U1 Ch.1-3 Flashcards
Business stakeholders
1.Entrepreneur
2.Investor
3.Employer
4.Employee
5.Producer
6.Consumer
7.Manager
8.Supplier
9.Service Provider
10.Government
11.Local Community
Entrepreneur
spots gap in market. Comes up with idea. Takes financial and personal risks. Hope to earn profit
Investor
provide capital to establish and operate business
Employer
recruits staff. Responsible for safe conditions and paying
Employee
recruited to work in return for wage/salary. Have skills and qualifications to operate in the business
Producer
takes raw materials. Transforms them into finished products during manufacturing
Consumer
buy goods/services for personal use to satisfy their needs. Entrepreneur researches their likes/dislikes
Manager
responsible for daily running and achieving goals. Use skills to manage employees
Supplier
provide raw materials needed to fulfil business orders
Service Provider
provides services to operate business. Usually in services(tertiary) sector
Government stakeholder
body governing country. Impose taxes used to invest in infrastructure. Some agencies offer support to businesses
Local Community
individuals and organisations located close to business. Business should behave responsibly toward community
Types of capital provided by investors
Loan Capital
Grant
Equity Capital
Loan Capital
From lender. Money must be repaid with interest within period of time
Equity Capital
Invested by individuals or other businesses. Become part-owners and are entitled to a share of profits(dividends)
Wage vs salary
Wage: based on hours worked
Salary: fixed payment regardless of hours
Interest Group
people who campaign for goal. More likely to be heard when they work together. Use boycotting + lobbying
Boycotting
refusal to buy goods to show dissatisfaction
Lobbying
attempting to influence decision makers. Its a function of interest groups who use petitions, seminars and info campaigns to do this.
Types of Interest groups
- Business Interest Groups: represent business owners [Ibec & ISME]
- Trade Associations: represent particular industry [SIMI]
- Other [Trade Unions & IFA]
Ibec
Irish Business and employers confederation
ISME
Irish Small and Medium Enterprises Association
SIMI
Society of the Irish Motor Industry
Trade Unions
represent and protect employees. Improve pay and conditions
IFA
Irish Farmers’ Association
Stakeholder Relationship types
- Co-operative: common goal
- Competitive: different goal at expense of other
- Dependent: need each other
- Dynamic: constantly changing between other 2 or 3
Elements of a valid contract
- Agreement
- Intention to contract
- Capacity to Contract
- Consent to Contract
- Consideration
- Legality of Purpose
- Legality of Form
Agreement
Offer by one accepted by other (orally, written or by counduct)
By conduct example
customer hands newspaper and money to sales assistant at checkout
Ways to terminate offer
1.revoked before accepted
2.rejected by other party
3.time limit is set and passes
4.Death of a party
Invitation to treat
a party expresses willingness to recieve offers. Not legally binding. Price tags are an example as even if customer offers advertised price the retailer can reject the offer
intention to contract
both parties intend to create a legally binding contract
Capacity to contract
all parties can legally enter. So under 18s and the mentally incapacitated cannot.
Consent to contract
must enter voluntarily. No Threats
Consideration
each party must give something of value to other
Legality of purpose
must be for legal purposes
Legality of form
drawn up in correct legal format
Ways contracts can be terminated
1.Performance
2.Agreement
3.Frustration
4.Breach of Contract
Performance
both parties complete their side
Contract: Agreement
both parties agree to terminate contract prematurely
Frustration
unforeseen events prevent contract completion (bankruptcy/death)
Breach of contract
when one party fails to fulfil their obligations laid out in the contract. May be a condition(essential) or warranty(non essential).
1.Condition breaking ends immediately and can be brought to court for remedy. 2. Breaking warranties doesn’t end contracts but entitles the innocent party to claim damages(compensation)
Warranty
non-essential element of contract. Can be broken but compensation may be necessary for other party
Remedies for Breach of Contract
When conditions are broken, other party can take the case to court and judge can decide either
1.Compensation
2.Rescind the Contract
3.Specific Performance
Contract: Compensation
judge orders money payed to other party
Rescind the contract
judge cancels contract and restores parties to their position prior to the breach, essentially undoing anything caused by the contract.
Contract: Specific Performance
breaching party must complete their side of the deal
Non-legislative methods to resolve consumer conflict
- Negotation
- Writing a letter of complaint.
- Assistance from a third party
Methods to resolve consumer conflict:
- Consumer Negotation
return with proof of purchase. Speak with manager. Outline how they’d like problem resolved. Retailer can accept or reject
Methods to resolve consumer conflict:
- Letter of complaint
(Guide)
Outline problem. Explain desired solution. Attach proof of purchase
Methods to resolve consumer conflict:
- Third Party Assistance
-CAI [Consumers’ Association of Ireland]
or
-ECC Ireland [European Consumer Centre Ireland]
CAI
Consumer Association of Ireland. interest group that increases awareness of consumer rights and lobbies for consumer legislation
ECC Ireland
part of EU wide network of centres. Gives advice about EU consumer rights and helps settle disputes between Irish consumers and traders in other EU countries
Legislative methods for resolving consumer conflict
- Sale of Goods and Supply of Services Act 1980
- Consumer Protection Act 2007
- Competition and Consumer Protection Commission [CCPC]
- Ombudsman
- Small Claims Procedure
Rights under Sale of Goods and Supply of Services Act 1980
A. Rights of Consumers when purchasing a good
B. Rights of consumers when purchasing a service
C. Remedies for Breach of the Act.
D. Retailer’s responsibility
E. Guarantees.
F. Second-hand goods.
G. Inertia selling/unsolicited goods
Consumer rights for Goods
-Must be of Merchantable Quality.
-Must be fit for the purpose intended.
-Must be as described.
-Should match the sample shown
Consumer rights for services
-Qualified service supplier.
-Provided with proper care and diligence.
-Materials used are fit for purpose.
-Goods provided as part of service should be of merchantable quality
Merchantable Quality
Acceptable standard taking into account price and durability
Remedies for Breaches of SGSS Act 1980
Repair. Replace. Refund
Retailer’s Responsibility
-seller most resolve problems consumers have with goods.
-Cannot put up signs giving impression of limited rights such as No Refunds or Credit Notes Only
Guarantees
states that faulty items will be repaired with certain time period. legally binding and must show:
-Goods Covered.
-Time Frame covered.
-Procedure for a claim
Second-hand goods laws
must be fit for purpose but should not be expected to be of same quality as new goods
Inertia Selling / Unsolicited Goods
sent to someone with demand for payment even though person did not order them. Illegal to demand payment under SGSS Act.
When can consumer keep unsolcited goods without paying
-after six months seller hasn’t collected.
-30 days after consumer contacts seller in writing and provides address for collection and is not collected
Consumer Protection Act 2007 covers
A. Misleading descriptions.
B. Aggressive Practices.
C. Prohibited Practices.
D. Price Display Regulations.
E. Price Controls
Misleading Descriptions
withholding information and false claims about:
-country of origin
-quantity / weight
-materials / ingredients
Aggressive Practices
Cannot harass or threaten consumers
Prohibited Practices
includes:
1. False claims that product cures.
2. Competition where it costs money to claim prizes.
3. Falsely claiming business is closing
Price Display Regulations
minister for jobs, Enterprise and innovation can require prices of certain products be displayed in a particular manner
Price Controls
can be introduced in emergency situations when approved by government
CCPC functions
A. Inform Consumers of Rights.
B. Investigate breaches of consumer law.
C. Advises Government.
D. Personal Finance Info and Education.
E. Enforce Product Safety Regulations
Ombudsman
Free services for those that can’t resolve complaints with certain organisations. Court of last resort - Consumers must go through complaints process in relevant organisation before. Includes:
1. Financial Services and Pensions Ombudsman makes legally binding decisions for banks and pensions scheme operators.
2. The Office of the Ombudsman issues recommendations for public bodies like government departments
What is the Small Claims Procedure
-for claims up to €2000
-on faulty or poor quality goods and damage to property.
-Cheap(€25 fee)
-quick as no solicitor needed
Small Claims Procedure Steps
- Application to local district court.
- Small Claims Registrar organises meeting and if unresolved is referred on to…
- District court. Judge listens to all witnesses and makes decision.
- Appeals can be made to Circuit Court within 14 days of judgement
The Office of the Ombudsman functions
- Investigates complaint against public body
- will only investigate if all other routes exhausted
- can only investigate decisions you believe are unfair, delayed, not properly explained
- Can’t examine certain complaints(Clinical judgements/Job Applications/How prisons are run)
- Can only make recommendations not legally binding decisions
Benefits of good industrial relations
-recruitment and retention.
-employee motivation.
-Intrapreneurship.
-More accepting of Change.
-Less Industrial Action
Causes of Industrial Relations Conflict
-Pay.
-Conditions.
-Technology(belief inadequate training or redundancies).
-Redundancy.
-Unfair Dismissal of coworkers
Pay Claims
Demand made by employee to their employer for an increase in pay. Most common forms are:
1.Cost of living
2.Comparability
3.Productivity
4.Relativity
Cost of Living Claim
keep up with inflation
Comparability Claim
those doing similar work (e.g. in another store) got a pay raise
Productivity Claim
increased workload or adapted to changes
Relativity Claim
another group linked to worker gets an increase although they do different jobs(waiters get increase then chefs want one)
Shop Steward
elected by trade union members in a workplace to represent them there. Supports members and helps resolve disputes. Also gives feedback to union on its members views
Benefits of Trade Union for Employees
- Protects Rights.
- Info and support.
- Better pay + Conditions.
- ^ Awareness of issues to media
Benefits of Trade Unions for Employers
-Faster Negotiations(w/steward not individuals).
-Introducing Change is easier through steward.
-Better Health and Safety
ICTU
Irish Congress of Trade Unions. Umbrellla organisation for tu’s that represents their interests and negotiates with government on their behalf. Provides training and resolves disputes.
Bargaining
Each party seeks to maximize its own interests through offers and counter offers. employees meet with managers to discuss issues like pay / conditions.
1. Individual Bar
2. Collective Bar
3. National Collective Bar(Social Partnership) - [social partners negotiate on national level]
Social Partners
groups that work with government to achieve goal which benefits all involved
Legal Industrial action
- Official Strike.
- All-out strike.
- Work to rule.
- Token Stoppage.
- Overtime ban
Illegal Industrial Action
- Unofficial Strike.
- Wildcat/lightning strike.
- Political Strike
Official strike
employes refuse to perform work duties. Needs sb 1w and tu approval. Tu may give out strike pay
All-out strike
all employees go on strike even those not involved in dispute. Needs sb 1w and ICTU approval
Work to rule
only carry out duties in contract or job description
Token stoppage
refuse to work for short period. Warning that more serious action may be taken
Overtime ban
refuse to work overtime. Can pressure employers who have deadlines to meet
Unofficial strike
don’t meet some requirements for official strike. Don’t get strike pay
Wildcat/lightning strike
strike without warning
Political strike
strike to protest government. Illegal because employers shouldn’t be punished for a government dispute
Impact of industrial action on stakeholders
- employer(missed deadlines).
- investors(profits fall lower dividends).
- Employees(threat to job security).
- Consumers(unable to buy goods/services and may turn to competitors ).
- Government(reduce tax revenue)
Non-legislative methods for resolving workplace conflict
1.Meeting and talking.
2.Negotiation.
3.Conciliation.
4.Mediation.
5.Arbitration
Negotation
Process of bargaining with both parties giving offers and counter offers to resolve an issue. Goes on until a compromise that both find acceptable is reached.
Conciliation
Conciliator tries to get both sides to come to agreement. Informal in process. Up to the parties to come up with a solution themselves but if they do it is not legally binding
Mediation
mediator listens and presents own recommendations to resolve the conflict. He empowers them to come to an agreement themselves. Useful when both parties aren’t prepared to listen to each other any longer.
Arbitration
arbitrator listens and makes decision how problem should be solved. The decision is legally binding in most cases
Legislative methods for resolving workplace conflict
- Industrial Relations Act. 1990
- WRC
- Labour Court
- Unfair Dismissals Acts 1977-2015
- Employment Equality Acts 1998-2015
Industrial Relations Act 1990
improves IR and helps resolve disputes. Features:
A. Trade Disputes
B. Secret Ballot
C. Minimum Notice
D. Picketing
E. Immunity
A. Trade Disputes
Defined as any dispute between employers and employees connected with
1. employment/non-employment of person
2. terms+conditions of employment of any person
Outlines differences between legal and illegal trade disputes
Legal Trade Disputes reasons
- Pay and working conditions
- Discrimination against employee
- Dismissal of employee
Illegal Trade Disputes
- Disagreement about how business is run
- Discontent about how government is running country
- Closed Shop Agreements(requiring employees join a specific TU)
B. Secret Ballot
Requires TU members to conduct a confidential vote on whether to take industrial action
C. Minimum Notice
Requires TU members to give employer at least 7 days notice before IA
D. Picketing
- Primary picketing is outside own workplace walking outside carrying placards indicating they are taking strike action
- Secondary picketing is outside workplace of another employer. Only legal if employees believe this employer is helping their’s to break their strike action
E. Immunity
Employer cannot sue the trade union or members for losses incurred due to official strike action. Must have followed legal requirements to be protected
WRC
Workplace relations commission. Independent body provides IR services to employers and employees
A. Information - website
B. Advisory service - help business build good IR
C. Conciliation
D. Mediation - if successful, agreement is recorded in writing and legally binding
E. Adjudication Services - if mediation unsuccessful
F. Formulates Codes of practice
WRC codes of practice
written rules for how people/organisations must act in particular situations regarding workplace-related issues. Not legally binding but strongly regarded and used when deciding how to resolve disputes
WRC Adjudication Service
if mediation is unsuccessful adjudication officer investigates and makes a legally binding decision. Decisions can be appealed to the Labour Court
Labour Court
court of last resort for IR. Not a court of law but an IR tribunal. Aims to resolve industrial disputes quickly and fairly.
Functions are:
A. INVESTIGATES Disputes (issues decision. Can be appealed to high court)
B. HEAR Appeals (of adjudication officer decisions. Issues binding judgement on case)
C. ESTABLISHES JLCs
D. REGISTERS EROs
E. INTERPRETATION of Codes of Practices (by WRC and investigates breaches)
JLC
Joint Labour Committee. Set up for sectors with low TU membership. Made up of equal number of employer and employee representatives appointed by Labour Court and a chairperson. Sets minimum pay and working conditions.
ERO
Employment Regulation Order. Drawn up by a JLC and fixes minimum rates of pay and conditions for certain industries. Adopted by Labour Court and becomes legally binding
Unfair Dismissals Acts 1977-2015
Dismissal is when an employer removes an employee from their job. Prevents unfair dismissal for employee’s with one year’s continuous employment with employer. Under act, all dismissals are deemed unfair and burden of proof lies with employer.
Fair dismissals reasons
- Redundancy (genuine redundancy situation like falling sales. Must be chosen fairly)
- Incompetence (don’t perform to standard)
- Qualifications
- Misconduct (can be number of minor incidents or gross misconduct can be instant dismissal)
- Legal reasons (if continuing would break the law)
Procedure for fair dismissal
- Counsel Employee (informal outlines improvement and offers assistance)
- Verbal Warning (formal outlines timeline to achieve improvements)
- First written warning
- Final Written Warning (if no improvement within time may be suspended or dismissed)
- Suspension (with or w/o pay)
- Dismissal (performance not improved to standard despite training and support)
Unfair Dismissal grounds
Age
Religious/Political Beliefs
Race
TU Membership
Pregnancy
Gender
Redress for unfair dismissal
- Reinstatement - Job back. Pay from dismissal date. Entitled to any condition improvements from while they were dismissed
- Re-engagement - May get job back or alternative job provided by WRC. No back pay from dismissal date.
- Compensation - Up to 2 years salary if financial loss suffered. Up to 4 weeks salary if not.
Constructive Dismissal
When an employee resigns due to employer’s conduct towards them. Feels working life is so difficult it is impossible to continue. Burden of proof lies with employee to show resignation was justified. Before resigning employee should have tried every other possibility to solve issue.
Employment Equality Acts 1998 - 2015
prohibits discrimination in workplace. Applies to temporary, full and part time employees in public and private sectors. Discrimination is illegal under the 9 grounds:
1. Age
2. Gender
3. Disability
4. Sexual Orientation
5. Membership of Traveller Community
6. Family Status (parent)
7. Civil Status (single, married, divorced)
8. Race
9. Religious Beliefs
How to resolve complaints of discrimination in the workplace
- Non Legislative:
-Meet with management (outline complaint and try to solve) - Legislative
-Mediation (request mediation from WRC)
-Adjudication(unsuccessful mediation referred to adjudication officer)
Discrimination definition under EEActs
An employee is said to be discriminated against if they are treated in a less favourable way than another person is, has been or would be treated in a comparable situation
