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SA MP LE

Level 4

keeping your business profitable


INTRODUCTION Welcome to Training and Assessment in the Workplace Part 1. Retail Operations covers five areas in retail management and will enable you to gain credits towards a National Certificate. Completing this module will prepare you for assessment in the following unit standards:

Title

11969

Maintain and integrate knowledge of legislation applicable in a retail or distribution environment

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Unit

11995 407

Protect safety of personnel, plant and property in a retail or distribution environment Perform business calculations in a retail or distribution environment

11999

Demonstrate product knowledge in a specified area in a retail or distribution environment

11986

Establish and maintain stock levels in a retail or distribution environment

The training material is in five sections. Each section includes activities for you to complete as part of your learning. Questions may be completed in writing or through discussion with your assessor, who will record your responses. Verification forms are to be completed by your manager to verify your performance as a manager. If you have any queries regarding any aspect of this module, please contact your Retail Institute training advisor.

Talking the talk

Some of the words in this module may be new or unfamiliar to you. These are highlighted the first time they are used and included in the glossary at the end of the module.

The sections are:

Page

Section 1: Retail legislation ................................................................................................. 3 Section 2: Safety in the workplace ...................................................................................... 5 Section 3: Business calculations............................................................................................ 23 Section 4: Product knowledge ............................................................................................ 31 Section 5: Stock levels ........................................................................................................ 47 Section 6: Review ............................................................................................................... 51

What’s next? ..................................................................................................................... 65

Glossary ............................................................................................................................. 73

Keeping Your Business Profitable

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RIRL4.KEEPSAMP April ‘10

Notes . ................................................................................................................................ 66


Icons The following icons have been used in this training resource. Outlined below is an explanation of what the icons mean. This icon identifies an example.

This icon gives you a Hot Tip.

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HOT TIP!

This icon tells you there is a key point to remember.

This icon lets you know that there is more information on this subject in another module, section or training resource.

This icon indicates that there is a DVD clip to watch.

This icon indicates an activity for you to do. The activities do not form part of the assessment but will help to reinforce your learning.

Contact us

If you require help with any part of this material, please contact your Retail Institute Training Adviser on the freephone number – 0800 486 738.

Glossary

In this material you may come across some new or unfamiliar terms. These are explained in the margin when they appear for the first time. In addition, you will find a full glossary of terms at the back of this material.

Notes A note section is available at the back of this resource for you to write down any notes or queries that you may have.

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Section 1

Legislation Most workplace activities are governed by some form of legislation (laws or Acts of Parliament). Most businesses comply with this legislation automatically, such as by: • not knowingly selling faulty products • protecting the health and safety of staff and customers

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• keep people’s information private.

There are situations where the legal requirements are not so clear. However, not knowing the law is no excuse for non-compliance. Every employer and employee must take personal responsibility for:

• learning about and keeping up to date with the legislation that applies to their particular workplace • incorporating this knowledge into their daily work.

General legislation applicable to retail

The following pieces of legislation are the main ones that apply to the retail industry. You need to have a good general knowledge of:

The Fair Trading Act 1986

Before you buy

This Act protects customers against being misled or treated unfairly by traders or shops, by prohibiting what is called ‘misleading or deceptive conduct, false representations and unfair practices’.

The Consumer Guarantees Act 1993

After you buy

Under this Act, consumer rights are expressed as a series of ‘guarantees’ that a seller automatically makes to a customer when they buy good(s) or service(s) for personal (not business) use.

The Credit Contracts and Consumer Finance Act 2003

Covers the terms, conditions and standards around credit contracts including hire purchase agreements, personal and cash loans and leases where there is an option to buy goods.

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Privacy Act 1993

This applies to every person, business or organisation in New Zealand. It sets out 12 information privacy principles, which guide how personal information can be collected, used, stored and disclosed.

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Health and Safety in Employment Act 1992

This Act has one main objective: to provide for the management of health and safety in the workplace, and to prevent harm to all people at or in the vicinity of the workplace. Health and Safety is the responsibility of every employee.

Sale of Goods Act 1908

Employment Relations Act 2000

Applies to sales of commercial goods that are not covered by the Consumer Guarantees Act. It prevents the sale of goods that are of unacceptable quality or are not fit for the purpose for which they are sold.

This is the main piece of legislation covering employment relationships in New Zealand. It sets down the minimum requirements for employment negotiations and agreements, and the resolution of employment disputes.

In addition to this general legislation, there may be laws that apply specifically to your workplace or type of business. Some examples of specialist legislation include the:

Cheques Act 1960

Covers requirements relating to cheques, such as presentation of cheques for payment, transfer of cheques, etc. The law provides protection and rights for the banker.

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Weights and Measures Act 1987

Covers layby sales for goods priced at $7,500 or less, but not sales of vehicles by licensed motor vehicle dealers. It outlines the legal terms and conditions of layby sales.

This Act and its associated regulations sets out the rules for selling goods by quantity.

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Layby Sales Act 1971

Shop Trading Hours Act Repeal Act 1990

The Shop Trading Hours Act Repeal Act 1990 repealed the 1977 Act of the same name. It removed trading restrictions except for Christmas Day, Good Friday, Easter Sunday, and before 1 pm on ANZAC Day. Subsequent amendments have removed further trading restrictions, for example, garden centres can now open on Easter Sunday.

Hazardous Substances and New Organisms Act 1996

This Act aims to protect the environment, and the health and safety of communities, by preventing or managing the negative effects of hazardous substances and organisms.

Food Act 1981

Medicines Act 1981

Arms Act 1983

Relates to the sale of food. It outlines legal requirements for food labelling, advertising and food safety programmes.

Relates to the manufacture, sale, and supply of medicines, medical devices and related products.

Relates to the licensing requirements of firearms dealers. It aims to promote safe use and control of firearms and other weapons.

Keeping Your Business Profitable

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Door to Door Sales Act 1967

This Act provides protection for people buying from door-to-door salespeople. It assures customers that they have 7 days to give written notice to the seller that they are cancelling the agreement. This is known as a ‘cooling off’ period.

Resource Management Act 1991

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Unsolicited Goods and Services Act 1975

Provides protection for people who have received goods or services they didn’t ask for or order.

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© 2010 Retail Institute

This Act provides extensive powers to local authorities concerning land and resource use in their territories. The Act also covers noise levels and provides enforcement officers.


Activity 1 Now that you have an idea of the legislation related to retail operations, think about and discuss with the following scenarios that could potentially arise in your workplace. Keep notes from your discussions and any research you do around the relevant legislation. You can include your notes as evidence when you answer assessment questions later.

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Remember to put your name and the scenario number clearly on your notes. Scenario 1: You have advertised a particular product in the media at a special price. Due to unforeseen circumstances, the supplier of the product has been unable to deliver the product on time.

How would you manage this situation and which Act does this relate to?

Scenario 2: The previous manager of your store allowed flexible working hours so some staff could play sport on Saturdays. You want to review this. As a manager, what strategies would you use, and what Act applies?

Scenario 3: The Shop Trading Hours Repeal Act 1990 sets out the hours a store may open. Is your store allowed to open between Good Friday and Easter Monday? If so, what days and what hours?

Scenario 4: You sell a product that the manufacturer has recalled for safety reasons. You have stock on the shelves and in the stockroom. You have sold quite a lot of this product already. What are your responsibilities to your customers? What Act does it relate to?

How can you meet the requirements of the Act?

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Maintaining and improving your knowledge It’s easy to forget the contents of these Acts, especially as some of them are quite difficult to understand. All the Acts mentioned in this resource, and their amendments, are available online at www.legislation.govt.nz Fortunately you don’t need a lawyer’s in-depth understanding, but you do need to have ‘a working knowledge’.

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This means understanding the key concepts of all the Acts listed on the previous pages, and how they apply to you and your workplace. Laws also change from time to time, and you need to keep up with these changes (called amendments). With this knowledge you can make sure you are acting legally in your workplace.

HOT TIP!

Some things you need to know:

Fair Trading Act: You cannot mislead someone about a product for example, by advertising a product at a cheap price but charging customers more at the checkout. Consumer Guarantees Act: You cannot sell faulty products, for example, selling a product that you know is broken or has a part missing. Layby Sales Act: The price of a product held on layby cannot be increased if new stock of the same product comes in at a higher price. Credit Contracts and Consumer Finance Act: A customer needs to sign a contract when buying goods on credit. Privacy Act: You cannot give out information about a person without that person’s permission, for example, giving details of customers to a market research company. Sale of Goods Act: You cannot sell something that is of unacceptable (poor) quality, for example, selling something that you know has been badly made and is likely to break down after very little use.

The Ministry of Consumer Affairs has published guides to many of these Acts, which provide all the key information you need. You can download or order these guides online through the Ministry’s website at www.consumeraffairs.govt.nz For specialist information you may need to refer to relevant organisations, such as the Department of Labour for information on the Health and Safety in Employment Act 1992.

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It’s important to keep your knowledge up to date whenever you have the opportunity. You can do this easily by: • reading • information searches (on the internet and other places) • seminars • training • specialist advice.

Reading

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Take the time to research the information that applies to you and your workplace. Read pamphlets, guides and information available from the Ministry of Consumer Affairs or organisations such as the Department of Labour. This will give you a broad understanding of all the main concepts of the legislation that applies to you. Make sure these sources of information are up to date. You need to be working with the latest amendments to the particular law you are reading about.

Information searches

You are most likely to conduct an information search on the internet, but you may also use a public library, a specialist bookstore or even a workplace intranet or library if you have access to one. This is a helpful way to look for a specific piece of information rather than having to sift through a whole Act. You may be able to find how your workplace deals with specific legal requirements (for example, what to do about returned goods) in your workplace policy/ procedures manuals.

Seminars

Seminars are events at which information is presented to a group of people with similar interests. For example, a consumer group may run a seminar for the retail industry on a new amendment to a law relating to retail sales. A seminar is a good opportunity for people to meet others in similar situations, and to question the presenters directly about your particular situation.

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Training Training can be longer-term, such as completing a course or certificate programme, or shortterm, such as a workshop or training session for your specific workplace. Training gives you a chance to work ‘hands on’ through new information. You will usually be given course notes to keep for later reference and an opportunity to work through practice activities to apply your new knowledge.

Specialist advice

SA MP LE

Sometimes you may need to seek specialist advice to help you understand legislation clearly. Usually this happens when a situation at work requires information you do not have or which is disputed by the customer. For example, if a customer disputes the terms and conditions of a credit agreement, and you are unsure what to do next, it is the time to ask for specialist advice.

HOT TIP!

Specialist advice is available from:

• Other people – You may have a lawyer in your workplace, or a legal expert whom your workplace consults with whenever anyone needs specialist advice on a particular matter. • Official sources – These include government departments, such as the Ministry of Consumer Affairs (www.consumeraffairs. govt.nz), the official legislation website for New Zealand law (www.legislation.govt.nz), printed legislation from Government bookshops and your local library. The Citizens Advice Bureau is also a useful starting place to find information and seek advice. • Trade associations – For example, industry-related associations or generic associations such as the New Zealand Retailers Association are organisations that can help retailers on a variety of matters, including advice on legislation. Ask your supervisor/ manager which trade associations your workplace belongs to, so you know who to seek advice from when you need it.

Using your knowledge of legislation at work

Once you have a broad understanding of the legislation that relates to your work you will be clearer about how it applies in your day-to-day work. Examples of using legislation in your work practice include: • Providing legal information to customers about specific situations. You need to make sure the information is current and accurate. This is why you need to be aware of the latest amendments to any relevant legislation.

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For example... A customer buys something on credit. You sit them down and go through the terms and conditions in the credit contract, to make sure they understand them. You then ask them to sign the credit agreement.

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• Taking the right action when dealing with customers’ personal information.

For example...

Access to customer information is limited to three key account managers, and is kept in a password-protected file in the business computer network.

• Putting in place systems and procedures for staff to follow.

For example...

You sell products on layby, so you set up a clearly labelled separate section in the stockroom to keep layby products safe for customers. You also make sure all staff understand your procedures for dealing with layby transactions, so they meet the legal requirements.

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Activity 2 Work with your supervisor/manager or colleagues to find out what information you have on the following pieces of legislation in your workplace. (If you don’t have any, or if it is out of date, go on a mission to find current information and guides from relevant sources.)

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Check how each of these laws is used in your workplace. Discuss the procedures for bringing new legislation into action in your workplace. Share your understanding of any new or recent legislation with your colleagues. Note: Read the related Assessment Activity before you start. You will use some of the information you are gathering here for your assessment. General legislation:

• Consumer Guarantees Act 1993 • Fair Trading Act 1986

• Credit Contracts and Consumer Finance Act 2003 • Privacy Act 1993

• Health and Safety in Employment Act 1992 • Sale of Goods Act 1908

• Employment Relations Act 2000 Specialist legislation: • Cheques Act 1960

• Layby Sales Act 1971

• Weights and Measures Act 1987

• Shop Trading Hours Act Repeal Act 1990 • Door to Door Sales Act 1967

• Unsolicited Goods and Services Act 1975 • Food Act 1981

• Medicines Act 1981 • Arms Act 1983

• Hazardous Substances and New Organisms Act 1996 • Resource Management Act 1991

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© 2010 Retail Institute


Copyright Š Retail Institute All rights reserved. No part of this publication may be reproduced in any form without prior written permission. Enquiries should be made to the Retail Institute, PO Box 24341, Wellington.

RIRL4.KEEPSAMP April ‘10

0800 486 738 www.retailinstitute.org.nz


Keeping your business profitable  

Keeping your business profitable

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