Wednesday, June 29, 2011

Why did Gov. accuse Home Depot of violating 'Buy American Act'

    Did you know that in an effort to protect American jobs the 'Buy American Act' was passed in 1933 by Congress and signed by President Roosevelt? It required the United States government to prefer U.S. made products in any of the government’s purchases.

    The law mandates that public buildings be built using only materials that have originated from the US and a few favored countries, like Canada and Israel. Home Depot has now become the latest American company accused of violating it.

    The global economy, however has created many problems making it extremely difficult to define what constitutes an 'American' product. Is a Toyota that is built by American workers in a domestic plant in Tennessee an "American car"? How about a General Motors car built primarily of parts imported from China?

    Other well-known companies have also faced similar investigations over the years. Companies like Office Depot, Staples, and OfficeMax to name a few. Interestingly, most of the companies have settled by paying fines totaling in the millions. The federal government sure knows how to make money off of old laws.

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