Unit of competency Outline
Date retreived
22/07/2026 10:19 PM AWST
22/07/2026 10:19 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Establish business legal and legislative requirements
Establish business legal and legislative requirements
Unit of competency
National Code
SIRXGLC502
SIRXGLC502
State Code
WD962
WD962
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
10/08/2012
Field of Education
080301 - Business Management
Original Release Date
10/08/2012
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to identify and understand the salient features of the legal environment as they affect businesses, and to establish compliance with legal and legislative requirements.This unit covers aspects of contract law, intellectual property, product recall risk, and transfer of ownership across national boundaries.
Notes
Elements and Performance Criteria
1. Examine legal compliance of business-to-business arrangements.
- 1.1.Determine key elements of major legal oversight systems affecting business-to-business operations.
- 1.2.Compare various issues affecting different forms of contract and agreements within business operations.
- 1.3.Detail business entities commonly encountered in the business environment.
- 1.4.Examine legal aspects of financial transactions within business operations.
- 1.5.Determine legal requirements for the sale of products and services across state, territory, regional and national borders.
- 1.6.Examine legal implications of e-commerce for business-to-business operations.
2. Establish compliance of current product recall policy and procedures.
- 2.1.Develop procedures and guidelines for supplier-initiated recalls.
- 2.2.Develop recall procedures and guidelines for government or industry-initiated recalls.
- 2.3.Ensure product recall procedures and guidelines comply with prevailing legislative, legal and industry requirements.
- 2.4.Circulate product recall procedures and policies to relevant personnel and business partners.
- 2.5.Establish procedures for halting or monitoring the sale and distribution of recalled products.
- 2.6.Inform staff of risks associated with recalled products.
- 2.7.Establish policy and procedures for dealing with media and consumer enquiries relating to product recalls.
- 2.8.Establish storage, isolation or disposal process for recalled products according to risk and recall notification.
- 2.9.Analyse records and reports on product recall activities and costs.
3. Ensure compliance of parties undertaking business transactions.
- 3.1.Determine legal rules relating to ownership of assets and intellectual property.
- 3.2.Apply legal rules relating to the transfer of risk.
- 3.3.Design and issue warranties in compliance with relevant legislation.
- 3.4.Ensure insurance for business operations and products complies with relevant legislation.
- 3.5.Determine legal remedies and enforcement options available for the resolution of disputes.
4. Ensure compliance with business and contract law.
- 4.1.Determine and apply requirements for a valid contract to be formed in a business environment.
- 4.2.Apply remedies available for breaches of contract within a business-to-business transaction.
- 4.3.Analyse and apply range of principles affecting business-to-business licensing and other agreements.
5. Analyse application of intellectual property.
- 5.1.Determine major principles relating to intellectual property and its creation.
- 5.2.Compare various forms or categories of intellectual property.
- 5.3.Apply law of copyright in business-to-business transactions and relationships.
- 5.4.Apply law of design in business-to-business transactions and relationships.
- 5.5.Analyse various methods of regulating patents and trademarks in an international and local business environment.
- 5.6.Apply principles of assignment and licensing of intellectual property rights.
- 5.7.Determine legal consequences of franchising of intellectual property rights held by a business.
6. Ensure compliance with workplace and safety laws.
- 6.1.Identify and implement policies and procedures to ensure goods are handled, stored and transported safely and according to requirements for dangerous and hazardous materials.
- 6.2.Identify and implement policies and procedures to ensure food is handled, stored nd transported according to food safety requirements.
- 6.3.Identify and implement policies and procedures to ensure equal employment opportunity (EEO), anti-discrimination and related legislative provisions and business codes are implemented.
- 6.4.Record, store and transfer information according to legislative and business requirements.
- 6.5.Administer access to records according to legislative and business requirements ensuring customer and staff privacy is protected.
- 6.6.Use appropriate channels to report and action grievances or complaints against individual behaviour or practices in line with organisational policies and procedures.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the individual, accessibility of the item, and local industry and regional contexts) may also be included.
Legal oversight systems may include:
Australian Competition and Consumer Commission provisions
contract law
environmental protection, and sustainability
EEO
industry codes of practice
licence, patent or copyright arrangements
WHS
Australian consumer law and fair trading Acts
transport, storage and handling of goods
workplace relations.
Different forms of contract and agreementsmay include or relate to:
common-use arrangements or standing offers
consequences
contracts, including:
contracts as detailed under the Australian consumer law
external contracts
in-house service level agreements
letters of appointment or intent
memorandums of understanding or memorandums of agreement
non-compliance
people contracts
petty cash
purchase orders
trade partners
verbal and written orders.
Financial transactions may include:
cash on delivery (COD)
cheques
credit card transactions
customer account management
customer refunds
deposits
hire-purchase
withdrawals.
Legal requirements for the sale of products and services may include:
industry codes of practice
liquor laws
lottery legislation
WHS
pricing procedures, including GST requirements
sale of second-hand goods
sale of X and R-rated products
tobacco laws
Australian consumer law and fair trading Acts.
Product recallprocedures and guidelines may be developed in consideration of:
approvals obtained
claim procedures on recalled products
consultation with key stakeholders
impact on business relationships and contractual arrangements
insurance issues
legal requirements
organising logistics
reporting compliance
timing
warnings.
Procedures and guidelinesmay include:
customer-specific
documented in hard copy or electronic manuals
implemented at business, team or operational levels
product or service-specific
territory or location-specific.
Relevant personnel may include:
employees
internal or external contacts
relevant managers
supervisors.
Staffmay include:
fulltime, part-time, casual or contract staff
people from a range of cultural, social and ethnic backgrounds
people with a range of responsibilities and job descriptions
people with varying degrees of language and literacy.
Principles related to intellectual property may vary according to:
ability to show ownership
legal and legislative provisions
location, for example, international variations in legal protection
nature of product or service delivery
nature of the product or service
scope of protection sought.
Record may refer to:
asset registers
corporate credit card transaction statements
evaluation process documentation
financial statements
human resources files
invoices and payment requests
offer and contract documents
purchase requests and orders
records of authorised officers’ decisions
records of conversation
records of supplier performance
statements and petty cash vouchers
tender submissions and proposals.
Appropriate channels may include:
informal and formal meetings
presentations
verbal reports
written reports.
Grievances or complaints may be reported by:
customers
management
staff
staff representatives.
Legal oversight systems may include:
Australian Competition and Consumer Commission provisions
contract law
environmental protection, and sustainability
EEO
industry codes of practice
licence, patent or copyright arrangements
WHS
Australian consumer law and fair trading Acts
transport, storage and handling of goods
workplace relations.
Different forms of contract and agreementsmay include or relate to:
common-use arrangements or standing offers
consequences
contracts, including:
contracts as detailed under the Australian consumer law
external contracts
in-house service level agreements
letters of appointment or intent
memorandums of understanding or memorandums of agreement
non-compliance
people contracts
petty cash
purchase orders
trade partners
verbal and written orders.
Financial transactions may include:
cash on delivery (COD)
cheques
credit card transactions
customer account management
customer refunds
deposits
hire-purchase
withdrawals.
Legal requirements for the sale of products and services may include:
industry codes of practice
liquor laws
lottery legislation
WHS
pricing procedures, including GST requirements
sale of second-hand goods
sale of X and R-rated products
tobacco laws
Australian consumer law and fair trading Acts.
Product recallprocedures and guidelines may be developed in consideration of:
approvals obtained
claim procedures on recalled products
consultation with key stakeholders
impact on business relationships and contractual arrangements
insurance issues
legal requirements
organising logistics
reporting compliance
timing
warnings.
Procedures and guidelinesmay include:
customer-specific
documented in hard copy or electronic manuals
implemented at business, team or operational levels
product or service-specific
territory or location-specific.
Relevant personnel may include:
employees
internal or external contacts
relevant managers
supervisors.
Staffmay include:
fulltime, part-time, casual or contract staff
people from a range of cultural, social and ethnic backgrounds
people with a range of responsibilities and job descriptions
people with varying degrees of language and literacy.
Principles related to intellectual property may vary according to:
ability to show ownership
legal and legislative provisions
location, for example, international variations in legal protection
nature of product or service delivery
nature of the product or service
scope of protection sought.
Record may refer to:
asset registers
corporate credit card transaction statements
evaluation process documentation
financial statements
human resources files
invoices and payment requests
offer and contract documents
purchase requests and orders
records of authorised officers’ decisions
records of conversation
records of supplier performance
statements and petty cash vouchers
tender submissions and proposals.
Appropriate channels may include:
informal and formal meetings
presentations
verbal reports
written reports.
Grievances or complaints may be reported by:
customers
management
staff
staff representatives.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
completes tasks associated with management of a business operation in a satisfactory and timely manner and in compliance with legal and legislative requirements
uses relevant legal and statutory rights to protect the business brand and intellectual property
implements and documents product recall procedures for a business operation
describes and complies with legal rules relating to transfer of risk and legal obligations affecting a specific range of business operations, including import and export operations
establishes and implements appropriate reporting procedures and record-keeping systems for a business operation
processes documentation relating to business and legal compliance within a set timeframe.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment
relevant documentation, such as:
relevant legislation and statutory requirements
information on the internal and external operating environment
business policy and procedures manuals
information on:
business operations
markets
competitors
products and services
suppliers.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
third-party reports from a supervisor
review of portfolios of evidence
written or verbal questioning to assess knowledge and understanding.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
completes tasks associated with management of a business operation in a satisfactory and timely manner and in compliance with legal and legislative requirements
uses relevant legal and statutory rights to protect the business brand and intellectual property
implements and documents product recall procedures for a business operation
describes and complies with legal rules relating to transfer of risk and legal obligations affecting a specific range of business operations, including import and export operations
establishes and implements appropriate reporting procedures and record-keeping systems for a business operation
processes documentation relating to business and legal compliance within a set timeframe.
Context of and specific resources for assessment
Assessment must ensure access to:
a retail work environment
relevant documentation, such as:
relevant legislation and statutory requirements
information on the internal and external operating environment
business policy and procedures manuals
information on:
business operations
markets
competitors
products and services
suppliers.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
third-party reports from a supervisor
review of portfolios of evidence
written or verbal questioning to assess knowledge and understanding.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| S6132 | SIRXGLC002A | Establish compliance with legal and legislative requirements | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| J151 | SIR50112 | Diploma of Retail Management | Qualification |