2.5.2 Legislation

Question 1

Define legislation

Answer 1

laws passed by parliment that reqire businesses to conduct behaviour in certain manner

Question 2

What are the 5 areas of legislation that have significant impacts on businesses?

Answer 2

-Consumer protection laws
-Employee protection laws
-Environmental protection laws
-Competition policy laws
-health and safety laws

Question 3

What are consumer protection laws?

Answer 3

Protect consumer from unfair practices, faulty prods, misleading info

Question 4

What do consumer protection laws ensure?

Answer 4

-Product safety
-Product quality
-Product info is available
-Customers are treated fairly when unhappy
-Businesses cant gain unfair advantages over rivals

Question 5

S and L of consumer protection laws

Answer 5

S- build cust trust and loyalty

L- inc cost to comply with laws (eg improve quality)

Question 6

What are employee protection laws?

Answer 6

Fair treatment, safe WC, job security,

Question 7

What do employee protection laws aim to legislate for?

Answer 7

Issues like…
-pay
-working conditions
-discrimination against groups
-rights to be part of a trade union
-contracts and termination of employment

Question 8

S and L of employee protection laws

Answer 8

S- happier workers inc motivation

L- inc cost (paying min wage)

Question 9

What are environmental protection laws?

Answer 9

Aim to hold businesses responsible for their environmental impact

Question 10

What factors does the environmental protection laws govern?

Answer 10

-Pollution
-destruction to wildlife
-Traffic congestion
-resource depletion
-Air quality

Question 11

How can the environmental protection laws impact a business?

Answer 11

High compliance costs

(Pollution control, waste management)

Question 12

What are competition policy laws?

Answer 12

Promote fair competition, prevent monopolies,

Question 13

S and L of competition laws

Answer 13

S- encourages more competition (innovation)

L- restrictions on merging

Question 14

Whats cartel activity?

Answer 14

Businesses working together to manipulate the market

Question 15

What are health and safety laws?

Answer 15

Require a business to operate in a way that protects employees and customers physical and mental wellbeing

Question 16

What do health and safety laws include?

Answer 16

-rest breaks
-good temp and noise level
-provision of safety equipment
-hygienic conditions
-reduction of stress

Question 17

How may health and safety laws impact a business?

Answer 17

The implementation or procedures and equipment to maintain healthy and safe business premises are likely to be expensive.

Staff training and changes to work hours is also expensive

Question 18

What impact can legislation have on a business?

Answer 18

if businesses dont comply with legislation, legal action such as fines, restrictions and imprisonment can be actioned

Question 19

How can legislation create opportunities for a business?

Answer 19

It can create opportunities for growth, innovation and competitive advantage