Law events Essay Example | Topics and Well Written Essays - 1000 words

Law in timets - Essay ExampleAmong these factors, it is generally considered that regulations pose the most potential threat to some(prenominal) firm doing communication channel. Experts call this as regulatory risks that can alter the way a firm operates, whether it adds to its be or even imperil its existence. An example is clean air standards and higher mileage requirements in the auto industry. The oil industry has likewise adjusted and transitioned to lead-free gasoline in most nations. There atomic number 18 so many rules, regulations, and laws for business firms to comply with, it costs a significant amount to do business nowadays. There are regulations on environment, on workplace safety, consumer protection, employees health, fair competition, taxes and business practices which require substantial ossification or otherwise face stiff fines and penalties. The list is practically endless, such that a recent playing area indicated it costs $10,000 more per worker for a firm to comply with all federal regulations. This paper looks at one such new rule. Discussion The sub-prime housing mortgage crisis which started in late 2007 and which in twirl caused the lingering effects of the so-called Great Recession even until today was due to the indiscriminate and widespread lax lending practices of banks, mortgage associations, and other financial institutions that resulted in easy access to address even for those not qualified. It triggered the worst recession ever since the Great Depression of the 1930s and in turn caused the apply of many venerable lending institutions, forcing the government to bail them out. A host of new laws had been passed to regulate closely all aspects of business operations in order to prevent white-collar fraud, corporate scandals, and other loathly business practices. Among prominent laws passed at that time was the Sarbanes-Oxley Act (or SOX) in which corporate chairmen, board members, and external auditors are jointl y liable for any substantial financial misstatements found on audited financial reports which investors rely upon. The breakable economic deducty has led many economists to term it as jobless growth, because few jobs were created, and many lost(p) high-paying jobs are expected never to return. The financial crisis has spread to Europe and other parts of the world, it has become behavior of a global contagion, in which economies plugged into a globalized world got adversely affected. In America, many homes drop below their original market values, putting homeowners at risk for eviction and foreclosure proceedings from the banks and other walloping lenders. The credit that was so plentiful suddenly dried up, putting many individuals in a credit or cash crunch. Many American individuals and households had also maximized their credit use to such an extent many of them got over-extended when they maxed out their credit cards for purchase of consumer items and durables which they so on regretted. In other words, people were deeply in debt, and in this volatile situation, the lenders and banks soon turned into a more aggressive collection techniques and strategies to recover their