legal factors

Question 1

all businesses are affected by legislation including :

Answer 1

• company law
• health & safety law
• data protection law
• competition law
• employment law
• intellectual property law
• consumer protection law

Question 2

what is the purpose of legislation in business ?

Answer 2

business law encompasses all laws that state how to set up and run a business

Question 3

what is the company law ?

Answer 3

this regulates how private and public limited companies operate

includes : how limited companies are formed, the information that must be publicly available, the format of financial accounts and the type of shareholders permitted

Question 4

what is consumer protection ?

Answer 4

businesses have to comply with a range of legislation that protects consumers such as the consumer protection act and the data protection act

there are laws designed to protect the consumer from unscrupulous firms

Question 5

what areas does consumer protection cover ?

Answer 5

• safety of goods
• labelling
• the right to return goods
• the right to money back
• protection against untruthful claims about the product or service

Question 6

do you think health and safety concerns will arise regularly for a food retailer such as Tesco, will this have a largely negative consequence on them ?

Answer 6

• yes it will arise regularly for food retailers and other businesses
• doesn’t have a largely negative impact of they wouldn’t continue doing it

Question 7

what is intellectual property law ?

Answer 7

this covers the legal rights of individuals and companies in regard to designs, inventions and artistic works

Question 8

what does trademark legislation cover ?

• intellectual property law

Question 9

what does patent law cover ?

• intellectual property law

Question 10

what does copyright law provide ?

• intellectual property law

Question 11

the law means that it is an offence to do any of the following without the consent of the owner ?

• copyright law

Answer 11

• adapt the work in any way
• perform, broadcast or show the work in public
• copy the work : rent, lend or issue copies of the work to the public

Question 12

what is the competition policy ?

Answer 12

legislation designed to prevent monopolies and collusion

this may restrict businesses that are trying to grow inorganically or those that grow organically but are a monopoly

Question 13

why may controlling these monopolies may not always be beneficial ?

• competition law

Answer 13

• don’t want to restrict them

Question 14

what are the main aims of competition legislation ?

Answer 14

• widen consumer choice in markets for goods and services
• ensure effective price competition between suppliers
• deal with anti-competitive behaviour which might have a negative effect on consumers

Question 18

what is data protection ?

Answer 18

data protection is concerned with how personal data gathered by organisations is used and kept secure

businesses are required to have a data protection officer whose role is to ensure that the requirements of the data protection act are met

Question 19

how should the data gathered from customers and clients be used ?

Answer 19

• used fairly and lawfully
• used for a limited, specifically stated purposes
• used in a way that is adequate, relevant and not excessive
• accurate
• kept for no longer than is absolutely necessary
• handled according to people’s data protection rights
• kept safe and secure

Question 20

what happens if businesses fail to protect data ?

Answer 20

can be subject to large fines

very much on the increase and it is an issue that businesses are urgently attempting to address

Question 21

what is the health and safety law ?

Answer 21

employers have a duty to take all reasonable care to ensure the well-being and safety of their employees