Legislation and business (paper 1) Flashcards
What is LEGISLATION?
rules/laws of the country that we and businesses must follow
What is the PURPOSE of legislation?
> protecting the rights of consumers through consumer law
>protecting the rights of employees and employers through employment law
What is CONSUMER law?
designed to protect the consumer from being exploited by businesses, thus upholding consumer rights
Principles of CONSUMER law
> consumers have the right to return or reject goods
goods should be delivered or installed safely
terms of contracts should be fair
services should be provided with reasonable care
businesses should disclose full information about products and services
products sold to consumers should be of a good standard and quality
BENEFITS of CONSUMER law
> compliant businesses are less likely to be fined or sued by customers
compliant business may be considered professional and caring, and may benefit from increased customer loyalty
improved relationship with stakeholders
good publicity
DRAWBACKS of CONSUMER law
> businesses must know the law and stay up to date
laws can restrict businesses from operating as they would like
changing products and practices to comply with laws can be costly
bad publicity can result if businesses dont comply with laws
consumers can use law to take legal action against the business
What is CONSUMER RIGHTS ACT?
an act of parliament of the uk that consolidates exisiting consumer protection law legislation and also gives consumers a number of new rights and remedies
ADVANTAGES of consumer rights act
> better repuation for uk businesses
more customers due to confidence in the product
reduces the risk of uk products being undercut by poorly made products from home or abroad
DISADVANTAGES of consumer rights act
> increased costs
increases the likelihood of legal action
a continuous process to keep up with new legislation increases costs
What is EMPLOYMENT law?
the rules and regulations that concern the relationship between employers and employees in the workplace
Principles of EMPLOYMENT law?
> all employees’ PAY should be fair and meet minimum wage requirements
groups of people such as disabilities should not be DISCRIMINATED against
redundancy procedures should be fair
disciplinary issues and grievances should be dealt with fairly
HEALTH and SAFETY requirements in the workplace should be met
Examples of EMPLOYMENT law
>Health and Safety act at work 1974 >Equality act 2010 >Sex discrimination act 1975 >National Minimum Wage Regulations 2017 >Disability discrimination act 1995 >Employment rights act 1996 >Age Discrimination act 2006
DRAWBACKS of EMPLOYMENT law
> meeting health and safety regulations can be costly for businesses
paying the national minimum wage will increase businesses costs’
<>failing to comply may lead to unhappy employees, low productivity and legal action
BENEFITS of EMPLOYMENT law
> a compliant business may be considered a good employer
fewer employees will be tempted to leave the business, so reducing recruitment costs
employees may be happier and more motivated, leading to high productivity and better customer service
How businesses meet the requirements of consumer and employment law?
>costs >equipment >licenses >pay >administration >training
