Legislation

Question 1

What is Consumer Protection legislation?

Answer 1

Laws that protect consumers, ensuring products are fit for purpose and that goods are as described or advertised.

Question 2

What is Employee protection legislation?

Answer 2

It aims to protect the right of employees at work.
These rights include the right to fair pay, sick leave, maternity and paternity leave, employment contracts being honoured and protection against unfair dismissal.

Question 3

What is Environmental protection legislation?

Answer 3

Laws that aim to minimise the damage businesses inflict on the environment.

This includes rules and fines around levels of pollution and the disposal of rubbish.

Question 4

What is Competition Policy?

Answer 4

Regulation to ensure businesses are competing fairly in the marketplace.

It works to prevent such things as monopolies, cartels, restrictive practices and predatory pricing.

Question 5

What is Health and Safety legislation?

Answer 5

Ensures that employers are responsible for the health, safety and welfare at work of all their employees.

Accidents should be minimised through training, risk assessment, provision of adequate safety equipment and safe working conditions.

Question 6

what are the negative impacts of legislation on businesses?

Answer 6

• Having to comply with legislation will raise costs for businesses
• Legislation such as competition policy and consumer protection laws may also limit opportunities for a business meaning slower rate of growth.

Question 7

what are the positive impacts of legislation on businesses?

Answer 7

• The legislation may provide direct benefits to some companies (such as businesses that sell PPE)
• Some firms may not be affected by legislation as they already operate at a standard above the legal minimum
• Rising costs due to stricter legislation may be less of an issue if demand is price inelastic as firm could pass on costs