounts. It is possible to raise funds outside the narrow boundaries of accredited investors, but it will open a Pandora`s box in terms of securities and compliance enforcement. So, if you want to be as legal as possible, go through accredited investors. Ethical entrepreneurs constantly strive to apply ethical concepts in practice, including truthfulness and full disclosure. These two concepts are not only part of an ethical approach to the conduct of business, but also of the underlying requirements of several areas of law, including fraud. A company that manufactures/sells a product or service is responsible for fully disclosing the truth about its products/services. In most states, business owners (especially those with more than five employees) are required by law to insure their employees in a variety of ways. Providing workers` compensation insurance to those who are injured on the job and unable to fend for themselves is mandatory in most of the United States, for example.
Many amateur entrepreneurs try to reduce the costs associated with running a business by lowering their insurance rates, but understand that the savings on workers` compensation could seriously backfire and cost you dearly. The best lawyers say that learning and dealing with the legal issues that come with starting your business can help you follow these processes properly and efficiently. They also reduce the likelihood of making costly and time-consuming mistakes that can delay or negatively impact your plans to open your business. Unlike working in a large corporate environment with an established structure, entrepreneurs often start and run a new business on their own terms. The pressure to start a new business within the limits and constraints is prompting entrepreneurs to find innovative ways to meet potential market demands. At the same time, the challenge of meeting these expectations can create temptations and ethical pressures when entrepreneurs make various decisions. Common areas where there are potential legal issues include contracts, tort, employment, intellectual property, conflicts of interest, full disclosure and veracity of product or service claims and services, and antitrust and competition law (Figure 3.2). After all, every business needs a good lawyer to turn to if something inevitably goes wrong. These days, it`s only a matter of time before you have to face a lawsuit, and when subpoenas come in, you`ll need solid legal expertise you can rely on.
Check out the lawyers in your area carefully and don`t be afraid to ask them why they are the best choice for your business. Consult a list of professions that need to be licensed in the U.S. and make sure your documents are up to date if you want to avoid legal problems. Health care professionals, lawyers and other professionals in key industries should take special care when reviewing their licensing requirements. Malpractice lawsuits can be ridiculously expensive, so don`t skip this step. There are other important considerations to consider. If you discover that the web address of your perfect name is already taken, you may have to buy that domain name at a high price if it is even on sale. This is neither likely nor feasible for a new business. Before choosing the name, make sure that the web address for that name is available. The fact that the web address is not available for a legally accessible name is not the end of the world. You can always choose a web address that references your business name to avoid the problem of buying the domain or changing the company name.