Legal factors

Question 1

How do businesses deal with legal factors?

Answer 1

Firms have whole departments to watch the law. Failure to comply has serious consequences ad expenses.

Question 2

What is civil law?

Answer 2

The rules that govern relationships between businesses and people. Damages paid to injured party. Guilty party isn’t criminal

Question 3

What is criminal law?

Answer 3

Defines actions the state decides is wrong and punishment. Imprisonment or fine as punishment

Question 4

What is EU law?

Answer 4

Many UK laws are European wide lawsa created by EU parliament

Question 5

What is the working time directive?

Answer 5

A set of Eu rights for workers. The rights for paid holidays, rest breaks and weekly limits on working hours.

Question 6

What could businesses do if they had no laws?

Answer 6

sell dangerous goods
pollute
fire workers unfairly
renege on promises of payment
unsafe conditions 
false claims
sabotage rivals

Question 7

What could individuals do if they had no laws?

Answer 7

fail to do job
steal from employers
skip work 
work unsafely
endanger colleagues

Question 8

What is a contract law?

Answer 8

A legally binding agreement between two or more parties. contract law sets out the basic framework of rights and obligations to
breaking an agreement.

Question 9

What is Competition law?

Answer 9

Businesses cannot be anti-competitive to the detriment of consumers.

Question 10

What is Intellectual Property?

Answer 10

Work can be protected by copyright or patent, so that others cannot gain benefit from it without my permission.

Question 11

What is the sales of goods act 1979?

Answer 11

Requires that goods sold are ‘satisfactory quality’
‘as described’, both in written and verbal form
‘fit for the purpose for which they were intended’
If these conditions are not met, the business must provide a replacement or money back.

Question 12

What is the Consumer Protection from Unfair Trading Regulations (CPRs)?

Answer 12

Protects consumers from being deliberately pressurised when buying goods. Covers aggressive sales technique
or bogus ‘offers’:

Question 13

What is the Weights & Measures Act 1985?

Answer 13

Protects consumers from ‘short’ measures. If you pay for a pint, it must actually contain a pint.

Question 14

What is the Unsolicited Goods Act 1971?

Answer 14

A company cannot send you anything you haven’t requested and then demand you pay for it

Question 15

What is the Data Protection Act 1998?

Answer 15

Personal information must be secure, for a limited time, and used for only lawful purposes.

Question 16

What is the Prevention of Discrimination?

Answer 16

A company must not treat one employee differently due to race or culture
Reasonable adjustments must be made. wheelchair access or time off for religious holidays.
Companies ‘discriminate’ on the basis of education and experience.

Question 17

What is the National Minimum Wage?

Answer 17

A company must pay the NMW. Companies who pay on a piece rate system must ensure that workers can earn at least minimum wage from their work.

Question 18

What is the Health & Safety Act 1974?

Answer 18

A company must ensure that working environment and machinery are safe, staff are trained in safe procedures and aware of emergency procedures. Employees must Act in a safe way and follow safe procedures.

A business may argue some safety measures are too expensive to be practicable. This would be decided in a court if an accident occurred and it was claimed that the business could have done more to ensure safety.

Question 19

What is dismissal?

Answer 19

A worker is dismissed when they have done something wrong or very badly.

Question 20

What is unfair dismissal?

Answer 20

“Unfair dismissal” is illegal.

Question 21

What is summary dismissal?

Answer 21

On the spot dismissal for workers who have been with the company for more than a year is only legal in severe circumstances

Question 22

What is redundancy?

Answer 22

A worker is “made redundant” if the job they do is no longer required.