Legislation

Question 1

Examples of consumer protection

Answer 1

• Good customer service
• Good quality products
• Not overpriced
• Clear and accurate information about their products

Question 2

How does consumer legislation affect businesses

Answer 2

• Increase in costs due to improving safety and quality of the product
• Dealing with customer complaints before they turn to the legal system
• Quality control
• Changes in business practice (more market orientated)

Question 3

Without consumer and employee legislation what could the business do

Answer 3

Exploit the employees or consumers

E.g. pay low wages, poor quality products

Question 4

Examples of employee protection

Answer 4

• Employment contracts, telling you hours or work, pay etc
• Legal discrimination (better suited to a job) rather than unfair discrimination (race, gender, disability)
• No unfair dismissals such as being dismissed because of pregnancy
• Equal pat

Question 5

How does employee legislation affect businesses

Answer 5

• Compliance costs (expenses incurred in meeting requirements of employment)
• High labour costs (increase minimum wage)
• Penalties if the law is not followed (fines, reputation damaged)

Question 6

Examples of environmental protection

Answer 6

• Pollution
• Destruction of habitats
• Traffic congestion
• Resource depletion (non-renewable resources like coal and oil can’t be replaced)

Question 7

How does environmental legislation affect businesses

Answer 7

• Finance (might be a long term investment such as renewable energy as it’s more efficient therefore less costs in future)
• Human Resources (staff recruited and trained to deal with increasing government regulations)
• Marketing tool (express their environmentally friendly)

Question 8

What does the government have to monitor in monopolies that try and reduce competition

Some practices might include:

Answer 8

• Increasing prices
• Restricting consumer choice
• Raise barriers to entry by spending huge amounts of money on advertising for example. Or lower its prices temporarily making it difficult for a new business to get established

Question 9

Positive and negative effects of the competition policy on businesses

Answer 9

Positives= -Competition policy encourages competition therefore will:

• Encourage innovation
• Encourage efficiency
• More businesses in the market

Negatives= Competition policy acts as a constraint on their activities as it slows processes down and costs money

Question 10

Health and safety legislations

Protect danger of employees by:

Answer 10

• Providing and maintaining safety equipment and protective clothing (fire extinguishers, hard hats, safety goggles)
• Ensuring enough space for workers to do their job
• Hygienic environment, adequate toilet and washing facilities
• Maintaining workplace temperatures and noise levels
• Protection from bullying, stress, violence
• Adequate breaks for rest

Question 11

How do Health and safety legislation affect businesses

Answer 11

• Costs (give training, information, supervision to ensure safety of workers)
• Penalties (Failure to comply, fines)
• Improve image of the business, attract high quality staff)