Legislation & Business 2

Consumer Law

These are laws that are designed to protect customers against unfair treatment by businesses. They include laws involving faulty goods, dishonest advertising and warranties. Consumer law protects consumers by:

Not fit for purpose

A product must be able to do what it was sold to do.
- Businesses cannot sell a car with a faulty engine if they advertised for sale a working car.

Trade descriptions

Trade descriptions are how a business describes a product and the product’s benefits. Consumers are protected because businesses must tell the truth about their products and services.
- Red Bull does not give you wings. In 2014, Red Bull was sued by a man in Australia who said that he had bought the drink for the past 10 years on the grounds that it gives you wings and 10 years later he had no wings.
- This may seem like a joke but Red Bull was forced to pay out AUD13 million in compensation.

Satisfactory quality

A product must be of satisfactory quality.
- Consumers will be protected if they are sold a chair that breaks after sitting on it once.
This impacts businesses because of the potential costs associated with consumer laws and consumer protection.
- Asda pays £2 on top of any refund to customers who buy faulty products from them to compensate for any inconvenience or extra travel costs.

Consumer laws (legislation)

Consumer laws also impact businesses by forcing a focus on product and service quality. Countries with stronger consumer protection laws may lead businesses in that country to produce higher quality products.
For example, Volvo and Audi car dealerships only sell used cars after a rigorous quality check. They then label these cars as “Approved”.

The Impact of Legislation on Businesses

Legislation (laws) often changes and this can affect businesses.

New practices

Businesses may have to introduce new practices or change their operations in response to new legislation.
For example, working time directives enforce break periods for workers at certain intervals. McDonalds or Burger King may have to change their workers’ shift patterns if working time directives change.

Increased costs

Businesses may experience an increase in costs because of new legislation.
- For example, if the national minimum wage rises, businesses that employ lots of low paid workers may have to increase a lot of their workers’ wages.
- However, this may make businesses less price competitive. This is likely to hit manufacturing businesses harder because consumers are unlikely to import a burger from China or Taiwan, but they may do the same for a car or clothes if they were cheaper

1Enterprise & Entrepreneurship

1.1The Dynamic Nature of Businesses

1.1.1The Dynamic Nature of Businesses

1.1.2Risk & Reward

1.1.3The Role of Business Enterprise

1.1.4The Role of Business Enterprise 2

1.1.5The Role of the Entrepreneur

1.1.6End of Topic Test - Dynamic Nature of Business

1.1.7Grade 9 - Dynamic Nature of Business

1.2Spotting a Business Opportunity

1.2.1Customer Needs

1.2.2Market Research

1.2.3Market Segmentation

1.2.4The Competitive Environment

1.2.5Primary & Secondary Market Research

1.2.6End of Topic Test - Business Opportunities

1.2.7Application Questions - Business Opportunities

1.2.8Exam-Style Questions - Market Segmentation

1.3Putting a Business Idea into Practice

1.3.1Business Aims

1.3.2Business Objectives

1.3.3Business Revenues & Costs

1.3.4Costs - Calculations

1.3.5Revenue - Calculations

1.3.6Business Profits & Break-Even Analysis

1.3.7Profits & Losses - Calculations

1.3.8Interest - Calculations

1.3.9Cash & Cash Flow

1.3.10Cash & Cash Flow 2

1.3.11Cash Flow - Calculations

1.3.12Sources of Business Finance

1.3.13End of Topic Test - Business in Practice

1.3.14Grade 9 - Business in Practice

1.3.15Exam-Style Questions - Business in Practice

1.4Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses

1.4.2Limited Liability

1.4.3Franchising & Not-For-Profits

1.4.4Business Location

1.4.5The Marketing Mix

1.4.6Business Plans

1.4.7End of Topic Test - Effective Business

1.4.8Application Questions - Effective Business

1.4.9Exam-Style Questions - Business Plans

1.5Business Stakeholders

1.5.1Business Stakeholders

1.5.2Technology & Business

1.5.3Legislation & Business

1.5.4Legislation & Business 2

1.5.5The Economy & Business

1.5.6External Influences

1.5.7End of Topic Test - Business Stakeholders

1.5.8Grade 9 - Business Stakeholders

2Building a Business

2.1Growing the Business

2.1.1Business Growth

2.1.2Finance

2.1.3Changes in Business Aims & Globalisation

2.1.4Ethics & Business

2.1.5The Environment & Business

2.1.6End of Topic Test - Growing a Business

2.1.7Application Questions - Growing a Business

2.1.8Exam-Style Questions - Business Growth

2.2Making Marketing Decisions

2.2.1Product

2.2.2Product Life Cycle

2.2.3Price

2.2.4Pricing Methods

2.2.5End of Topic Test - Product & Price

2.2.6Grade 9 - Product & Price

2.2.7Promotion & Advertising

2.2.8PR & Sales Promotions

2.2.9Sponsorship & Product Placement

2.2.10Promotional Mix

2.2.11End of Topic Test - Promotion

2.2.12Application Questions - Promotion

2.2.13Exam-Style Questions - Promotional Mix

2.2.14Place & Wholesalers

2.2.15Direct to Consumer

2.2.16E-commerce & M-commerce

2.3Making Operational Decisions

2.3.1Job Production

2.3.2Batch & Flow Production

2.3.3Working with Suppliers

2.3.4Effective Supply Chains

2.3.5Just In Time & Just In Case

2.3.6Managing Quality

2.3.7Total Quality Management

2.3.8The Sales Process

2.3.9End of Topic Test - Operational Decisions

2.3.10Grade 9 - Operational Decisions

2.3.11Exam-Style Questions - Managing Stock

2.4Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions

2.4.2Gross Profit - Calculations

2.4.3Net Profit - Calculations

2.4.4Rate of Return

2.4.5Rate of Return - Calculations

2.4.6Research & Financial Data

2.4.7Marketing Data

2.4.8Percentage Change - Calculations

2.5Making Human Resource Decisions

2.5.1Organisational Structures

2.5.2Organisational Structures 2

2.5.3Recruitment

2.5.4Effective Recruitment

2.5.5Training a Workforce

2.5.6Motivating a Workforce

2.5.7End of Topic Tests - Human Resources

2.5.8Application Questions - Human Resources

2.5.9Exam-Style Questions - Human Resources

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