Legislation 2.5.2

Question 1

what is legislation

Answer 1

laws made by a high-power body, such as a parliament, to control behaviour, establish standards, and address societal issues

Question 2

what are the 4 main roles of legislation in business

Answer 2

1. ensures fairness by regulating the rights and duties of people carrying out business/trades
2. protects consumers from unfair harm
3. ensures a level playing field for all competitors
4. protects employees and the enviroment

Question 3

what is the aim of consumer protection acts

Answer 3

to ensure that customers are treated fairly

Question 4

what is a drawback for a business complying with the Consumer Protection Act

Answer 4

increases costs for businesses because they have to put measures in place to make sure goods are of a satisfactory quality, as described, and fit for purpose

Question 5

what is a strength for a business complying with the Consumer Protection Act

Answer 5

these laws will keep customers happy and, therefore, help strengthen the business’ reputation

Question 6

give 3 examples of consumer protection laws (and brief descriptions)

Answer 6

1. sale of goods act - goods must be of satisfactory quality, and consumers must pay the agreed price
2. trade descriptions act - making false claims about a product is illegal (must remove misleading advertisement)
3. online and distance selling - businesses must give an accurate description of their products before selling them, and if incorrect, consumers have 14 days to return

Question 7

what is the aim of the employee protection act

Answer 7

ensure that employees receive at least the minimum standards of treatment from their employer

Question 8

what is a drawback for a business complying with the Employee Protection Act

Answer 8

will cause an increase in the cost of wages for businesses who hire low skilled employees

Question 9

what is a strength for a business complying with the Employee Protection Act

Answer 9

employees may be more motivated so their productivity may increase

Question 10

give 3 examples of employee protection acts and give a brief description for each

Answer 10

1. minimum wage - the lowest level of wages that a business can pay their employees (helps to reduce poverty)
2. sick, maternity, paternity pay - businesses must provide a form of financial support to employees who are unable to work
3. anti-discrimination - policies to prevent unfair treatment based on specific characteristics. these create an inclusive and respectful workplace

Question 11

what is the aim of the enviromental protection act

Answer 11

to protect the natural environment

Question 12

what is a drawback for a business complying with the Enviromental Protection Act

Answer 12

costly, especially for highly polluting industries

Question 13

what is a strength for a business complying with the Enviromental Protection Act

Answer 13

creates a healthier environment for all

Question 14

give 3 examples of environmental protection laws and briefly explain them

Answer 14

Clean Air Act - aims to tackle smog and air pollution as a result of burning coal
Landfill tax - businesses will be charged for any waste disposed of in a landfill (to promote recycling)
Clean Water Act - regulates the disposal of pollutants into waters

Question 15

what is the aim of the competition policy

Answer 15

investigating:
- price fixing
- mergers
- anti-competitive practises

Question 16

drawbacks of the competition policy for businesses

Answer 16

may restrict businesses that are trying to grow inorganically, or restrict monopolies that are growing organically

Question 17

strengths of the competition policy for customers

Answer 17

• prices will be low
• more choice
• more innovation

Question 18

give 3 examples of laws within the competition policy and briefly explain them

Answer 18

1. merger laws - protects shareholders and restricts certain businesses from merging
2. anti-competitive practices aim to prevent businesses from harming competitors and customers by creating a fair and friendly market
3. price fixing laws prohibit businesses from pricing too high or low to keep market conditions fair

Question 19

what are health and safety laws

Answer 19

laws that are put in place to protect employers and customers in the workplace

Question 20

when was the health and safety at work act published

Answer 20

1974

Question 21

give 1 benefit and 1 drawback of the health and safety at work act

Answer 21

benefit - fewer employees off ill/injured
drawback - may be costly