1.5.3 Legislation and Business Flashcards
Principles of consumer law:
- products sold to customers should be of a good standard quality
- businesses should disclose full information about products and services
- consumers have the right to return or reject goods
- services should be provided with reasonable care
- goods should be delivered and installed safely
- terms of contracts should be fair
What does consumer law govern?
- governs all aspects of how a business interacts with its customers
What is the purpose of consumer legislation?
to protect customers
What is the consumer protection law in the UK?
Consumer Rights Act 2005
Positives of consumer law for businesses:
- compliant businesses are less likely to be fined or sued by customers
- compliant businesses may be considered professional and caring, and may benefit from increased customer loyalty - better reputation
- improved relationships with stakeholders
- good publicity, if followed
- reduces risk of UK products being undercut by poorly made products from abroad
Negatives of consumer law for businesses:
- increase likelihood of legal action
- continuous process of legislation to keep up with —> increased costs
- laws can restrict businesses from operating as they would wish
- changing products and practices to comply with laws can increase costs
- bad publicity/reputation can result if businesses do not comply with the laws
- consumers can use laws to take legal action against the businesses
Principles of employment law:
- recruitment procedures should be fair and prevent discrimination
- health and safety requirements in the workplace should be met
- all employees’ pay should be fair and meet minimum wage requirements
- disciplinary issues and grievances should be dealt with fairly
- groups of people, such as employees with disabilities should not be discriminated against
What does employment law govern?
all aspects of how a business interacts with its employees
What is the purpose of employment legislation?
to protect employees
Positives of employment law for businesses:
- a compliant business may be considered a good employer
- fewer employees will be tempted to leave the business so reducing recruitment costs
- employees may be happier and more motivated, leading to high productivity and better customer service
Negatives of employment law for businesses:
- meeting health and safety regulations can increase costs for businesses
- paying the national living wage will increase business’ costs
- failing to comply may lead to unhappy employees, lower productivity and legal action taken against the business
How do businesses meet the requirements for consumer and employment law?
- costs - meeting legal requirements = increased costs
- equipment - health and safety equipment required to keep employees safe
- licenses - businesses must meet legal requirements to be granted relevant licenses e.g. electrical installation licenses for electricians
- pay - all pay must meet the national requirements for the living wage
- administration - businesses must use correct processes and record keeping systems
- training - employees must be trained in health and safety rules and customer service guidelines
Positives of employment law to employees:
- employment law aims to remove discrimination in the workplace → therefore employees will not be treated differently to other workers → as a result employees are more likely to enjoy their work more than if those laws did not exist
- potential employees treated fairly when applying for a job → means they will be considered equally with other applicants → as a result more potential employees will be encouraged to apply
Legislation:
a set of laws put in place by the government to protect businesses, employees and consumers
Discrimination:
when an employee/customer is treated unfavourably due to their gender, sexuality, race, religion, pregnancy and maternity or disability
