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    Which is better, to have the states regulate business law, or to have the federal government do it? Why?

    © BrainMass Inc. brainmass.com December 24, 2021, 9:12 pm ad1c9bdddf
    https://brainmass.com/business/business-law/states-should-regulate-business-law-354299

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    Which is better, to have the states regulate business law, or to have the federal government do it? Why?
    There iis a strong attempt to have the federal government regulate business law. the reason for this is that it is believed that a unified low will be easy to understand, easy to implement, and encourage interstate business and commerce.
    However, I feel that states should regulate business law. The reason is that the regulation of business is a strong means of attracting business to the state. The states can enact business laws that can attract businesses to the state. The state can make favorable laws pertaining to principal and agent, carriage by land and sea, merchant shipping, guarantee, marine, fire, and accident insurance. The states should be allowed to regulate corporate contracts, the law of incorporation, recruitment law, labor laws , manufacturing law, and sales of consumer goods. The point is that several of these laws under the federal government can be stringent and not conducive to business. On the other hand if the states were allowed to compete for businesses they would relax some of the laws so that businesses would be attracted to those states. Some of the business laws are archaic and need to be replaced, they place unnecessary restrictions and costs on businesses. If states are allowed to make their own business laws the states would relax several of these laws in an attempt to attract investment and provide a more conducive environment to the business.
    States compete with one another in an attempt to attract investment and business to their states. When a state offers attractive laws to business and attracts businesses, the action benefits both the business and the state. The state gets more businesses and so becomes more prosperous. The level of unemployment reduces and the state earns more tax revenues. On the other hand the business gains because of more favorable laws.
    Le us take a practical example, the state of Delaware has laws that are favorable to incorporation of companies. Because of the favorable law of incorporation in Delaware more than 50% of the US publicly traded firms and 60% of Fortune 500 companies are incorporated in Delaware. The firms want to advantage of favorable laws. So, different states should have the freedom of attracting businesses by offering favorable business laws. This is why it is better to have states regulate business law and not the Federal Government. This will lead to more favorable laws for business and improve the business climate in the country.
    References:
    www.business.com ? Directory ? Law www.business.gov/register/incorporation/www.business.gov/register/licenses-and-permits/law.findlaw.com ? Laws ? State Lawswww.hg.org/corp.html

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 9:12 pm ad1c9bdddf>
    https://brainmass.com/business/business-law/states-should-regulate-business-law-354299

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