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Unit 2- Legislation :star: - Coggle Diagram
Unit 2- Legislation
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Consumer legislation
How does consumer legislation affect businesses
Quality control= firms involved in packaging must ensure it has the correct quantities to avoid legal action taken by customers against the business.
Dealing with customers complaints = many firms should have a customer service to deal with customers problem quickly before the customer turns to the legal system.
increased in costs = Th firm would have to change or improve components to make sure it is safe for consumers and this may raise the firm's cost.
product qulality, product safety, consumer rights
Employee legislation
How does employment legislation affect businesses
higher labour costs (if national minimum wage increases, businesses paying the minimum wage rate has to increase their employees wages)
changing working practice (ensure that job advertisements do not discriminate on the basis of gender or whether or not candidates are married)
penalties ( if business fails to comply with the law there will be penalties, it is expensive. If there is unfair dismissal and the business does not prove the employee wrong, they have to pay the money to the employee)
positive effects= likely to improve workers motivation and employee welfare, which will raise productivity and reduce levels of staff absence)
employment contract, discrimination, unfair dismissal.
Environmental legislation
How does environmental legislation affect businesses
Marketing (highly effective marketing tool, improves image of the business as they pursuing environmentally friendly policies on their websites)
Human Resources (staff will need to be recruited and trained to deal with ever increasing government regulations concerning the environment.
Finance ( energy-saving measures, can lead to a business having lower costs than before because of previous inefficiencies)
pollution, destruction of wildlife habitats
Competition policy
How does competition policy affect businesses
Negative : restricts business activities as takeover and mergers have to reinvestigated and this may delay and cost the business a lot of money
Positive : competition will encourage businesses to try to survive in the market and develop new product.
restricting consumer choice, increasing prices
Property rights
How does property right affect businesses
customers are able to enjoy more choices and lower prices
development businesses are likely to gain a competitive edge and make more profit.
if businesses can protect their original work, creativity is likely to be encouraged.
trademark, copyright
Health and safety legislation
How does health and safety legislation affect businesses
Positive: it could help improve the image of a business, which makes it easier to attract and retain high quality staff. May also motivate staff as they feel protected and secured.
Negative: failure to comply with the law means the business has to pay a fine. If any of its employees are injured at the workplace then the business is responsible for the employee.
providing and maintaining adequate safety equipments. guaranteeing a hygienic enviroment with toilet and washing facilities.
What is legislation
? legal framework in which businesses can operate and ensure that vulnerable groups are protected