2.5.2 Legislation

Question 1

Define legislation

Answer 1

• Legislation involves creating and enacting laws in order to protect individuals, firms and society as a whole
• The legal environment describes the collection of legislation that impact on the activities of organisations

Question 2

Describe and explain consumer protection

Answer 2

• Consumer protection laws protect the consumer from firms with regards the quality of goods or services sold
• Big businesses are more powerful than individual consumers, therefore the legislation attempts to stop the consumer from being exploited
• This is becoming increasing important because of:
• More technologically advanced products
• Pressurised selling techniques
• Increased globalisation

Question 3

Consumer protection laws include

And explain

Answer 3

•Sale of Goods Act
Goods must be:
As described
Fit for purpose
Of merchantable quality

• Trade Descriptions Act
• Goods must be:
• Fully as described i.e. descriptions can not be in any way misleading

•Consumer Protection Act
Businesses are:
•Liable for any costs occurred as a result of faulty or damaged products
•Prices quoted must be correct and not misleading

Question 4

Individual labour law guarantees certain rights for individual employees include

Answer 4

• Equal Pay Act – both sexes should be treated equally at work
• Sex Discrimination Act – this outlawed discrimination based on gender for recruitment, promotion, training or dismissal
• Race Relations Act – illegal to discriminate based on colour
• Disability Discrimination Act – illegal to discriminate against disabled people and made provision to assist the employment of disabled people
• Working Time Regulations – employees cannot be forced to work more than 48 hours a week
• National Minimum Wage Act – a minimum hourly wage rate introduced across the UK

Question 5

Collective labour law guarantees certain rights, and places certain restrictions, on groups of employees include

Answer 5

• Employment Act – ‘Secondary picketing’ outlawed
• Trade Union Act – a secret ballot required before strike action
• Employment Act – outlawed closed shops (where all workers belong to a single union)
• Trade Union Reform Act – unions must give employees at least 7 days notice of industrial action
• Employment Relations Act – right to recognition of a union in the workplace if 50% belong to a union

Question 6

Describe the Environmental Protection Act

Answer 6

• Environmental Protection Act

* Firms must improve the control of pollution arising from industrial and other processes

Question 7

Describe the environmental act

Answer 7

• A firm must clean up any contaminated sites that it owns

* The Act also established the Environment Agency in order to oversee environmental protection

Question 8

What is a monopoly

Answer 8

A monopoly exists where there is only one firm in the market

Question 9

The Government refer to any company that has at least ? market share as having monopoly powers

Answer 9

25

Question 10

What is market power

Answer 10

Market power is the ability of a firm to set price above those that would be charged if there were competition

Question 11

Describe the health and safety act

Answer 11

●These laws look after the health and safety (H&S) of employees in the workplace
●In order to protect employees from exploitation and the consequences of poor H&S e.g. illness and injury
● To maintain high standards in the UK workplace
●Health and Safety at Work Act
●A firm must provide a safe working environment with free safety equipment and clothing. There must be a H&S policy and union safety representatives are allowed to inspect the workplace
●The Health and Safety Executive was set up by the Government to oversee this