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Question 1

In which type of committee will the committee stage of the bill’s passage take place?

A) Committee of the Whole House.
B) In a Public Bill Committee.

Answer 1

(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.
However, under the Fixed-term Parliaments Act 2011, a general election will be held at an earlier time if at least 66% of MPs vote in favour of holding the early election

Question 2

Which of the following best describes how government ministers exercise the royal prerogative powers?

Ministers make decisions which may need to be formally approved by the Monarch before taking legal effect.

Ministers are required to seek the consent of the House of Commons before making a decision under the royal prerogative.

Answer 2

Under the royal prerogative, ministers may make decisions which may need to be formally approved by the Monarch. These powers are known as the ministerial prerogatives and are described as such because they are in substance exercised by ministers on behalf of the Crown. For some ministerial prerogative powers, the final approval of the decision still rests with the Monarch, but this is a formality.

Question 3

In a debate in the House of Commons on the number of social security claimants, the Secretary of State claimed that the number of claimants has been reduced under the government. The Secretary of State relied on statistics that had been prepared by her civil servants. Later, the Secretary of State learned that the statistics were incorrect and that the number of claimants had not been reduced, but at the time of the debate, she was not aware of the error.

Which of the following best explains what the Secretary of State would be expected to do?

She would be expected to resign immediately.

She would be expected to correct the error as soon as possible.

Answer 3

B) The Secretary of State would be expected to correct the error as soon as possible. All government ministers owe a fundamental duty not to mislead Parliament. Should they do so inadvertently, they are expected to correct the error with Parliament as soon as possible. If a minister knowingly misleads Parliament, they would be expected to resign. Here, the Secretary of State inadvertently misled Parliament, since at the time of the debate, she did not know that the statistics were incorrect. Therefore, she would need to correct the error as soon as possible. (A) is incorrect because a minister would be expected to resign if it is discovered that they knowingly misled Parliament, which is not the case here.

Question 4

A case comes before the Supreme Court concerning the interpretation of a provision in Article 8 of the European Convention on Human Rights. The appellant argues that the court should follow a recent line of decisions from the European Court on Human Rights (the ‘ECtHR judgments’), which provide a clear interpretation of the provision. The respondent argues that the court is free to make its own interpretation of Article 8.

Which of the following best explains how the Supreme Court should treat the ECtHR judgments?

The Supreme Court should depart from the ECtHR judgments if it finds that it is right to do so.

The Supreme Court should follow the ECtHR judgments.

Answer 4

(C) The Supreme Court should follow the ECtHR judgments. Under the Human Rights Act 1998, the UK courts are required to “take into account” the case law of the ECtHR. This has been interpreted as requiring the courts to follow (or ‘mirror’) the ECtHR’s interpretation of convention rights when the point is clear and settled. Thus, in light of the ECtHR’s clear line of authority on the Article 8 provision, the Supreme Court should follow the ECtHR judgments. (A) is incorrect because this choice states the standard the Supreme Court follows when deciding whether to depart from retained EU case law or its own decisions, neither of which is applicable here.

Question 5

It has emerged that in 2016, the UK Parliament enacted an Act of Parliament which conflicted with a provision of an EU regulation. That regulation has been preserved as retained EU law. However, this was not discovered until 2021.

Which of the following best explains the legal position?

That the regulation prevails over the Act.

That before the end of the transition period, the regulation prevailed over the Act, but after the end of the transition period, the Act took precedence over the regulation.

Answer 5

(A) The regulation will prevail over the Act. The European Union (Withdrawal) Act 2018 maintains the principle of supremacy in relation to legislation enacted before the end of the transition period (that is, before 31 December 2020). This means that if there is a conflict between UK law enacted before the end of the transition period and retained EU law, the retained EU law will prevail. Here, the retained regulation conflicts with legislation enacted before the end of the transition period. Accordingly, the regulation will prevail over the Act.

Question 6

A man has been dismissed from his employment at a bank because of his religion. As a result, he brings a claim against the bank under Section 6 of the Human Rights Act 1998. In the claim, the man contends that his firing violates Article 9 (Freedom of Thought, Conscience, and Religion) and Article 14 (Prohibition of Discrimination) of the European Convention on Human Rights (‘ECHR’). The bank applies for a dismissal of the case.

How should the court react?

The court will deny the application, because the bank’s conduct was discriminatory.
The court will deny the application, because there is a breach of the ECHR.
The court will grant the application because the claim does not satisfy Section 6.

Answer 6

E) The court should grant the application because the claim does not satisfy the criteria under HRA Section 6. Section 6 claims may be brought only against a public authority, and here the bank is not a public authority.

Question 7

In 2018, the Scottish Parliament passed the Whisky Production Protection (Scotland) Act 2018. The Act provides that only whisky produced in Scotland can be sold there. The 2018 Act conflicts with retained EU law.

Which of the following best describes the status of the Act?

The Act is a valid act of the Scottish Parliament.

The Act is outside the law-making power of the Scottish Parliament and can be declared invalid by the Supreme Court.

Answer 7

(E) The 2018 Act is outside the law-making power of the Scottish Parliament and can be declared invalid by the Supreme Court. Up until the end of the transition period (that is, up through December 2020), the Scottish Parliament did not have the power to legislate contrary to EU law, which has been preserved after the transition period as retained EU law. The question of whether an act of the devolved legislatures is within their law-making powers can be referred to the Supreme Court by a lower court. Because the 2018 Act conflicts with retained EU law (meaning it conflicted with EU law when it was passed), the Supreme Court could declare the 2018 Act as invalid. Note, however, that the devolved legislatures can now amend or repeal retained EU law within their legislative competence, so the Scottish Parliament could circumvent the Supreme Court’s ruling by passing similar legislation to the 2018 Act

Question 8

A solicitor working at a firm was asked by their supervisor to research Criminal Finances Act 2017 c. 22.

What is the name given to this type of reference to an Act of Parliament?

Its short title.
Its citation.

Answer 8

B is correct. The language references the year and chapter of the Act of Parliament, and this is known as the Act’s citation. (A) is incorrect as an Act’s short title is a short name given to the Act. For example, the short title of 2017 c. 22 is the Criminal Finances Act 2017. Its long title is “An Act to amend the Proceeds of Crime Act 2002; make provision in connection with terrorist property; create corporate offences for cases where a person associated with a body corporate or partnership facilitates the commission by another person of a tax evasion offence; and for connected purposes”.

Question 9

The UK Parliament has enacted the Employment Pay (Nationality) Act 2012. The 2012 Act would allow employers to pay EU nationals 10% less than a UK national. The Act is controversial because it discriminates against EU nationals and is contrary to an EU regulation passed in 1983. In 2021, the EU Workers Union, a trade union that supports the rights of EU workers across the EU and beyond, challenges the validity of the 2012 Act before the High Court.
Which of the following best explains how the High Court would likely respond to the action?

The High Court would be required to give effect to the EU regulation over the 2012 Act.

The High Court would be required to give effect to the 2012 Act over the EU regulation.

The High Court would be required to strike the legislation down because it breaches the Human Rights Act 1998.

Answer 9

(A) The High Court would be required to give effect to the EU regulation over the 2012 Act. Under the European Union (Withdrawal) Act 2018, as amended by the European Union (Withdrawal Agreement) Act 2020, retained EU law will prevail over conflicting UK law enacted before the end of the transition period (that is, before 31 December 2020)

Question 10

Created by statute, the Aeroplane Authorisation Authority is required to approve new models of aeroplanes in order for them to be allowed to fly in UK airspace. The Authority has rejected an application from a manufacturer for an aeroplane that has been allowed in most other major countries. It later emerges that the Chairperson of the Authority owns shares in a rival manufacturer, whose shares’ value increased by 25% on the day the Authority made their decision. The manufacturer seeks judicial review of the Authority’s rejection of their application.

Which of the following will provide the best ground for the manufacturer’s judicial review claim?

The Authority breached the rules of natural justice.
The Authority breached the automatic disqualification rule.
The Authority exhibited actual bias.

Answer 10

B) The best ground is that the Authority breached the automatic disqualification rule. When the member of a public body has a financial interest in the decision at issue, they are automatically disqualified from being involved in the decision. The Chairperson here had a financial interest in the decision, since the Chairperson owned stock in a rival to the manufacturer. Therefore, the Chairperson should not have been involved in the decision.

Question 11

Assume a UK law requires that all automobiles, motorcycles, trucks, and other motor-powered vehicles be equipped with headlights that automatically turn on when the vehicle is in operation. A police officer saw a small private aeroplane taxying without a headlight and gave the owner of the aeroplane a fine. In defence, the owner of the aeroplane claims that it does not fall under the law.
If the court agrees with the owner of the aeroplane, which rule of language did it most likely use in interpreting the law?

Expressio unius est exclusio alterius
Ejusdem generis.

Answer 11

(D) Ejusdem generis is a language rule used to interpret general words. If a general word follows two (or more) specific words, the general word will apply only to items that are like the specific words used. Here, we are trying to determine whether the term ‘other motor-powered vehicles’ includes aeroplanes. Trucks, motorcycles, and automobiles use the roads, so the court limited the term ‘other motor-powered vehicles’ to include only vehicles normally driven on the road. (A) is incorrect because under this rule of interpretation, if one or more things of a class are expressly mentioned in a statute, the things not mentioned are excluded. Here, we are trying to interpret the meaning of the term ‘other motor-powered vehicles’

Question 12

A defendant is charged with two offences that are triable either way. He wants advice from his solicitor about which court he should go to in order to minimise his penalty and what the maximum penalty would be.
Which of the following is the correct advice to give to the defendant?

The Magistrates’ Court is where he would receive the lesser penalty and where the maximum penalty is six months in prison and a £2,500 fine.

The Magistrates’ Court is where he would receive the lesser penalty and where the maximum penalty is 12 months in prison and an unlimited fine.

Answer 12

(B) Because the defendant has been charged with two offences, he is best off in the Magistrates’ Court - in which a sentence of up to 12 months could be imposed along with an unlimited fine. (A) is incorrect because the defendant is charged with two offences, so a longer prison sentence may be imposed

Question 13

A man found guilty of murder by the Crown Court appeals his conviction to the Court of Appeal.
Which of the following statements best describes the power of decision reached by the Court of Appeal?

The Court of Appeal’s decision will bind UK lower courts.
The Court of Appeal’s decisions will bind the Court of Appeal in all future cases concerning the same matter.

Answer 13

D) This is the foundation principle of English common law - namely that lower courts must follow the decisions of higher courts
E) is incorrect as the Court of Appeal does not always bind itself

Question 14

A thief is charged with theft of £100 from a supermarket till. To access the till, the thief used a penknife to wedge open the till to access the money. The statute that applies provides ‘a defendant will commit such an offence if he uses a weapon in the course of carrying out a theft’.
What presumptions can be made about the meaning of the statute if the literal meaning of the words are ambiguous?

The judge can make a presumption in favour of the defendant.
A presumption cannot be made in criminal cases.

Answer 14

(B) is correct because there may be a presumption in favour of the defendant in a criminal trial, but this is rebuttable when there is a relevant legal rule. This accords with the presumption of innocence of the defendant and the burden of proof being placed on the prosecution.

Question 15

A political group organises a march in a public park, near to a children’s play area. The police allow the march, but they restrict its route from passing near to the children’s play area or blocking paths to and from the play area. The political group then brings a claim before a UK court for a breach of their right to freedom of assembly and association under the European Convention on Human Rights (‘ECHR’).

Will the political group likely be successful in their claim?

No, because the right to freedom of assembly and association is a qualified right and the police acted proportionately when they restricted the route.
No, because the right to freedom of assembly and association is a limited right and the state has the right to limit the right as it sees fit.

Answer 15

(D) The group will likely not be successful because the police acted proportionately. The right to freedom of assembly and association is a qualified right requiring proportionality in balancing both sides’ rights or concerns. Here, the political group has a right to protest, but the police may limit that right to advance any one of a number of interests, including preventing disorder or crime. The police arguably advanced that interest by protecting the children’s play area and not blocking paths to and from it. Moreover, the police did not cancel the march but rather merely restricted its route. This seems to be a proportional response.

Question 16

The owner of a bicycle wrote a letter to her friend offering to sell her bicycle to him for £150. The friend received the letter on 18 January. On 19 January, he mailed a letter back saying that he was not interested in purchasing the bicycle because he had just bought a gym membership. However, the friend changed his mind on 20 January and posted a letter to the owner accepting her offer to sell the bicycle and enclosing a cheque for £150. The owner received the friend’s rejection letter on 21 January but put it aside without reading it. The next day, she received the friend’s acceptance letter, which she opened and read immediately.

Do the parties have a contract?

Yes, because an acceptance is effective when it is posted, whilst a rejection is effective when received.
No, because the owner did not read the rejection letter.

Answer 16

A) Under the postal rule, acceptance by mail creates a contract at the moment of posting, with a couple of exceptions not relevant here. Rejection, on the other hand, is effective when received. So, as the postal rule applies, there is a contract, because the friend’s acceptance was posted before his rejection letter was received. (E) is incorrect because the fact that the bicycle owner did not read the rejection does not matter; it still was received by her which is what is required

Question 17

A paper manufacturer offers to sell 100 reams of copier paper to a printing business at £10 per ream. The offer is on the paper manufacturer’s standard terms and conditions and states, ‘You are required to email acceptance of any offer to supply to your sales associate by 5pm on the day the offer is made’. The terms and conditions go on to state that delivery will be two weeks later and that payment is required on delivery. The purchasing manager of the printing business telephones the manufacturer’s main number and leaves a message on the answerphone before 5pm accepting the offer. In reliance on the contract that has been made with the manufacturer, the printing business enters into a contract to print 200 copies of a brochure for a local estate agent.

Is there a binding contract between the paper manufacturer and the printing business?

Yes, the offer was validly accepted within the requisite timescale; consideration to be performed in the future (executory consideration) is permissible so there is a valid contract.

No, the method of acceptance prescribed was email, and the printing business accepted by telephone.

Answer 17

(E) If an offer prescribes a method of communication, that method should be used unless the alternative method is no less disadvantageous to the offeror. In this case, leaving an answerphone message, when there is no guarantee that the offeror will listen to it, is unlikely to be considered to be an adequate alternative to an email to the sales associate, which was the requested method.

Question 18

On 3 November, an investor sent an email to a dealer in precious metals: “Please quote your best price on 800 troy ounces platinum bars for immediate delivery at my bank”. At 10 a.m. the next morning (4 November) the dealer replied by email, “My best price is £475 per ounce”. The investor received the dealer’s message later on that same day.

What is the best characterisation of the communications between the investor and the dealer?

A request for an offer and an offer.
A request for an offer and a price quotation.

Answer 18

(B) The investor’s communication was a request for an offer and the dealer’s response was an offer. For a communication to be an offer, it must create a reasonable expectation in the offeree that the offeror is willing to enter into a contract on the basis of the offered terms. The investor’s communication does not pass the test because it is clear on its face that he did not want to be bound by whatever price the dealer came up with, but rather wanted to find out what the dealer would offer. The dealer’s communication, on the other hand, passes the test. Whilst it said nothing more than the price, it was sent in response to a request containing specific delivery terms and a specific quantity. Under the circumstances, the dealer’s response would have created a reasonable expectation in the investor that the dealer was willing to enter into a contract under the terms of the two communications

Question 19

A farmer enters into a contract with a dealer to buy pesticide. The farmer told the dealer the pesticide would be used on wheat. The dealer supplied pesticide that was suitable for use on fruit, assuming it would be suitable for wheat as well. However, the farmer soon discovers the pesticide is not suitable for use on wheat.

The farmer can reject the pesticide and/or claim damages, because the pesticide is not of satisfactory quality.
The farmer can reject the pesticide as unfit for their purpose and/or claim damages

Answer 19

(B) The farmer can reject the pesticide as unfit for their purpose and/or claim damages. If a buyer makes known the purpose of goods and the seller provides goods not suitable for that purpose, the buyer may reject the goods and/or claim damages for breach of the term of fitness for purpose implied by the Sale of Goods Act 1979 (‘SGA’). That is the case we have here.

Question 20

A heating engineer agrees to install a new boiler in a company’s offices. The only terms agreed are the make and model of boiler and the price.
Which of the following will be implied by statute into the contract between the company and the heating engineer?

Under the Supply of Goods and Services Act 1982, a condition that the new boiler will be of satisfactory quality and a condition that the installation will be carried out with reasonable care and skill and within a reasonable time.

Under the Supply of Goods and Services Act 1982, a condition that the new boiler will be of satisfactory quality and terms requiring that the installation will be carried out with reasonable care and skill and within a reasonable time.

Answer 20

(D) is incorrect because the SGSA implied terms relating to care and skill and time for performance are innominate terms, not conditions

Question 21

On 6 December, the owner of an electronics store sent a written request to a computer manufacturer asking for the price of a certain laptop computer. The manufacturer sent a written reply with a catalogue listing the prices and descriptions of its computers. The letter stated that the terms of sale were cash within 30 days of delivery. On 14 December the store owner ordered the computer, enclosing a cheque for £4,000, the listed price. Immediately on receipt of the order and cheque, the manufacturer informed the store owner that there had been a pricing mistake in the catalogue, which should have quoted the price for that computer as £4,300. The store owner refused to pay the additional £300, arguing that his order of 14 December in which the £4,000 cheque was enclosed was a proper acceptance of the manufacturer’s offer

Will the manufacturer’s claim for the extra £300 succeed?

Yes, because its first communication did not constitute an offer.
No, because the store owner’s letter of 14 December was a proper acceptance of the manufacturer’s offer.

Answer 21

(D) The store owner’s letter of 14 December was an acceptance. Whether the letter was an acceptance depends on whether the manufacturer’s letter was an offer, because an acceptance is a manifestation of assent to an offer. For a communication to be an offer, it must create a reasonable expectation in the offeree that the offeror is willing to enter into a contract on the basis of the offered terms. There must be a promise, undertaking, or commitment to enter into a contract with certain and definite terms. Courts usually hold that if a statement is made broadly, such as in an advertisement or catalogue, it will not constitute an offer because it is not reasonable to expect that the sender intended to make offers to all who received the advertisement; rather, the courts usually find such advertisements to be invitations to treat seeking offers. However, price quotations (particularly from a manufacturer) may be considered as offers if given in response to a specific inquiry. The courts will look to the surrounding circumstances, and here a court would probably determine that the catalogue that the manufacturer sent was an offer because it was sent in response to the store owner’s specific enquiries about prices on a specific computer and it included delivery terms and conditions of sale 

Question 22

A new client engages a solicitor to act for her in a matter. The solicitor promptly emails a client care letter to the client explaining how the legal fees will be calculated and the likely overall cost. The solicitor also telephones the client the same day and informs her of her right to complain about the solicitor’s services and charges, including details of how to make a complaint and how to make a complaint to the Legal Ombudsman. During the telephone call the solicitor also explains the main legal issues presented in the matter.

If the SRA considers that the solicitor did not comply with the Code of Conduct at the time of engagement, what is the most likely reason?

The solicitor failed to explain the legal issues in writing.

The solicitor failed to send the complaints information by post.

The solicitor failed to provide the complaints information in writing.

Answer 22

D) At the time of engagement, a solicitor must inform the client in writing of their right to complain, how and to whom complaints can be made, and their right to make a complaint to the Legal Ombudsman. Here the solicitor provided this information by telephone and this was not sufficient.

Question 23

During a telephone conversation, a solicitor informs the lawyer on the other side of a transaction that he will send £20,000 to the other lawyer today to complete the assignment of a lease. On this basis the other lawyer dates the deed of assignment. The solicitor does not send the £20,000 and is accused of breach of undertaking.

Which of the following statements best describes whether the solicitor is in breach of undertaking?

The solicitor is in breach of undertaking as he indicated that he would send the £20,000 and did not do so.

The solicitor is not in breach of undertaking if he did not obtain his client’s express authority to complete the assignment.

Answer 23

B) The solicitor is in breach of undertaking because he said he would send the £20,000 and failed to do so. Note that the dating of the deed of assignment denotes the requisite degree of reliance by the other lawyer. (A) is incorrect as an undertaking can be oral; it does not have to be in writing to be valid. (C) is incorrect. Best practice demands that the solicitor obtain his client’s authority to give the undertaking, but the absence of such instructions does not invalidate the undertaking.

Question 24

A solicitor acts for a client who is involved in a long-running dispute with a neighbour, who is unrepresented. The client often rings up the solicitor to ask for updates, and the solicitor has become very annoyed by this. During the retainer, the client is convicted of a drink driving offence. The solicitor has also discovered the client’s religious beliefs and strongly disapproves of them. Despite the solicitor’s refusals, the client repeatedly urges the solicitor to “rattle” the neighbour by sending her intimidating emails that exaggerate the client’s chances of success. The client also missed his last appointment with the solicitor. The solicitor now wishes to terminate the retainer.

On what basis should the solicitor terminate the retainer?

The client has committed a criminal offence.

The solicitor strongly disapproves of the client’s religious beliefs.

The client’s instructions are not proper

Answer 24

(C) It is a term of the contract (the retainer) between the solicitor and client that the client will give the solicitor appropriate instructions. If not, the solicitor is justified in terminating the retainer. Here, the client has insisted that the solicitor abuse her position and take unfair advantage of the unrepresented neighbour, and doing this would violate the Code of Conduct. (B) is incorrect because a solicitor must not unfairly discriminate by allowing their personal views to affect their professional relationships and the way in which they provide their services. Terminating the retainer because of a client’s religious beliefs would be discriminatory.

Question 25

A former client has contacted a solicitor to inform them that they have a relative who needs legal advice on a property purchase. They want to refer their relative to the solicitor’s firm, but they ask that the solicitor share 10% of their fees for this matter with them.
Do the rules of professional conduct allow the solicitor to enter into this arrangement with the client?

Yes, the solicitor can enter into the arrangement. The agreement to share the fees with the former client must be in writing and the relative must be informed of the arrangement.

No, because this is a prohibited referral fee.

Answer 25

(D) Fee sharing arrangements with a third party must be in writing, and the client must be informed of any fee sharing arrangement that is relevant to their matter. (A) is incorrect because a solicitor can share their professional fees with non-lawyer third parties.
(E) is incorrect. This is not a ‘prohibited referral fee’ as it is not a personal injury matter.

Question 26

A solicitor whose firm handles various types of matters is contacted by a second solicitor from another firm which only specialises in employment law. The second solicitor has a client who has been charged with theft, and he has recommended that his client contact the first solicitor for advice. The two firms have a general referral agreement in place: each firm pays the other firm £500 for the referral of any matter.
Should the solicitor’s firm pay the referral fee to the second solicitor’s firm?

No, because firms are not permitted to make or receive referral fees in respect of clients who are the subject of criminal proceedings.

Yes, because failing to do so would be a breach of its contractual obligations and put the firm at risk of legal action.

No, because even though the second solicitor’s firm is permitted to accept a referral fee in respect of a client who is subject to criminal proceedings, the solicitor’s firm is prohibited from making such a payment.

Answer 26

(D) The SRA Codes of Conduct provide that a solicitor or firm must not receive or make payments relating to a referral in respect of clients who are the subject of criminal proceedings. Therefore, (B) is incorrect.

Question 27

A firm is contacted by a claims management company (CMC), which offers to refer personal injury clients to the firm. As part of the agreement, the firm will be required to send the CMC a proportion of the professional fees it obtains from each referred client or the other side. This is described as a ‘marketing fee’ which will be used to cover the CMC’s costs in obtaining the client.

Does this arrangement violate the firm’s professional duties?

No, because the firm will be paying marketing fees, not referral fees.

Yes, because even though the fees are described as marketing fees, they will likely be treated as prohibited referral fees by the SRA.

Answer 27

B) The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) prohibits the payment or receipt of referral fees in claims for damages following personal injury or death. An example would be a solicitor paying a claims management company for referral to the firm of a personal injury client. When it appears to the SRA that a solicitor or firm has made or received a prohibited referral fee, the payment will be treated as a prohibited referral fee unless the solicitor or firm demonstrates otherwise

Question 28

A solicitor has an interest in another business which is an estate agency. The solicitor is dealing with the administration of an estate for a client and intends to refer the executors to the solicitor’s estate agency to market the deceased’s property. The solicitor believes that this particular estate agency is ideally suited to handle this.
Do the rules of professional conduct allow the solicitor to refer the client to the solicitor’s estate agency?

No, because this would create a conflict of interest.

Yes, provided the solicitor tells the clients about their interest in the separate business and the clients give informed consent.

Answer 28

(D) A solicitor is permitted to refer the clients to their separate business as long as they have the client’s informed consent to do this. Informed consent means the solicitor should tell the client about their interest in the separate business.

Question 29

A solicitor asks to speak with the firm’s compliance officer for legal practice (COLP). The solicitor tells the COLP that he has accepted a police caution in respect of a shoplifting allegation even though he denies that he did anything wrong.

Must the SRA be notified of the caution imposed on the solicitor?

Yes, because any caution must be reported to the SRA.

Yes, because this caution relates to a dishonesty offence.

No, because a caution is not a criminal conviction.

Answer 29

(B) The SRA Code of Conduct for Solicitors states that solicitors must notify the SRA promptly if they are subject to any criminal charge, conviction, or caution (subject to the Rehabilitation of Offenders Act 1974). (A) is incorrect because the SRA’s regulatory concerns extend beyond criminal convictions, and a caution might indicate that the solicitor has violated ethical duties contained in the SRA Principles. (C) and (D) are incorrect; all cautions must be declared regardless of subject matter or any connection with the workplace. (E) is incorrect because there is a regulatory obligation to notify the SRA of such incidents

Question 30

A solicitor is expanding the scope of her practice and wants to telephone members of the public to advertise her legal services. Specifically, she wants to telephone her current and former clients as well as some local business owners with whom she has no prior relationship.
Who is the solicitor permitted to telephone in compliance with the SRA Code of Conduct?

The business owners, the current clients, and the former clients.
The current clients and former clients only.
The former clients only.
The current clients only.

Answer 30

E) A solicitor must not make unsolicited approaches to members of the public in order to advertise legal services provided by the solicitor, the solicitor’s business, or the solicitor’s employer. The exception is that a solicitor may approach current and former clients. (A) and (B) are incorrect because the solicitor may approach both current and former clients.

Question 31

A solicitor at a large firm represented a UK-based client accused of manslaughter. After thoroughly investigating the matter, the solicitor managed to clear the client. The client paid the solicitor’s substantial bill by transferring money to the solicitor’s firm from a bank account in Yemen.
As this country has been listed as a high-risk jurisdiction, the solicitor worried that the client might be laundering money and reported the matter to the firm’s Money Laundering Reporting Officer (‘MLRO’). The MLRO investigated the matter and decided the client’s source of funds was legitimate.

For how long must the firm keep records of the MLRO’s investigation?

Answer 31

(C) The firm must keep records of the MLRO’s investigation for five years. Firms must keep comprehensive records of suspicions and disclosures including discussions with the MLRO regarding concerns, advice sought and received regarding concerns, and reasons why concerns did not amount to a suspicion and a disclosure was not made. Broadly, records of customer due diligence and business relationships should be kept for five years after the end of the relationship.

Question 32

A solicitor is looking after the files of a colleague while the colleague is on holiday. The solicitor takes a call from one of her colleague’s clients who is concerned about the lack of progress on their matter. The colleague’s client wants an urgent update as to why there has been a delay. The solicitor flicks through the file and notices that her colleague has filed a suspicious activity report about the client with the firm’s Money Laundering Reporting Officer (‘MLRO’). The solicitor passes this information on to the client to explain the delay and returns to working on her own clients’ matters.
Which of the following best describes whether the solicitor has committed an offence under the Proceeds of Crime Act 2002 (‘POCA’)?

The solicitor has committed the offence of tipping off because she disclosed her colleague’s suspicious activity report to the client.

The solicitor may have committed the offence of tipping off because the disclosure might prejudice any investigations into the client.

Answer 32

(D) The solicitor may have committed the offence of tipping off because the disclosure she made might prejudice any investigations into the client. The indirect offence of tipping off can arise where there is a disclosure to a third person that a suspicious activity report has been made to the police, HM Revenue and Customs, the National Crime Agency, or the firm’s MLRO if that disclosure might prejudice any investigation that might be carried out. Here, the solicitor disclosed to the client that the solicitor’s colleague had made a suspicious activity report about the client to the firm’s MLRO. As this disclosure might prejudice any investigation into the client, the solicitor may have committed the offence of tipping off.

Question 33

A freelance solicitor with five years’ post-qualification experience is instructed by his client to prepare court papers for a civil litigation matter and to represent the client in court.

Which statement best describes the professional indemnity insurance coverage which the Solicitors Regulation Authority requires the freelance solicitor to have?

The freelance solicitor is not required by the SRA to have professional indemnity insurance because he is not carrying out a reserved legal activity.

The freelance solicitor must have adequate and appropriate insurance cover.

The freelance solicitor must have insurance cover at the minimum level required by the SRA and that insurance must be adequate and appropriate.

Answer 33

(B) A freelance solicitor must take out and maintain adequate and appropriate insurance if they are carrying out reserved legal activities. Reserved legal activities include carrying out notarial services, conducting litigation, and preparing reserved instruments involving property interests. Here, the freelance solicitor is carrying on a reserved legal activity, the conduct of litigation, and therefore the SRA requires him to have adequate and appropriate professional indemnity insurance. (A) is incorrect as the freelance solicitor is carrying on a reserved legal activity.

Question 34

An experienced solicitor has recently been made the Money Laundering Reporting Officer (‘MLRO’) of her company. She continues to practice as a solicitor whilst performing the duties of MLRO. One of her clients has been transferring large sums of money from Yemen. The solicitor is aware that Yemen has been listed as a high-risk jurisdiction for money laundering, so the activity has aroused her suspicions.
What is the best course of action for the solicitor?

Stop representing the client and submit a report to the deputy MLRO.

Continue to represent the client and make a report to the National Crime Agency.

Stop representing the client and make a report to the National Crime Agency.

Answer 34

(D) The solicitor’s best course of action is to continue to represent the client and make a report to the National Crime Agency. Within a firm or company, a solicitor’s obligation is to report suspicions of money laundering to the MLRO. It is the MLRO’s duty to then determine whether to make disclosures to the National Crime Agency. Here, since the person with suspicions is the MLRO, her obligation is to report to the National Crime Agency (‘NCA’). Unless told otherwise by the NCA, it is best to carry on doing business with the client so as not to arouse their suspicions.

Question 35

A solicitor works at a firm regulated by the Solicitors Regulation Authority (‘SRA’). The solicitor is advising a client company in relation to an unfair dismissal claim brought by one of the client’s former employees. The client has an insurance policy covering the cost of bringing employment tribunal claims like this and asks the solicitor to make a claim under that insurance policy.
Will the solicitor need to be authorised by the Financial Conduct Authority to make the claim?

No, because the solicitor can rely on the incidental exclusion.

No, because the solicitor can rely on the Designated Professional Bodies exemption.

Answer 35

E) The solicitor will not need to be authorised by the Financial Conduct Authority to make the claim because he can rely on the Designated Professional Bodies exemption. Under the general prohibition, a person may not carry on regulated activity in the UK unless they are authorised or exempt from authorisation. If there is a regulated activity, the Financial Services and Markets Act 2000 exempts incidental activity of members of certain Designated Professional Bodies, including members of the SRA. Under this exemption, if a solicitor provides a financial service incidentally to the provision of legal advice and does not receive compensation for this from anyone else without accounting to the client for it, the services will be exempted. Here, the solicitor has been asked to make a claim (the specified activity of arranging) in relation to an insurance policy (a specified investment). No exclusion is available because the arranging relates to an insurance policy. However, because the firm is a member of the SRA, the solicitor can rely on the Designated Professional Bodies exemption. Making the claim on the insurance policy is incidental to the solicitor’s main advice on the merits of the employee’s claim. Therefore, the solicitor does not need to be authorised.

Question 36

A UK solicitor has undertaken conveyancing work for a client who is buying a block of flats. The solicitor believes the price the client has offered is unreasonably high. The client doesn’t seem bothered about paying the price despite the solicitor’s advice. The solicitor suspects the client is attempting to launder his money.
If the client is indeed engaged in money laundering, what stage of the money laundering process is this most likely to be?

Placement
Layering
Integration
Concealing 
Tracing

Answer 36

C) If the client is engaged in money laundering, this is most likely to be the integration stage of the money laundering process. Integration is the final stage of the money laundering process, which typically involves purchases of legitimate assets and/or businesses with a goal to integrate the proceeds into the economy. Here, the client appears to be trying to purchase a legitimate asset-the block of flats-for an unreasonably high price to integrate criminal proceeds into the economy. (A) is incorrect because placement is the first stage in the money laundering process at which money is injected into the financial system, usually by opening a bank account into which the proceeds of a crime are deposited. (B) is incorrect because layering is the stage of the money laundering process that has the goal of losing the audit trail. Typically, money is transferred back and forth between various accounts and investments, making it very difficult for authorities to trace the money back to its original source. (D) and (E) are incorrect because they are not names given to any stage of money laundering.

Question 37

A client and a solicitor enter into a damages based agreement in a personal injury claim at a percentage of 10% of the damages awarded to the client. At the hearing, the client is successful and is awarded damages of £200,000. The solicitor’s normal hourly rate is £200 per hour, and the solicitor has spent 50 hours on the claim.

Which of the following correctly states the amount which the client will have to pay to the solicitor under the damages based agreement?

£10,000.
£20,000.

Answer 37

(E) The client will have to pay their solicitor £20,000. Damages based agreements are ‘contingency’ agreements in that they are contingent on the success of the claim and recovery of damages. If nothing is recovered, the solicitor’s legal costs cannot be paid. If the claim is successful, the solicitor’s standard time costs can be recovered from the losing defendant. Here, the client has been awarded £200,000 and the applicable percentage in the agreement is 10%, which means the solicitor is entitled to £20,000 from the client in total. Note that any amount the defendant has been ordered to pay will be deducted from what the client owes when working out what the client has to pay to the solicitor.

Question 38

A solicitor is preparing a training course for newly qualified staff on money laundering legislation in the UK. He plans on explaining the scope of the Proceeds of Crime Act 2002 (‘POCA’) first.
Which of the following best describes the scope of POCA as it relates to solicitors?

A solicitor may be found to have committed an offence under POCA only if the solicitor has first been convicted of a criminal offence which generated the criminal property being laundered.

A solicitor may be found to have committed an offence under POCA whether or not the solicitor has first been convicted of a criminal offence which generated the criminal property being laundered.

Answer 38

(D) A solicitor may be found to have committed an offence under POCA whether or not the solicitor has first been convicted of a criminal offence which generated the criminal property being laundered. Under POCA, the money laundering offences assume that a criminal offence has occurred in order to generate the criminal property which is now being laundered. This is known as a predicate offence. No conviction for that predicate offence is necessary for a solicitor to be prosecuted for a money laundering offence. Therefore, a solicitor may commit a criminal offence under POCA whether or not the solicitor has been convicted of the predicate offence. (A) is incorrect because POCA applies to all persons, including solicitors. Note that some of the offences, such as tipping off, only apply to those in the regulated sector, which includes lawyers as well as bankers and accountants.

Question 39

A carer comes into the home of an elderly lady twice a week to clean for her and do her shopping. Over time the elderly lady forges a close bond with the carer, so when the carer suggests to her that she withdraw a large chunk of her life savings and pay it into a charity of which the carer is the main beneficiary, the elderly lady agrees.
What is the effect of undue influence on the transaction that has taken place between the carer and the elderly lady?

The contract is void.
The contract is voidable.
The contract is automatically rescinded.

Answer 39

(C) A contract that is found to have been entered into as a result of undue influence will be voidable, that is, the innocent party has the choice to rescind or affirm the contract. The facts of this scenario point to a presumed undue influence situation. A relationship of trust and confidence existed between the parties, and the donation calls out for an explanation based on that relationship. There is nothing in the scenario that suggests that the presumption of undue influence is rebutted. (C) is therefore the correct answer. (A) is incorrect because the undue influence would render the contract voidable, so the validity of the contract would depend upon the elderly lady’s decision as to whether or not to rescind it. (B) is incorrect because undue influence does not render a contract automatically void. It is voidable, and it is up to the innocent party to choose to affirm or rescind the contract.

Question 40

A company and a computer supplier entered into a written contract for the design and supply of a sophisticated stock management computer system. The supplier worked for over a year on the design of the system, but it became clear that it was not going to be able to create a system which meets the company’s requirements. The parties agreed to end the contract, with no further payment due from the company. There is nothing in the contract dealing with termination.

What else needs to be done to bring the contract to an end?

The parties need to execute a deed recording the termination of the contract.

Nothing, because the oral agreement is sufficient to end the contract.

Each party needs to waive its rights under the contract.

Answer 40

E) Nothing else needs to be done to bring the contract to an end. All that is needed is an agreement to terminate the contract. There are no formal requirements, but it would be sensible to record the detail of what has been agreed in a new written contract terminating the old one. The main problem when dealing with termination (or variation) of a contract is consideration. Here, both parties are giving up rights under the contract. The company is giving up its right to future performance, and the supplier is giving up its right to payment for that performance. So consideration is not a problem. (A) is not correct because a deed is not needed. A deed would normally be needed when there are problems of consideration. In fact, the parties might choose to use a deed, but only so as to be safe. (B) is not correct because there is no guarantee that a party waiving its rights will not later be able to reinstate them, by giving reasonable notice of reinstatement.

Question 41

A restaurant owner enters into a contract with a supplier of wine for his restaurant. The contract contains a term headed ‘Liquidated damages’ which provides that ‘In the event that the restaurant breaches the contract, the amount of the contract price will be payable to the supplier by way of damages’. The restaurant owner is two days late paying for the wine on one occasion.
Which of the following is not a factor the courts would use to determine whether the clause is a liquidated damages clause?

Whether the clause is labelled as a liquidated damages clause.

Whether the clause represents a genuine pre-estimate of loss.

Whether the clause provides for the same sum to be payable for any breach under the contract, whether trivial or substantial.

Whether the amount payable under the clause is extravagant, exorbitant, or unconscionable in relation to the interest it is protecting.

Whether the clause is designed to be compensatory rather than to penalise the party in breach.

Answer 41

(A) In determining whether a clause is a liquidated damages clause or a penalty clause, the courts will not regard words used to describe the clause as conclusive, so (A) is the correct answer. To uphold a liquidated damages clause the courts will need to be satisfied that it represents a genuine pre-estimate of loss, and that the amount payable under the clause is not extravagant, exorbitant, or unconscionable in relation to the legitimate interest it is protecting.

Question 42

A deep sea fishing company hires a trawler from its owner. The parties are aware that a licence is required to operate the trawler. The fishing company has four other trawlers and applies for five licences, but is granted only three. The fishing company decides to use the licences for its other trawlers.

Can the fishing company rely on the doctrine of frustration to escape the contract to hire the trawler?

No, the fishing company could have used one of the licences for the trawler that it has hired.

No, because this is a case of force majeure.

No, because the parties could have foreseen the need to obtain the licence.

Answer 42

A) A contract will be discharged if performance becomes impossible or radically different than anticipated. However, if the frustration was caused by one of the parties, the contract is not discharged. This is a case of self-induced impossibility. The fishing company could have used one of its licences for the trawler that it had hired, but it chose not to. Therefore the contract is not frustrated. (B) is not correct. A force majeure clause allows for the termination of a contract on the occurrence of an event. Here there is no suggestion that the parties had provided for this situation as a case of force majeure. (C) is incorrect because whilst supervening illegality could frustrate a contract, here there was no frustration because the impossibility was self-induced.

Question 43

A woman is shopping online for a dress. She finds a dress that she likes for £110 on several websites. After searching some more, she finds the same dress on one seller’s website for £95. She agrees with the seller to buy the dress and sends the seller £95. Two weeks later the seller notifies the woman that it will not be able to deliver the dress after all. The contract does not include any remedy terms. The woman immediately looks for a replacement but can only find the dress for £130. She waits to place another order, in case the price drops, but it rises instead. Eventually, she has to pay £140 for a replacement dress.

How much can the woman claim from the seller who did not deliver?

£130

£140

Answer 43

(C) When there is a breach, the usual remedy is damages to compensate the non-breaching party for their loss–damages sufficient to put the non-breaching party in the position they would have been in if there had been no breach. The loss usually is measured on the date of breach. Here, if there had been no breach, on the day of the breach, the woman would have received a dress. The market price of the dress on the day of the breach was £130

Question 44

A private buyer is interested in buying a boat. She asks the seller whether the boat is sound. The seller says that it is, but advises the buyer to have her own survey carried out. The buyer does so. The survey report says that the boat is sound. The buyer buys the boat. It turns out to be unseaworthy.

What rights is the buyer most likely to have against the seller?

The buyer likely has no rights against the seller.

The buyer can claim damages against the seller for misrepresentation if she can prove that the seller was negligent.

Answer 44

(C) It is likely the buyer has no rights against the seller. The buyer’s strongest argument would be based on misrepresentation by the seller. Under such a claim, the buyer would have to prove that the seller’s statement induced her to enter into the contract. That is going to be difficult, because it appears the buyer bought the boat based on the surveyor’s report rather than the seller’s statement. (D) is not correct because, even if there was an actionable misrepresentation, it is not for the claimant to prove that the other party was negligent. It is for the maker of the statement to prove that they had reasonable grounds for believing that the statement was true.

Question 45

A man tells his friend that a certain plot of land would be ideally suited for grazing dairy cows, and that it would support a herd of 100, although the man has no previous experience as a cattle farmer. The friend purchases the land on the basis of the man’s representations. However when he tries to graze cattle on the land, it becomes clear that it is unsuitable for grazing and that there is not adequate space for a herd of 100 cows. The friend informs the farmer that the land is not actually suitable for grazing and wishes to sell the land back to the farmer. The farmer refuses and the friend has come to your office, asking whether he can have the contract set aside for misrepresentation.

Which of the following statements as regards misrepresentation is correct?

A misrepresentation can occur where one party remains silent about a fact relevant to any potential contract.

A misrepresentation is a false statement of fact or law made by one party to another to induce that party to enter into a contract.

Answer 45

(B) A misrepresentation is a false statement of fact or law made by one party to another to induce the other party to enter into a contract, so (B) is correct. (A) is incorrect because, as a general rule, silence will not amount to a misrepresentation. The exceptions to this are: (1) half-truths, (2) the requirement to correct an earlier representation that is no longer true, (3) the good faith requirement in relation to disclosure for certain contracts, particularly insurance policies, and (4) where the parties have a fiduciary relationship.

Question 46

A local council has given planning permission for a new shopping centre. Local residents are against the decision because they are concerned about the traffic that the development is likely to generate. On an application for judicial review, the court has agreed that the residents were not adequately consulted when the council made their decision

What kind of remedy would the court award?

A declaration
A quashing order and a declaration.
A quashing order and a mandatory order.

Answer 46

(C) The remedies awarded are likely to be a quashing order and a mandatory order. A quashing order voids the original decision, meaning that it is of no legal effect, and the mandatory order would require the decision to be retaken, only this time with the residents being properly consulted. (A) and (B) are incorrect because they are not the best answers. A declaration simply states the rights or legal position between the parties, but does not require the decision to be retaken in a legally correct manner.

Question 47

An Act of Parliament passed in 1903 states that Hindus are not allowed to vote at general elections. An individual wishes to challenge the Act on the basis that it is discriminatory and breaches Article 14 (Prohibition of Discrimination) and Protocol 1, Article 3 (Right to Free Elections) of the European Convention on Human Rights.

Which of the following best explains how the court should proceed?

The court should declare the Act invalid under the Human Rights Act 1998.

The court should make a declaration of incompatibility.

Answer 47

(E) The best answer is that the court should make a declaration of incompatibility with respect to the Act. If it is not possible for a court to interpret an Act of Parliament in a way that complies with the Convention rights, then it must make a declaration of incompatibility. The declaration essentially signals to the government and Parliament that they may wish to consider the matter. If, as here, the legislation is clear and fundamentally contrary to the Convention rights, and cannot be interpreted to comply with the Convention rights, then the court should make a declaration of incompatibility. (B) is incorrect because the Human Rights Act 1998 does not permit the courts to declare legislation invalid. Rather, it permits the courts to make a declaration of incompatibility, which signals to the government and Parliament that the issue with the legislation should be addressed

Question 48

A group wish to protest against a government policy regarding genetically altered foods by holding a procession.

Ordinarily, when must the group provide notice to the police of the procession?

Six weeks before the proposed date.
Six clear days before the proposed date.
One week before the proposed date.

Answer 48

(D) The notice must be given to the police at least six clear days before the proposed date of the procession (or, if that is not possible, as soon as reasonably practicable).

Question 49

An Act of Parliament passed in 1923 and still in force provides that senior positions within the Army should be filled by “eligible officers”. An “eligible officer” is defined as a man of at least eight years experience. A female officer applied for a senior position in the Army but was rejected. The female officer challenges the denial before the High Court on the grounds that the Act violates Article 14 of the European Convention on Human Rights (the prohibition of discrimination), but she does not claim that it violates any other Convention right.

Which one of the following best explains how the court should deal with the case?

The court must make a declaration of incompatibility under the Human Rights Act 1998.

The court must declare the Act invalid under Article
14 because it discriminates on the basis of sex.

The court must dismiss the case.

Answer 49

(D) The court must dismiss the case. An Article 14 claim can be brought only if it is attached to the breach of another Convention right. Here, the female officer argues that the Act violates Article 14, but she does not connect this to the breach of another Convention right. Therefore, the court must dismiss the case. (A) and (B) are incorrect because those choices indicate that the court can reach the merits of the case. However, for the reasons discussed, the court must dismiss the case.

Question 50

A solicitor’s firm is part of a local network of law firms, and the solicitor is involved in an initiative to encourage business and to build good relations between the firms. A colleague from another firm has suggested an arrangement where, if a firm does not offer services in a particular area of law, they can refer a matter in that area of law to another local law firm. Although no payments or other consideration will be given for the referrals, it will generally help each firm and will create a culture of goodwill and collaboration.

Which of the following statements best describes whether the solicitor should set up this arrangement?

There is nothing in the SRA Standards and Regulations which describes this arrangement, and the solicitor’s decision is therefore a commercial one.

The solicitor can set up the arrangement, but participants should not refer clients for matters involving personal injury or death, or where the client is the subject of criminal proceedings.

The solicitor can set up the arrangement, but participants should ensure that each referral or introduction is in the client’s best interests.

The solicitor can set up the arrangement, but participants should not refer clients in matters involving personal injury or death.

The solicitor can set up the arrangement, but participants should not refer clients who are the subject of criminal proceedings.

Answer 50

The solicitor can set up the arrangement, but participants should ensure that each referral or introduction is in the client’s best interests.