The Impact of Legislation
A business cannot simply do as it pleases. Laws protect the people who buy from it and the people who work for it. Learn what consumer and employment law require, and what following the law costs and gains.
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The rules of the game
A business cannot do whatever it likes. Laws protect the people who buy from it and the people who work for it. Following those laws is called compliance. This module is about consumer law, employment law, and what the law costs and gains for a business.
Legislation words
Four ideas run through this topic:
Who does it protect?
Who does consumer law protect?
- The customers who buy the goods
- Only the owners of the business
- Only rival businesses
- Nobody at all
Two kinds of law
Two areas of law affect a business in different ways.
Consumer rights
- Matches the description
- Satisfactory quality
- Fit for purpose
- The right to a refund
- The goods must be as they were described
- The goods must not be faulty or damaged
- The goods must do the job they are meant to
- If faulty, money back, a repair or a replacement
Protecting the workers
Employment law protects the people who work for a business. It requires fair recruitment with no discrimination, at least the minimum wage, equal treatment, and health and safety at work. A business that breaks these laws can be fined or taken to court.
Worker protections
Which THREE things does employment law protect?
- Fair pay and the minimum wage
- Protection from discrimination
- Health and safety at work
- The price of the shares
- The weather outside
Cost or benefit?
- Paying for safety training
- Being fined for breaking the law
- Customers trusting the business
- A good reputation
- A cost of complying with the law
- A cost of not complying
- A benefit of following the law
- A benefit that protects future sales
Staying legal
Put the steps a business takes to comply with the law in a sensible order.
- Find out which laws apply
- Change how the business works to obey them
- Train staff and buy safety equipment
- Keep records to prove compliance
- Check regularly that it still complies
Complete the idea
Consumer law says goods must be of satisfactory _____ and fit for _____. If not, the customer can ask for a _____. Employment law protects workers with fair pay and health and _____. Following the law costs money but protects the _____ of the business.
True or not?
Tap the TWO statements that are TRUE.
- Consumer law lets a customer return faulty goods.
- Employment law bans discrimination against workers.
- A business can ignore health and safety if it wishes.
- There are no laws that protect customers.
- Following the law brings a business no benefits at all.
What does it cost?
What is one cost to a business of following the law?
- Spending on training, safety and record-keeping
- It is always completely free
- It automatically doubles all sales
- It has no effect on the business
Mind the law
A shop faces some legal situations. Choose the best response each time.
- A customer returns a phone that stopped working within a week. What does the law require?
- The shop is hiring new staff. What must it do under employment law?
- Following all these laws costs money. Why is it still worth it?
Explain it
Explain how consumer law and employment law affect a business, and weigh the costs against the benefits.
- Explain what consumer law requires of a business
- Explain what employment law requires of a business
- Explain one cost of following these laws
- Explain one benefit and give a judgement