Legal Considerations Sunny, Chris and Genta
Business name registration • Every business, except those which are the name of the owner, must be registered. • Prohibits business with the same name from being founded. • Does not protect or establish the specific right to that name, must be registered as trademark to do this.
Zoning • Controlled by local governments. They decide where businesses are allowed to locate • Ensures business’ are place appropriately in regards to their surrounding nature and built environment. • Example: Preventing heavy industry from establishing next door to a pre-school.
Health regulations • Local government dictates over this. • Standards too which the business must meet involving health of employees and customers of a business. • Usually done when dealing with business’ that provide food stuffs, such as café’s or McDonalds. • If standard is not upkept than license can be taken away, or fines imposed.
Glossary • Business name registration: Registration of a business name prohibits others from trading under a similar name. • Legal Obligation: Business owners have to observe the statutory regulations when commencing and operating a business. • Health Regulation: a requirement/standard a business has to meet in order to receive a licence of a local government to operate. • Zoning: The placement of activities controlled by local government to ensure that activities associated with factories and residential areas kept separate.
Questions • Explain 2 reasons why health regulations are important to a business (4 marks) • Analyse the importance for business name registration, zoning and health regulations (6 marks)
Model Answer question 1 • The two reasons are keeping up to date with industry standards and fulfilling legal obligations. The former insures the safety of all stakeholders in the business, it also avoids a loss of reputation. The later ensures that the business receives a license from the local government to operate, and prevents being fined or other legal action.
Model answer question 2 • Business name registration is important as it prevents others from trading under a similar name, thus stopping fraud, replication and the damaging of reputation. Zoning importance is too the community surrounding the business. It ensures the business’ do not damage their local environment and community members through careful planning. Finally, health regulations are important because they prevent business’ from taking shortcuts, which could endanger stakeholders.