Legal Influences (Cambridge (CIE) A Level Business): Revision Note

Minimum-wage levels

Limits on working hours, overtime and rest breaks

Safe working environment standards

Paid-leave entitlements (holidays, sick leave, parental leave)

Employers must keep within legal limits or face fines and court action

Government inspections/audits check compliance

Firms may need to adjust shift patterns, rewrite contracts or upgrade staff facilities

Fair treatment regardless of gender, race, disability, religion, age or sexual orientation

Reasonable adjustments for disabled workers

Equal pay for equal work

Recruitment, promotion and training must be merit-based

Job adverts and interviews must be fair and inclusive

Discrimination can lead to lawsuits, fines and reputational damage

Employees free to join a union to represent their interests

Collective-bargaining rights (negotiating pay and conditions)

Rules on lawful industrial action (e.g., strikes)

Employers cannot punish or dismiss staff for union membership

Where required, firms must recognise and negotiate with union representatives

During strikes, legal procedures (ballots, notice periods) must be followed

Right to a written employment contract

Protection against unfair dismissal

Entitlement to notice periods, redundancy pay and the right to appeal a dismissal

Employers must issue contracts and follow fair procedures when ending employment

Dismissals must be justified (e.g. misconduct, redundancy)

Ignoring fair procedures can lead to compensation claims and bad publicity

Businesses must not make claims that are untrue, exaggerated, or deceptive

Misleading marketing can damage trust and lead to legal penalties.

• E.g. A company claiming a health drink cures illness without scientific evidence could face legal action

Laws control how businesses collect, store and use customer data

Customers have the right to know how data is used and can opt out of marketing communications

Some countries restrict how businesses market to children to protect them from harm

• E.g. A toy company may not be allowed to show unsafe play or unrealistic product effects in ads targeting children

Businesses must not advertise very low prices or special offers that are unavailable or limited without stating so clearly

Comparisons with competitors must be fair, truthful, and not designed to mislead or damage a rival’s reputation

Goods and services sold to consumers must be safe

They must meet manufacturing standards, use safe materials and quality checked

Clear, accurate product information, such as ingredients, materials, safety warnings, instructions and pricing, must be provided

• E.g. A food product must list all allergens and expiry dates clearly on the packaging

Consumers may be entitled to refund, repair or replacement of faulty goods

Businesses cannot include terms in customer contracts that are unfair, unclear or one-sided

Consumers have extra protections when buying online or by phone, including a 'cooling-off period' where they may cancel the order

Businesses are not allowed to agree with competitors to fix prices, limit production, or divide up markets

• E.g. Two airlines agreeing to keep ticket prices high

Governments may block or investigate mergers if they create a business that would dominate the market

• E.g. A proposed merger between two telecom giants might be stopped if it would leave only one major provider in the country

A dominant business must not use its power to force out competitors unfairly, such as by setting extremely low prices or refusing to supply others

• E.g. A tech company refusing to let rival apps work on its platform could be investigated for abusing its position

Large firms cannot use tactics that block others from entering or growing in the market

• E.g. A supermarket chain forcing suppliers not to sell to rival stores could be breaking competition law