A State and Local Governments Require Licenses for Certain Businesses

question 32

Essay

a. State and local governments require licenses for certain businesses and professional activities. Explain the difference between a regulatory licensing statute and a licensing statute enacted to raise revenue.
b. Explain the significance in contract law between a regulatory license and a revenue raising license.
c. Give an example of each type of licensing statute.

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Definitions:

Foreign-exchange Traders

Individuals or entities that buy and sell currencies, aiming to profit from changes in exchange rates.

Mexican Government

The federal republic governing structure of Mexico, comprised of executive, legislative, and judicial branches.

Fixed Exchange-rate System

A currency system where the value of a country's currency is pegged to the value of another currency, a basket of other currencies, or another measure of value such as gold.