fl Flashcards
Henry VIII power
(C) This power is best described as a Henry VIII power. If an Act of Parliament grants to the government the power to amend Acts of Parliament by passing secondary legislation, that power is known as a Henry VIII power. (A) is incorrect because the Henry VIII powers are not part of the royal prerogative. They arise from the authority granted by Acts of Parliament. (B) and (D) are incorrect because they are not the best answers. Although the Henry VIII powers are exercised by passing secondary legislation (which is also called ‘delegated legislation’ or just ‘regulations’), the power here is more specifically described as a Henry VIII power. (E) is incorrect because it misnames the power here
(C) This power is best described as a Henry VIII power. If an Act of Parliament grants to the government the power to amend Acts of Parliament by passing secondary legislation, that power is known as a Henry VIII power. (A) is incorrect because the Henry VIII powers are not part of the royal prerogative. They arise from the authority granted by Acts of Parliament. (B) and (D) are incorrect because they are not the best answers. Although the Henry VIII powers are exercised by passing secondary legislation (which is also called ‘delegated legislation’ or just ‘regulations’), the power here is more specifically described as a Henry VIII power. (E) is incorrect because it misnames the power here
A solicitor is considering opening a file for her two prospective clients who want to set up a business and contribute different amounts of time and money to the business. The prospective clients have not agreed on the detail of the sums and time involved, and the solicitor suspects that they will not be able to come to a consensus. The solicitor declines to act for both.
B) It is up to the solicitor to decide how to apply the conflict rules and some might argue that to refuse to act for both is too risk-averse. But the solicitor is under a duty to consider whether there will be a ‘significant risk’ of a conflict at the outset of the retainer and having identified this risk, best practice would demand that he refuse to act for both. (A) is incorrect because recognising a significant risk of a conflict is a sufficient reason to decline to act. (C) is incorrect because the conflicts of interest rules generally apply to a whole firm, not just individual solicitors within the firm. (D) is incorrect. Neither of the exceptions allowing a solicitor to act in a potential conflict situation apply here, so the fact that the clients might be prepared to consent is not sufficient to allow the solicitor to act. Although the prospective clients have the common interest of setting up a business, their inability to come to a consensus suggests that it is not reasonable for the solicitor to act, so the ‘substantially common interest’ exception would not apply. (E) is an incorrect statement. In fact, a solicitor may represent multiple clients with a substantially common interest despite a conflict if certain requirements are met, but that exception would not apply here.Q
A solicitor is acting on a conveyancing matter and discloses in the client care letter that he has paid a referral fee for the work. The client complains that this is a ‘prohibited referral fee’ and, as such, the solicitor is not permitted to make such a payment.
Which of the following statements best describes whether the client is correct?
D) The client is not correct as this is not a prohibited referral fee and it was disclosed to the client at the outset. A ‘prohibited referral fee’ is the payment or receipt of referral fees in claims for damages following personal injury or death. The SRA Code of Conduct for Solicitors, RELs and RFLs also prohibits referral fees (and all payments relating to referrals or introductions) in respect of clients who are the subject of criminal proceedings. The referral fee in this conveyancing matter was not prohibited and the client was properly notified. (A) is incorrect because not all referral fees are prohibited. (B) is incorrect because although a client should be notified of any arrangements that are relevant to the client’s instructions, there is no rule requiring the client’s advance written consent to a referral arrangement. (C) is incorrect because referral fees are generally permitted except in claims involving personal injury or death, or in respect of clients who are the subject of criminal proceedings. (E) is incorrect because prohibited referral fees are prohibited even if the client consents.QUESTION ID: ETH041
A solicitor has been engaged to act in a discrimination matter for a client. The client does not speak English, and a colleague at the solicitor’s firm who speaks the client’s language attended the solicitor’s initial meeting with the client to provide translation services. The solicitor intends to send the client the firm’s client care information, including information as to the client’s options for making a complaint.
Which of the following best describes what the solicitor is required to do?
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(C) The SRA does not require a formal client care letter, but a solicitor must provide all required client care information to the client. Furthermore, a solicitor must give clients information in a way they can understand. This choice best describes what the solicitor must do. (D) is incorrect because complaints information must be provided in writing, so it would not be sufficient to transmit that information verbally. (B) is incorrect because it does not address the requirement to provide the information in a way the client understands. (A) and (E) are incorrect because a formal client care letter is not required.QUESTION ID: ETH086
A commercial company has approached a solicitor to act on its behalf in respect of the potential acquisition of a rival business. The solicitor has shares in the rival business and will make a significant profit if the deal is completed. The solicitor discloses this to the company and advises them that if they take independent advice on this point then he will be able to accept their instructions. The company agrees to take independent advice.
Should the solicitor act for the company in these circumstances?
A) A solicitor must not act if there is an own interest conflict or a significant risk of an own interest conflict, such as in circumstances where the solicitor will gain a financial advantage if a client’s instructions are completed. (B), (C), (D), and (E) are incorrect because an own interest conflict is an absolute bar to acting.QUESTION ID: ETH130
During a telephone conversation, a secretary in a solicitor’s firm told the solicitor on the other side of a transaction that £10,000 would be sent by bank transfer that day to complete the transaction. After their conversation the solicitor on the other side notified her client and took various administrative steps to prepare to close the file. The £10,000 was not sent. The solicitor on the other side is now demanding the money and accusing the secretary’s firm of being in breach of undertaking.
Is the secretary’s firm in breach of undertaking?
A) The secretary’s firm is in breach of undertaking because the secretary said that the £10,000 would be sent and it was not, and the other side placed reliance on the secretary’s statement. (B) is incorrect because an undertaking can be oral. (C) is incorrect because an undertaking can be given by a member of support staff; it does not have to be given by a solicitor. (D) is incorrect. It is true that the transaction did not complete, but this is not the reason the firm is in breach of undertaking. The firm is in breach because the secretary said that the £10,000 would be sent, and it was not. (E) is incorrect because the word ‘undertaking’ does not have to be used.QUESTION ID: ETH015
A solicitor is asked to act for a husband in divorce proceedings. At the initial interview, the husband tells the solicitor that he has no income or capital, and so cannot pay his wife any money. He also tells the solicitor that he is the sole shareholder in a number of profitable offshore businesses, the existence of which his wife is ignorant. He forbids the solicitor from revealing the existence of the offshore businesses to his wife’s solicitor.
Which of the following statements best describes what the solicitor should do in these circumstances?
D) This choice best describes the solicitor’s position. The solicitor should refuse to act because this would involve misleading the wife’s solicitor, and, in due course, the court. (C) is also a correct statement, but (D) best describes the situation. The solicitor is not just permitted to refuse to act; the solicitor should definitely refuse to act. (A) is incorrect because the retainer is not yet in existence. Also, even if the retainer were in existence, the solicitor should not act on the client’s instructions in this situation. (B) is incorrect because there is no evidence of criminal wrongdoing and the solicitor has a duty of confidentiality to the husband. (E) is incorrect. By taking this position, the solicitor would breach their fundamental duty to act with integrity.QUESTION ID: ETH003
A firm of accountants has contacted a firm of tax solicitors with a view to setting up a fee sharing arrangement in respect of any clients they refer to the solicitors. The accountants’ proposed contract for the arrangement states that the accountants will be giving the solicitors instructions on the clients’ behalf, and that the solicitors must use a particular case management system to enable the end-user client to log in and check the progress of their matter.
Which of the following statements best describes the solicitors’ position?
E) The firm of solicitors should not proceed with the arrangement because it would violate various Principles and provisions of the SRA Code of Conduct. The requirements of the contract may not always be in the clients’ best interests. The solicitors have a professional duty to take instructions directly from clients rather than the accountants, and to act with independence. The contract also raises a problem with client confidentiality and the use of the accountants’ case management system. (A) is incorrect. Fee sharing is not prohibited in most matters, but such arrangements still must not violate the Principles and the Code of Conduct. (B) is incorrect. Although it is true that the client must be informed of any fee sharing arrangement that is relevant to their matter, the solicitors should not enter into this particular arrangement because it may not be in the clients’ best interests. These issues are not resolved by informing the client of the arrangement. (C) is incorrect because a solicitor is generally allowed to share fees with any third party. (D) is incorrect because payments in exchange for a referral are generally permitted (with certain exceptions in personal injury matters or where the client is subject to criminal proceedings). However, as previously stated, fee sharing arrangements and payments for referrals must not violate a solicitor’s or firm’s other professional obligations.QUESTION ID: E
Question
During a debate in the House of Commons on crime, an MP referred to a high-profile murder case currently before the criminal courts and said that the case against the defendant is overwhelming.
Has the MP done anything wrong?
(E) The MP has breached the sub judicie rule. Generally, MPs (and members of the House of Lords) have freedom of speech within Parliament under parliamentary privilege. However, out of respect to the separation of powers, the freedom of speech is limited by the sub judicie rule, which provides that, during debates, MPs (and members of the House of Lords) should not refer to cases currently ongoing before the courts. Here, the MP breached the sub judicie rule by referring to an ongoing case during the debate. (A) is incorrect because the royal prerogative belongs to the Crown and, in any event, an MP’s freedom of speech in Parliament is limited by the sub judicie rule. (B) and (D) are incorrect because, again, an MP’s freedom of speech in Parliament is subject to the sub judicie rule. (C) is incorrect because the doctrine of collective responsibility applies to government ministers, not Parliament. It requires ministers to support government policies before Parliament, despite their own views, and requires that policy discussions should be kept confidential.
The House of Commons is about to debate a bill that would abolish the monarchy.
In which type of committee will the committee stage of the bill’s passage take place?
(A) At the committee stage, the bill will be considered in a Committee of the Whole House. The committee stage for the passage of bills in the House of Commons can take place in one of two committees: a Public Bill Committee or a Committee of the Whole House. Bills of ‘first-class constitutional importance’, a category to which a bill to abolish the monarchy would qualify, are debated in a Committee of the Whole House. (B) is incorrect because bills of ‘first-class constitutional importance’ cannot be considered in a Public Bill Committee. (C), (D), and (E) are incorrect because those committees are not involved in the committee stage for bills.Q
The Prime Minister has decided to hold a referendum on whether the North of England should get its own Parliament, similar to the Scottish Parliament. Some ministers are in favour, whilst others, including the Chancellor and the Home Secretary, oppose the idea.
Which of the following is the best option available for the Prime Minister to address the disagreement among the ministers?
D) The Prime Minister’s best option is to suspend collective responsibility and allow ministers to campaign on either side of the referendum. Collective responsibility requires government ministers to support government polices in public and before Parliament. However, the Prime Minister is able to ‘set aside’ or suspend collective responsibility, and this has happened at previous referendums. When this is done, ministers are able to campaign on different sides, meaning that they are allowed, unusually, to disagree with each other in public. (A) is incorrect because it would not be possible to maintain collective responsibility while allowing ministers to campaign on either side of the referendum. Collective responsibility requires unanimous support of a policy by the ministers. (B) and (C) are incorrect because the Prime Minister, rather than Parliament or the King, has the authority to suspend collective responsibility. (E) is incorrect because the Prime Minister has no power to sack an MP.
A Conservative government was elected at the last election. In their manifesto, the Conservatives promised that they would pass legislation to allow autonomous cars to be on the roads. Pursuant to that commitment, the House of Commons passed the Autonomous Cars Bill. Many members of the House of Lords are concerned about the safety of autonomous cars and are inclined to vote against the Bill.
Which of the following best explains the constitutional considerations that regulate how the House of Lords can respond to the Bill?
(B) Because the Bill is implementing a manifesto commitment of the government, the House of Lords is required by constitutional convention to grant a Second Reading to the Bill. Under the Salisbury Convention, the House of Lords will grant a Second Reading to a bill as a matter of course if the bill is implementing a commitment made by the party elected into government (here, the Conservative Party) in their manifesto. (A), (D), and (E) are incorrect because there are no such statutes. (C) is incorrect because of the requirements placed on the House of Lords by the Salisbury Convention.
The government has agreed a new international treaty with Singapore. The government has laid the treaty before both the House of Commons and the House of Lords. After 14 days, the House of Commons voted against ratifying the treaty.
(C) The government can explain to Parliament why they still wish to ratify the treaty, and the House of Commons can hold a second vote. The power to ratify treaties is a royal prerogative power, but is regulated by a procedure laid down in statute. Ordinarily, the treaty is laid, with either House of Parliament having 21 days to vote against the treaty. If a House votes against ratifying and the government still wants the treaty ratified, it can explain to Parliament why, and then the House of Commons has a further 21 days to vote against ratifying the treaty. (A) and (B) are incorrect because the House of Lords does not get to vote the second time. (D) is incorrect because the House of Commons must be given an opportunity for a second vote. (E) is incorrect. Although there is an ‘exceptional case’ exception that allows for a treaty to be ratified without being laid before Parliament, the exception cannot be invoked to override the vote of either House of Parliament
After a major political scandal involving the leadership of the party who were in government, a general election was held. The party who were in opposition won 450 seats in the House of Commons, and the party who were in government won 200 seats.
Which of the following best explains who will become Prime Minister?
(C) The Monarch will appoint the person who can command the confidence of the House of Commons as the next Prime Minister. By constitutional convention, the Prime Minister must be an MP who is able to command the confidence of the House of Commons. This is usually the leader of the political party with a majority of the seats in the House of Commons. As there are 650 seats in the House of Commons, a political party needs 326 seats to have a majority. Here, the party that were in opposition has won 450 seats and are now in the majority. The previous Prime Minister would therefore resign, and the Monarch would appoint the person who can command the confidence of the House of Commons (likely the Leader of the party that are now in the majority) as the next Prime Minister. (A) and (B) are incorrect because it is the person who commands the confidence of the House of Commons, not Parliament as a whole, who becomes Prime Minister. (B) and (D) are incorrect because it is the Monarch who formally appoints the Prime Minister. (E) is incorrect because the previous Prime Minister will need to resign under these circumstances.
An environmental charity has secured a court order requiring the Secretary of State for Transport to stop all preparations for the construction of a new railway line until an environmental assessment has been completed. Despite this, the Secretary of State has ordered his officials to continue to make preparations for the new railway line.
Which of the following best explains the legal situation?
(C) The Secretary of State could be found in contempt of court. This is an example of one of the elements of the rule of law, in that, generally, no person is above the law. Here, the Secretary of State is bound by the law just like any other person. This means that he must comply with the terms of the court order against him, not continue with the preparations for the new railway line. As the Secretary of State has not complied with the order, he could be found in contempt of court. (A) is incorrect because, as discussed, government ministers are not above the law. (B) is incorrect because the Prime Minister, not the Monarch, can decide whether a minister should remain in their position. (D) is incorrect because it is not the best answer. Although it is likely that the Secretary of State could be required to answer questions in Parliament, that is a matter of politics, not law. (E) is incorrect because the Prime Minister cannot get involved with the judicial process in this way.
During a debate in the House of Commons, an MP argues for a set of constitutional changes so that the UK constitution “better reflects the separation of powers”. As part of the discussion, the MP summarises how the UK constitution currently reflects the separation of powers.
Which one of the following would best describe the MP’s summary?
(A) The UK has a partial separation of powers in light of the overlap between the functioning and personnel of the three branches. The principle of the separation of powers provides that the executive, legislature, and judiciary are separate in terms of their function and their personnel and that, to some extent, the different branches serve as a check and a balance against each other. However, there is a substantial overlap between the executive and legislature. In terms of personnel, all government ministers must be members of the legislature and in function, the executive branch may pass secondary legislation under powers granted to it by the legislature. (B) is incorrect. It cannot be said that there is no separation of powers in the UK. Although the Monarch has a role in the executive, legislature, and judiciary, his role is almost exclusively formal. (C) is incorrect because, given the overlap between the branches, it cannot be said that there is a complete separation of powers. (D) is incorrect because not all power (for example, judicial and executive power) is vested in Parliament. Even some legislative powers are granted to the executive, as discussed above. (E) is incorrect because there is some separation of powers between the executive and judiciary. Although the Privy Council does exercise some executive and judicial functions, these are minimal.
A newly qualified solicitor decided to work freelance. The solicitor is not authorised by the Financial Conduct Authority to carry on a ‘regulated activity’ as defined in the Financial Services and Markets Act 2000 (‘FSMA’) and related secondary legislation.
Which of the following would constitute ‘advising’ under FSMA?
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(D) Under the general prohibition of FSMA, a solicitor may not carry on regulated activity in the UK unless they are authorised or exempt from authorisation. A regulated activity is defined as an activity specified in the Regulated Activities Order relating to an investment specified in the Order, which is carried out in the course of business, and to which no exclusions apply. The specified activities might be remembered with the mnemonic device ‘ADAMS’. Activities = Advising, Dealing as an agent, Arranging, Managing, and Safeguarding. Advising is giving advice to an investor or potential investor on the merits of buying, selling, subscribing for, or underwriting a particular investment. Here, by counselling a client company about the sale of its shares, the solicitor is giving advice on the merits of selling a particular investment (company shares), which constitutes advising. (A) is incorrect because it describes managing, which involves managing assets belonging to another person in circumstances which involve the exercise of discretion (here, the client’s portfolio of shares). (B) is incorrect because it describes arranging, that is, making arrangements for another person to buy, sell, or subscribe for a particular investment (here, selling shares via a stockbroker). (C) is incorrect because it describes safeguarding, that is, administering or safeguarding (looking after) assets belonging to another person. This specified activity usually relates to probate and trust work. Here, the solicitor is acting as a trustee and looking after assets, such as shares and debentures, which belong to the client. (E) is incorrect because it describes the activity of dealing as agent, that is buying, selling, subscribing for, or underwriting investments (here, an insurance policy) as agent for a client
A firm of solicitors is not authorised by the Financial Conduct Authority to carry on a ‘regulated activity’ as defined in the Financial Services and Markets Act 2000 (‘FSMA’) and related secondary legislation.
Which of the following activities would the firm be able to conduct in its business if no FSMA exclusion or exemption applies?
(A) Under the general prohibition of FSMA, a firm of solicitors may not carry on regulated activity in the UK unless they are authorised or exempt from authorisation. A regulated activity is defined as an activity specified in the Regulated Activities Order relating to an investment specified in the Order, which is carried out in the course of business, and to which no exclusions apply. The specified activities and investments might be remembered with the mnemonic device ‘ADAMS F.M.DIPS’. Activities = Advising, Dealing as an agent, Arranging, Managing, and Safeguarding. The specified investments most relevant to a solicitor = Funeral plans, Mortgage contracts, Debentures, Insurance contracts, Pension schemes, and Shares in a company. The firm would be able to advise a client on a litigation matter because while advising is a specified activity, litigation matters are not specified investments. (B), (D), and (E) each clearly involve specified activities (arranging, safeguarding, and managing, respectively) and specified investments (pension plans, debentures, and shares in a company). (C) clearly involves a specified investment as well (a mortgage contract) and contracting on behalf of someone is dealing as an agent (a specified activity).QUESTION ID: LGS097