Evaluate the U.S busniess ethics and the role of the government in order to protect consumer welfare?

Answer 1

For all i know,businesses are more protected by the government than consumers and the ordinary citizen.
Examples: Businesses are allowed to file for bankruptcy whereas individual entities are not allowed to do so.2. Chances of winning a law suit against a business (companies and others) is lower.3. Most businesses are exempted from paying taxes whereas customers pay taxes for their purchases,in the long round,the businesses only submit the taxes paid by customers excluding their taxes for running a business.

Answer 2

Producers are supposed to deliver products 'that are fit for the standard purpose for which it is meant to be used'. If there is any 'disclaimers' it should be visibly printed on the product package.
A visible sign board is a necessary factor for any business and the presence of one creates a virtual contract or a contract in tort that the business is legal and whatever they do will be fit enough for standard consumption of usage. All disclaimers should be visibly printed on the board otherwise.
There cannot be any 'bait and switch' methods employed when marketing products. That is you cannot advertise one thing and when a person is about to buy or buys keep adding new costs and functions which incur costs to the product already advertised at a price.
A company whose product is sold through a Vendor and if the product is harmful to the user then the company is considered to be at 'arms length' with the consumer and can be liable for damages. Not only the Vendor alone is liable.
No producer or vendor can be negeligent in perfoming their activities. Negeligence is messured with duty, breach of duty, proximate cause and damages. If negeligence can be proved in any transaction the company or person delivering services are liable for damages and restitution of monitory loss is ordered.
Breach of contract written or virtual or unwritten is liable to be restitued for the monitory loss it causes to anyone. A contract is Offer, counter offer and acceptance. This can occur either in tort or direct. In tort means contracts arising without written obligations.
To avoid costly litigations American departmental stores has return or replacement windows where one can exchange the products they bought without being asked any questions if they don't like them. This and the sign board and disclaimer theory came out of the 'assymetrical information' theory propounded by George Akerloff and Joseph Stiglitz(insurence) for which they were given the Nobel Prize in the 90's. This has also foundation in Welfare theories of 'information for continued preference'. Refer: Baumol.
Government protects these ethics through 'small claims courts' and other regulations for liability claims and faster resolutions of cases. Securities and Exchange Commission is created and Institution which protects the small and large investors. Antitrust laws of Sherman Act, Robinson Pattman act, Taft Hartley acts etc; are created to maintain competiton. MMI Index is created along with it to figure out market concentration where reduction of the Index below some threshold can reduce competion and is checked all the time and prevented by goverment through institutions if the threshold is breached in some Mergers and Acquisitions. Interlocking directories are disallowed through law. FCC, FTC, Interstate Transport commission etc; are created which over looks, communication industry, trade and transport segments of the economy to be reduce distortion and increase welfare to the populous. These are some of the government initiatives to maintain ethical practice of business in the US continent.
You might ask why maintaining competition by the government between Companies. It comes from the Domination game theory. If two players paly a game with similar objectives and if they are A and B, A > B and B > A and this happens only if A = B. By making this state to prevail companies will do everything to remain efficient and innovative and this need of theirs to be better than the other for survival serves their purpose to the society and populous here the consumers who will get to consume standard products. This will also allocate resources efficiently.
If they are allowed to collude then all the criteria of imputation and side payment creep in which will dampen the real need of the populous to consume standard products since the companies will slacken in providing standard products and services. So the government through Antitrust laws and Institutions that regulate maintain the level of competition in the economy.