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Legislation and business

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Laws protect customers and employees. Businesses must follow them, which costs money, but breaking them costs more.

Consumer law

Goods must be of satisfactory quality, fit for purpose and as described.
If they are not, customers have rights to a refund, repair or replacement. In the UK the main law is the Consumer Rights Act 2015.

Employment law

Recruitment: businesses must not discriminate when hiring.
Pay: workers must get at least the minimum wage.
Discrimination: treating people unfairly because of age, sex, race, religion, disability or sexual orientation is illegal (in the UK, the Equality Act 2010).
Health and safety: employers must provide a safe workplace (Health and Safety at Work Act 1974).

Impact on business

Costs: training, safety equipment, higher wages, paperwork.
Meeting obligations: a good reputation and loyal staff and customers.
Not meeting them: fines, court cases, compensation and bad publicity.
Worked example

A customer buys a kettle that stops working after two days. What rights does the customer have?

  1. The kettle is not of satisfactory quality.
  2. Consumer law gives a right to a remedy.

Answer: A refund, repair or replacement.

Key idea

Consumer law: goods must be of satisfactory quality, fit for purpose and as described. Employment law covers recruitment, pay, discrimination and health and safety. Meeting laws costs money, but breaking them risks fines and reputation.

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