2.5.2 Legislation

Question 1

what is legislation

Answer 1

laws, or a set of laws

Question 2

what are the 5 areas that legislation has a significant impact

Answer 2

1 consumer protection
2 employee protection
3 environmental protection
4 competition policy
5 health and safety

Question 3

what does consumer protection legislation cover

Answer 3

• safety of products
• standard and quality of products
• information that is given to consumers
• the rights of a consumer who is unhappy with their product

Question 4

how does consumer protection legislation influence a business

Answer 4

• it increases businesses expenditure, this may reduce profitability
• this provides a level playing field for businesses

Question 5

what do employee protection laws cover

Answer 5

-these aim to prevent exploitation of workers
- pay and working conditions
- equality
- contracts of employment

Question 6

how does employee protection impact a business

Answer 6

• higher labour costs, the national minimum wage and the national living wage, breaks, safety, training
• changing working practices, recruitment, working conditions
• potential penalties, fines, bad reputation
  + potential rewards, motivated staff low labour turnover

Question 7

what does environmental protection laws cover

Answer 7

• the environmental impact of the business
• pollution
• wildlife conservation
• traffic congestion
• air quality
• resource depletion

Question 8

how do environmental protection laws impact a business

Answer 8

• they would be costly to comply with
• may be fined for not complying
  + A business that follows ethical and environmental legislation may be appealing to customers

Question 9

what do competition policies cover

Answer 9

• encourage fair competition between business
• abuse of market power, prevents monopolising
• acquisition, buying the majority of competitor’s shares
• prevents collusion

Question 10

how do competition policies impact a business

Answer 10

• they must make staff aware of them to ensure they don’t break them
• businesses may face fines
• can build bad publicity for businesses

Question 11

what does health and safety legislation cover

Answer 11

• protects the physical and mental wellbeing of its employees and consumers
• breaks
• temperature and noise
• safety equipment
• hygienic conditions
• prevent stress

Question 12

implications for a business because of health and safety legislation

Answer 12

• incur financial and time costs:
  training and supervision
  work hrs and rest provisions
  implementing documentation and codes of practice
  purchase and maintenance of safety equipment
• breaches can lead to fines, investigation and prosecution
• cases of failed health and safety can build a business a bad reputation