Legislation Definition Business Gcse
Consumer protection imposes additional costs on businesses because they have to comply with the law. If they do not comply, they risk fines and are eventually forced out of business by the courts. The most important labor laws that a company must take into account are: The way a company can operate is regulated by legislation. Laws can be imposed by courts and governments in the United Kingdom or the European Union. Legislation acts mainly as a barrier for businesses. State laws are not put in place to simply restrict businesses and make it harder for them to do so. There are good reasons why a local or national government will establish specific policies, as these are beneficial for everyone in this area. Since compliance is beneficial to a government and a community, special incentives are often created to encourage businesses to operate within the law. Some of these incentives may include: We offer a GCSE Business course that includes comprehensive educational support Companies must comply with state laws, but this means they incur a number of additional costs in terms of time and money. Some of these costs are incurred due to the time required to produce documents, follow procedures and ensure that legal obligations are met. It`s about making sure companies act fairly towards their consumers, especially since consumers are sometimes in a much weaker financial position.
The main consumer protection laws are: They describe the main objectives of legislation in the business environment – including consumer protection, environmental laws, competition policy and health and safety. A review presentation that guides students through the relationship between economics and legislation (the “L” in PESTLE analysis). A company can face many costs due to legislation. Since the company must comply with established laws, there are certain guidelines in which the operation must be located at all times. This can be very costly for a business, as it may require the purchase of specialized equipment and hiring employees just to monitor the legality of business operations. The consequences of non-compliance with this legislation can be catastrophic. Despite the additional costs and time spent ensuring the business operates to the right standards, few companies can afford to take risks when it comes to business law. If a company does not follow the guidelines set by governments, it can face a number of consequences, such as: Not only will the government provide special incentives, but a business will want to operate legally to ensure it is protected from other problems.
Dissatisfied employees who feel undervalued or at risk at work are unlikely to remain loyal, resulting in high staff turnover. Failure to comply with the law can also result in a company being sued by a person for unsafe practices, discrimination or other unfair practices. Ensuring that all working practices meet the right legal standards will result in a sustainable, safe and successful business. It also includes recent case studies of companies and industries affected by legislative changes. Various types of legislation that companies must comply with include labor laws, consumer laws, and intellectual property laws. – Increases costs for companies that need to train employees and spend money to comply with established standards. Legislation in one area has a significant impact on a company and the way it works. Because a company must ensure that it operates within the legal requirements of its country, laws change how it operates, what it offers, and how much money it pays in taxes. We have already looked at how consumer protection legislation affects the way a company works with its customers, but the legislation will also change the methods a company uses to produce goods and services, as well as the way it works with the local community. Businesses will be affected by a number of laws, such as: The main areas of legislation affecting businesses are: Legislation is a set of laws enacted by the government to protect businesses, workers, and consumers.
Companies must act within these laws to ensure the fair and safe treatment of all parties involved in a business. If companies do not comply with the law, legal action such as fines, restrictions and imprisonment can be brought. Labor law imposes additional costs on the company because it has to spend extra money on training, hiring and compensation. Like the Health and Safety Act, there are also benefits, if workers feel they are being treated fairly and that there is more safety, they will be more motivated. The Competition Commission (CC) and the Office of Fair Trading (OFT) scrutinise any company with more than 25% market share, especially if it merges with another company. You may think that the company has too much power and can set high prices and offer low-quality products. The CC and the FOT have the power either to impose fines on these companies or to prevent the merger. The main costs and benefits of the Occupational Health and Safety Act for a company are: The FOT can also impose fines on companies that set prices or prevent other companies from trading on their market. More recently, they have looked at the automotive industry and warranties of major electric retailers. Trade Designation Act (goods and services must operate in the manner advertised by the company) Law on the Sale and Supply of Goods (stipulates that goods must be of satisfactory quality) Competition law aims to ensure fair competition in all sectors. Governments believe that increased competition leads to lower prices, better quality products and a greater variety of products.
Employees must receive a written employment contract. It protects against unfair dismissal (without just cause) and stipulates that termination pay must be paid if the employee has served for more than two years and his or her job must be eliminated.