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for implementation of other environmental laws that deal with air, water,solid waste, toxic substances, and noise pollution. The EPA also carriesout executive orders related to the environment.National Environmental Policy Act Congress passed the NationalEnvironmental Policy Act in 1969 to establish a national program tofight pollution and clean up the environment. Under terms of the act, adetailed statement explaining the environmental consequences mustprecede any major federal governmental action that affects the qualityof the environment. The statement must also include any alternativesthat might be taken instead of the proposed action. The objective is toprevent or eliminate damage to the environment and protect the healthand welfare of the public.Environmental Protection Agency In 1970, the EPA received theauthority to administer all major federal antipollution programs dealingwith air, solid waste, toxic substances, and pesticides. Under thisauthority, the EPA can do research, create and administer pollution controlguidelines, and monitor programs to make sure that pollution abatementstandards are met. The agency can also administer grants to helpeliminate pollution under state-run programs. The EPA has the authorityto act against entities that pollute the environment, even when a givenact of pollution is unintentional.Reviewing What You Learned1. What is the source of the federalgovernment’s power to regulate business?2. What are the two statutes that regulate thesale of securities?3. What are the statutes that regulate antitrustactivities?4. What are the statutes that regulate energyand the environment?Critical Thinking ActivityContract Disputes The legal system impactsbusiness by regulating its formation, operation,and expansion. Using the Internet, library, orother resource, evaluate the facts of a contractdispute involving a business and governmentregulations of energy and the environment.What are the facts of the case, how did thecourt rule, and why?Legal Skills in ActionResponsibilities of the SEC Your grandfatheris thinking about investing part of his savings ina new corporation that is about to place itsstock for sale on the stock exchange. Write himan e-mail message in which you explain theresponsibilities of the Securities and ExchangeCommission. Make certain to mention thepurpose and nature of a registration statement,as well as the purposes of a prospectus.Chapter 30: Corporate Regulation and Expansion 653