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Understanding External Influences on Business

Legislation and business

  • 3 things to know
  • Paper 1

Overview

Consumer law and the Consumer Rights Act 2015, employment law, the National Living Wage from April 2026, discrimination and health and safety law, and the costs and benefits of compliance.

What you need to know

Answer each one before you reveal it.

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Key term

State the three requirements that goods must meet under the Consumer Rights Act 2015.

Key term

Why does the government pass laws that affect businesses?

Key term

What is the purpose of consumer law?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why does the government pass laws that affect businesses?

    Model answer

    Legislation protects consumers and employees from being treated unfairly. Laws also set fair rules so businesses compete on equal terms.

  2. 2

    What is the purpose of consumer law?

    Model answer

    Consumer law protects customers by setting standards for the goods and services they buy. Customers gain a right to a remedy when something goes wrong.

  3. 3

    Which law sets out the main rights of consumers buying goods in the UK?

    Model answer

    The Consumer Rights Act 2015 sets out the main rights of consumers. The Act covers goods, services and digital content.

  4. 4

    State the three requirements that goods must meet under the Consumer Rights Act 2015.

    Model answer

    Goods must be of satisfactory quality. Goods must be fit for purpose. Goods must be as described.

  5. 5

    What can a customer do if goods are faulty within 30 days of purchase?

    Model answer

    The customer can reject the goods and claim a full refund. The Consumer Rights Act 2015 gives this short-term right to reject.

  6. 6

    What rights does a consumer have when buying a service?

    Model answer

    A service must be carried out with reasonable care and skill. If no time or price was agreed, the work must be done in a reasonable time for a reasonable price.

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Enterprise and Entrepreneurship
Spotting a Business Opportunity
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Making the Business Effective

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Revenue = price × .
quantitycostprofit

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AGoods must be of satisfactory quality.
BGoods must be fit for purpose.
CGoods must be as described.

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Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Cash inflows means money coming into a business.
TrueFalse

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