308 legal factors Flashcards
1
Q
what is company law
A
- when a business becomes a limited company (Ltd) it is legally separated from its owners- this process is known as incorporation
- an incorperated business is responsible for its own debts and liabilities not its owners
- if company law is not followed- directors can face fines, be banned from running business, or the company could be forced to close (liquidation)
2
Q
what is employment law
A
- this law covers rules abut how busisnes treat thier employees eg. ages, working hours, health and safety
- anti discrimination- treated fairly
- business must follow these laws to avoid legal action- however it may increase costs
3
Q
what is consumer protection laws
A
- when consumers buy good and services, a contract is formed between the cosumer, retailor or producer- the law ensures busines provide accurate information about the products’s size, weight, price and quality
- goods must be described and fit for purpose - if businesses provide false information- legal consequences
4
Q
what is competition policy law
A
- law focuses on controlling the abuse of market power of big businesses- since try have monopoly power they can control the price
- business over 25% market share- monitored by Competitors and Market Authority (CMA)- prevents unfair mergers and collusion (where 2 or more business agree to secretly work together)- rather than competing to fix prices
5
Q
what is health and safety legislation
A
- to ensure busisnes comply with hralth and safety legislation- busisnes have to spend a large amount of money
- however it’s compliance will benefit brand image and employees would want to be employed in a place that values h&s
6
Q
what is data protection legislation
A
- law that covers how personal data is gathered by organisations and is used and kept secure
- usually have data protection officers to ensure that the requirements of the data protection act are being met
- if not, faced with fines
7
Q
what is intellectual property legislation
A
- this law covers legal rights of individuals and companies in regard to design and innovation eg. patents, trade maker, copyright law
- allows firms to gain a competitive advantage and prevent copying by competitors
8
Q
what is minumun wage legislation
A
- impacts business activity as increases costs- firms musts pay employees a legal minimum
- may boost employee motivation and productivity - lower staff turnover
9
Q
evaluate the impact of legislation on a business and its shareholders
A
(on paper) hehe xoxo
