Unit 1 revision answer guidelines for long questions

Answer guidelines.

Q1. Discuss the relationships between consumers and producers? 15 marks 6 minutes

Relationships in business are dynamic and change from co-operative to competitive

Co-operative – Both parties get on and work together well

·         High Quality Products

Consumer: Quality is remembered long after price.  Consumers are willing to pay for quality.  They will be satisfied with product if it is of high quality and return to use producer again

Producer: Consumer will pay for high quality this will increase profit for the producer.  Producers are commercial business and aim to make a profit.

·         A fair price

Consumer : Consumers are willing and happy to pay fair price for products.  They will continue to support producers who use fair pricing strategies.

Produce : Producer who set fair price will gain a large customer base.  Customers will remain loyal and this will result in increased profit.

Competitive –Parties not getting on together

·         Poor after sales service

Consumer: after the product is purchased the consumer will want to return to the producer with problems.  If the producer makes this process difficult the consumer will not be happy

Producer: if a producer is just focused on sales and shows no concern for after sales they will find consumers will not return

Q2 Describe a competitive and a co-operative relationship between two producers in the same line of business, use examples 15 marks 6 minutes

2 producers

Coca Cola

Pepsi

Relationships in business are dynamic and change from co-operative to competitive

Competitive –Parties not getting on together

·         Setting prices

Both producers will want to charge a lower price and gain competitive advantage

Coca cola- will want to undercut Pepsi

Pepsi – will want to charge less than coca cola

·         Idea generation

Both producers will try gain advantage with new products to win over and gain new customers

Coca cola- introduced Diet Coca Cola

Pepsi – introduced Pepsi Max

Co-operative – Both parties get on and work together well

·         Fundraising / Sponsorship

Both producers are interested in good will and good Public Relations

Coca Cola – sponsor World Cup, Olympic Games

Q3. The relationship between an enterprise and its stakeholders may be competitive or co-operative. Discuss this this statement using examples. 15 marks 6 minutes

Stakeholders:

1.      Investors

2.      Customers

3.      Employees

4.      Producers

Relationships in business are dynamic and change from co-operative to competitive

Co-operative – Both parties get on and work together well

·         High Profits

Entrepreneur:

Investor:

·         Fair prices

Entrepreneur:

Consumer:

Competitive –Parties not getting on together

·         Unfair pay

Entrepreneur:

Employees:

Q4. Describe using examples, one co-operative and one competitive relationship that may exist either between or within organisations. 20 marks 8 minutes

Relationships within organisations are dynamic and change from co-operative to competitive

An organisation will have relationships with various stakeholders, including:

1.      Investors

2.      Customers

3.      Employees

4.      Producers

Co-operative - Both parties get on and work together well

·         High Profits

Entrepreneur / orgainsation: The aim of an Entrepreneur is to come up with innovative ideas and take a risk in order to make a financial return.  They rely on investors to make their ideas a reality

Investor: Banks, Government and private shareholders invest in business with the aim to gain a financial return.  When the business is making high profit the investors get a return in the following forms

Bank : interest on loans

Government : Enterprise hire staff and pay tax

Shareholders : dividend

Google is an organization making high profits.  Banks are willing to give them loans, government are happy to give them grants and their shares sell well on the stock exchange.

Competitive Relationship – not getting on

·         Rights not being recognized

Entrepreneur / organization: an entrepreneur has obligations as an employer to pay staff fairly, recognize their right to join union, good working conditions, to recognize and obey Industrial laws.  If the organization does not fulfill these obligations there will be industrial problems

Employee: want their rights to be recognized.  If they do not get fair pay, feel discriminated against, feel unfairly dismissed, their trade union is not recognized they will take industrial action against the employer.

Staff at Tell ltd felt that they were not getting fair pay for the work they were doing and took industrial action in the form of a strike.

Q5. Explain using examples the relationship that exists between investors and entrepreneurs 15 marks 6 minutes

Relationships in business are dynamic and change from co-operative to competitive

Co-operative – Both parties get on and work together well

·         High profit

Entrepreneur:

Investor - Shareholder:

·         Investments being made

Entrepreneur:

Investor - Government:

Competitive – parties not getting on

·         Lack of financial return

Entrepreneur:

Investor - Bank:
 

Q6. Interest Group notes from notes copy

Q 7. Describe what is meant by Discrimination as set out under the terms of the Employment Equality Act 1998. List five distinct grounds under which discrimination is outlawed under the Act. 20 marks 8 minutes

Discrimination is outlawed under the Employment Equality Act 1998 /2002

·         Treating one person less favorably than another

People should be treated the same regardless of Gender, Marital Status, Family Status, Age, Disability, Race, Sexuality, Religious Belief, member of traveler community

·         Deals with various areas of employment

Employer should use equal opportunities when advertising, hiring, training and promoting.  There should be equal pay for equal work

·         Allows for positive discrimination

An employer can employee one person over another if it is an aim to achieve full equality in the workplace. 

Grounds under which discrimination is outlawed:

1. Gender
2. Marital Status
3. Family Status
4. Age
5. Membership of the Travelling community

 

1. Evaluate the role of the Director of Equality Investigations in solving conflicts in business. 20 marks 8 minutes P56 of book

2. Under the terms of the Unfair dismissals Act 1977/1993 illustrate

• The grounds for dismissal that are deemed unfair 20 marks 8 minutes use notes copy as not done well in book.
• The grounds for dismissal that are deemed fair 20 marks 8 minutes notes copy and Book p51
• The methods of redress for an unfair dismissal, 15 marks 6 minutes notes copy and Book p53

Q9.  Under the terms of the Unfair dismissals Act 1977/1993 illustrate

The procedures for dismissal 20 marks 8 minutes

o   Speak to employee

An employer should formally talk to the employee and find out the cause of the problem

Mary is late 2 of 5 days a week.  Mary is called to the manager’s office to see why this is happening.  Mary explains she wakes up late

o   Help solve problem

Employer should help the employee to remedy the problem and aid the employee

Mary’s employer buys Mary an alarm clock to help her wake up early

o   Written warning x 3

If the behavior continues the employer must issue a warning in writing.  The employees gets 3 chances to improve their behavior

Mary continues to be late for work and each of the times she was late, even with her new alarm clock, she is issued a warning in writing

o   Suspension

The employee should be given unpaid time off work to think about the implications of their actions.  The suspension time period must be indicate at the start of the suspension

Mary was told to stay at home (unpaid) for a week

o   Dismissal

The employee continues with actions, now the employer can fairly dismiss the employee

Nary returns to work but continues to be late, she is dismissed

Q 10.Evaluate the main provisions of the Consumer Protection Act 2007 in protecting consumers 20 marks 8 minutes

The Consumer Protection Act 2007 was set up to protect consumers

Deals with

·         misleading claims regarding goods, services, prices

Claims about weight, ingredients and performance of goods must be stated.  Claims about time place or manner in which a service is provided and claims about effect of a service, and the service provider themselves.  Actual prices, previous prices and recommended prices of goods and services must be stated truthfully.

In my opinion protecting against misleading claims is important because than can trick a consumer into making a purchase 

·         unfair or aggressive commercial activity

These refer to any practices used by sellers that would result in people buying products that they would not buy under normal circumstances.

In my opinion it is important to protect consumers from aggressive selling as it puts consumers under pressure and makes them feel they have to purchase

·         Pyramid schemes

These schemes are unsustainable as they depend on an infinite number of people being available to participate.  This law bans their establishment, operation, promotion and participation in them.

In my opinion it is important to ban pyramid schemes as they cannot keep going and people will lose their money eventually

·         NCA – National Consumer Agency

The NCA was established under the law to promote and protect consumers, enforce laws, act as an advocacy and carry out ongoing research

In my opinion the NCA is important as they will look out for consumers interest ansd are listened to at government level

Q11Evaluate the role of the office of the Ombudsman for Public Service 15 marks 6 minutes

If a consumer feels they were treated unfairly by any of the following public bodies they can seek assistance from the ombudsman:

Government departments
Local authorities
An Post
HSE

·         Offer a free service

The consumers make a complaint to the ombudsman in writing, by phone, by e-mail or by calling into the office in person.  There is no charge for the service.

In my opinion a free service is important so people who don’t have a lot of money can still have their case heard

·         Acts as a conciliator

The Ombudsman considers all the evidence but only has the power to make a recommendation.  The findings are not legally binding.

In my opinion conciliation is important as if a decision is to binding there would need to be more than one person investigating.

·         Can request documentation

In their investigations the Ombudsman can go to the public bodies offices and look at any documents they want and can interview any member of staff.

In my opinion it is important the Ombudsman has legal power to take on the public body and investigate the complaint thoroughly.

Q12. Under the terms of the Industrial Relations Act 1990 explain:

a.Define trade dispute 10 marks 4 minutes

o   Any dispute between Employers and workers

Industrial unrest between these stakeholders causes a trade dispute.  The law sets out what is deemed a legitimate and illegitimate trade dispute.

o   Connected with employment or non employment of workers

A trade dispute can be if employees disagree with their employer about themselves or a fellow employee recruitment, promotion or dismissal.  Or if they disagree with employer about their duties.

o   Connected with the terms & conditions of employment

A trade dispute can be if employees re arguing with their employer about their wages, overtime, number of holidays and working conditions of the job.

b.Outline the provision for picketing 15 marks 6 minutes

·         Protesting at place of employment

Employees will walk around outside their place of employment, often carrying placards.  The aim of this is to draw attention to and get public sympathy for their case and discourage customers entering

·         Primary picketing

If employees have a secret ballot and give their boss seven days notice of the strike, they are allowed to picket peacefully outside the business of their employer.  This is legal.

·         Secondary picketing

This is when the employees picket outside the premises of another employer.  It is illegal unless the employer is helping their boss to break the strike.

c.The reasons for a legitimate trade dispute 20 marks 8 minutes

IR Act 1990 provides immunity to any workers in a dispute with their employer for a legitimate reason.

·         Discrimination

If an employee feels they have been treated less favorably than another employee on any of the 9 grounds listed in the employment equality act 1998/2002

Mary did not get a promotion in work and felt it was because she was female.  This is a legal reason for a trade dispute

·         Demarcation

When people refuse to do a task as they feel it is outside their job description

Simon is a teacher and on his timetable he has been given 3 class periods in reception.  This is a legal reason for a trade dispute

·         Union recognition

It is an employee constitutional right to join a union

Sarah is a lab technician in a multinational company.  She decides to join SIPTU but her employer will not recognize the union.  This is a legal reason for a trade dispute

d.The reasons for an illegal trade dispute 15 marks 6 minutes

·         Political issues

You cannot have a legal trade dispute with an employer over politics or political reasons

John supports Fianna Fáil and his employer supports Fianna Gael.  This is not a legal reason for a trade dispute

·         Management issues

You cannot have a legal dispute with an employer over how they are running the business.

Joan does not like that her manager uses an autocratic style of leadership.  This is not reason for a trade dispute.

e.The provisions for organizing industrial action 15 marks 6 minutes

·         Hold a secret ballot

This is when workers vote in private.  Each employee should be given a voting paper and vote yes or no.  Employees do not identify themselves on the voting paper.  Employees should not feel intimidated in any way.

·         Give 1 weeks notice to employer

The employer must be contacted by the union and told1 week in advance that employees intend on striking

·         Workers are given immunity

During the strike employers can not sue employees for damages caused by the strike and peaceful picketing, provided that they had the secret ballot and gave the weeks notice.

13. Evaluate the role of the Labour Court in dealing with industrial disputes 20 marks 8 minutes
notes copy and book p50

14.Outline the impact on trade unions of the main provisions of the Industrial Relations Act 1990 20 marks 8 minutes
Define trade union (book p.42)

• Identify if dispute is legitimate or illegal

Expand with lists of each

• Organise secret ballot

This is when workers vote in private. Each employee should be given a voting paper and vote yes or no. Employees do not identify themselves on the voting paper. Employees should not feel intimidated in any way.

• Communicate with employer

The employer must be contacted by the union and told1 week in advance that employees intend on striking

• Organise picketing

Employees will walk around outside their place of employment, often carrying placards. The aim of this is to draw attention to and get public sympathy for their case and discourage customers entering

15. Describe two types of official industrial action a trade union can undertake as part of a trade dispute 10 marks 4 minutes
book p 40&41

16.Describe how conflict between an employer and an employee could be resolved in a non legislative manner 15 marks 6 minutes

·         Talk it out – employer and employee

·        Seek Advice – Union

·         Negotiate  - employer and employee with union

17.Describe how conflict between an employer and an employee could be resolved in a legislative manner 15 marks 6 minutes

·         Conciliate

1.       LRC – IRO 1990

2.       Equality officers – Employment Equality Act 1998

·         Arbitrate

1.       Labour court – IRO 1990

2.       EAT – unfair Dismissals 1977

18. Describe how conflict between a consumer and a retailer could be resolved in a non legislative manner 15 marks 6 minutes

·         Talk it out

·         Seek Advice – NCA advice on rights

·         Negotiate
19. Describe how conflict between a consumer and a retailer could be resolved in a legislative manner 15 marks 6 minutes

·Seek Advice

NCA advice on rights under The Sale of Goods and supply of services Act 1980 and Consumer Protection Act 2007
·Conciliate-Small claims court or Ombudsman

·Arbitrate -District court
expand on each point

20. Discuss the rights of the consumer under the terms of the sale of goods and supply of services Act 1980 20 marks 8 minutes
The Sale of Goods and Supply of Services Act 1980 was set up to protect consumers, the main provisions are:

·         Goods must be of:

Merchantable quality
Goods must be of a good working quality
Fit for purpose
The item purchased should do what it was bought to do.
Conform to sample
The item purchased should be the same as any samples shown to you in the store
Be as described
The item purchased should be as explained by a package, salesperson or advert.

·         Services must be

Merchantable and quality parts, qualified person, , must be given with due care and attention
EXPAND

·         Right to redress

Repair, refund, replacement
EXPAND

·         Retailer is responsible

Sold the good so must deal with the problem
EXPAND

21.Illustrate the forms of redress available to consumers for breach of the ale of goods and supply of services Act 1980 15marks 6 minutes

• Refund

The consumer is entitled to their money back

Mary purchased a pair of shoes for €100, on their first wear the heal comes off.  Mary rings the retailer and immediately explains what happened.  The next day she returns the shoes to the store and is refunded her €100.

• Repair

The consumer is entitled to have the item fixed.

Mary purchased a pair of shoes for €100, on their first wear the heal comes off.  Mary calls into the shop a week later.  The retailer offers to send the shoes off to be repaired and Mary accepts

• Replacement

The consumer is entitled to a new product

Mary purchased a pair of shoes for €100, on their first wear the heal comes off.  Mary calls to the shop the following week and is offered a new pair of shoes which she accepts.

22.Evaluate the Small Claims court 15 marks 6 minutes

·         Deal with consumer problems

If a consumers rights have been breached under the sale of goods and supply of services Act 1980 they can resolve the problem using the Small claims court

 

In my opinion it is important to resolve conflict and look after our legal rights

·         Acts as a conciliator

The small claims court listens to the consumer and the retailer and offers a non binding recommendation on the issue

In my opinion conciliation is important because the problem can be solved without going before a judge

·         Easy and cheap to organize

The Small Claim Courts hears cases for goods or services with a value of <€2000.  To have the case heard you can apply on line or fill in an application form at the district court.

In my opinion it is important to have a cheap and easy service so consumer can avail of it and will have their case heard.

23.Evaluate the Employment Appeals Tribunal 15 marks 6 minutes

Statements you must expand

·         Deals with unfair dismissals

·         Act as an arbitrator

·         Is quick and inexpensive

24. Evaluate the Labour Relations Commission 20 marks 8 minutes

Book p48

25.Explain the term data protection under the terms of the Data Protection Act 1988 / 2003 10 marks 4 minutes

Gives rights regarding information on a computer

·         Protects data subject

Expand p119

·         Restricts data controllers

Expand p119

·         Set up office of Data Protection Commission

Expand p120

26.Discuss :
the role of the Data controller 15 marks 6 minutes
Book p119
the rights of the Data subject 15 marks 6 minutes
Book p119
the obligations of the Data protection commissioner 15 marks 6 minutes
Book p120

27.Evaluate the role of the NCA in protecting consumers 20 marks 8 minutes
Book p31
 28.Define contract and Illustrate how invitation to treat is not a valid contract 20 marks

·         A legally binding agreement

o   The two parties to a contract (offerer and offeree) enter into the contract and are legally bound to the terms.

·         Enforceable by law

o   This means if one party breaks the agreement they are entitled to a remedy

·         There are seven elements to a valid contract

1.      Agreement(offer + acceptance)

2.      Consideration

3.      Intention

4.      Capacity

5.      Consent

6.      Legality of form

7.      Legality of purpose

Invitation to Treat

·         This is when people are invited to make offers

o   The offeree puts something up for sales and offerers can make offers

§  Mary puts her house up for sale for €350,000.  She may not sell at this price but invites people to bid

·         This is not a contract

o   As there is no agreement an invitation to treat is not a contract.  Not until Mary accepts an offer is there a contract

29. Illustrate the remedies for breach of contract 15 marks 6 minutes

Sue for Damages

This means that they can claim compensation in court for the loss suffered as a result of the broken contract.

e.g. Mary hires Bob to build her shed for €4000, Bob  builds half the shed and moves on to another project. Mary sues Bob for damages – either for a full refund or for the money to get the shed completed.

Specific Performance

The court may order that the contract be carried out in accordance with the terms of the agreed contract.

e.g. Mary hires Bob to build her shed for €4000, Bob  builds half the shed and moves on to another project. Mary bring Bob to court where he is ordered to finish building the shed as agreed in the initial contract.

Rescind the Contract.

Cancel the whole contract and go back to the situation before the contract was agreed.  The injured party might rescind the contract and sue for damages.

e.g. Mary hires Bob to build her greenhouse for €4000, Bob agrees but is over a month late in starting the job. Mary cancels the contract and considers suing Bob as she has missed the tomato-growing season for vegatable shop. 

30. Illustrate the methods to terminate a valid contract 20 marks 8 minutes

A contract may be ended in a number of ways:

·         Performance –

 each party does what they are contracted to do.

 

e.g. Mary hires Bob the Builder to build her a shed for €4000.  Bob builds the shed Mary pays the €4000, the contract is complete.

 

·         Breach –

One party to a contract has failed to perform their obligations in the contract.  Breach of a condition (an important part) of the contract, entitles the injured party to rescind the contract and sue for damages.

 

e.g. Mary hires Bob to build her shed for €4000, Bob  builds half the shed and moves on to another project. Mary cancels the contract and sues Bob for damages.

 

·         Agreement

Each party agrees to end the contract.

e.g. Mary hires Bob to build her shed for €4000. Before building starts Mary decides she no longer needs the shed and wants out of the contract.  Bob agrees and the contract is cancelled.

 

·         Frustration

Some unforeseen event happens which makes it impossible to carry out the contract.

 

e.g. Mary hires Bob to build her shed for €4000.  Unfortunately Bob dies and therefore cannot complete the contract as agreed.

31. Illustrate the elements of a valid contract 20 marks 8 minutes

1.      Agreement

·         In order to have an agreement there must be an identical offer an acceptance

o   The offerer will make an offer to the offeree to enter into a contract

o   The offeree must accept this offer for an agreement

·         Methods of reaching an agreement

o   By conduct

o   Oral

o   In writing

e.g Mary invites people to make an offer on her house.  John offers €350,000, Mary accepts this and there is an agreement

2. Consideration

·         This is the financial value of the contract

Every contract must have a monetary worth

e.g Mary’s house is for sale for €350,000.  The consideration is €350,000

3. Intention

·         Both the offerer and the offeree must aim to enter into and complete the contract

e.g Mary must intend on selling her house

John must intend on buying her house

4. Capacity to Contract

·         In order for a valid to exist the parties involved must have the capability to enter contract.

 

 All human beings and legitimate companies are able to enter a contract with the following exceptions.

 

                                I.            Infants under the age of 18*

                             II.            Persons under the influence of drink or drugs

                           III.            Insanity

 

·         Without capacity the contract is not valid

 

A person or firm should not enter into a contract with them as it would not be legally binding.

 

·         It is possible for a company to enter into a contract once it does so within   the terms specified in its Memorandum of Association.  (Ultra Vires)

  

If company directors authorise actions not covered they are said to operating beyond the powers of the company

 

e.g. An estate Agent selling tractors

 

 

5. Consent to Contract

·         Both parties to a contract must give their permission to the agreement. 

Neither party must be put under pressure to sign the contract. 

 

John and Mary must both agree to enter the contract

 

·         The contract is void if pressure existed

The contract will be ended if found that either party did not enter of their free will

 

If it is found John was going to kill Mary if she did not sell the contract would no longer exist

 

 

 

6. Legality of purpose

·         The content of contracts must not be illegal! 

That is contracts must not break the law of the land

e.g. contracts for the commission of crime, contracts to evade tax, or contracts to interfere with the course of justice. 

 

7 Legality of form

·         Some contracts must be in writing in order to be legally valid.  This is because they tend to be complex and can be open to misinterpretation.

 

e.g. contract for the sale of a house. 

32. Illustrate the term constructive dismissal 10 marks 4 minutes

Statements only you must expand

·         Unfair dismissal

define

·         Employee feel forced out

P54

·         Redress available

P53 do not use reinstate

33.Explain the role of any 2 people in business 15 marks 6 minutes
Notes copy nb use Entrepreneur.

34.How can business lessen the likelihood of an industrial conflict 20 marks 8 minutes
Statements only you must expand

·         Fair pay

·         Do not discriminate

·         Do not unfairly dismiss

·         Recognise unions

35.Illustrate the difference between arbitration and conciliation 10 marks 4 minutes

Arbitration

·         Involves a third party - Arbitrator

·         Give a legally binding decision

·         Example the Labour Court

Conciliation

·         Involves a third party – conciliator

·         Gives a non-binding recommendation

Example Labour Relations Commission

36.Identify types of industrial problems between employers and employees 20 marks 8 minutes
Statements only you must expand

·         Discrimination

·         Unfair dismissal

·         Union recognition

·         Pay and conditions