The Legislative and Regulatory Framework

In Chapter 3 we reviewed the nature of the markets and the dynamics which control the manner in which markets react to competition. In this chapter we start by considering government-generated regulation introduced in the UK, USA and the European Union (EU) for the protection of consumers, with the intention of controlling the commercial and probably unfair ‘free for all’ that might result if there were no legislative framework. Given that in most Western countries the legislation exists, the question is whether it is directed at the most appropriate objectives? We then consider the influence and impact of legislation and regulations designed to preserve the environment.