7 - Political & Legal Change Flashcards
What Is Legislation?
Creating and enacting laws in order to protect individuals, businesses and society.
What Is The Legal Environment?
Collection of legislation that impact the activities of organisations.
What Are The Main Roles Of Business Legislation?
(5 Points)
~ Regulate the rights and duties of businesses.
~ Protect consumers from exploitation.
~ Ensure employees are treated fairly.
~ Provide investors and creditors.
~ Prevent unfair competition.
What Are The 3 Main Areas Of Legislation?
~ Labour market.
~ Competition.
~ Environment.
What Does Labour Law Try To Ensure?
Protects workers from discrimination within the workplace, makes it easier to recruit workers.
What Are All The Employment Legislation & Discrimination Acts?
(7 Points)
~ Equal pay act, 1970.
~ Sex discrimination act, 1975.
~ Race relations act, 1976.
~ Disability discrimination act, 1995.
~ Employment Relations Act, 2004.
~ Employment Act, 2008.
~ National minimum wage act, 1998.
What Is The Equal Pay Act (1970) About?
(2 Points)
~ Same pay for same work of both genders.
~ Both sexes should be treated equally at work.
What Is Sex Discrimination Act (1975), Race Relations Act (1976) & Disability Discrimination Act (1995) About?
Ensures there is not discrimination based on sex, race and disabilities in terms of recruitment, training and promotion inside the workplace.
What Is Employment Relations Act (2004) About?
Ensure if 50% of workers within a organisation are members of a trade union, the employer must recognise that.
What Is Employment
Act (2008) About?
(2 Points)
~ Ensure the minimum wage legislation is put into place.
~ Ensures that 0 hour contracts rights exist.
What Is The National Minimum Wage Act (1998) Legislation About?
(2 Points)
~ Ensures employers pay their workers at least the NMW.
~ Was introduced to pay a fair wage to low paid workers.
What Was The National Minimum Wage Act (1998) Rebranded Into?
Living wage in 2016.
What Are The Impacts Of Labour Market / Employment Law?
(3 Points)
~ Increased fines, if a business doesn’t follow these laws.
~ Cost of compliance to the law, big firms may need to employ a team to ensure laws are not being breached.
~ Compliance could lead to a more motivated and productive workforce.
What Does Competition Law Try To Ensure?
(3 Points)
~ Promotion of fair competition.
~ Make markets work better, contributing towards improved efficiency.
~ Keep business conduct in check.
What Does Competition Policy Aim To Ensure?
(3 Points)
~ Technological innovation, to promote DE in different markets.
~ Effective price competition between suppliers.
~ Safeguard and promote the interests of consumers through increased choice and lower price levels.
What Are 2 Competition Laws In The UK & Still aligned With EU Laws?
~ Competition act, 1998.
~ Enterprise act, 2002.
What Are The Main Elements Of Competition Law?
(3 Points)
~ Repression of cartels.
~ Ban strategic pricing, such as predatory pricing and limit pricing.
~ Supervise mergers, takeovers and joint ventures to ensure they are not being anticompetitive.
What Are All The Main Elements Of Competition Law Enforced By?
CMA.
What Is Meant By ‘Repression Of Cartels’?
Avoid businesses colluding together, to try to manipulate price (Price fixing) and output within the market.
What Can’t Businesses Do In Terms Of Price Fixing?
(4 Points)
~ Agree prices with competitors.
~ Impose minimum prices on different distributors.
~ Agree with competitors what purchase price will be offered to suppliers.
~ Strategic pricing methods.
What Are Examples Of Anti-Competitive Behaviour?
(4 Points)
~ Price fixing and market sharing.
~ Predatory pricing and limit pricing.
~ Charging excessively high prices.
~ Patent missuse.
What Are The Impacts Of Competition Policy?
(4 Points)
~ Allows for a more level playing field amongst businesses, particularly helpful for smaller businesses.
~ Reputation issues if there is failure to comply to these laws, could lead to lower sales or fines.
~ Ensures low prices, better quality and more choice for consumers if successful.
~ Impact planning for a business if they want to pursue a merger .etc.
Who Enforces The Environmental Law?
(2 Points)
~ OEP.
~ Office of environment protection.
What Are Examples Of What Environmental Law Tries To Ensure?
(4 Points)
~ Water and air quality.
~ Wildlife.
~ More recycling.
~ Less plastic waste.
What Does Environmental Law Try To Ensure?
Influence the behaviour of individuals and businesses in order to reduce negative impacts on the environment.
What Is An
Environmental Law In The UK?
Environment act, 2021.
What Are The Main Features Of The Environmental Act (2021)?
(2 Points)
~ Ban of exporting waste.
~ Ban of importing wood, leather, palm oil etc from illegally deforested land.
What Are Other Main Features Of The Environmental Law?
(4 Points)
~ Tradable pollution permits.
~ Limits to emission levels to sea, rivers and air.
~ Guidelines, limits and bans on waste disposal.
~ Quotas on the use of finite resources.
What Are Impacts Of Environmental Law?
(2 Points)
~ Compliance may increase business costs.
~ Compliance may improve reputation. Vice versa.
What Are All The Issues Within Government Policy?
(5 Points)
~ Enterprise.
~ Role of regulators.
~ Infrastructure.
~ Environment.
~ International trade.
What Is The Role Of A Government Policy Pursuing
Enterprise?
(2 Points)
~ To support start ups and SMEs.
~ Provide training and grants to these start ups and SMEs.
What Are The Benefits If The Government Chooses A Policy To Promote Enterprise?
(3 Points)
~ Increase profits = Increases tax revenue as they can charge more tax.
~ More job opportunities as the businesses expand, they would need to employ more workers.
~ Increased competition, leads to increased efficiency, leads to lower prices or increase quality.
What Is The Role Of The Government Policy ‘Role Of Regulators’?
(2 Points)
~ Prevent collusion in markets and strategic pricing.
~ To supervise mergers and takeovers.
What Is The Impact Of The Government Policy ‘Role Of Regulators’ Being Successful?
(3 Points)
~ Lower prices.
~ Increased quality/ standards.
~ More contestable markets, less barriers of entry which promotes competition.
What Is The Role Of The Government Policy ‘Infrastructure’?
Improving infrastructure in the economy.
What Is The Impact Of The Government Policy ‘Infrastructure’ Being Successful?
(3 Points)
~ Lead to more productivity.
~ Additional investment.
~ ST creation of jobs to build the infrastructure.
What Is The Role Of The Government Policy ‘Environment’?
Laws to support combating climate crisis.
What Is The Impact Of The Government Policy ‘Environment’ Being Successful?
(2 Points)
~ Create a green reputation, promoting future business.
~ Business must adapt and comply to new policies.
What Is The Role Of The Government Policy ‘International Trade’?
Support exporting of UK business and to secure vital imports.
