Problem 1. All of the orthodontists in your community at their annual holiday party agreed to charge the parents of each child patient a non-refundable fee of $200 prior to beginning any treatment. They also agreed that the charge for an orthodontia procedure would not be less than $2,000. Are these agreements a violation of the Sherman Act? Explain.
Problem 2. Are insider trading laws and the agencies that enforce them an efficient use of public resources given the number of insider trades that go undetected or unenforced? Would the public and taxpayers be better served by warnings that insider trading occurs in stock trading on national exchanges rather than continuing efforts to thwart it? Explain your answers.
Problem 3. What legal entity choice would you make for this business and why?
Joe operates a commercial landscaping and tree trimming business. Joe is very successful and has enough clients to keep him busy, along with at least 50 workers, working six days a week. Occasionally, a client rents a piece of equipment from Joe's business. Clients sometime take their time paying for Joe's services and, therefore, Joe is sometimes late paying his bills.
Joe's capital is only about $250,000, most of which consists of trucks and earth moving equipment worth approximately $200,000, plus an extensive assortment of lawnmowers, chainsaws, edgers, and other landscaping equipment. Last year's revenues exceeded $500,000. Many of the employees are seasonal and turnover is high.
Problem 4. The commerce clause limits the federal government's regulation of business." Discuss the truth or error of this statement.