Legislation 2.5.2

Question 1

Define legislation.

Answer 1

Creating and enacting laws in order to protect individuals, businesses and society.

Question 2

What are the five types of legislation you need to know about?

Answer 2

• Consumer protection
• Employee protection
• Environmental protection
• Competition policy
• Health and safety

Question 3

Define consumer protection.

Answer 3

Laws to protect the consumer from firms with regards to quality of goods and services sold. This prevents customers from being exploited.

Question 4

Consumer Protection Legislation effect on a business

Answer 4

• Quality measures may have to be implemented to ensure that products are of a suitable quality.
• Staff training to check for quality and required standards.

Question 5

Define employee protection.

Answer 5

Safeguarding employees’ rights in the workplace. e.g.

• Minimum wage.
• Right to contract of employment.
• Right to sick, paternity leave.
• Redundancy.
• Trade union rights.

Question 6

Employee protection effect on business

Answer 6

• Rises in the minimum wage to show soft HR
• Ensures recruitment policy is fair.

Question 7

Define environmental protection

Answer 7

Laws to help ensure that firms don’t have a negative impact on the environment.

Question 8

Environmental protection effects on business.

Answer 8

• Upgrade machinery
• Reduce waste
• Ethical sourcing (social trends)

Question 9

Define competition policy.

Answer 9

Legislation for free and fair competition.

Question 10

Competition policy effects on business.

Answer 10

• May have to restrict unfair and corrupt practices.
• Mergers/takeovers may be stopped.

Question 11

Define Health and safety policy.

Answer 11

Look after the H+S of employees in the workplace and protect them from injuries.

Question 12

Health and safety legislation effect on business.

Answer 12

• Training staff to maintain standards or achieve required standards.

Question 13

What is a monopoly

Answer 13

A monopoly exists where there is only one firm in the market.

Question 14

The Government refer to any company that has at least ? market share as having monopoly powers

Answer 14

25

Question 15

What is market power

Answer 15

Market power is the ability of a firm to set price above those that would be charged if there were competition