(PAPER 3) 2.5.2 legislation *

Question 1

Legislation definition

Answer 1

laws passed by Parliament in the UK that affect a business

Question 2

Employee protection

Answer 2

legislation that aims to make things fairer for workers, by ensuring minimum standards of pay and conditions of work, and to stop employers taking advantage of employees

Question 3

Having bad employee protection could result in..

Answer 3

less employees wanting to work for them because they have a bad reputation

Question 4

what is the main purpose of consumer protection

Answer 4

to ensure businesses act fairly towards customers and do not exploit them

Question 5

3 key consumer legislation acts

Answer 5

1. trade description acts
2. consumer right act 2015- covering how goods goods and services can be sold
3. food safety act

Question 6

2 implications of consumer legislation on business

Answer 6

1. compliance costs- to follow the laws but also if businesses break the law and have to pay fines
2. training for staff

Question 7

what is the main purpose of employee protection

Answer 7

to ensure businesses act fairly towards their workers and do not exploit them

Question 8

ways that an employee is protected at work

Answer 8

1. employee contract
2. discrimination (equality act)
3. unfair dismissal
4. equal pay

Question 9

2 negative implications of employee legislation on businesses

Answer 9

1. compliance costs- when hiring, ensure well being of employees e.g. min wage
2. penalties- if businesses fail to comply, fines or prison

Question 10

2 positive effects on a business of having employee legislation

Answer 10

1. reputation improves if workers treated well- attract potential workers, improve motivation
2. creates a level playing field from all businesses as they should all be following the same laws

Question 11

activities of businesses that lead to an adverse effect on the environment

Answer 11

1. pollution
2. resource depletion
3. traffic congestion

Question 12

2 environmental protection acts

Answer 12

1. environmental protection act 2008

2. landfill tax

Question 13

benefits and drawbacks to a business of environmental legislation

Answer 13

+ better reputation- good marketing tool- increased customers/sales- USP
+ can have a positive impact on costs if the business is driving to reduce waste
- compliance costs- reduces profit margin- less to reinvest
- rising costs due to method of production or type of material used- higher prices- less competitive

Question 14

what is the main purpose of competition policy

Answer 14

to encourage fair competition between businesses

Question 15

name 2 anti-competitive prices

Answer 15

1. collusion

2. restricting consumer choice

Question 16

positive and negative of impact of competition policy on businesses

Answer 16

+ encourage innovation and improves efficiency (to survive in a competitive market)
- acts as a constraint on business activity (CMA refusing a merger for example)

Question 17

what is the main purpose of health and safety legislation

Answer 17

to ensure the safety of employees and customers within the workplace

Question 18

2 negative effects on businesses of health and safety legislations

Answer 18

1. extra paperwork

2. extra cost of training, updating of procedures