Why is it necessary to have a working knowledge of the legislation involved in business?


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Jack Buckby Profile
Jack Buckby answered
If you are thinking of opening up a business, regardless of whether it's a clothes shop or coffee shop, you will need to have a good working knowledge of the legislation involved with your business. This is important because it will ensure that you are abiding and complying with the law rather than breaking it and facing possibly harsh consequences.

Laws are put into place to protect everyone - the customer, the employee and the company. You are not expected to be a lawyer, but being aware of the relevant legislations will help your organisation run more smoothly and avoid complications in the future, such as getting tied up in lengthy legal battles for unfair staff dismissal etc.

Some of the common legislations applicable to traders include the Consumer Protection Act 1987 and the Consumer Protection from Unfair Trading Regulations 2008. These regulations are put into place to protect the consumers' rights and ensure they receive good quality products or services at all times.

Businesses are also expected to provide their staff with a fair employee scheme. Wrongful dismissal of staff through not following the proper dismissal procedure as cited in the contract will mean the dismissed employee is eligible to take his case to a tribunal and in many instances, sue the company for their illegal actions. However, in some cases of gross misconduct, such as fighting or theft, companies are able to issue an automatic dismissal without giving any notice.

Again, you will need to research and familiarise yourself with regulations like this to protect yourself and your business from unforeseen situations. Being a professional and fair-minded employer will make you an attractive organisation to work for. Your business may also prosper if you provide excellent products and services for the public.
Amanda Wells Profile
Amanda Wells answered
Anyone in business, even a small business, needs to know the law as far as it affects your industry, as well as the law relating to business in general. Without this knowledge you will almost certainly break the law at some point without knowing it. It is also necessary to keep up to date with changes in legislation, as these may well affect you.

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