Effects of law on business

Question 1

what is national living wage ?

Answer 1

national living wage is for workers aged 24 and over have to be payed and is slightly more that the national minimum wage

Question 2

what is the national minimum wage?

Answer 2

• national minimum wage is the minimum amount of money employees have to pay 24 and under but depends on age and type of work.

Question 3

what does national living wage mean for businesses

Answer 3

• means companies cant cut costs by paying less than the legal minimum
• if it doesn’t, it could be given large fines and bad publicity and may be boycotted by consumers

Question 4

what effect does national minimum wage and national living wage have on businesses costs (BLT)

Answer 4

• it can increase costs
• meaning firms have to increase prices
• therefor business may loses customer’s
• less sales , les rev, less profit.

Question 5

what is a benefit of the national minimums wage and national living wage on businesses

Answer 5

• if businesses chose to add additional to the wages
• it can lead to more motivated employees
• more valued, increased productivity/ better customer service/ more output

Question 6

what does the 2010 equality law mean for businesses

Answer 6

• recruitment procedures, pay (for same job), equal opportunity cant discriminate based on :
• gender
• age
• race
• sexual orientation
• or disabilities

Question 7

what happens if an employee or business discriminates someone?

Answer 7

employee

• the company is held responsible
• training and company policies should be put into place to ensure equal rights

business

• has to pay compensation

Question 8

why do health and safety laws exist?

Answer 8

• helps make sure that risks to people at work are properly controlled

Question 9

how can a firm meet the health and safety laws?

Answer 9

• health and safety at work laws 1974 states all employers +employees to take responsibility for health and safety measures
• risk assessments for any possible dangers
• staff training
• accident books, first aider trained, safety equipment eg hard hat

Question 10

what does a safe working environment mean for a business?

Answer 10

• fewer accidents
• leading to fewer injuries
• therefore less time of work
• more productivity

Question 11

what is a benefit of health and safety laws being met

Answer 11

• people may be encouraged to work there if they know its safe
• more efficiency

Question 12

drawbacks of health and safety law

Answer 12

• can be expensive; eg paying for staff training
• if they don’t the business could get bad publicity

Question 13

what happens if a business does not follow health and safety laws

Answer 13

• prosecution/ fines
• closed down
• compensation
• bad publicity

Question 14

why do consumer laws exist

Answer 14

• it restricts how firms sell their products (as some businesses are dishonest) in order to protect the consumer

Question 15

what three criteria does the 2015 consumer law cover

Answer 15

• the product should be fit for purpose
• the product should match its description
• the product should be of satisfactory quality

Question 16

explain what fit for purpose means

Answer 16

• the product has to do the job its designed for - a bicycle with square wheels isn’t good

Question 17

explain what the product should match its description means

Answer 17

• its illegal to give a false trade description
• this includes size or quantity, materials and properties
• its also illegal to claim a product has been endorsed/ approved by someone or an organization when it hasn’t

Question 18

Explain what satisfactory quality means

Answer 18

• The product should be well made
• shouldn’t cause problems for the buyer- eg a fridge that makes a plane noise

Question 19

what happens if a business breaks consumer law

Answer 19

If a business breaks consumer law:

• cost and inconveniences of refunding the customer/ repair or replace the item
• The case could end up in court if the customer isnt happy with the response which can be costly
• gain bad reputation = less sales
• train the staff properly so they have accurate product knowledge and understand a customers rights