2.5.2 Legislation 👩🏿⚖️ Flashcards
Why do we need consumer protection?
Receive goods at a Fair price and that are safe to use
Why do we need legislation for the business?
To ensure that stakeholders are not neglected - employers (pay) , customers ( consumer protection ) ect 
What are the four ways consumer legislation affect the business?
Increase in cost
quality control
dealing with customer complaints
a change business practices
what is the first way consumer legislation may affect the business
And increasing costs-
as businesses will have to regularly maintain machinery to ensure that is up to the standards to create products that are not faulty
new recruitment know how to make things - more regular training to avoid faulty products
Replace food more reg

How may having more quality control affect the business due to consumer legislation?
Costly to do the more regularly and failure to do so will lead to prosecution- negative reputation and bad publicity towards your business ❌ business opportunities
More work load for managers
How many dealing with customer complaints affect the business due to consumer legislation?
High volume and time consuming - Had to invest in a customer complaint department avoid litigations is going to court
Having such a department move so your value towards your customer 
How many changes to business practices affect the business due to consumer legislation? 
May force businesses to become on market orientated - to ensure customer needs are being met and avoid complaints
however this may lead to more market research to be done which is more time-consuming more workload and expensive
What are the positives of following consumer legislation?
You meet customer needs which may allow you to develop a USP against other competitors
avoid legal problems
creates high demand for services or products and goodwill + loyalty 
What are the negatives of having to follow consumer legislation?
Having to change business practices may be hard to enforce to workforce
Costs increasing
time-consuming to deal with customer complaints
What are the four legal obligations businesses have to follow due to employee protection?
Employment contract
discrimination
unfair dismissal
equal pay
What are the two examples of employee protection legislation?
Employee rights act
equality act
What are the positives of following
Employee protection legislation?
Higher employment morale - equal pay
reduction absenteeism - which allows you to maximise productivity
higher quality goods are employees feel more secure- good rep 
What are the negatives of following employee protection?
If you fail to follow you get a bad reputation and suded
high cost associated with Pay
What is an employment contract?
A legally binding agreement that every employee is entitled to have- shows hours pay what you are entitled to have
What is discrimination under employee protection ?
Legal discrimination is picking someone over something else due to the greater amount of qualifications
however illegal discrimination is not letting someone have a job based on the gender race or religion
Lead to litigation and bad rep
What act comes under u fair dismissal how does it help with employee protection?
employment relations act
This protects employees who have become pregnant tried to join a trade union and refused to work on Sundays
if unfairly dismissed they may go to employment tribunal
How does equal pay help protect employees?
The equal pay act -
to help reduce the pay gap between men and women and eliminate discrimination against wages holidays and duties
How does employment legislation affect the business?
Compliance costs
High labour costs
changing working practices
loss of flexibility
penalties
How could compliance costs affect the business and employment legislation?
May have to check if they are able to work in the UK
and responsible for the well-being of employees so still pay if made redundant
National insurance - Tax 
How many high labour costs affect the business and employment legislation?
Have to meet National minimum wage act
How many changing in working practices affect the business and employment legislation
Have to introduce new systems in high detail to ensure employees are safe and know what they’re doing
have to ensure that job advertisements don’t discriminate and interviews are not discriminatory
How may a loss in of flexibility affect the business under employment legislation?
Legislation may lead to business being too rigid
unable to have flexible working times- have to legally justified
How many penalties under employment legislation affect the business?
Maybe forced to backdate claims which are expensive
litigation may be put against the business and fines 
What are the positives of following employment legislation
Create a level playing field for people to get jobs
unscrupulous businesses that want to exploit workers with a container competitive edge is prevented
gain a positive image
What are the 4 ways environment legislation affect the business ?
Marketing
Finance
Operating management
Human Resources
How does marketing effect the business through environmental legislation?
Effective marketing tool- ethical stance to meet social trends
How does marketing effect the business through environmental legislation?
Leads to energy saving Measures that financially help the business
Highlights inefficiencies
Leads to higher costs - higher competitive advantage
How does operations management effect the business through environmental legislation?
Impacts how the product is made - types of methods of production (cleaner ) and storage
Landfill tax -Encourages business to reduce waste
How many human resources affect the business under environmental legislation?
Lead to new implications of staffing - newly recruited staff need to be trained to be able to deal with new increasing government regulations surrounding the environment
More Documentation and government audit effective communication and hierarchy set up
How does following environmental legislation positively affect the business?
Meet social trends and attract the minority of employees who are interested in the aspect of business and motivate staff
Less fines 
What are the negatives of following environmental legislation?
Tensions between targets
between financial and environmental
people may view breaking even more important
which made to motivate staff want to see environmental targets
Expensive - landfill tax
What are the four things environmental protection act help prevent 
Pollution- Water dumping waste in rivers air discharging gases in the air noise pollution from factories
destruction of wildlife habitats - Deforestation
traffic congestion - Caused by commercial vehicles and suppliers
resource depletion -Nonrenewable sources cannot be replaced
Why do we have competition policy?
There is a need to monitor the activities of monopolies
without government regulation they would exploit consumers by using anti-competitive practices to reduce competition
What are the four kind of anti-competitive practices competition policies try to eliminate?
Increase pricing
restricting consumer choice
raise barriers to entry
Market sharing
How many an increase in prices affects competition policy?
It is Above what they would be in a competitive market
Exploiting consumers with their income as they are not getting the right quality for the right price
How many an Restricting consumer choice affects competition policy? how does it happen ?
restricting consumer choice- Manufacturers may refuse to supply to rivals restricting choice
how many raising the barriers of entry affect competition policy? How is it raised ?
-Spending huge amounts of advertising making them the most dominant firm
or reducing price so low such as predatory pricing is hard for new businesses to establish themselves
How many market sharing affects competition policy and how many it occur?
Occurs when there was a collusion market is shared between dominance and price is high and choice is restricted
What is a collusion
To all businesses agreeing on restrictive business practices such as price fixing 
What are the responsibilities of the competition and markets authority for protecting consumers and restrictive practices? 
Investigate
Mergers which could restrict competition
Conduct market studies and investigations were competition could lead to consumer problems
Bring criminal proceedings against individuals who commit the cartel offence 
How does health and safety legislation affect the business?
Cost - More training and codes of practice
penalties -May get fined
and benefits-Reduction of an absenteeism will lead to more retaining of high-quality stuff because for more secure will be more loyal and productive
Give an example of consumer legislation?
Sales of goods act
food safety act
Give an example of employment legislation?
Equal pay act
national minimum wage act
Given example of environmental legislation?
Environmental protection act
Give an example of competition policy legislation what does is prohibit?
Competition act prohibits agreements cartels or practices that restrict or prevent competition
Give an example of health and safety legislation. what does it aim to achieve ?
Health and safety at work act - aims to raise standards of health and safety within the workplace 
What is unfair dismissal?
The illegal dismissal of a worker by a business
What are barriers to entry?
Obstacles that make it difficult for firms to enter a new market
What is discrimination?
favouring one person over the other
What is a contract of employment?
A written agreement between employer and employee which has certain obligations
What is anti-competitive or restrictive practices?
Attempt by firms to prevent or restrict competition
What is the employment tribunal?
A court that deals with disputes between Employers and employees
What are the positives of competition policy affecting businesses?
Makes it easier for smaller businesses to break into markets
helps improve the economy as it increases and encourages innovation due to competition around the
UK to produce more products reduce costs and make progress in overseas markets
What are the negatives of competition policy affecting businesses?
Act as a constraint to activities preventing business opportunities of proposed mergers or takeovers
