Professional Organizations (For Example, the American Medical Association and the American

question 228

Essay

Professional organizations (for example, the American Medical Association and the American Bar Association) have been active advocates for regulation to restrict the right of professionals to advertise. Describe what economic incentives might exist for existing professionals to restrict advertising.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.

Punitive Damages

Financial compensation awarded in lawsuits as a punishment to the defendant, over and above actual damages.

Deterrent

Something that discourages or prevents a person or action through fear of consequences or negative outcomes.

Consequential Damages

Refers to secondary effects or financial losses that result indirectly from a breach of contract.