legislation

Question 1

what is consumer protection?

Answer 1

government legislation that ensures consumers are not being exploited or scammed

Question 2

how does consumer legislation affect businesses?

cost

Answer 2

improving the safety of a good for consumers is expensive (measures, procedures etc), for example, an electronic good needs to abide by safety standards

Question 3

how does consumer legislation affect businesses?

quality control

Answer 3

businesses must not sell damaged products, and the produts need to be of good quality

Question 4

how does consumer legislation affect businesses?

dealing with customer complaints

Answer 4

many businesses now have a customer complaints department to deal with problems due to gov legislation

Question 5

how does consumer legislation affect businesses?

changes in business practice

Answer 5

many businesses will become more market orientated rather than product orientated to ensure customers are treated fairly and their needs are met

Question 6

what is employee protection?

Answer 6

legisltion that businesses have to abide by to keep workers safe and happy, e.g wages and working conditions

Question 7

employee protection

employment contract

Answer 7

workers are entitled to a contract of employment, which states the start date, term of employment, job title and duties, hours of work, pay and holiday/ sick pay

Question 8

employee protection

discrimination

Answer 8

when employing, businesses have to only consider the candidates skills, not their race or gender, and there must not be discrimination within the work place (equality act 2010)

Question 9

employee protection

unfair dismissal

Answer 9

employment relations act 1999: employees working for someone for over a year is entitled to not be unfairly dismissed

Question 10

employee protection

equal pay

Answer 10

equal pay act 1970: staff doing the same work must be paid fairly- both genders

Question 11

how does employee legislation affect businesses?

compliance costs

Answer 11

• employee must be entitled to work in the UK (passport) and must make copies of documents
• employers are responsible for employee wellbeing at work
• businesses must provide employees with a P60 tax form every year from HMRC

Question 12

how does employee legislation affect businesses?

higher labour costs

Answer 12

businesses must at least meet the minimum wage, and as it increases, labour costs also increase

Question 13

how does employee legislation affect businesses?

loss of flexibility

Answer 13

staff are entitled to ask for their hours, and this often puts the business at a disadvantage as it is difficult to work arounf all employees’ hours

Question 14

how does employee legislation affect businesses?

penalties

Answer 14

if a business fails to comply with legislation, they are charged with penalties and fines, which is expensive to the business

Question 15

environmental protection

pollution

Answer 15

there are different types of pollution, water pollution, air pollution, noise pollution (noise from clubs or factories)

Question 16

environmental protection

destruction of wildlife habitats

Answer 16

many businesses source raw materials that destroys wildlife habitats, like nutella using palm oil

Question 17

how does environmental legislation affect businesses?

marketing

Answer 17

environmental issues are highly effective when marketing, like sustainable/environmentally friendly packaging, this can add value to products

Question 18

how does environmental legislation affect businesses?

finance

Answer 18

responding to new environmental laws can come at a cost to a business, as they have to change suppliers to higher cost suppliers and install expensive environmentally friendly equipment

Question 19

competition policy

Answer 19

without gov legislation, some businesses will attempt to exploit customers and reduce competition in the market by:
* increasing prices
* restricting consumer choice
* raise barriers to entry
* market sharing

Question 20

positive impact of competition policy on businesses

Answer 20

• smaller businesses are given more opportunities to break into the market as the barriers are outlawed
• more competition encourages innovation and improve the efficiency of a business
• competition polict encourages businesses to develop more products, reduce costs and make progress in overseas markets
• it will also raise income and employment in the UK

Question 21

negative impact of competition policy on businesses

Answer 21

• some businesses claim that competition policy acts as a constraint on their activities
• for example, if there was a proposed merger or takeover, the investigation into it would delay the whole process

Question 22

health and safety

Answer 22

• provide safety equipment
• ensure workers are in safe working conditions
• hygenic environments
• providing protection

Question 23

how does health and safety legislation affect businesses?

costs

Answer 23

expensive to keep up with standards and inspections etc

Question 24

how does health and safety legislation affect businesses?

penalties

Answer 24

failure to comply with health and safety can be serious, as it can cause injuries and incidents at work, and these would lead to fines/penalties

Question 25

how does health and safety legislation affect businesses?

benefits

Answer 25

• a good health and safety record improves the image of the business
• attracts and retains staff
• workers feel protected and more secure- better motivation and more loyalty