Question 1: Define the term 'legislation' and explain its purpose in a business context.

Answer: Legislation refers to laws and regulations enacted by the government. Its purpose in a business context is to regulate business activities to ensure fairness, safety, and ethical standards, and to protect consumers, employees, and the environment.

Question 2: Describe two specific laws in the UK that affect how a business can advertise its products.

Answer: The Consumer Protection from Unfair Trading Regulations 2008, which prevent misleading advertising, and the Advertising Standards Authority (ASA) rules, which regulate advertising content to ensure it is truthful and not deceptive.

Question 3: Identify and explain the impact of the Health and Safety at Work Act 1974 on businesses.

Answer: This law requires businesses to ensure the health and safety of their employees and visitors. Its impact includes implementing safety measures, conducting risk assessments, and providing training, which may increase costs but reduce accidents and liabilities.

Question 4: Explain how legislation related to minimum wage influences business costs and pricing strategies.

Answer: Legislation setting a minimum wage increases labour costs for businesses, which may lead to higher prices for goods and services to maintain profit margins, or to cost-cutting in other areas.

Question 5: Discuss the role of consumer protection laws in promoting fair competition among businesses.

Answer: Consumer protection laws prevent unfair practices such as false advertising or defective products. This encourages businesses to compete fairly based on quality and service, fostering trust and a level playing field in the market.

Question 6: Describe how legislation related to data protection affects a business’s handling of customer information.

Answer: Businesses must comply with data protection laws like GDPR, which require them to securely store customer data, obtain consent for its use, and allow customers to access or delete their data. Non-compliance can lead to fines and damage to reputation.

Question 7: Draw a simple flowchart illustrating the process a business should follow to ensure compliance with employment law.

Answer: A correct flowchart would include steps such as: understanding relevant employment laws → implementing policies → training staff → maintaining records → conducting regular audits → addressing non-compliance issues.

Question 8: Identify a piece of legislation that affects environmental practices of a business and explain its requirements.

Answer: The Environmental Protection Act 1990 requires businesses to manage waste responsibly, limit pollution, and take measures to reduce their environmental impact.

Question 9: Sketch a basic diagram to show how legislation influences different aspects of a business, such as operations, marketing, and human resources.

Answer: A correct sketch would depict a central circle labeled 'Legislation' with arrows pointing to three surrounding circles labeled 'Operations', 'Marketing', and 'Human Resources', illustrating the influence of laws in each area.

Question 10: Explain the consequences a business might face if it fails to comply with legislation relevant to its industry.

Answer: Consequences can include legal penalties such as fines or sanctions, damage to reputation, loss of customer trust, and potential shutdown of operations until compliance is achieved.