Legislation 2.5.2 Flashcards
Define legislation.
Creating and enacting laws in order to protect individuals, businesses and society.
What are the five types of legislation you need to know about?
- Consumer protection
- Employee protection
- Environmental protection
- Competition policy
- Health and safety
Define consumer protection.
Laws to protect the consumer from firms with regards to quality of goods and services sold. This prevents customers from being exploited.
Consumer Protection Legislation effect on a business
- Quality measures may have to be implemented to ensure that products are of a suitable quality.
- Staff training to check for quality and required standards.
Define employee protection.
Safeguarding employees’ rights in the workplace. e.g.
- Minimum wage.
- Right to contract of employment.
- Right to sick, paternity leave.
- Redundancy.
- Trade union rights.
Employee protection effect on business
- Rises in the minimum wage to show soft HR
- Ensures recruitment policy is fair.
Define environmental protection
Laws to help ensure that firms don’t have a negative impact on the environment.
Environmental protection effects on business.
- Upgrade machinery
- Reduce waste
- Ethical sourcing (social trends)
Define competition policy.
Legislation for free and fair competition.
Competition policy effects on business.
- May have to restrict unfair and corrupt practices.
- Mergers/takeovers may be stopped.
Define Health and safety policy.
Look after the H+S of employees in the workplace and protect them from injuries.
Health and safety legislation effect on business.
- Training staff to maintain standards or achieve required standards.
What is a monopoly
A monopoly exists where there is only one firm in the market.
The Government refer to any company that has at least ? market share as having monopoly powers
25
What is market power
Market power is the ability of a firm to set price above those that would be charged if there were competition
