Business Law
There are a number of different laws that govern how businesses operate
There are three main sources of these laws:
- 1. Acts of parliament
- 2. Common
- 3. Law European Law
Health and Safety Law
- This aims to discourage dangerous practices by businesses and protect the workforce.
- Main act is the health and safety at work act, 1974
- Health and safety executive oversee the act
- This has increased costs but also ensures that accidents are reduced
Employment Law
- Employment laws cover individual and collective labour laws
- Individual labour laws look at the rights and obligations of individual workers
- Collective labour laws look at the activities of trade unions and the conduct of industrial relations
Employment Laws and Business
- Employment laws may increase costs of labour
- However they can increase motivation as workers are better paid and feel more secure
- Collective labour has allowed the workforce to become more flexible
Individual Labour Laws
- The Sex Discrimination Acts, 1975, 1986
- The Race Relations Act, 1976
- The Disability Discrimination Act, 1995
- The National Minimum Wage Act, 1998
Collective Labour Laws
- Employment Acts, 1980,1982
- The Trade Union Act, 1984
- The Trade Union Reform and Employment Rights Act, 1993
- The Employment Relations Act, 1999
Consumer Protection Laws
Consumer protection legislation aims to safeguard consumers against:
- Businesses charging excessive prices / rates of interest
- Unfair trading practices
- Unsafe products
- Having insufficient / incomplete information to base purchasing decisions on
Consumer Protection Laws
- Sale of Goods Act, 1970
- Consumer Protection Act, 1987
- The Weights and Measures Act, 1986
- The Consumer Credit Act, 1974
- The Control Of Advertising – this is controlled by: The Trade Descriptions Act, 1968 & Advertising Standards Authority
Impact of Consumer Protection Laws
- To meet all these laws / requirements can prove expensive to businesses It can also lead to higher consumer expectations which add further costs to businesses
- Small businesses feel the impact of these costs the most
Competition Law
This is meant to create free and fair competition in the UK and the EU
Unfair competition may arise because:
- Monopoly power is abused
- Mergers and takeovers
- Restrictive practices
The Competition commission investigates unfair competition practices
The office of fair trading ensure all firms comply with relevant legislation
Watchdog organisations monitor some firms that have over 25% of the market e.g. OFTEL and BT Key
Competition Laws
- Fair Trading Act, 1973
- Restrictive practices acts, 1956, 1968 and 1976
- The Competition Acts, 1980, 1990
The EU’s competition policy:
- Laws prevent any activities restricting free competition in the EU
- Laws stop any firm abusing a dominate position in any EU market
- The EU controls any merger creating a new firm with a turnover greater than £4.2 million
