American Home Shield 2011 Annual Report Download - page 20

Table of Contents
Laws and government regulations applicable to our businesses could increase our legal and regulatory expenses, risks and impact our business, financial
position, results of operations and cash flows.
Our businesses are subject to significant international, federal, state, provincial and local laws and regulations. These laws and regulations include laws
relating to consumer protection, wage and hour requirements, franchising, the employment of immigrants, labor relations, permitting and licensing, workers'
safety, the environment, insurance and home service contracts, employee benefits, marketing (including, without limitation, telemarketing or green marketing)
and advertising, the application of fertilizers, herbicides, pesticides and other chemicals, noise and air pollution from power equipment and water management
techniques. In particular, we anticipate that various international, federal, state, provincial and local governing bodies may propose additional legislation and
regulation that may be detrimental to our business or may substantially increase our operating costs, including legislation relating to the Employee Free
Choice Act; environmental regulations related to water quality, water use, chemical use, climate change, equipment efficiency standards, refrigerant use and
other environmental matters; other consumer protection laws or regulations; or "do-not-knock," "do-not-mail," "do-not-leave" or other marketing regulations.
It is difficult to predict the future impact of the broad and expanding legislative and regulatory requirements affecting our businesses and changes to such
requirements may adversely affect our business, financial position, results of operations and cash flows. In addition, if we were to fail to comply with any
applicable law or regulation, we could be subject to substantial fines or damages, be involved in litigation, suffer losses to our reputation or suffer the loss of
licenses or incur penalties that may affect how our business is operated, which, in turn, could have a material adverse impact on our business, financial
position, results of operations and cash flows.
The enactment of new federal or state legislation or the promulgation of new regulations or interpretations at any level of government may also expose
the Company to potential new liabilities or costs, or may require the Company to modify its business model or business practices. At this time, the Company
does not expect any such changes in law or regulation to have a material effect on its reputation, business, financial position, results of operations or cash
flows; however, in March 2010, comprehensive health care reform legislation was enacted in the U.S. which, among other things, includes guaranteed
coverage requirements, including for dependents up to age 26; eliminates pre-existing condition exclusions and annual and lifetime maximum limits; restricts
the extent to which policies can be rescinded; and requires employers to provide employees with insurance coverage that meets minimum eligibility and
coverage requirements. The legislation imposes implementation effective dates that began in 2010. Due to the breadth and complexity of the health reform
legislation, the current lack of implementing regulations and interpretive guidance, the phased-in nature of the implementation and pending court challenges,
it is difficult to predict the overall impact of the health reform legislation on our business over the coming years. However, new requirements to provide
additional health insurance benefits to our employees would likely increase our expenses, and any such increases could be significant enough to materially
impact our business, financial position, results of operations and cash flows. Additional or new regulations promulgated by the U.S. Consumer Financial
Protection Bureau may also require the Company to modify its business model or business practices.
Compliance with environmental, health and safety laws and regulations, including laws pertaining to the use of pesticides, herbicides and fertilizers,
could result in significant costs that adversely impact our reputation, business, financial position, results of operations and cash flows.
International, federal, state, provincial and local laws and regulations relating to environmental, health and safety matters affect us in several ways. In the
United States, products containing
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