Legislation

Question 1

Define legislation.

Answer 1

A set of laws suggested by government and made official by parliament

Question 2

Explain how the Consumer Rights Act 2015 impacts businesses.

Answer 2

It consolidates all the previous consumer laws plus it added:

Rights of consumers to get a repair or replacement if their digital content is faulty:
Online films or boxsets
Online games
E-books

Question 3

Explain consumer protection law.

Answer 3

The law protects consumer rights when they buy goods or services.
Customers have legal rights if the item you bought is:

broken or damaged (‘not of satisfactory quality’)

unusable (‘not fit for purpose’)

not what was advertised or doesn’t match the seller’s description

Question 4

Explain legislation regarding a product being not of satisfactory quality.

Answer 4

A business will have to give a refund to the customer if goods or services are not of satisfactory quality
If the business refuses to give a refund then they are breaking the law
Some consumers may buy products on credit cards which will give extra protection and help to get money back should there be a problem

Question 5

Explain legislation regarding a product being not fit for purpose.

Answer 5

A business will have to give a refund if goods or services are not fit for purpose e.g. an umbrella that doesn’t keep the rain out

Question 6

Explain legislation regarding a product not matching sellers description.

Answer 6

A business will have to give a refund if goods or services do not match the sellers description e.g. dresses that arrive from the Internet that don’t look like the sales photo

Question 7

Explain trading regulations.

Answer 7

Businesses must never be misleading about their products

The law gives consumers protection against unfair selling practices.

Question 8

Explain employee protection.

Answer 8

The UK laws take care of employees

During the recruitment process to make sure they are not discriminated against

During employment to make sure they are given rest breaks, days off and paid at least the minimum wage

Businesses need to make sure that they comply with these laws

Question 9

Explain the employment rights act.

Answer 9

States duties and rights of the employer and employee

Includes the employee’s rights to maternity and paternity leave

Details regarding termination of employment

Right to a written contract of employment within 60 days of starting work

Details regarding Sunday working

Question 10

Explain the working time regulations act.

Answer 10

a limit of an average of 48 hours per week (though workers can choose to work more if they want to)

a limit of an average of 8 hours work in 24 hour, which night workers can be required to work

right to 11 hours rest a day

right to a day off each week

right to an in-work rest break if the working day is longer than 6 hours

right to 4 weeks paid leave per year

Question 11

Explain the national minimum wage act.

Answer 11

Applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall

Paying the minimum wage will raise costs for a business

This may have an impact on their profit margins or profitability

Failure to do so can result in fines or prosecution

Question 12

Explain national living wage.

Answer 12

The National Living Wage is higher than the National Minimum Wage - workers get it if they’re over 25
.
This is projected to rise to £9 an hour by 2020

Businesses that fail to pay it could face maximum penalty of £20,000 per worker. An additional penalty of disqualification from being a company director for up to 15 years will also be available to the courts.

Question 13

Explain recruitment as a principle of employment law.

Answer 13

The recruitment process involves; advertising, selecting, interviewing and hiring the staff needed for the business

The Equality Act 2010 makes sure that there is no discrimination in this process on age, race, gender, religion etc.

This ACT has replaced these three laws:
Sex Discrimination Act 1975
Race Relations Act 1976
Disability Discrimination Act 1995

Question 14

Explain environmental protection law.

Answer 14

Polluted air, noise pollution and chemical spills are some examples of how business can have a negative impact on the environment

The Environmental Protection Act of 1990 attempts to control pollution in terms of business waste that is disposed of in the air, on land and in the sea

Question 15

Explain competition policy.

Answer 15

Legislation in place by the government designed to prevent collusion – price fixing by businesses getting together and agreeing a price to charge for their products

CMA is the competition and Markets Authority who are independent regulators

The CMA aims to “promote competition for the benefit of consumers”

They investigate mergers that restrict competition

Question 16

Explain the health and safety at work act.

Answer 16

In general, health and safety laws apply to all businesses

As an employer, or a self-employed person, they are responsible for health and safety in the business

Health and safety laws are there to protect the owners, the employees and the public from workplace dangers

Question 17

Explain health and safety employer duties.

Answer 17

Prevent accidents and cases of work-related ill health by managing the health and safety risks in the workplace

Provide clear instructions and information, and adequate training, to ensure employees are competent to do their work

Engage and consult with employees on day-to-day health and safety conditions Implement emergency procedures – evacuation in case of fire or other significant incident.

Maintain safe and healthy working conditions, provide and maintain plant, equipment and machinery, and ensure safe storage / use of substances

Question 18

What are the benefits of providing a safe working environment?

Answer 18

If the business provides a safe working environment then it will avoid a fine – Health and Safety is a legal responsibility of business

If the business provides a safe working environment it also avoids expensive compensation claims from employees who have had accidents at work

This will reduce absenteeism at work through accidents
A reduction in absenteeism will mean the business will be more cost efficient which will have a positive impact on profitability

Question 19

Explain the impact of legislation on business cost.

Answer 19

A business will have to meet all of the consumer, employment and recruitment laws

This may mean additional costs:
Training staff
Protection equipment for staff e.g. hairnets or googles
Cost of paying NMW

Higher costs may have an impact on the profit of the business

Question 20

Explain the impact of legislation on business training needs.

Answer 20

Businesses will need to make sure that all their employees are trained and that the training is up-to-date

This will make sure that the business is legally compliant

This way the owners will not face fines or prison