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External Influences

Legislation

  • 6 things to know
  • Paper 2 and Paper 3

Overview

Consumer protection, employee protection, environmental protection, competition policy and health and safety, and what each costs a business.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Process

How does consumer protection legislation affect a business?

Process

How does employee protection legislation affect a business?

Process

What does environmental protection legislation require of businesses?

Process

How do competition policy and health and safety law constrain a business?

Evaluation

What benefits can businesses gain from complying with health and safety legislation?

Key term

What legal proceedings might a business face for non-compliance with legislation?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What does consumer protection legislation require regarding the safety of products sold to customers?

    Model answer

    Products must be safe for consumers to use and not pose unreasonable risks of harm.

  2. 2

    What does 'fit for purpose' mean in the context of consumer protection law?

    Model answer

    Products must be suitable for the purpose for which they are sold and function as a reasonable consumer would expect.

  3. 3

    How does consumer protection legislation require products to relate to their descriptions?

    Model answer

    Products must match their description — any claims made about features, materials, or performance must be accurate.

  4. 4

    Why does consumer protection legislation lead to increased quality control costs for businesses?

    Model answer

    Businesses must invest in testing, inspection, and quality assurance processes to ensure products meet legal standards for safety and fitness for purpose.

  5. 5

    What potential liability costs might a business face under consumer protection legislation?

    Model answer

    Costs from compensation claims, product recalls, refunds, and legal fees if products are found to be faulty, unsafe, or not as described.

  6. 6

    How does consumer protection legislation affect business advertising practices?

    Model answer

    It prohibits misleading advertising and requires businesses to provide accurate product information, preventing false or exaggerated claims.

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Meeting Customer Needs
The Market
Marketing Mix and Strategy
Managing People

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Net gain = − initial cost.
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AGross profit equals revenue minus cost of sales.
BOperating profit equals gross profit minus operating expenses.
CNet profit equals operating profit minus interest and taxation.

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Tariff means a tax imposed on imported goods.
TrueFalse

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