Legislation

Question 1

Consumer Protection (4)

Answer 1

1. Consumer Protection Legislation (Trade Description & Sales of Good Act)
2. Goods should be fit for purpose and advertised truthfully
3. Customers can trust their products building loyalty and repeat purchases
4. Link to Yellow Sheet

Question 2

Employee Protection (5)

Answer 2

1. Employee Protection (minimum wage, sick pay, etc)
2. Employees basic needs should be met
3. By giving them example
4. Hygiene factors present and won’t be demotivated (Herzberg)
5. Can introduce motivators which ca increase productivity > link to Fixed Cost

Question 3

Environmental Protection (4)

Answer 3

1. Environmental Protection (Landfill Tax & Environmental Protection Act)
2. Prevented business causing pollution or producing waste
3. They can be environmentally friends and seemed to be more ethical
4. Link to Differentiation + Yellow Sheet

Question 4

Competition Policy (4)

Answer 4

1. Competition Policy prevents businesses from forming monopolies
2. More choice between suppliers reducing bargaining power
3. Suppliers cannot charge higher prices
4. Reducing VC > Income Statement

Question 5

Health & Safety (4)

Answer 5

1. Health & Safety legislation ensures employees are kept safe from danger
2. Means working conditions are safe and employees are trained
3. Ensuring employees safety needs are met
4. Benefit of Motivated Workforce

Question 6

Drawback of All Legislations (Bureaucracy) (5)

Answer 6

1. Legislations lead to more bureaucracy (more paperwork)
2. As procedures and processes need to be developed to ensure the legislation is followed
3. Experts will have to be hired
4. Increased expense of wages
5. Link to Yellow Sheet