Exam Questions

Question 1

Define “direct applicability”

Answer 1

Certain EU legal acts automatically become part of national legal system without further need for implementation.
Ensures harmonization and uniformity in the application of EU law across all MS

Question 2

Define “direct effect”

Answer 2

Allows individuals to rely directly on certain provisions of EU treaties, regulations, and directives before national courts, even if there is no corresponding national legislation. Can be vertical or horizontal

Question 3

Define “Primacy”

Answer 3

If there is a conflict between EU law and national law, EU law prevails.
See “Costa”

Question 4

What is the Principle of Mutual Recognition? Give an example.

Answer 4

If a product or service is lawfully marketed in one MS, it should be accepted in other Member States, even if their national regulations differ. Unless public health or safety is endangered.
Example: Cassis de Dijon
- Retailer (Rewe Central) in not allowed to import Liquor because of too low alc. content.
- This is incompatible with provisions of Art. 30 of Treaty - it provides a unilateral obstacle to trade.

Question 5

Differences between limited and non limited liability companies?Difference between public and private companies? Which is the focus of the European corporate legislation?

Answer 5

Limited: shareholders are not liable with their own assets for obligations of the company.
Public: shares are freely tradable.
Focus is non limited public liability companies.

Question 6

What is the min. amount for public and private companies?

Answer 6

Public: 25000 €, private: is left to member states.

Question 7

Define indirect direct effect.

Answer 7

• occurs when an individual can rely on EU provision to challenge the actions of another private party (rather than a public authority)
• go with action to court, to create a vertical direct effect.