Unregulated Entry with Quality Control / Legal Aspects / Legal and Regulatory Framework

Legal Instruments
The literature on unregulated entry with quality control often refers to quality control as quality regulation or quality licensing. It’s true that quality control can be regulated and regulated furthermore by means of a license.

However, these are not the only legal mechanisms available to a government that wishes to introduce quality control within its urban bus transport sector and oblige bus operators to abide by terms and conditions designed to implement and enforce quality control.

Any of the following three options is equally possible and, depending on the adequacy of the monitoring system in place, equally effective.

1. Mandatory quality control provisions set out directly in a law or a regulation .

2. Obligation to comply with mandatory quality control terms and conditions incorporated, directly or by reference, in a license or permit to be obtained and held by any bus operator wishing to provide urban bus transport services. Unless the specified terms and conditions are complied with, the license or permit will not be issued or it will be cancelled.

3 Binding terms and conditions contained in a contract entered into between the government and a bus operator. By necessity the contract will be in the form of an adhesion contract.