2.5.2 legislation

Question 1

legislation (def.)

Answer 1

a set of rules and regulations with which a business has to comply with

Question 2

consumer protection legislation (def.)

Answer 2

aims to ensure that consumers are treated fairly by the companies with which they interact

includes : safety of products, standard/quality of products, the rights of customers, the product information

Question 3

what are the effects of employee protection legislation on businesses?

Answer 3

may need to change working practices

there are potential penalties and benefits

higher labour costs

compliance costs

Question 4

environmental legislation (def.)

Answer 4

aims to hold businesses responsible for their environmental impact

includes : pollution, destruction of wildlife, traffic congestion, air quality, resource depletion

Question 5

what effect does environmental legislation have on businesses?

Answer 5

business may be fined or forced to cease commercial activity until the problems they caused have been resolved

Question 6

competition policy laws (def.)

Answer 6

aims to protect the interests of both consumers and businesses by restricting anti-competitive practices

includes : abuse of market power, anti-competitive acquisition activity, cartel activity and collusion

Question 7

health and safety legislation (def.)

Answer 7

requires businesses to operate in a way that protects the physical and mental wellbeing of its employees and contractors as well as its customers

includes : temperate and noise levels, the provision of safety equipment, hygienic, safe and sanitary conditions, preventing stress

Question 8

what is the effect of health and safety legislation on businesses?

Answer 8

incur financial and time costs : staff training, changes to working hours, purchase of safety equipment

serious breaches can lead to fines or investigation by the health and safety executive

in some cases, can lead to prosecution