2.5.2 Legislation

Question 1

legislation

Answer 1

rules imposed on consumers or businesses by government,

protect employees & environment
e.g. rules on waste disposal, concerns market is not competitive enough

Question 2

areas covered by consumer laws

Answer 2

1. fit for purpose (consumer rights acts 2015)
2. match its description (label)
3. satisfactory quality (weight/measure)
4. rights of consumer to refund/exchange faulty

Question 3

distance selling regulations

Answer 3

gives consumer protection when they buy goods/services by mail order, phone or online

Question 4

trade descriptions act

Answer 4

any descriptions of goods/services given accurate and not misleading

Question 5

employee protection laws & their acts

Answer 5

1. minimum wage/living wage
2. equal pay 1970 (diff amounts comparable work “equal pay equal work”

3. equality act 2010(discrimination recruite/ promote
9 areas protected, class school, hair colour, accent not covered 

4. health and safety at work act 1974 (risk, minimise, protective equipment, training, equipment = safe env)

Question 5

environmental laws

2 laws

Answer 5

1. environmental protection act 1990 (emissions, use of substances, discharge of waste)
2. environmental act 1996 (established environmental agency) (national park authorities, Scottish Environmental protection agency

vehicles must emit maximum level of nitrogen oxide, carbon monoxide and hydrocarbons

Question 6

competition laws

Answer 6

1. price fixing/rigging (collusion)
2. abuse dominant position (40%+ MS)
   - predatory pricing
   - customers buy products = dont work & treat customers different e.g. high prices
3. punishments = fine 10% global revenue, 5 yrs in prison, disqualified from director for up to 15yrs

Question 7

unemployment

Answer 7

workers willing and able to work but cant find a job

Question 8

cartel

Answer 8

group of businesses make formal agreement
act as one company
increase prices for consumers

Question 9

minimum wage

Answer 9

lowest wage you can legally pay a worker

Question 10

2 major acts of parliament covering consumer protection

Answer 10

1. sale of good act

2. trade description act

Question 11

6 areas covered by employee protection

Answer 11

1. fair & sick pay
2. maternity/paternity leave
3. employment contracts
4. trade unions relationships
5. ability of business to get rid of staff
6. responsibility of business -> those made redundant

Question 12

4 areas covered by environmental protection

Answer 12

1. materials used for products (recyclable)
2. processes to make products
3. landfill tax
4. env risk assessment for business activities

Question 13

Competition and market authority (CMA)
(responsible for)
(work of CMA)

Answer 13

1. investigate proposed takeovers/mergers
2. investigate allegations of anti-competitive practice
3. legal actions - those collude to maintain high price
4. set competitive prices
5. dont collude in market to detriment of consumers
6. overly powerful firms (mergers/takeovers) prevented

Question 14

3 areas covered by health and safety

act?

Answer 14

Health and safety at work act 1974

1-safe physical conditions
2-precautions taken when planning
3-treatment of hazardous substances in work place

Question 15

3 positives and 3 negatives of health and safety law on businesses

Answer 15

positive:
1. prevent incidents = negative publicity
2. motivate employees = safe
3. accidents delaying/halt production = avoided

negatives:
1. paperworks
2. pay for extra equipment
3. adjust physical work conditions

Question 16

2 impacts of increased legislation

Answer 16

1. increased costs

2. less wastage

Question 17

who enforces health and safety legislation

Answer 17

health and safety executive

Question 18

effects on businesses of

Answer 18

consumer protection
employee protection
environmental protection
competition policy
health and safety