Pearson Edexcel · GCSE · Business

    Course version: 1BS0 · Version from Sept 2017

    The purpose of legislation: ● principles of consumer law: quality and…

    Full specification wording

    Legislation and business: The purpose of legislation: ● principles of consumer law: quality and consumer rights ● principles of employment law: recruitment, pay, discrimination and health and safety.

    Legislation exists to protect stakeholders from exploitation.

    Checked against the Pearson Edexcel 1BS0 specification (opens in a new tab) on .

    • Point 1 of 2
    • 3 key terms

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    Legislation exists to protect stakeholders from exploitation. Consumer law ensures products are of satisfactory quality, fit for purpose, and as described, granting consumers the right to refunds or repairs if these standards are breached. Employment law protects staff throughout their working lives. During recruitment, it prevents discrimination based on protected characteristics like gender or race. It mandates fair pay through the National Minimum Wage and National Living Wage. Furthermore, health and safety legislation requires employers to provide a safe working environment, adequate training, and protective equipment, which increases business costs but reduces the risk of accidents, legal action, and reputational damage.

    What earns the marks

    • Identify that consumer law requires goods to be of satisfactory quality, fit for purpose, and match their description.
    • Explain that employment law prevents discrimination during recruitment and in the workplace based on characteristics such as age, race, or gender.
    • Analyse the financial impact on businesses of complying with the National Minimum Wage and providing health and safety training.
    • Evaluate the consequences of failing to comply with legislation, including fines, legal action, and damage to brand reputation.

    Common mistakes and how to put them right

    • Confusing consumer law with employment law.

      Put it right: Clearly separate laws protecting customers (quality, returns) from those protecting workers (pay, safety).

    • Assuming health and safety laws only apply to dangerous jobs like construction.

      Put it right: Recognise that health and safety legislation applies to all workplaces, including offices and retail shops.

    • Stating that the minimum wage is the same for all employees.

      Put it right: Note that the National Minimum Wage and National Living Wage vary depending on the age of the employee and apprentice status.

    Exam tips

    • Always link the introduction of new legislation to the resulting increase in compliance costs for a business.
    • Use the phrase 'satisfactory quality, fit for purpose, and as described' when defining the core principles of consumer law.
    • Discuss both the negative impacts (higher costs) and positive impacts (motivated staff, better reputation) of employment legislation to build a balanced evaluation.

    Try the lesson

    The start of the Legislation and business: The purpose of legislation: ● principles of consumer law: quality and consumer rights ● principles of employment law: recruitment, pay, discrimination and health and safety. lesson, made from checked teaching notes for this specification point.

    Have a go first

    A customer purchases a new kettle from an electrical store, but it stops working after two days of normal use. Under the principles of consumer law, what right does the customer have in this situation?

    Listen

    Legislation exists to protect stakeholders from exploitation. Consumer law ensures products are of satisfactory quality, fit for purpose, and as described, granting consumers the right to refunds or repairs if these standards are breached. Employment law protects staff throughout their working lives. During recruitment, it prevents discrimination based on protected characteristics like gender or race. It mandates fair pay through the National Minimum Wage and National Living Wage. Furthermore, health and safety legislation requires employers to provide a safe working environment, adequate training, and protective equipment, which increases business costs but reduces the risk of accidents, legal action, and reputational damage. A strong answer earns marks for these points. Identify that consumer law requires goods to be of satisfactory quality, fit for purpose, and match their description. Explain that employment law prevents discrimination during recruitment and in the workplace based on characteristics such as age, race, or gender. Analyse the financial impact on businesses of complying with the National Minimum Wage and providing health and safety training. Evaluate the consequences of failing to comply with legislation, including fines, legal action, and damage to brand reputation. A common slip: Confusing consumer law with employment law. Instead, clearly separate laws protecting customers (quality, returns) from those protecting workers (pay, safety). Exam tip: Always link the introduction of new legislation to the resulting increase in compliance costs for a business.

    See it

    A top-down flowchart. The top node is 'Legislation', which branches into two nodes: 'Consumer law' and 'Employment law'. 'Consumer law' branches into four nodes: 'Satisfactory quality', 'Fit for purpose', 'As described', and 'Right to refunds or repairs'. 'Employment law' branches into four nodes: 'Recruitment', 'Pay', 'Discrimination', and 'Health and safety'.
    Shows how legislation splits into consumer law and employment law, with the principles covered under each.

    Key words

    Say what each word means before you turn the card.

    Consumer protection

    Try answering aloud or in your head before turning the card.

    Employment rights

    Try answering aloud or in your head before turning the card.

    Health and safety

    Try answering aloud or in your head before turning the card.

    See every definition
    Consumer protection
    Consumer law requires goods to be of satisfactory quality, fit for purpose, and as described, granting consumers the right to refunds or repairs if these standards are breached.
    Employment rights
    Employment law protects staff throughout their working lives, covering recruitment, pay, discrimination and health and safety.
    Health and safety
    Legislation requires employers to provide a safe working environment, adequate training, and protective equipment, which reduces the risk of accidents, legal action, and reputational damage.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. The top node is 'Legislation', which branches into two nodes: 'Consumer law' and 'Employment law'. 'Consumer law' branches into four nodes: 'Satisfactory quality', 'Fit for purpose', 'As described', and 'Right to refunds or repairs'. 'Employment law' branches into four nodes: 'Recruitment', 'Pay', 'Discrimination', and 'Health and safety'.
    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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