2.5.2 - Legislation

Question 1

What is legislation?

Answer 1

Refers to laws set by the
government that businesses must abide by

Question 2

What are consumer protection laws?

Answer 2

• Right to return/reject goods
  -Full info about products should be disclosed
• Good standard and quality needed

Question 3

Benefits of complying with consumer protection laws

Answer 3

• Less likely to be fined
• Better relations with stakeholders
• Good brand and publicity

Question 4

Negatives of complying with consumer protection laws

Answer 4

• Can be costly
• Bad publicity
• Businesses can be sued by consumers

Question 5

What are employee protection laws?

Answer 5

• No discrimination
• Health and safety requirements should be met
• Minimum wage should be paid

Question 6

Positives of complying with employee protection laws

Answer 6

• Better reputation for prospective employees
• Less staff leaving therefore cheaper costs
• Motivated workers

Question 7

Negatives of complying with employee protection laws

Answer 7

• Expensive
• National minimum wage increases their costs
• Could lead to unmotivated workers

Question 8

What is competition policy and what does it stop?

Answer 8

Restricts anti-competitive practices
- Unfair conditions on smaller suppliers
- Abuse of market power

Question 9

What are the environmental laws for businesses?

Answer 9

Aims to make businesses hold responsibility for their actions regarding the environment
- Pollution
- Air Quality

Question 10

What are health and safety laws?

Answer 10

Ensures a safe workplace for workers/customers
- Noise
- Breaks
- Preventing stress