2.5 Leglislation

Question 1

What is legislation?

Answer 1

Government laws made to control businesses in order to protect the needs of stakeholders

Question 2

What is the employment law?

Answer 2

A set of rules that set out the rights and responsibilities of those people who work for a business

Question 3

What is the national living wage?

Answer 3

An hourly rate of pay which is set by the government. All employees above a certain age must receive at least this rate of pay

Question 4

What are the main aspects of the employment law?

Answer 4

• Recruitment
• Pay
• Discrimination
• Health and safety

Question 5

What laws make up the employment law?

Answer 5

• Minimum wage law
• Equality act

Question 6

What are the advantages of the employment law?

Answer 6

• Protects employees from exploitation and receiving unequal treatment at work
• Increased fairness and motivation

Question 7

What are the disadvantages of the employment law?

Answer 7

• Business costs increase as implementing employee legislation is expensive and time consuming

Question 8

What is discrimination?

Answer 8

The unacceptable treatment of any individual or group of individuals who are termed to be different

Question 9

What is the equality act 2010?

Answer 9

A law that prevents discrimination against employees on the basis of age, disability, gender reassignment, race, and religion, as well as other grounds

Question 10

What characteristics does the equality act protect?

Answer 10

• Age
• Disability
• Race
• Gender reassignment
• Marriage and civil partnership
• Religion or belief
• Pregnancy or maternity
• Gender
• Sexual orientation

Question 11

What is a part time employee?

Answer 11

An employee who works for a proportion of the working week

Question 12

What is a trade union?

Answer 12

A group of workers who act together to improve their pay and working conditions

Question 13

What are the rights of an employee?

Answer 13

• Maternity and holiday pay
• Allowed to join trade unions
• Pay employees as stated in the contract
• Provide suitable training
• Provide a safe working environment
• Allow employees time off for certain reasons

Question 14

What is a contract of employment?

Answer 14

A legal document stating the hours, rates of pay, duties and other conditions under which a person is employed

Question 15

How are businesses affected by employment laws?

Answer 15

• Increased costs
• Motivated employees

Question 16

What is the health and safety act of 1974?

Answer 16

A law which lays out the responsibilities that employers and employees have to maintain a safe and healthy workplace

Question 17

What can businesses do to cover the health and safety act?

Answer 17

• Installation and maintenance of safety equipment and clothing
• Maintenance of workplace temperatures
• Giving employees sufficient breaks during the working day
• Providing protection against dangerous substances
• Fitting guards on dangerous machinery
• Writing and displaying a safety policy

Question 18

How does the health and safety law affect businesses?

Answer 18

• Increased costs due to training employees and investing in safety equipment
• Time taken for inspections
• Businesses may have to compete with businesses in other countries which have less safety laws
• Failure to meet the law results in fines and imprisonment
• Loyal and motivated workers
• Easy to attract employees

Question 19

How can businesses treat customers unfairly?

Answer 19

• Selling products not as described
• Selling unsafe products
• Selling products at unfair prices, or which do not work
• Selling consumer information without permission

Question 20

What are consumer laws?

Answer 20

Laws that have been introduced to prevent businesses from treating their customers unfairly

(Consumer rights act 2015 and the consumer protection act 1987)

Question 21

What does the consumer rights act 2015 cover?

Answer 21

• Product quality
• Returning goods
• Repairs and replacements
• delivery rights

Question 22

What are the laws surrounding product safety?

Answer 22

• Food act; lists what businesses can put in products, and makes it illegal to make food in unclean buildings
• Consumer protection act; prevents businesses selling dangerous products, and makes the business liable for any injuries caused
• Food safety act; makes it illegal to sell unsafe or unclean food

Question 23

What are the laws surrounding product labelling?

Answer 23

• Labelling of food regulations; packaged food must contain the ingredients as stated on the label
• Weights and measures act; weights and measures must be stated correctly on packaging
• Unfair trading regulations; makes it illegal to give consumers incorrect information on packaging

Question 24

What are the laws surrounding sale of products?

Answer 24

• Consumer rights act; provides customers with clear rights and protection when buying goods
• Consumer credit act; prevents businesses charging very high interest rates to customers when taking out loans

Question 25

What are the laws surrounding using information technology?

Answer 25

• Computer misuse act; Prevents people looking at information stored on computers that they have no right to read
• Data protection act; Prevents consumers personal details being sold without permission

Question 26

What are the disadvantages of consumer laws?

Answer 26

• Increased costs due to training employees
• Increased quality control may be needed
• Higher quality raw materials may be needed, which can be costly
• Additional production processes may be needed, which can increase costs

Question 27

What are the benefits of consumer laws?

Answer 27

• Improved reputation in the marketplace can lead to higher sales
• Bad publicity is avoided
• Less costs on repair and replacement
• Avoiding high fines

Question 28

What is the trade description act?

Answer 28

Legislation designed to prevent incorrect information being given on packaging labels and in advertisements