The legal system is another factor of the external environment that affects how firms market their products. Why do federal, state, and local governments enact regulations affecting marketing? Highlight two laws that have been passed that serve this purpose.

Federal, state, and local governments enact legislation to ensure businesses compete fairly with each other and to ensure businesses don't take advantage of consumers. To ensure businesses compete fairly with each other, the government passed the Sherman Antitrust Act to eliminate monopolies and guarantee competition. To ensure businesses don't take advantage of consumers, the government passed the Fair Packaging and Labeling Act which guarantees that product packages are labeled correctly. Student examples may vary.