Partnerships and Employment Flashcards
Are the following statements true or false?
a) The penalty for failing to prevent bribery is a fine.
b) Bribing a public official whilst outside of the UK is an offence under the Bribery Act 2010.
a) True
This is an offence which is committed by commercial organisations such as companies and
partnerships. The penalty is a fine.
b) True
Under the Limited Liability Partnerships Act 2000 certain requirements need to be met for a limited
liability partnership (LLP) to be legitimately formed.
Is the following among those requirements?
One or more persons who are associated for the purposes of carrying on a lawful
business with a view to a profit must have subscribed their names to an
incorporation document.
No
One would not be sufficient. The requirement is for two or more persons to subscribe their names to
the incorporation document.
a) Are the credit control department’s opinions concerning the creditworthiness of
commercial customers covered by the Data Protection Act?
b) Would the company have to report itself to the Information Commissioner within
24 hours of any data breach?
a) No
The act protects individuals, not business organisations
b) No
The company would have 72 hours to report
Alltech Ltd has made an improvement to the design of the vacuum cleaners it produces. The
improvement involves a small electronic part that fits into an otherwise standard vacuum cleaner to
increase performance. The company would like to protect the design of the new electronic part.
Which of the following methods of protection should Alltech Ltd use?
a) Registered design
b) Copyright
c) Patent
d) Design right
c
Patents apply to inventions and products, such as machines or parts of machines.
Nathan is employed by Cliffford to manage the catering at a conference of the South East Police
Service in Brighton over a two-week period.
Which of the following would not constitute dismissal for the purposes of an unfair
dismissal claim?
a) If Clifford were to tell him a month in advance that he has found someone to provide the same
services more cheaply and Nathan is not required.
b) If Clifford were to send Nathan home on the third day because the vol-au-vents were uncooked.
c) If Clifford were to say that he no longer needed Nathan because fewer delegates than expected
had attended the conference.
d) If the conference were to be cancelled because a large proportion of the delegates were required
to report for duty in view of a major earthquake in Brighton.
d
These circumstances would frustrate the contract. Frustration of a contract does not constitute
dismissal for the purposes of unfair dismissal protection. These circumstances would frustrate the
contract. Frustration of a contract does not constitute dismissal for the purposes of unfair dismissal
protection.
Can a court treat a trading relationship as an ordinary partnership even if it is not classified in this way by its owners?
Yes. There are no specific requirements to create an ordinary partnership
If a partner of a firm pledges the credit of the firm for a purpose which has no apparent connection with the firm’s ordinary business, without authority to do so, will the partnership be bound?
No. This is an exception to the implied authority rule
During retirement, does a partner remain liable for outstanding debts incurred by the partnership when they were a partner?
Yes, unless creditor specifically releases them
Under what circumstances can a retiring partner become liable for debts incurred by the partnership after they retire?
If the third party had no notice of their retirement and knew them to be a partner before
If an individual partner commits a tort, can the claimant choose to either sue the firm or the individual partner?
Yes, partners are jointly and severally liable for torts.
Partners would not be expected to be liable for torts in the periods before they joined or left - unless they appeared to be a partner
What is the key difference between an ordinary partnership and a limited liability partnership?
The LLP is a separate legal entity from the partners & partners liability is limited to the capital they have contributed
Do ordinary partnerships have to be registered at companies house?
No
Do LLPs have to be registered at companies house?
Yes
Do sole traders have to be registered at companies house?
No
Is an LLP required to have a formal partnership agreement?
No, but they normally will have. In the absence of one, the provisions of the LLP Act 2000 and the LLP Regulations 2001 will apply
How is a new member admitted to an LLP?
By agreement of the existing members
If an LLP is classed as large is it subject to audit requirements in the same way that a company is?
Yes, but an LLP does not have to provide a director’s report
Can the members of an LLP ever face personal liability?
Yes - whilst the LLP is liable for the debts and obligations of the firm’s business, members can be personally liable in cases of negligence
Can members be disqualified in the same way that directors of companies can?
Yes
If a partner leaves, would this lead to the termination of;
a) An ordinary partnership
b) An LLP
a) Yes, unless an agreement was in place that changed this
b) No
Does an LLP pay corporation tax?
No, members pay income tax
Is protection for whistleblowing given to
a) Employees
b) Workers generally
Is there a requirement for length of service?
a) Yes
b) Yes
No
Is a whistle-blower automatically protected under PIDA 1998?
No, they must make;
- A qualifying disclosure
- In the public interest
- To an appropriate person
What constitutes a qualifying disclosure according to the PIDA 1998?
The worker has reasonable belief that
a) A criminal offence is likely to or has been committed
b) Failure to comply with legal obligations
c) Miscarriage of justice taken/will take place
d) Health and safety endangerment
e) Environmental damage
f) Concealment of the above
Is a whistle-blower protected under PIDA 1998 if their disclosure was not made in good faith?
Yes, but their damages may be reduced by up to 25%
Can an employer implement a confidentiality clause to seek a worker’s rights to make whistle blowing disclosures?
No - will be void
What is the maximum penalty for fraud?
10 years in prison and an unlimited fine
What 5 controls do they Cyber Essentials Scheme suggest to protect against cybercrime?
- Firewalls
- Applying secure settings
- Access restriction
- Protection against viruses
- Patching
What is the maximum penalty for fraudulent trading?
Are there any additional consequences for directors?
10 years in prison and an unlimited fine. Directors may be disqualified for up to 15 years
What is the maximum penalty for insider dealing?
7 years in prison and an unlimited fine
Are there any permissible defences for those accused of insider dealing?
a) The defendant did not expect the dealing to result in profit or the avoidance of a loss
b) The defendant reasonably believed the information was publicly available
c) The defendant would have dealt anyway, without the information
What is the maximum penalty for bribery?
10 years in prison and an unlimited fine
Are there any permissible defences for those accused of bribery or corporate failure to prevent bribery?
a) If related to the intelligence services or armed forces
b) If corporation can prove it had adequate procedures in place to prevent
What are the three phases of money laundering?
Placing - into a legitimate business
Layering - concealing origins
Integrating - giving money the appearance of being from a legitimate source
Are there any permissible defences for those accused of money laundering?
Yes;
a) A report was made to MLRO or serious organised crime agency / intention to do so / reasonable excuse as to why not
b) Person did not have reasonable training in order to detect
Can an individual be liable for a money laundering offence if they deliberately did not make certain enquiries?
yes
What is the maximum penalty for failing to implement money laundering detection measures?
2 years in prison and an unlimited fine - irrespective of whether money laundering has actually taken place
Are there any specific requirements regarding the delivery of employment contracts?
Can be written or oral, but as a minimum a written statement must be provided to employee by first day detailing;
Names of employer and employee
Date of employment
Pay rate and dates
Hours of work
Job title
Holiday entitlement
Pension arrangements
Notice period
Disciplinary procedure details
Does an employee have to provide a reference?
No, but if they do it has to be accurate
When must an employer prepare a statement of health and safety issues?
When they have more than 5 employees
What are the specific requirements for an unfair dismissal claim?
2Y continuous employment
Employee not based outside UK, in the police or dismissed due to unofficial strike action - unable to bring claims
Employee must make claim within 3 months of dismissal
Must be an employee not an independent contractor
What are the specific requirements for a redundancy claim?
Person was an employee,
2Y of continuous employment,
Claim brought within 6 months
Employee loses right if they commit gross misconduct or if they refuse an alternative offer for suitable alternative employment
What is the maximum penalty for non compliance with the Data Protection Act 2018?
A criminal conviction
Minimum of 10m euros or 2% turnover, max of 20m euros or 4% turnover
What are data controllers obliged to do if they have a data breach?
Contact the information commissioner within 72 hours
How long do data controllers have to respond to requests to stop marketing emails?
1 month
What is the ‘choice of laws’?
When parties enter into international contracts and agree in advance which laws will apply in the event of a dispute
a) What is the UN Convention on Contracts for the International Sale of Goods?
b) When does it apply?
a) A source of contract law hat parties in different countries can apply to their dealings
b) Only to the commercial sale of goods where the buyer and seller have their places of business in different states
Name two types of unincorporated entities
Sole traders and ordinary partnerships
What are the three categories of fraud
Fraud by false representation
Fraud by abuse of position
Fraud by failing to disclose information
