2.5.2 Legislation

Question 1

Legislation

Answer 1

a set of rules and regulations with which a business has to comply to

Question 2

Main roles of business legislation

Answer 2

• regulate the rights and duties of people carrying out business to ensure fairness
• protect people dealing with business from harm caused by defective services
• ensure the treatment of employees is fair and indiscriminatory
• protect investors, creditors and consumers
• regulate dealings between business and its suppliers
• ensure a level playing field for competing businesses

Question 3

Employee protection laws

Answer 3

• pay equality
• national minim wage
• discrimination

Question 4

Employee protection laws

- pay equality

Answer 4

men and women are entitled to equal pay for work of equal value

• pay includes everything in the employment contract - bonuses, pensions, wages and salary
• workers have the right to check equality from employer - using the equal pay questionnaire
• if think unequal pay, they can take employer to tribunal

Question 5

Employee protection laws

-national minimum wage

Answer 5

-employees required by law to ensure they pay their workers at least the national minimum wage

Question 6

Employee protection laws

-discrimination

Answer 6

• it is illegal for an employer to discriminate against an employee on the basis of:
• gender
• disability
• race
• age
• sexual orientation
• religion

Question 7

Where do the employee protection laws apply?

Answer 7

• recruitment
• employee contract
• promotions and transfers
• providing training
• employee dismissal

Question 8

Consumer protection laws

Answer 8

• goods fit their discrimination

- must be satisfactory quality

Question 9

Consumer protection laws - goods fit their discrimination

Answer 9

• businesses need to take care with descriptions - avoid inaccurate claims
• business should take care when explaining what a product can be used for

Question 10

Consumer protection laws - must be satisfactory quality

Answer 10

• test is of a reasonable person

- must work and have no major blemishes

Question 11

Consumer protection laws - returns

Answer 11

-customers have a right of return and full refund if goods and services do not comply with law

Question 12

Consumer protection laws - distance selling regulations

Answer 12

-provide further protection for consumers against online businesses

Question 13

Consumer protection laws - services

Answer 13

• must be done at a reasonable price and by the time stated

- customers can request that unsatisfactory work be repaired or carried out again at no cost

Question 14

Environmental protection act 1990

Answer 14

• emissions into the air
• storage, disposal and recovery of business waste
• storage and handling hazardous substances
• packaging
• discharges of waste water

Question 15

Benefits of compliance with environmental legislation

Answer 15

• avoid damaging costs
• avoids potential loss of business reputation and goodwill
• it can be seen as a positive to customers if a business actively embraces protection of the environment

Question 16

Competition law

Answer 16

aims to make sure that fair competition takes place in each industry

Question 17

What are the competition laws?

Answer 17

• price fixing and price rigging not allowed
• abuse of dominant position (40% more is not allowed)
• avoid monopolistic activity - cutting prices (predator pricing)

Question 18

Health and safety

Answer 18

preventing people from being harmed at work or becoming ill, by taking the right precautions and providing a satisfactory working environment

Question 19

Who does health and safety laws apply to?

Answer 19

• employees working at the business premises
• visitors to the premises
• member of the public