Lesson 3

Question 1

What is legislation?

Answer 1

A set of laws put in place by the government to protect businesses, employees, and consumers.

Question 2

What is the difference between legislation and policy?

Answer 2

Legislation is legally required, while policies are guidelines that help businesses operate but are not legally binding.

Question 3

Why do governments enforce legislation on businesses?

Answer 3

To regulate behavior and prevent businesses from exploiting people.

Question 4

Name three types of laws businesses must comply with.

Answer 4

Employment law, consumer law, and intellectual property law.

Question 5

What is consumer law?

Answer 5

Government legislation designed to protect consumers from poor-quality products and poor business practices.

Question 6

What are the two key consumer laws in the UK?

Answer 6

The Consumer Rights Act 2015 and the Consumer Protection Act 1987.

Question 7

What did the Consumer Rights Act 2015 replace?

Answer 7

Parts of the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.

Question 8

What does the Consumer Rights Act 2015 cover?

Answer 8

Product/service returns, repairs, replacements, and delivery.

Question 9

What rights does the Consumer Rights Act give consumers?

Answer 9

The right to return, replace, or have faulty goods repaired.

Question 10

The right to return, replace, or have faulty goods repaired.

Answer 10

Goods must be:
- Described accurately
- Fit for purpose
- Of satisfactory quality

Question 11

What additional area did the Consumer Rights Act clarify?

Answer 11

The repair or replacement of faulty digital content.

Question 12

What is the Consumer Protection Act 1987?

Answer 12

A law that introduced strict liability, making producers responsible for defective products.

Question 13

What did the Consumer Protection Act 1987 replace?

Answer 13

Previous laws requiring consumers to prove negligence and breach of duty of care.

Question 14

What is the Alternative Dispute Resolution (ADR) process?

Answer 14

A way for consumers and businesses to resolve disputes without going to court.

Question 15

What is the Product Liability Directive?

Answer 15

A regulation imposing strict liability on companies selling defective imported products.

Question 16

Name an advantage of consumer law for businesses.

Answer 16

High-quality products can lead to more sales and consumer confidence.

Question 17

Name a disadvantage of consumer law for businesses.

Answer 17

Higher costs due to quality assurance and compliance requirements.

Question 18

List three responsibilities businesses have under consumer law.

Answer 18

• Providing product warranties
• Testing products for safety
• Supplying staff training and safety equipment

Question 19

What are the benefits of legal compliance for businesses?

Answer 19

Higher employee retention, smooth business operations, strong brand image, and higher sales.

Question 20

What are potential consequences of non-compliance with legislation?

Answer 20

Fines, imprisonment, reputation damage, loss of customers, or even business closure.

Question 21

What must both legislation and policy include?

Answer 21

Clear guidelines stating the rights and expectations of everyone involved with the company.

Question 22

Why do businesses create policies even though they are not legally required?

Answer 22

To protect staff and the business, ensure smooth operations, and avoid misunderstandings.

Question 23

What must businesses ensure regarding the quality of goods and services?

Answer 23

They must be of satisfactory quality, fit for purpose, and as described.

Question 24

What happens if a business fails to meet the requirements of the Consumer Rights Act?

Answer 24

Consumers have the right to refunds, replacements, or repairs.

Question 25

How does the Act apply to digital content?

Answer 25

Consumers can request a repair or replacement for faulty digital content.

Question 26

What does strict liability mean under the Consumer Protection Act?

Answer 26

Businesses are responsible for defective products even if they were not negligent.

Question 27

What types of damages can consumers claim under this Act?

Answer 27

Compensation for personal injury, death, or damage caused by defective products.

Question 28

Name two ways businesses can comply with consumer law.

Answer 28

Following quality assurance procedures and ensuring accurate product descriptions.

Question 29

How can consumer laws benefit businesses?

Answer 29

They improve customer trust, reduce complaints, and enhance brand reputation.

Question 30

What financial costs might businesses face due to compliance?

Answer 30

Training staff, providing warranties, and meeting product safety standards.

Question 31

What legal penalties can businesses face for breaking consumer law?

Answer 31

Fines, lawsuits, or even imprisonment for serious violations.

Question 32

How can non-compliance affect a business’s reputation?

Answer 32

Loss of customer trust, negative reviews, and potential drops in sales.

Question 33

How can employee satisfaction be affected by compliance with consumer law?

Answer 33

Good working conditions increase productivity, while unsafe practices lower morale.

Question 34

Why is legislation important for businesses?

Answer 34

It ensures fair treatment of employees, customers, and other businesses while preventing unethical practices.

Question 35

What can happen if a business does not follow policies and procedures?

Answer 35

Miscommunication, legal risks, poor customer service, and possible financial loss.

Question 36

What rights do consumers have if goods are faulty within 30 days of purchase?

Answer 36

They are entitled to a full refund.

Question 37

What happens if a product develops a fault after 30 days but within six months?

Answer 37

The consumer can request a repair or replacement, and the business must prove it was not faulty when sold.

Question 38

What rights do consumers have if a service is not provided with reasonable care and skill?

Answer 38

They can request the service to be redone or receive a partial refund.

Question 39

Who can be held responsible for defective products under the Act?

Answer 39

The producer, importer, or business that puts their brand name on the product.

Question 40

What is an example of a defective product under this Act?

Answer 40

A food product containing harmful substances that make consumers sick.

Question 41

What is the role of an ombudsman in consumer disputes?

Answer 41

They act as an independent mediator to help resolve complaints fairly without going to court.

Question 42

What are the benefits of ADR for businesses?

Answer 42

Saves time, reduces legal costs, and helps maintain customer relationships.

Question 43

What are the two main types of ADR?

Answer 43

Mediation (negotiation with a neutral party) and arbitration (a binding decision made by a third party).

Question 44

How can following consumer law improve brand loyalty?

Answer 44

It builds trust, enhances reputation, and encourages repeat business.

Question 45

How can consumer law affect pricing?

Answer 45

Compliance with high-quality standards may lead to higher production costs, impacting pricing strategies.

Question 46

Why might businesses struggle with compliance?

Answer 46

Keeping up with frequent legal updates, training staff, and managing costs associated with legal requirements.

Question 47

What happens if a business misleads consumers about a product?

Answer 47

They could face fines, product recalls, and reputational damage.

Question 48

How can failing to meet safety standards impact a business?

Answer 48

They may be forced to stop selling products, face lawsuits, or cause harm to consumers.

Question 49

How does poor compliance impact employee morale?

Answer 49

Employees may feel unsafe or unmotivated if the business does not follow ethical and legal guidelines.