Theme 2.5: External Influences (Legislation Centric) Flashcards
Name 4 examples of consumer legislation (The most important ones)
. Trade Descriptions Act
. Sale of Goods Act
. Consumer Protection Act
. Consumer Rights Act
What does the Trade Descriptions Act do?
Makes it criminal for traders to make misleading claims about a product or service whether it be regarding the description, advertising, illustrating or verbal description by a salesperson. Enforced by the Competition and Markets Authority (CMA)
What does the Sale Of Goods Act do?
Prevents business from misleading consumers into thinking their product holds qualities the goods do not possess.
Also states that goods must be:
. As described e.g if it says it can function underwater it must do that
. Fit for purpose e.g if something is described as fire resistant it must be that
. Of a satisfactory quality e.g should not be faulty or unable to carry out its purpose
What does the Consumer Protection Act do?
Protects customers from products that do not reach a certain standard of safety and makes the manufacturer legally liable for any harm or injury given as a direct result of a defective product
What does the Consumer Rights Act do?
Just a top up Act put into place in October 2015 including the sale of goods act and updating other areas of legislation whilst adding digital products
How do the consumer laws affect a business?
In theory they shouldn’t as everyone has to comply to these laws (not that they do) so no one should be at a disadvantage
Name the two main employee protection legislation
. Employment Rights Act
. Health and Safety At Work Act
Under these Acts what do employees have the right to?
. An employment contract . Itemised Payment Slips . Maternity and Paternity Leave . Minimum Wage Must be given . Protection from danger in the work place . Joining a Trade Union
Some people argue that UK workers are too protected what evidence is there against this?
. 0 Hour Contracts
. The fact that the UK is one of the least regulated EU Economies
Regulation
Government rules that set standards for rules for businesses to obey regarding the rights of workers, consumers and the environment
What years were the enviromental protection acts put in place?
1990
1995
What affect does the Environmental Protection Act have on businesses?
. Prohibits the dumping of waste and states waste must be disposed of properly
. This obviously carries a cost however there is no real complaints from businesses about this
. A business that produces pollution is required to protect the enviroment so they may be required to fit expensive filtration systems
What does competition policy aim to do?
Prevent businesses from working together to do a number of activites such as:
. Price Fix
. Force smaller businesses out of business
. Force suppliers to supply them for unfavourable prices
Who regulates competition policy?
The Competition and Markets Authority (CMA)
What are Cartels?
Agreements made between two or more firms to fix prices or carve up markets to reduce output. They reduce competition and drive prices and are illegal in most developed countries
