Legal factors Flashcards
What are legal factors ?
Laws passed by parliament in UK or EU that affect businesses
What is company law ?
Concerns the legal rights and responsibilities of private and public limited companies
What is an advantage of company law ?
Limits liability
What is a disadvantage of a company law ?
Costs associated with applying company law
What is employment and anti discrimination law ?
Aims at protecting staff from discrimination or unfair treatment in the workplace
What is a disadvantage of employment and anti discrimination law ?
Places additional costs onto the business like pay and recruitment
What is an advantage of employment and anti discrimination law ?
Improved motivation = job security and being treated fairly
What is consumer protection ?
Makes sure businesses act fairly towards their customers and consumers
What is an advantage of consumer protection ?
Able to ensure right of being treated fairly
What is a disadvantage of consumer protection ?
Some may cut corners to reduce costs, leaving customers with poor goods and services
What are competition laws ?
Ensure that fair competition takes place in each industry
What is health and safety legislation ?
Protects health and safety of employees at work
What is a cartel ?
A group of manufacturers/suppliers who associate with the purpose of maintaining price at a high level and restricting competition
What are data protection laws ?
Protects privacy of individuals’ personal info which is usually stored on a computer
What is intellectual property legislation ?
Gives protection to those who create new products and services
What is an advantage of intellectual property legislation ?
Protecting individuals and businesses from illegal copies
What is a disadvantage of intellectual property legislation ?
Expensive = can be exploited, only large businesses can afford
What is minimum wage ?
Businesses required to pay a minimum hourly rate to their workforce
What is an advantage of minimum wage ?
Stops employees from being exploited
What is a disadvantage of minimum wage ?
May not find they cannot sustain their profits due to increase in labour costs
