Legislation (2.5.2) Flashcards
What is Legislation?
Laws and regulations passed by a government
What are Laws?
Rules that regulate how society operates
What are regulations?
Laws that ban/restrict/require specified activities
What are the 5 different types of legislation?
-Consumer Protection
-Employee Protection
-Environmental Protection
-Competition Policy
-Health and Safety
What is Consumer Protection Legislation?
Gives consumers the right to refunds, replacements or repairs (3 R’s) only if the product or service is not as described, fit for purpose or of a satisfactory quality
What is Employee Protection Legislation?
Gives employees the right to National Minimum Wage, Safe working environment, Holiday and sick pay, breaks and days off, equal opportunities. Protects employees from unfair dismissal and provides a tribunal system for appeals
What is Environmental Protection Legislation?
Restricts businesses from creating pollution and disposing of waste. Net Zero CO2 emissions by 2050
What is Competition Policy Legislation?
Prevents firms from becoming too dominant via merges/ acquisitions. It can force a dominant firm to break up into smaller businesses. Investigates concerns of collusive behavior between firms
What is Health and Safety Legislation?
Ensures firms meet Health and Safety requirements to provide a safe working environment to employees
What are some examples of pieces of legislation?
-Equality Act 2010
-National Minimum Wage Act 1998
-Employment Rights Act 1996
-Consumer Rights Act 2015
-Data Protection Act 2018
-Competition Act 1998
What are the positives of complying with legislation?
-A better reputation helping sales
-A better relationship with stake holders
-Increased Brand Loyalty
-Lower Costs due to lower legal costs
What are the negatives of complying with legislation?
-Higher Admin Costs
-A requirement to stay up-to-date with laws
-Increased costs to maintain quality
-A requirement to make sure marketing is accurate
What is the effect of not complying with legislation?
-Increased costs (refunds, recruitment, marketing)
-Loss of sales from bad word-of-mouth
-Heavy fines
-Bad public relations
Who are the CMA?
Competition and Markets Authority. Help people, businesses and the UK economy by promoting competitive markets and tackling unfair behavior. CMAs specialize in management accounting, strategic management, and business decision-making.
