State Laws, Rules, and Professional Ethics/Business Practices
Who regulates what
Three federal agencies appear in exam questions. OSHA protects the worker through bloodborne-pathogen rules, hazard communication, and Safety Data Sheets (SDS) for every chemical in the salon. The EPA registers the disinfectants you use. The FDA regulates cosmetics and color additives and their labeling. Your state board licenses you, sets sanitation rules, defines your scope of practice, and administers renewal and continuing education.
Scope of practice and ethics
A license authorizes a defined set of services. You may not diagnose disease, prescribe treatment, or 'treat' a fungus, wart, or infection; you refer the client to a physician. Ethical practice means confidentiality (never discuss a client's condition or personal information), informed consent before a service, honest descriptions of what a product can and cannot do, and declining any service that would harm the client.
Business basics
Know the common structures: sole proprietorship, partnership, LLC, and corporation. Understand the difference between booth rent (you pay a flat fee and run your own book) and commission (you are paid a percentage as an employee), and why misclassifying a worker creates tax and liability problems. Carry professional liability insurance, keep client records, price for your time and product cost, and collect and remit sales tax where it applies.
Advertising and claims
You may describe a service, but you may not make medical claims or promise a cure. Before-and-after photos require the client's permission.
Rule of thumb
When a question describes a client with a suspicious condition, the answer is almost always 'do not perform the service; refer to a physician,' never 'use a medicated product.'