2.5.2 : Legislation

Question 1

What are the main roles of business legislation ?

Answer 1

Regulate the rights and duties of people carrying out business in order to ensure fairness
Protect people from harm caused by defective services
Ensure the treatment of employees is fair and in-discriminatory
Protect investors , creditors and consumers
Regulate dealings between businesses and their suppliers
Ensure a level playing field for competing businesses

Question 2

What are key areas to consider with legislation ?

Answer 2

Employment - discriminatory laws , equal pay laws , minimum wage
Consumers - faulty goods , age restrictions , credit terms , weights + measures , warranty
Environment - effective waste system , pollution air roads , noise pollution , carbon footprint print , forestation
Competition - copy right , patent , trade markets , monopolisation , price fixing ,
Health + Safety - e-learning

Question 3

What are the 2 different types of employment ?

Answer 3

Employment is either :
Individual employment or Industrial relations

Question 4

What is CSR ?

Answer 4

Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather then degrade society and the environment. CSR helps both improve various aspects of society as well as promote a positive brand image of companies.

Question 5

What is a B2C ?

Answer 5

Any business that sells goods or provides services to consumers

Question 6

What must a business to ensure about their products ?

Answer 6

Goods fit their description
Must be of a satisfactory quality
Goods are fit for the purpose that is specified

Question 7

What are the key areas covered under environmental laws ?

Answer 7

Emissions into the air
Storage, disposal & recovery of business waste
Storing and handling hazardous substances
Packaging
Discharges of wastewater

Question 8

What are the aims of competition laws amongst businesses ?

Answer 8

• Wider consumer choice in markets for goods and services
• Technological innovation which promotes gains in dynamic efficiency
• Effective price competition between suppliers
• Investigating allegations of anti-competitive behaviour within markets which might have a negative effect on consumers

Question 9

What are abuses of a businesses dominant position ?

Answer 9

• Imposing unfair trading terms, such as exclusivity;
• Excessive, predatory or discriminatory pricing
• Refusal to supply or provide access to essential facilities
• Tying

Question 10

What is the impacts of legislations on a business ?

Answer 10

Compliance costs – Legal advice, training, and changes to processes can be expensive.
Penalties for breaking laws – Fines, legal action, and damage to reputation.
Competitive advantage – Firms that follow laws and promote ethical behaviour may attract customers and staff.
Strategic change – Businesses may change products, employment practices, or suppliers to meet legal requirements.