1.5.3 Legislation and business

Question 1

What is the purpose of legislation?

Answer 1

the government makes laws in order to control business actions, in order to protect the needs of stakeholders

Question 2

What are the principles of consumer law?

Answer 2

• consumers have the right to return or reject goods
• services should be provided with reasonable care
• goods should be delivered and installed safely
• businesses should disclose full information about products and service
• products sold to consumers should be of good standard and quality
• terms and contracts should be fair

Question 3

What is the consumer rights act?

Answer 3

The consumers rights act 2015 states: goods must fit their description, satisfactory quality, be fit for the purpose specified

Question 4

What is the trade descriptions act?

Answer 4

The trades descriptions act states it is an offence to make false descriptions about any good or services supplied

Question 5

What are the benefits of consumer legislation?

Answer 5

> improve reputation
bad publicity is avoided
no costs of repair and replacement
avoiding very high fines

Question 6

What are the drawbacks of consumer legislation?

Answer 6

> training may be required
increases quality control
higher quality raw materials

Question 7

What are the principles of employment law?

Answer 7

> recruitment procedures should be fair and prevent discrimination
health and safety requirements in the workplace should be met
groups of people, such as employees with disabilities should not be discriminated against
all employees’ pay should be fair and meet minimum wage requirements

Question 8

What is the equality act?

Answer 8

The equality act 2010 legally protects people from discriminations in the workplace and in wider society

Question 9

What is the health and safety at work act?

Answer 9

The health and safety at work act 1974 states employers are legally required to look after all their workers

Question 10

What are the benefits of employment law?

Answer 10

• if businesses comply they may be considered as a good employer
• fewer employees will be tempted to leave the business so reduce recruitment costs
• employees may be happier and more motivated, leading to high productivity and better customers service

Question 11

What are the drawbacks of employment law?

Answer 11

• meeting health and safety regulations can be costly for businesses
• paying the national living wage will increase businesses’ costs
• failing to comply may lead to unhappy employees, low productivity and legal action