2.5.2.Legislations

Question 1

Effects on businesses of consumer protection laws

Answer 1

Main goal of this is to ensure businesses actually deliver what they promise the consumer such as:
-Does the product do what it claims to do?
-Is product labelled correctly?
-Is product sold in correct weight?
-Rights of consumer to refund or exchange faulty products.

Two majors act of parliament covering consumer protection is:
-Sale of Goods act
-Trade descriptions act

Question 2

Effects of employee protection on business

Answer 2

Aims to state and uphold minimum standards of treatment that employees can expect. Manors issues covered are:
-Fair pay
-Sick leave
-Maternity and Paternity leave
-Employment contracts
-Relationships with trade unions
-Ability of businesses to get rid of staff
-Responsibilities of businesses to employees made redundant.
Links to Maslow safety needs being met by treating workers in legal manner

Question 3

Implications of employment legislations

Answer 3

1.Minimum wage- increases labour costs may lead to more automation and increases unemployment.
2.Right to contract of employment-Meets employees security needs but can reduce their flexibility
3.Increases right to sick, maternity leave-increased costs of paying to cover for these staff, but may make them feel valued reducing staff turnover
4.Redundancy-Reducing capacity becomes expensive due to payments of staff made redundant. Has negative impact on cash flow
5. Trade union rights- employers can be forced to deal with trade union if enough staff are members

Question 4

Effects on environmental protection on business

Answer 4

Effects of how businesses treat environment:
-Materials+ processes used to for certain products
-Need to use recyclable materials for some products
-Landfill tax
-Need to carry out environmental risk assessments for different parts of business’s activities.

Question 5

Effects of competition policy on business

Answer 5

Tend to keep prices at sensible low levels, provide good service, and generate new innovative products
CMA responsible for:
-Investigating proposed takeovers and mergers that will be overly powerful
-Investigating allegations of anti competitive practices
-Taking legal action against those who collude to maintain high prices within market
-Ensuring companies have to set competitive price

Question 6

Effects on health and safety on business

Answer 6

To protect employees and customers in workplace:
-Safe physical conditions
-Precautions firms required to take when planning their work
-The way hazardous substances should be treated on workplace

Complying with these will:
+ves:prevent incidents that will create negative publicity, motivate employees to feel safe, will reduce amount of accidents which will halt production

-ves;lots of paperwork, pay for extra safety equipments, need to pay to adjust physical work conditions