Unit 1 Flashcards
What is a stakeholder?
Someone who is impacted by the running of the business.
What is an investor?
Provides money to start/expand a business in return for a % of the profits.
What is an entrepreneur?
A person who spots a gap in the market, comes up with an idea & takes a financial or non-financial risk to set up a profitable business.
What is a supplier?
Supplies the business with raw materials or finished goods for resale.
What is an employer?
Hires staff, ensures workplace is safe, & pays employees a fair and agreed wage.
What is a manager?
Responsible for the day-to-day running of the business & ensures the firm achieves its goals. Managers use skills such as leading and communicating to manage employees.
What is an employee?
Recruited by employer to work in return for a wage/salary. They possess the skills & qualifications needed to operate the business successfully.
What is the role of the government in business?
A body that governs the country. It imposes taxes on businesses, e.g., Corporation tax.
What is a community in relation to business?
Consists of individuals, households & organisations that are located close to a business.
What is a service provider?
A business that provides services for other businesses to run successfully, e.g., banks & transport firms.
What is a co-operative relationship?
Stakeholders work together towards a common goal, the goal is of mutual benefit, a win-win scenario.
Example of a co-operative relationship between an entrepreneur and investor?
Entrepreneur comes up with a new product & an investor will invest. The investor now owns shares & will now get a % of the profits.
Win-Win scenario
Example of a co-operative relationship between an employer and employee?
An employer and an employee may sign a productivity agreement: wages increase if work targets are met.
Win-Win scenario
Example of a co-operative relationship between a producer and a consumer?
The producer could conduct market research to find out the consumer’s likes/dislikes. Therefore consumers receive products that satisfy their needs & helps to increase profits for the producer.
What is a competitive relationship?
Stakeholders working towards different goals, one party benefits at the expense of the other, a win-lose scenario.
Example of a competitive relationship between an employer and employee?
Employer cuts wages by 5% due to increasing costs.
Win-Lose scenario
Example of a competitive relationship between a consumer and producer?
Producer makes poor quality goods…Consumer when goes onto buy from competitor = Loss of profits.
Win-Lose scenario
What is a dynamic relationship?
The relationship between stakeholders in business is constantly changing.
What is a dependent relationship?
The success of one stakeholder depends on the other.
Eg, government and entrepreneur: Government provides grants to start a business.
What is a commercial business?
Provides goods and services with the intent to make a profit.
Examples: Supervalu, H&M, and Bershka
What is a non-commercial business?
Provides a service that puts people before profit.
Examples: St Vincent de Paul & Trocaire
How are consumers impacted in a business?
Quality and cost.
How are employees impacted in a business?
- Wages
- Work conditions
- Job security
What is an interest group?
An organisation that represents the common viewpoints, goals, & objectives of a particular group of stakeholders.
What is ISME?
Irish Small & Medium Enterprise Association. Represents the viewpoints of small/medium sized businesses.
What is IBEC?
Irish Business & Employers Confederation. Aims to influence decision makers on issues that affect its members.
What is lobbying?
Involves trying to persuade decision makers to support laws that give advantage to your organisation.
What is boycotting?
Consumers refuse to buy goods or services from a firm to show their dissatisfaction with the business.
What is loan capital?
Money borrowed by entrepreneur from a financial institution, e.g., banks, with interest charged on them.
What is a grant?
Money given to a business by state agencies such as Local Enterprise Office. Grants do not have to be repaid.
What is equity capital?
Money invested in the business by individuals or other businesses. These investors become part owners & are entitled to shares (Dividends).
What is a contract?
A legal agreement between 2 or more parties that is enforceable by law.
What are the elements of a valid contract?
Agreement, Capacity of contract, Consideration, Intention to contract, Consent to contract, Legality of purpose, Legality of form.
What is an agreement?
A clear unconditional offer made by one party and accepted by the other party. An agreement consists of two parts: Offer & Acceptance.
What is an offer?
When one party asks another party if they would be willing to enter a contract. The party making the offer must include all details & communicate the offer clearly. Offer can be: Verbally, Written, Implied.
What is acceptance?
The person receiving the offer must accept all T&Cs of the offer. An offer can be accepted orally, in writing or implied.
What is an invitation to treat?
An invitation for another person to make an offer. The offer can be accepted or rejected.
Eg price tags in shop are an invitation to treat.
What does ‘caveat emptor’ mean?
“Let the buyer beware” - Buyer is responsible for checking the quality of goods before a purchase is made.
What is the capacity of contract?
Is the legal ability to enter into a contract. Under 18s, ultra vires, unsound minds & drink/drug affected cannot enter into a contract.
What is ultra vires?
An agreement made outside of the director’s authority.
What is consideration in a contract?
Each party in the contract must exchange something of value, e.g., money. Both parties must gain.
What is intent to contract?
All parties must intend to enter/create a legally binding agreement. All business agreements (Oral or written) are legally binding.
What is consent to contract?
The parties entering the legally binding contract must do so voluntarily; otherwise, the contract is invalid.
Eg, the party cannot be under physical pressure or threatened into a contract.
What is legality of purpose?
The legally binding agreement must be created for a legal purpose.
Eg, sale of illegal fireworks is not a valid contract.
What is legality of form?
Contracts must be drawn up in the correct legal format, which can be done orally, in writing or implied.
Eg mortgages in writing.
What are the 4 methods of terminating a contract?
Performance, Agreement, Frustration, Breach of contract.
What is contract termination by performance?
The contract ends when both parties complete their side of the contract in full. The goal is achieved at this point.
What is contract termination by agreement?
The contract ends when both parties mutually agree to cancel the contract, even if the purpose of the contract was not completed.
What is contract termination by frustration?
The contract ends when an unforeseen event occurs, preventing the contract from being completed.
Eg: death/natural disaster.
What is contract termination by breach of contract?
One of the parties breaks the terms/conditions of the contract; if one party breaks a condition, the contract ends immediately.
What are the remedies if a contract is breached?
Compensation, rescind the contract, Specific performance.
What is the remedy of compensation?
The judge orders one party to pay the other party for all losses suffered due to the breach.
What is the remedy of specific performance?
A party is instructed by the judge to carry out their side of the contract.
What is the remedy to rescind the contract?
The judge cancels the contract completely. Both parties are put back in the same position before the breach occurred.
What are non-legislative methods of dealing with consumer conflict?
Negotiation, Letter of complaint, Assistance from a third party - CAI.
What is CAI?
Consumer Association Ireland - An interest group that ensures consumers are aware of their rights, via their website & lobbies government on weak legislation for consumers. Consumers can contact them for advice on conflict.
They publish the consumer choice magazine, which informs consumer rights.
What are legislative methods of dealing with consumer conflict?
Sale of goods and supply of services act 1980, Consumer protection act 2007, Ombudsman, Small claims court, CCPC.
What are consumer rights under the Sale of Goods and Supply of Services Act 1980?
Goods must be of merchantable quality, Goods must be fit for purpose, Goods must be as described by salesperson/package, Goods must be as per sample.
What are the rights of consumers when buying goods?
Goods must be of merchantable quality, fit for purpose, as described by salesperson/package, and as per sample.
Eg: Nike shoes should not rip after one wear.
What are the rights when receiving a service under the Sale of Goods and Supply of Services Act 1980?
Service must be carried out with due care, diligence & attention, by a qualified professional, and provided with materials & goods that are of merchantable quality & fit for purpose.
What are illegal signs under the Sale of Goods and Supply of Services Act 1980?
Consumers cannot be put under the impression that their rights are limited by signs.
Eg: “No refunds” & “Credit note only”.
What are guarantees under the Sale of Goods and Supply of Services Act 1980?
Extra protection on top of your current rights, sometimes provided by the manufacturer, stating they will repair a faulty good if purchased within a certain time period.
Eg: 1 year.
What is inertia selling under the Sale of Goods and Supply of Services Act 1980?
Refers to goods that are sent to someone with a demand for payment, even if the person did not order the goods. This is illegal.
Eg: Charities sending cards + pens and demand pay.
What is redress under the Sale of Goods and Supply of Services Act 1980?
If a consumer feels that the good they bought does not meet standards, they can ask for a refund, replacement or a repair.
What is the evaluation of the Sale of Goods & Supply Act 1980?
Ensures consumers get a refund, repair or replacement if the good is faulty and ensures consumers are not misled by retailers using signs that reduce their responsibility.
What are consumer rights under the Consumer Protection Act 2007?
Misleading descriptions, Aggressive practices, Prohibited practices, Price display regulations.
What is misleading description under the Consumer Protection Act 2007?
Sellers cannot advertise goods/services in a way that deceives consumers.
Eg: The quantity/weight of product.
What are aggressive practices under the Consumer Protection Act 2007?
Sellers cannot harass or force consumers to buy their service.
Eg: Cannot use threatening language.
What are prohibited practices under the Consumer Protection Act 2007?
Certain practices are prohibited, such as false claims that a product can cure an illness, claiming that a business is closing down when this is not the case, and running competitions when it costs money to claim the prizes.
What are price display regulations under the Consumer Protection Act 2007?
The price of certain goods must be displayed in a certain way.
Eg: Full price shown including taxes.
What is the role of the ombudsman?
If a consumer cannot resolve an issue with a public body, the ombudsman can step in.
Eg: HSE. They cannot investigate complaints towards the president, Gardaí or prison services. It is a last resort and complaints must be made within 1 year.
What is the role of the small claims court?
If a consumer cannot resolve an issue with a business, they can use the small claims court.
Eg: Faulty goods/poor quality. Application is inexpensive (£25 - non refundable), limited compensation (Max claim is 2k), no solicitor required, quick, held at district court.
What is the role of CCPC?
Competition & Consumer Protection Commission - Informs consumers, enforces consumer laws, advises government, conducts research, and educates consumers.
What are industrial relations?
The relationship between an employer and an employee, aiming for good industrial relations.
What are the benefits of industrial relations?
Increase in employee motivation, less conflict, improved atmosphere, and reduced absentees.
What are common causes of disputes in industrial relations?
Wages, work conditions, unfair dismissal, and redundancy.
What is a pay claim?
A demand made by employees to their employer for an increase in pay.
What are examples of pay claims?
Cost of living, productivity, comparability, and relativity.
What is a cost of living claim?
When employees want their pay to keep in line with inflation.
Example: If inflation is 3%, they want a 3% rise.
What is a productivity claim?
Employees seek a rise due to increased workload or changes in work conditions, such as new machinery.
What is a comparability claim?
Employees want a pay increase because others doing similar work received one.
Example: Dunnes vs Supervalu cashiers.
What is a relativity claim?
When the pay of one group of workers is linked to another group’s pay, regardless of job differences.
Example: Bus drivers and bus mechanics.
What is a trade union?
An organization of employees that aims to protect and improve the pay and working conditions of its members.
What are examples of trade unions?
ASTI, ICTU,
What does ICTU stand for?
Irish Congress of Trade Unions, an umbrella organization representing and campaigning for trade union members in Ireland.
How does a trade union work?
Workers join a trade union, vote for a shop steward, who provides advice, negotiates with management, and recruits new members.
What are the benefits of a trade union?
Better pay, improved working conditions, information and support, job security, and mediation of conflicts.
What is individual bargaining?
Individual employees negotiate their pay and working conditions with their employer.
What is collective bargaining?
The employer negotiates pay and conditions with groups of employees represented by a trade union shop steward.
What is national bargaining?
Partners negotiate pay and working conditions at a national level to achieve moderate wage increases.
What are legal methods of industrial action?
Official strike, all-out strike, work to rule, token stoppage, and overtime ban.
What is an official strike?
Employees refuse to enter the workplace and perform their normal duties, requiring a secret ballot, one week notice, and approval from the trade union.
What is an all-out strike?
Everyone in the workforce goes on strike, requiring ICTU approval.
What does ‘work to rule’ mean?
Employees only complete their duties as per their contract, such as nurses not performing cleaning duties.
What is an overtime ban?
Workers only complete their contracted hours, putting pressure on the employer.
What is a token stoppage?
A temporary stoppage of work to make a point, warning the employer of potential serious industrial action.
What are illegal methods of industrial action?
Unofficial strike, wildcat/lightning strike, and political strike.
What is an unofficial strike?
Employees go on strike without a vote or agreement from their trade union or ICTU.
What is a wildcat/lightning strike?
A strike with no notice given to the employer, often resolved quickly.
What is a political strike?
Employees leave the workplace to protest against government actions, which is illegal.
What are the impacts of industrial actions on stakeholders?
Employers face disrupted business activity, employees risk job security and loss of wages, suppliers may not be paid, and consumers cannot purchase goods.
What are non-legislative methods of resolving conflict?
Meet & talk, negotiation, conciliation, mediation, and arbitration.
What is the ‘meet and talk’ method?
A meeting arranged between employer and employee to discuss and resolve the issue.
What is negotiation in conflict resolution?
Both parties meet and bargain until a compromise is reached.
What is conciliation?
A conciliator listens to both sides and aims to get both parties to a mutually agreed solution.
What is mediation?
A mediator outlines how the conflict should be resolved and encourages both parties to resolve the dispute together.
What is arbitration?
An arbitrator listens to both sides and makes a decision on how to resolve the problem.
What is binding arbitration?
When both employer and employee agree in advance to accept the arbitrator’s decision.
What does WRC stand for?
Workplace Relations Commission.
What are the functions of the WRC?
Information, advice, conciliation, mediation, and adjudication.
What is the WRC’s information function?
Provides information on employment law and industrial relations via website and phone service.
What is the WRC’s advisory service?
Works with businesses to maintain positive industrial relations and provides training and workshops.
What is WRC conciliation?
An independent conciliator helps both parties reach a mutually agreed solution.
What is WRC mediation?
Attempts to get both parties to reach a mutually acceptable solution, which is legally binding if successful.
What is WRC adjudication?
WRC makes a decision on how the dispute should be resolved, which can be appealed at the Labour Court.
What is discrimination?
Occurs when one person is treated less favorably than another in a comparable situation.
What are the grounds of discrimination?
Age, gender, civil status, sexual orientation, family status, religion, membership in the travelling community, disability, and race.
In what areas does discrimination apply?
Equal pay, promotion, and training.
What is a non-legislative method for solving complaints of discrimination?
Arranging a meeting to discuss the issue, possibly with a shop steward.
What are legislative methods for solving complaints of discrimination?
WRC mediation and adjudication.
What is mediation in the context of discrimination complaints?
If unresolved, the employee can request mediation from the WRC, aiming for a legally binding solution.
What is adjudication in the context of discrimination complaints?
If mediation fails, an adjudication officer hears both sides and makes a legally binding decision.
What is the IRA act?
Industrial Relations Act 1990, covering trade disputes, secret ballots, minimum notice, picketing, and immunity.
What is a trade dispute under the IRA act?
A dispute between an employee and employer related to employment or non-employment, concerning pay and working conditions.
What is a secret ballot under the IRA act?
A confidential vote required for an official strike to take place.
What is the minimum notice requirement under the IRA act?
Employees must give 7 days notice to the employer before industrial action.
What is primary picketing?
Picketing at the employer’s workplace with placards indicating action.
What is secondary picketing?
Picketing outside another employer’s workplace connected to the business, which is legal.
What is immunity under the IRA act?
Protection for employees from being sued for losses incurred by the employer due to an official strike.
What is the Unfair Dismissals Act 1977-2015?
An act introduced to prevent unfair dismissal of employees.
What constitutes fair dismissal under the Unfair Dismissals Act?
Dismissal due to misconduct, incompetence, redundancy, or lack of qualifications.
What are the fair grounds for dismissal?
Incompetence, redundancy, misconduct, and lack of qualifications.
What redress is available if unfairly dismissed?
Compensation, reinstatement, or re-engagement.
What is constructive dismissal?
When an employee resigns due to intolerable conditions, such as harassment or bullying.
What is a grievance procedure?
An agreed system to deal with workplace conflict, which must be followed before dismissal.
What are the steps in a grievance procedure?
- Counsel 2. Verbal warning 3. First written warning 4. Final written warning 5. Suspension 6. Dismissal.
