Legislation Flashcards
Why do consumers need protecting
• Harm caused when the supplier knows more than consumer
• Harm caused when consumer is lied to or misled
• Exposure to unsafe or unhealthy foods or other products
What is the consumer rights act
Goods must be fit for purpose of which they are sold.
The buyer has a right to get their money back, could choose to have it repaired
Seller is responsible for correcting any problem, not the manufacturer
How does consumers claiming a refund impact costs
Cost of operating for the business will increase as refunds increase
How does consumers claiming a refund impact reputation
May suffer due to the amount of returns
Depends on how they handle the problem
How does consumers claiming a refund impact profitability
Increased costs lead to a fall in profit
A fall in sales due to the reputation leads to further fall in profit
What is the trade descriptions act
Puts an end to misleading adverts
All claims must be demonstrably true
Key features:
o It is an offence for a trader to use false or misleading statements
o It is an offence to misleading label goods.
o The act carries criminal penalties and can therefore lead to a jail sentence
What are the laws protecting employees
o Employment rights act 1996
o Minimum wage act 1998
o Working time regulations 1998
o Pensions act 2008
o Equality act 2010
What is the employment rights act
Covers:
unfair dismissal
Redundancy
Wages
Zero hours contracts
Sunday working
Flexible worker
What is the minimum wage act
The amount that ensures there is a minimum wage payed across the whole of the UK
This is due to people who lived in capitals getting payed far more then those of small towns
What is the working time regulations act
An average maximum amount of time that an employee works per week
o Limits the working week to an average of 48 hours
What is the pensions act
Every employer in UK must put staff into a workplace pension and contribute to it
What is the equality act
Provides a legal frame work to protect the rights of induviduals regardless of gender, race, age etc
What is the workplace hazard act
An employer is responsible for health and safety of everyone i the business
There to protect the owners, the employees and the public
What are employer duties
Prevent accidents and cases of work-related ill health and safety risks in the workplace
What is the health and safety at work act
Stops employees from getting hurt at work or becoming ill through work
Employer is responsible for health and safety
What is the environmental protection act
Attempts to control pollution in terms of business waste that is disposed into the air, land or sea
What is the competition policy
Aims to protect consumers from the action of big businesses - monopolies (own large part of the market share)
Put in place by government to prevent collusion
