Chapter 11 Meeting consumer protection laws Flashcards
Chapter 11
What effect does this legislation have on a business?
Edexcel 2BS01 Business Studies GCSE Unit 3.2
Adhering to the laws can be expensive in both time and money for businesses.
It is affected in several ways.
- It needs to know and understand the law.
- It needs to be compliant (carry out the law).
- It can cut increase costs of production and so might affect profit.
Chapter 11
What is meant by the Sale of Goods Legislation?
Edexcel 2BS01 Business Studies GCSE Unit 3.2
Gives consumers rights to compensation if a product they buy is not of merchantable quality, not as described or not fit for purpose
Chapter 11
What is meant by Trade Descriptions Legislation?
Edexcel 2BS01 Business Studies GCSE Unit 3.2
Makes businesses liable for prosecution and fines if products are sold in a misleading way
Chapter 11
What is the purpose of Sales of Goods legislation?
Edexcel 2BS01 Business Studies GCSE Unit 3.2
The Sale of Goods legislation is a civil law and leads to compensation for the consumer.
The Sale of Goods Act was first passed into law in 1979. It has been updated several times since.
Sale of Goods Act covers three areas.
- An item matches its description.
- An item is of merchantable quality.
- An item is fit for purpose.
If any of these are not adhered to then the business selling the product to the consumer must then either give a refund, a replacement or a repair.
Chapter 11
What is the purpose of Trade Descriptions legislation?
Edexcel 2BS01 Business Studies GCSE Unit 3.2
Trade Descriptions is a criminal law and leads to fines and prosecution.
The Trade Descriptions Act was first passed into law in 1968.
Trade Descriptions covers three areas.
- Failing to give important information about a product or service.
- Acting aggressively through sales tactics.
- Giving false information about a product or service.
If these are not met then a company can be taken to court, prosecuted and fined.
Chapter 11
What are consumer protection laws?
Edexcel 2BS01 Business Studies GCSE Unit 3.2
Consumer protection laws (legislation) give a level of rights to the consumer if things go wrong with their products or services.
Legislation is also an important part of health and safety between companies and customers.
There are two main types of law that protect the consumer covered in this course – Sale of Goods and Trade Descriptions.
