SQE Mock Flashcards
Created by statute, the Gambling Executive regulates the betting industry. The Executive has the power to grant and withdraw the licence that every bookmaker is required to have to operate in the UK. The Executive has decided to withdraw the licence from a bookmaker after hearing rumours that the bookmaker is laundering money. The bookmaker challenges the Executive’s decision by judicial review.
Which of the following grounds is most likely to be successful for the bookmaker’s judicial review claim?
A The Executive has made a biased decision.
B The Executive has violated the bookmaker’s right to be heard.
C The Executive has failed to comply with the general duty to give reasons.
D The Executive has failed to comply with the general duty to consult.
E The Executive has made an unreasonable decision.
The Executive has violated the bookmaker’s right to be heard.The Executive has violated the bookmaker’s right to be heard.
The bookmaker is most likely to succeed on the ground that the Executive violated the bookmaker’s right to be heard. Before a decision is made which adversely affects someone, that individual has a right to be heard. The extent of the right varies from case to case. For a forfeiture case (that is, where someone is deprived of a right), the individual is entitled to hear the case against them and to respond. Here, the bookmaker had the right to run a gambling business, which means they should have had the opportunity to respond to the case against them before losing their licence.
In a case before the Court of Appeal in 2021, the Court of Appeal must interpret a provision of retained EU law. The appellant wishes to rely on the interpretation provided by the High Court in a case from 2011. However, the respondent argues that the court is free to adopt its own interpretation of the law.
Which of the following best describes the legal position?
A The Court of Appeal should refer the case to the Supreme Court, which is not bound by retained domestic case law.
B The High Court’s judgment from 2011 forms part of retained EU case law, and it is not binding on the Court of Appeal.
C The High Court’s judgment from 2011 forms part of retained EU case law, and it is binding on the Court of Appeal.
D The High Court’s judgment from 2011 forms part of retained domestic case law, and it is not binding on the Court of Appeal.
E The High Court’s judgment from 2011 forms part of retained domestic case law, and it is binding on the Court of Appeal.
The High Court’s judgment from 2011 forms part of retained domestic case law, and it is not binding on the Court of Appeal.
Although the High Court’s judgment is part of retained domestic case law, it is not binding on the Court of Appeal. Because the High Court’s judgment from 2011 pre-dates the end of the transition period (in December 2020), and it involves the interpretation of retained EU law by a domestic court, it forms part of retained domestic case law. The UK courts are bound by retained domestic case law only from courts that are higher or equivalent to them. Thus, the High Court’s decision is not binding on the Court of Appeal.
Four friends set up a partnership to operate a car repair business. Each of the four contributed £5,000 to the business and pledged to work at the business full time. Additionally, one of the friends already owned an expensive diagnostic computer because she had been repairing cars as a sole trader for some time. She offered to allow the partnership to use the diagnostic computer in its business. However, she insisted that the machine would remain hers.
Since the partnership began, the diagnostic computer has been upgraded several times and the partners used partnership funds to pay for the upgrades. After three years, the partner who owned the diagnostic computer decided to retire from the partnership and return to her work as a sole trader. When giving notice of her desire to leave, she also told her partners that she would be taking her diagnostic computer with her. As a new diagnostic computer would cost £12,000, the other three partners are keen to keep it.
Does the partner have a right to take back the diagnostic computer?
A Yes, because the partnership failed to register the diagnostic computer as partnership property at Companies House.
B No, because the diagnostic computer became partnership property when the partner allowed the partnership to use it.
C Yes, because partners are entitled to a return of their contribution upon retirement.
D Yes, because the partner never intended the diagnostic computer to become partnership property.
E No, because the diagnostic computer became partnership property when the partner allowed the partnership to pay for repairs and maintenance on the computer.
Yes, because the partner never intended the diagnostic computer to become partnership property.
Property will be considered partnership property if it was brought into the partnership with the intention that it would be partnership property. Here, the partner made it clear at the beginning of the partnership that she wished her diagnostic computer to remain her property.
A business owner is involved in a dispute with a business partner regarding equity in the business. The value of the claim is approximately £150,000.
Which court would you expect to deal with this case?
A The County Court.The County Court.
B The High Court (King’s Bench Division).
C The High Court (Chancery Division).
D The small claims court.
E One of the specialist courts.
The High Court (Chancery Division).The High Court (Chancery Division).
A client has instructed a solicitor to advise in relation to the purchase of a house. The client is financing the purchase partly through savings and partly through the sale of some shares. The solicitor recommended that the client speak to a stockbroker about which shares to sell and provided details of the broker to the client. The stockbroker gave the solicitor an introduction fee of £100. After taking the stockbroker’s advice, the client asked the solicitor to sort out the paperwork for the sale of the shares, which the solicitor did. Neither the solicitor nor his firm is authorised by the Financial Conduct Authority to carry on a “regulated activity” as defined in the Financial Services and Markets Act 2000 and related secondary legislation. The stockbroker is authorised by the Financial Conduct Authority.
Has the solicitor breached the general prohibition against carrying on a regulated activity?
A No, because the only relevant investment is land, which is not a specified investment.
B Yes, because land is a specified investment and no exclusion applies.
C Yes, because arranging is a specified activity and shares are a specified investment and no exclusion applies.
D No, because while there is a specified activity and a specified investment, the acting through an authorised person exclusion applies.
E No, because while there is a specified activity and a specified investment, the acting as a trustee exclusion applies.
Yes, because arranging is a specified activity and shares are a specified investment and no exclusion applies.
The solicitor has breached the general prohibition against carrying on a regulated activity because arranging is a specified activity and shares are a specified investment and no exclusion applies. 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. Here, the solicitor has been asked to make arrangements (a specified activity) for the client to sell shares (a specified investment). The solicitor cannot rely on the acting through authorised persons exclusion. Though the solicitor may arrange specified investments if the client receives advice from a person authorised by the Financial Conduct Authority, the exclusion is not available if the solicitor received payment from the authorised person. As the stockbroker (an authorised person) paid the solicitor an introduction fee of £100, this exclusion will not be available. Thus, the solicitor has carried on a regulated activity in breach of the general prohibition.
A man borrowed a motorbike from a friend to use for a camping trip. The man stowed his backpack and tent on the back of the motorbike. At a service area en route, he briefly left the motorbike in a parking spot for cars in violation of the posted regulations. Whilst he was away, a car driver crashed into the motorbike. The motorbike was so badly damaged that it was unusable. The man had to hire a replacement motorbike for the remainder of his trip. Also, his backpack and tent, worth a total of £150, were destroyed, requiring him to replace them before he could proceed on his trip.
In a claim by the man against the car driver, which of the following statements is correct?
A The man cannot recover any damages for either the motorbike or the backpack and tent because the motorbike was not legally parked.
B The man cannot recover any damages for either the motorbike or the backpack and tent because the motorbike did not belong to him and the total cost of the backpack and tent was less than £275.
C The man cannot recover any damages for the costs of hiring a replacement motorbike nor for the cost of replacing his backpack and tent because this is all pure economic loss.
D The man cannot recover any damages for the motorbike and replacement motorbike hire, but he can recover for the cost of replacing his backpack and tent.
E The man cannot recover any damages for the motorbike, but he can recover for the cost of the replacement motorbike hire and the cost of replacing the backpack and tent.
The man cannot recover any damages for the motorbike and replacement motorbike hire, but he can recover for the cost of replacing his backpack and tent.
The man can recover for the backpack and tent. Damage to property which did not belong to the claimant is classed as pure economic loss and cannot be recovered. Hence, the man cannot recover for the damage to the motorbike and hire of a replacement because the motorbike did not belong to him. However, he can recover for the cost of replacing the backpack and tent because this is property which did belong to him, so the cost of replacing it is not pure economic loss.
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 Safeguarding a client’s portfolio of shares.
B Advising a client on payments into a pension scheme.
C Arranging for a client to purchase Premium Bonds.
D Managing a client’s debenture.
E Contracting for a client to purchase a funeral plan.
Arranging for a client to purchase Premium Bonds.
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 arrange for the client to purchase Premium Bonds because while arranging is a specified activity, Premium Bonds are not specified investments.
A man sustained internal injuries in a car accident. He was rushed to hospital and into surgery. The surgery went well, but the surgeon accidentally left a sponge in the man’s abdomen. Nonetheless, the man recovered from his injuries. However, about a year later, the man developed sepsis. He underwent a second surgery during which the sponge was discovered.
How long does the man have to make a claim against the first surgeon?
A Six years from date of the first surgery.
B Three years from date of the first surgery.
C Six years from date of the second surgery.
D Three years from date of the second surgery.
E One year from date of the second surgery.
Three years from date of the second surgery.
The basic limitation period for personal injury claims is three years from the date of accrual, which is the date of the first surgery here. However, it would not be fair to start the limitation period on accrual because the man did not know of the negligence; he did not find out about it until his second surgery. In such cases, we use the date of knowledge. Therefore, the man has three years from the date of the second surgery in which to bring his claim.
A group of teenage children are working together to renovate a children’s playground. They are trying to move a heavy wooden beam when one of them accidentally drops the end he is carrying.
It lands on a fellow teenager’s leg and injures him. In an action in negligence by the injured person against the teenager, the teenager admits owing a duty of care but denies being in breach.
On the issue of breach of duty, which one of the following statements is NOT correct?
A The standard of care which the teenager must meet is objective and impersonal.
B No account will be taken of the teenager’s own lack of experience in building and renovating.
C The standard of care which the teenager must meet is that of a reasonable adult undertaking the same task and no account will be taken of his age.
D In determining how the teenager ought to have acted, the court will take into account the magnitude of the risk involved.
E In determining how the teenager ought to have acted, the court will take into account the practicability of taking precautions against the risk involved.
The standard of care which the teenager must meet is that of a reasonable adult undertaking the same task and no account will be taken of his age.
A business owner wished to stage an event on his premises. He engaged an independent contractor to build an outside pavilion for the event. Before engaging the contractor, the business owner carefully checked that the contractor had appropriate qualifications and experience. Once the pavilion was built, the business owner carried out a thorough safety inspection. However, on the first day of the event, the pavilion collapsed, injuring several of the customers. Evidence later showed that the contractor who erected the pavilion had carelessly failed to secure the roof struts and this had caused the collapse.
In a claim by the customers against the business owner, which of the following statements is correct?
A The business owner will not be liable to the customers because they were owed a duty of care by the contractor rather than by the business owner.
B The business owner will not be liable to his customers even though he owed a duty of care in respect of the safety of the premises, because he discharged that duty by acting reasonably to engage a competent contractor and checking the work.
C The business owner will be liable to the customers because they were lawful visitors to his premises, and an occupier owes lawful visitors an absolute duty to ensure that the premises are in a safe condition.
D The business owner will be liable to the customers because an occupier of premises owes a duty to lawful visitors which cannot be discharged by employing an independent contractor.
E The business owner will not be liable to the customers because the independent contractor’s negligence was an intervening act that broke the chain of causation.
The business owner will not be liable to his customers even though he owed a duty of care in respect of the safety of the premises, because he discharged that duty by acting reasonably to engage a competent contractor and checking the work.
The business owner will not be liable to the customers. Harm has been caused to the customers by the state of the premises, the business owner is the occupier of the premises, and the customers are his lawful visitors. So, liability is governed by the Occupiers’ Liability Act 1957. The occupier owes a duty of care in respect of the condition of the premises. That duty may be discharged by employing an independent contractor to carry out work of construction, maintenance, or repair, provided that the occupier acted reasonably in entrusting the work to an independent contractor and took reasonable steps to satisfy himself that the contractor was competent and the work properly done. So, on the facts, the business owner discharged the duty which he owed to his customers.
Three partners form a partnership to operate a car repair business. The partnership agreement states that the partners do not have authority to enter into transactions on behalf of the partnership in excess of £5,000. One of the partners orders a new diagnostic computer for the garage from a third party for £10,000.
Which of the following statements is correct regarding the partner’s apparent authority in this situation?
A The partner had no apparent authority because it must be derived from the express powers and purposes contained in the partnership agreement.
B The partner had no apparent authority because it may be limited by a formal resolution of the partners at the peril of third parties who are unaware of the limitation.
C It is uncertain whether the partner had apparent authority because it arises solely from previous dealings between the parties.
D The partner had apparent authority here because the purchase appears to be carrying on in the usual way business carried on by the firm.
E The partner had apparent authority because it is a natural consequence of authority expressly given to the partner.
The partner had apparent authority here because the purchase appears to be carrying on in the usual way business carried on by the firm.
Under the Partnership Act, each partner is an agent of the firm, and the act of any partner carrying on in the usual way business of the kind carried on by the firm will bind the firm through apparent authority. This rule will apply unless the third party knew the partner had no authority to act or did not know the partner was a partner. Purchasing a diagnostic computer would seem to be connected to operating a car repair business, and nothing in the facts indicates the third party was aware of the £5,000 limitation. Therefore, the partner had apparent authority and the partnership will be bound.
A motorcyclist is involved in a multi-vehicle accident on a country road and suffered severe injuries. The motorcyclist contends the accident was attributable to the negligence of the driver of a car travelling in the opposite direction.
After receiving a letter of claim from the motorcyclist, the car driver’s insurers instruct solicitors. The solicitors incur significant costs obtaining witness statements, a plan and photographs of the location, and a copy of the police report. It soon becomes clear to them that the accident was not caused by their insured, but rather by the negligence of a van driver who had pulled out in front of the insured’s car.
The motorcyclist accepted that the van driver was at fault. The van driver’s insurers accepted liability and ultimately settled the claim, so the motorcyclist never issued proceedings.
Can the car driver’s insurer recover any of their costs from the claimant or the responsible party?
A Yes, the insurers can look to the claimant to pay their wasted costs in investigating the claim that he intimated against their insured.
B No, the insurers cannot recover any of the cost from either of the other parties involved in the accident.
C Yes, the insurers can recover the costs incurred from the negligent party responsible for the accident.
D No, other than the cost of any disbursements incurred, for example, the police report fee or the cost of obtaining the plan and photographs.
E Yes, the claimant can claim the costs associated with the investigation, but none of the cost relating to interaction between their nominated solicitors and the claimant’s representatives.
No, other than the cost of any disbursements incurred, for example, the police report fee or the cost of obtaining the plan and photographs.
It is unlikely that the insurers will be able to recover any cost incurred in the protocol period. Generally, if the parties comply with the appropriate protocols and fail to resolve their issues, but the claimant nevertheless decides not to continue with the claim, it is unlikely that the defendant will be able to recover any costs. (But note that if proceedings were issued and the claim stayed to allow the parties to comply with the protocols, an award to recover some of the wasted costs of complying with the protocols is more likely.)
The owner of a top floor flat engaged a building contractor to renovate the flat by carrying out extensive structural works. The contractor warned the flat owner that the work would create substantial amounts of dust likely to affect his neighbour in the flat below. The contractor advised that, for an extra cost, precautions could be taken to minimise the spread of dust. However, the flat owner decided not to pay for this, so the work went ahead without it. The contractor carried out all of the work and at no time did the flat owner undertake any work himself. The work lasted for six months and, as predicted, caused a substantial interference by spread of dust to the neighbour’s flat below.
In an action in the tort of private nuisance by the neighbour against the flat owner to recover damages for the effects of the dust, which of the following best states the likely outcome?
A The flat owner is not liable in nuisance for damages caused by the dust because he did not create the nuisance, having not done any of the work himself.
B The flat owner is liable in nuisance for damages caused by the dust because he is the occupier of the land where the dust originated.
C The flat owner is not liable in nuisance for damages caused by the dust because he has exercised reasonable care by choosing a competent independent contractor.
D The flat owner is liable in nuisance for damages caused by the dust because the building work for which the contractor was engaged carried a special danger of causing a nuisance.
E The flat owner is not liable in nuisance for damages caused by the dust because the dust spreading to the neighbour’s flat constituted a trespass to land.
The flat owner is liable in nuisance for damages caused by the dust because the building work for which the contractor was engaged carried a special danger of causing a nuisance.
The flat owner is liable. The facts show that the dust has caused an interference with the neighbour’s use and enjoyment of his land which was substantial and unreasonable. Therefore, the contractor has created an actionable nuisance. The general rule is that a person is not liable for the torts of their independent contractor. However, as an exception to this, an occupier of land is liable for a nuisance created by an independent contractor where the work for which the contractor was engaged carried a special danger of creating a nuisance.
On incorporation several years ago, a company issued 100 £1 ordinary shares. The company now wishes to issue 100 preference shares to a new investor. The company has Companies (Model Articles) Regulations 2008 (unamended) for private companies limited by shares as its articles of association.
Which of the following best describes the members’ resolutions which must be passed before the shares can be allotted?
A A members’ ordinary resolution to give the directors the power to allot the shares only.
B A members’ special resolution to disapply preemption rights only.
C A members’ special resolution to change the articles to include the preference share rights.
D A members’ special resolution to give the directors the power to disapply preemption rights and a members’ special resolution to change the articles to include the preference share rights.
E A members’ ordinary resolution to give the directors the power to allot the shares, and a members’ special resolution to change the articles to include the preference share rights
A members’ ordinary resolution to give the directors the power to allot the shares, and a members’ special resolution to change the articles to include the preference share rights.
The directors have the power to allot shares if the company has only one class of shares. Here the company is issuing a different class, so the directors need the members to pass an ordinary resolution to give them the power to allot the preference shares. Only equity shares are subject to the statutory preemption rights (and not preference shares) so there is no need to disapply preemption rights. The articles need to be changed by special resolution to include the rights enjoyed by the preference shares.
On 10 April, the owner of a farm posted a letter to a new resident of the area who had expressed an interest in buying the farm. In this letter, the farm owner offered to sell the farm to the resident for £100,000. The offer expressly stated that the offer would expire on 1st June, ‘if acceptance by the offeree has not been received by the offeror on or before that date.’ On 29 May, the resident sent a written acceptance to the farm owner by post. However, the acceptance was not delivered to the farm owner until 2 June. On 4 June, the farm owner entered into a contract to sell the farm to another buyer for more money but did not inform the resident of the transaction. When the resident followed up by phone on 10 June, the farm owner told him that he had sold the farm to another buyer.
Which of the following best describes the results of the above transaction?
A No contract between the farm owner and the resident arose on 2 June.
B An enforceable contract arose on 29 May.
C An enforceable contract arose on 2 June because the farm owner’s silence constituted an acceptance of the resident’s message.
D A voidable contract arose on 1 June.
E No contract arose between the parties as post was not an acceptable method of communicating acceptance.
No contract between the farm owner and the resident arose on 2 June.
No contract arose on 2 June because the farm owner’s offer expired on 1 June, when the farm owner had not received the resident’s acceptance. If a period of acceptance is stated in an offer, the offeree must accept within that period to create a contract. Failure to accept in time terminates the power of acceptance in the offeree (that is, a late acceptance will not be effective and will not create a contract). Under the postal rule, an acceptance is generally effective the moment it is posted in the post box. However, the postal rule does not apply where the offer states that acceptance will not be effective until received. In that case, acceptance is effective only upon receipt. Here, the farm owner opted out of the postal rule because the offer specifically stated that the acceptance must be received by 1 June to be effective. Thus, no contract was created by sending the acceptance on 29 May as there was no valid acceptance.
A solicitor is instructed by a client on a complex litigation matter. As the solicitor does not know how long the matter will take, he quotes his hourly rate of £200 plus VAT in the client care letter without further explanation. At the end of the matter the client is shocked when the bill comes to £50,000 plus VAT. The client refuses to pay the bill and complains.
Is the client’s complaint likely to succeed?
A No, because the firm could not assess the costs at the outset, so an hourly rate is the best they could be expected to provide.
B No, because the client never asked for clarification about the fee.
C No, provided the firm can justify the legal fees based on time spent on the file.
D Yes, because the firm should have clearly explained the fees and given a realistic indication at the outset of the likely level of work involved.
E Yes, because the firm was required to include a maximum fee in the client care letter.
Yes, because the firm should have clearly explained the fees and given a realistic indication at the outset of the likely level of work involved.
It is accepted that firms might not know how long a matter such as litigation might take at the outset, but the firm will be required to give the best possible information about how their matter will be priced, which should include a reasonable estimate of the likely number of hours the matter might take together with a statement of the hourly rate (plus VAT).
A restaurant owner is suing a meat supplier for £3,000 for failure to deliver meat within the timescales of their contract.
If the restaurant owner does not include the Particulars of Claim on the N1 claim form, when must they be served?
A Within 28 days of filing the claim form.
B Within 28 days of serving the claim form.
C Within 14 days of filing the claim form.
D Within 14 days of service of the claim form.
E Within 10 days of service of the claim form.
Within 14 days of service of the claim form.
If the Particulars of Claim (that is, a written statement setting out the details of the claimant’s case) are not included on the back of the claim form, they may be in a separate written document served along with the claim form or within 14 days following service
A group want to hold a procession in Manchester against government policy on the Middle East. They provide the necessary notice to the police.
How can the police respond to the notice?
A The police can ban the procession in their absolute discretion.
B The police must allow the procession to proceed without limitation.
C The police can impose any conditions on the procession they deem fit.
D The police can impose conditions to prevent serious disorder, damage, or disruption to the life of the community.
E The police can make an application to the Home Secretary to ban the procession.
The police can impose conditions to prevent serious disorder, damage, or disruption to the life of the community.
The police can impose any conditions on the procession they believe are necessary to prevent serious public disorder, serious damage to property, or serious disruption to the life of the community. The police can also impose conditions if they believe the procession is likely to generate such noise that it may result in serious disruption to the activity of organisations or have a significant impact on persons in the vicinity of the procession. Further, the police can impose conditions necessary to prevent intimidation. These conditions are compliant with the freedom of expression and freedom of association, as those rights can be limited for the purpose of national security or the prevention of disorder.
A client and a solicitor enter into a conditional fee agreement (‘CFA’) in a breach of contract claim. The CFA provides for a success fee of 10% and for the client to be responsible for the solicitor’s disbursements, if unsuccessful. The solicitor’s usual hourly rate is £250. During the course of the case, the solicitor incurs disbursements of £400 and undertakes 30 hours of work. The client loses the case and is ordered to pay the opponent’s costs and disbursements.
Which of the following correctly states the client’s liability for his solicitor’s costs under the conditional fee agreement?
A The client must pay the solicitor £7,500 in fees and £400 for disbursements only.
B The client must pay the solicitor £400 for disbursements only.
C The client must pay the solicitor £750 in fees and £400 for disbursements only.
D The client has no liability for the solicitor’s costs.
E The client must pay the solicitor £440 for disbursements only.
The client must pay the solicitor £400 for disbursements only.
The client must pay the solicitor £400 for disbursements. A conditional fee agreement provides that if a case is successful, the solicitor can charge their fee to the client with a percentage uplift (the success fee) beyond the normal fees charged. If the claim is unsuccessful, the client does not pay any fee to their solicitor, although they will be liable to pay the other side’s costs and disbursements and their own disbursements. Here, since the client’s claim was unsuccessful, they are not liable for their solicitor’s fees and no success fee is owed. With regard to the solicitor’s costs, the client is therefore only liable for the disbursements.
Three youths agreed to take a taxi without paying the fare. In the taxi they travelled to the city centre, and when the taxi stopped at traffic lights, two of them jumped out and ran off without paying the fare. The third youth was unable to jump out quickly enough and remained in the taxi. When the taxi driver realised what was happening, he set off at speed in an attempt to make sure the remaining youth did not escape without paying. The youth then jumped from the taxi as it was moving and sustained serious injuries.
In an action in negligence by the youth against the taxi driver to recover damages for his injuries, which of the following best describes the likely outcome?
A The taxi driver will not be liable to the youth because, in the circumstances, he did not owe the youth a duty of care.
B The taxi driver will be liable to the youth, but the youth will suffer a reduction in the damages which he recovers.
C The taxi driver will not be liable to the youth because the defence of illegality will apply.
D The taxi driver will be liable to the youth because he intentionally set off at speed.
E The taxi driver will not be liable to the youth because the youth failed to take reasonable care for his own safety.
The taxi driver will not be liable to the youth because the defence of illegality will apply.
The taxi driver will not be liable because the defence of illegality will apply to defeat the youth’s claim entirely. The youth was engaged in criminal activity by acting pursuant to a plan to make off without paying the fare, which had already been partially carried out. The defence of illegality is a rule of public policy which prevents a claimant from recovering compensation for damage suffered as a result of their own illegal actions. So, the claimant cannot recover damages for harm suffered whilst he is taking part in criminal activity (jumping out of the taxi without paying the fare). The defence of illegality is a complete defence, defeating the claim entirely. (B) is not correct because it only suggests that damages would be reduced.
A man was sitting in his garden next to a busy motorway. He saw a heavy goods vehicle stop on the road because its load had caught fire. Although his garden hose was within reach, he did not get up to help put out the fire because he reasonably feared that the vehicle’s fuel tank might explode. So he did nothing, and the vehicle and its load of goods were totally destroyed. The owner of the vehicle has been informed of the man’s conduct and is angry that the man did nothing to help prevent the owner’s loss.
If the owner makes a claim in the tort of negligence against the man, which of the following statements best explains the likely outcome?
A The owner could not make a successful claim because the man did not fall below a reasonable standard of care in not going to help put out the fire, as his fear of an explosion was reasonable.
B The owner could make a successful claim for the whole of the owner’s loss because the man breached his duty of care in not going to help put out the fire.
C The owner could make a successful claim but only for the value of the vehicle and goods which were destroyed, and not for any loss of profits that he would have made on the goods because this would be pure economic loss.
D The owner could not make a successful claim because the man did not owe any duty of care to the owner in respect of his failure to act.
E The owner could not make a successful claim because causation cannot be established, as the man might not have been able to put out the fire even if he had gone to help.
The owner could not make a successful claim because the man did not owe any duty of care to the owner in respect of his failure to act.
The owner could not make a successful claim against the man. In the tort of negligence, the general rule is that no duty of care is owed in respect of an omission to act (subject to exceptions which are not relevant on the facts of the question)
An employee of a firm of solicitors discovers that his team is not being considered for promotion despite having the same level of qualification and experience as employees in a different team who are being considered. When he asks his line manager about this difference, he is told that this is because the team who is being considered for promotion is available to work late nights and weekends. The employee discovers that the members of the team up for promotion are all single, which is why they are available late nights and weekends, whereas the majority of his team members are married or in civil partnerships.
Under the Equality Act 2010, would the employee’s team have a potential claim for discrimination against the firm?
A No, because marriage/civil partnership is not a protected characteristic.
B Yes, because the firm is directly discriminating against the employee’s team on the grounds of marriage/civil partnership.
C No, because the firm has a legitimate reason for not considering the employee’s team for promotion.
D Yes, because the firm is indirectly discriminating against the employee’s team on the grounds of marriage/civil partnership.
E No, because the firm is using proportionate means to differentiate between the employee’s team and the team up for promotion.
Yes, because the firm is indirectly discriminating against the employee’s team on the grounds of marriage/civil partnership.
The employee’s team would have a potential claim for indirect discrimination on the grounds of the protected characteristic of marriage/civil partnership. Indirect discrimination is when a policy or provision is apparently neutral but on closer examination puts individuals with a protected characteristic at a disadvantage compared with individuals who do not have that characteristic. Here, the firm’s policy is apparently neutral in that it does not say it is only considering single employees for promotion. However, the policy puts people with a protected characteristic, here marriage/civil partnership, at a disadvantage when compared with people who don’t have that characteristic. Here, all of the members of the team up for promotion due to being able to work nights and weekends are single and the majority of the team not up for promotion are married or in a civil partnership, so those who are married or in a civil partnership are put at a disadvantage compared to those who are single.
Two friends are comparing notes from their Constitutional Law class. One friend mentions that she did not write down the definition of the term ‘parliamentary privilege’ when the lecturer mentioned it in class that day. She asks her friend if he took down the definition. The friend affirms that he did.
Which of the following best sets out what the notes should say?
A The highest source of law in the UK’s legal system is an Act of Parliament.
B Government ministers must support government policy in public or before Parliament.
C Statements said in Parliament cannot be challenged before the courts.
D During debates, members of the House of Commons and House of Lords should not refer to cases which are currently before the courts.
E The courts do not question the validity of Acts of Parliament.
Statements said in Parliament cannot be challenged before the courts.
Parliamentary privilege is a collection of rules which apply to members of the House of Commons and House of Lords and include the rule that statements said in Parliament cannot be challenged before the courts.
A property owner decided to turn the garage on her property into a gym. She entered into a written agreement with a contractor who agreed to do the job personally for £12,500. The contractor was to begin work by 14 May. On 15 May, he had not yet started. The property owner telephoned the contractor, who told her that he was hired for another big job and would not work on her garage. Over a period of several months, the property owner made many calls to other local contractors, but none of them would agree to do the job for the price agreed by the original contractor. On 3 June of the following year, the property owner sued the original contractor for specific performance.
Which of the following represents the contractor’s best argument in his defence against the property owner’s claim?
A Specific performance is an equitable remedy, and because the property owner waited for over a year to sue, the equitable defence of laches (lapse of time) will apply.
B Specific performance is inappropriate, because a contract for services is involved.
C Specific performance is inappropriate, because nominal damages are available to the property owner.
D Specific performance is inappropriate, because the property owner’s failure to obtain another contractor for the job is an indication that £12,500 was an unfair price.
E Specific performance is inappropriate as equity requires the party who seeks to avail themselves of an equitable remedy to come to equity ‘with clean hands’, that is, not to have acted in an improper manner.
Specific performance is inappropriate, because a contract for services is involved.
The contractor’s best argument is that a contract to provide services is not specifically enforceable as you cannot compel someone to work for you. Thus, the property owner cannot obtain specific performance of the contractor’s agreement to perform personal work for her.
An American lawyer and a British solicitor are collaborating on a case involving a multi-national company with offices in both the US and the UK. The solicitor mentions the Cardinal Convention. The US lawyer says he is not familiar with that term and asks the solicitor to explain.
Which of the following would be the solicitor’s most accurate response?
A The Monarch always acts on the advice of her ministers, in particular the Prime Minister.
B The House of Lords will grant a second reading to, and will otherwise not block, legislation seeking to implement a commitment that the political party forming the government made in their manifesto at the last election.
C Discussions about policy within government should be kept confidential.
D The highest source of law in the UK’s legal system is an Act of Parliament.
E When Parliament grants a power to the Secretary of State in an Act, that power could be exercised by a civil servant within the Secretary of State’s department.
The Monarch always acts on the advice of her ministers, in particular the Prime Minister.
A company has an accounting period that ends June 30. In the year ended 30 June 2023, a company had a tax adjusted trading profit of £800,200 and property income of £45,000. It also realised a chargeable capital gain of £25,000 and a capital loss of £80,000.
In the prior year, the company made a tax adjusted trading profit of £520,000 and chargeable capital gains of £9,000.
How much, if any, of the capital loss arising in the year ended 30 June 2023 may be carried forward to the year ended 30 June 2024?
A £67,300
B £80,000
C £0
D £55,000
E £46,000
£55,000.
Companies must offset their capital losses against their chargeable gains in the same year, and excess losses must be carried forward to be used against future chargeable gains. Capital losses cannot be carried back and cannot be used against any other type of income. Neither is the annual exemption against capital gains available to companies. Thus, we deduct the £80,000 capital loss from the 2023 tax year gain of £25,000, which leaves a negative £55,000 (loss) to be carried forward into the 2024 tax year.
A teenager was a spectator at a motorbike race. He was standing next to the track when two of the bikes collided together just in front of him. Debris flew into the air and a piece hit the teenager on the arm, causing a minor injury. The teenager was so shocked that he has now begun to suffer from post-traumatic stress disorder (‘PTSD’). Evidence shows that the crash was caused by the negligence of the race organisers.
In an action by the teenager against the race organisers to recover damages for the harm he suffered, which of the following best states the likely outcome?
A The teenager is likely to recover damages for both the cut to his arm and the PTSD because the PTSD was a consequence of his physical injury.
B The teenager is likely to recover damages for the cut to his arm but not for the PTSD because psychiatric harm is not recoverable in the tort of negligence.
C The teenager is likely to recover damages for both the cut to his arm and the PTSD because he witnessed the traumatic events with his own senses.
D The teenager is likely to recover damages for both the cut to his arm and the PTSD because he was in the area of danger created by the organiser’s negligence.
E The teenager is not likely to recover damages for his PTSD because it was not foreseeable that he would suffer psychiatric harm as a result of such a minor injury.
The teenager is likely to recover damages for both the cut to his arm and the PTSD because the PTSD was a consequence of his physical injury.
The teenager will likely be able to recover all of his damages in a negligence action. The organiser owed the teenager a duty of care in respect of the personal injury which he suffered, and this duty extends to psychiatric harm which is consequential on physical injury. The facts show that the duty was breached and that this caused the teenager’s damage, both the physical injury and psychiatric harm.
A solicitor is instructed by the driver of a vehicle, who was involved in a road traffic accident involving a coach driver and is taking action against the coach driver to recover the costs of repair to his vehicle. The driver client’s passenger, who is the driver client’s cousin, was injured in the accident. The driver client and passenger want the same solicitor to act for them both and are willing to provide written consent. The coach driver disputes liability and alleges that the driver client was at fault, and there is some evidence to suggest that the driver client was at least partially responsible.
Do the rules of professional conduct allow the solicitor to act for both the driver client and the passenger?
A No, but the solicitor may refer one of the parties to a different member of the solicitor’s firm.
B No, because there is a significant risk of a conflict of interest.
C Yes, because there cannot be a conflict of interest between family members.
D Yes, because at this point there is no conflict of interest; however, should further evidence emerge to show that the driver client was at fault, the solicitor would need to cease acting for one of the parties.
E Yes, because the driver client and the passenger have a substantially common interest.
No, because there is a significant risk of a conflict of interest.
A solicitor must not act where there is a conflict of interest between clients, or a significant risk of conflict. There is a significant risk of a conflict here-there is some evidence that the driver client may be responsible for the passenger’s injuries-and the solicitor should not accept instructions from them both.
Question
A double glazing company agrees with a home owner to install new windows in the homeowner’s house on 15 August. On 12 August, the double glazing company telephones the homeowner and says that the windows will not be ready for installation until 22 August. The homeowner reluctantly says that they accept the delay.
Can the home owner change their mind on 14 August and enforce the contract based on the original installation date?
A No, there has been a binding variation of the contract.
B No, the homeowner has expressly waived their right to insist on the original date.
C No, the homeowner has impliedly waived their right to insist on the original date.N
D Yes, because the homeowner can give notice to reinstate the original date.
E Yes, because there was no consideration for the homeowner’s agreement to vary the date.
No, the homeowner has expressly waived their right to insist on the original date.
The homeowner will not be able to enforce the original date because they waived their right to insist on the original date. Generally, for a variation of a contract to be enforceable, it must be supported by consideration to be enforceable. However, equity provides a way around this. Where a party promises not to enforce the other party’s obligation, the courts may conclude that the agreement is at least temporarily effective through waiver. The waiving party can reinstate the original obligation. However, they must give reasonable notice. Here, the homeowner agreed that the company could delay installation, which would constitute a waiver. It is unlikely that the court would find giving notice of reinstate the day before performance was reasonable.
A civil lawyer has to advise their client on options in resolving a dispute between the client and the client’s cousin. The client and their cousin have not been able to come to terms and so would like a neutral third party to decide the dispute for them and to issue a binding and enforceable resolution. However, the client does not want the matter to go to court as family is involved.
How should the solicitor advise the client if the solicitor agrees that a binding decision from a neutral third party would be best under the circumstances?
A The cousins should hire a mediator to settle the dispute given the client’s goals.
B The cousins should engage in independent negotiation and settlement given the client’s goals.
C The client must seek court resolution given the client’s goals.
D The cousins can hire either a mediator or an arbitrator to settle the dispute given the client’s goals.
E The cousins should hire an arbitrator to settle the dispute given the client’s goals.
The cousins should hire an arbitrator to settle the dispute given the client’s goals.
Arbitration is a means of alternative dispute resolution in which a neutral third party (the arbitrator) hears evidence from each side and makes a binding decision. The court is not involved
A teacher and his friend entered into a contract for the sale of a kitten as a pet for the friend’s children. After the contract had been agreed, the teacher told his friend that the kitten had a sweet nature and was good around children. However, six weeks later when the kitten is delivered, it badly scratches the friend’s son’s face.
Would the friend succeed in an action against the teacher for misrepresentation?
A No, the statement has no legal effect as it was made after the contract had been concluded.
B No, the statement by the teacher was a statement of opinion not of fact.
C Yes, the friend relied on the statement as to the kitten’s temperament.
D No, as the teacher’s statement that the kitten had a sweet nature and is good around children was made innocently.
E Yes, as this was a sale of goods contract, there is an implied term that the goods, in this case the kitten, would be fit for the buyer’s purpose, that is, a gentle family pet.
No, the statement has no legal effect as it was made after the contract had been concluded.
A misrepresentation is a statement of fact or law that induces a party to enter into the contract.
A solicitor at a large firm is representing a client in the purchase of an energy company. The client’s transaction is scheduled to complete next week. The solicitor is concerned that the client might be involved in money laundering. The solicitor sent an email to the nominated officer setting out her concerns. However, she got an ‘Out of Office’ reply that indicates the nominated officer is out of the office for two weeks.
What action should the solicitor now take?
A Report her suspicions to the National Crime Agency.
B Report her suspicions to her supervisor.
C Do nothing as she has already reported the matter to the nominated officer.
D Wait until the nominated officer comes back and resubmit her suspicions.
E Determine whether the firm has appointed a deputy nominated officer and report her suspicions to this person.
Determine whether the firm has appointed a deputy nominated officer and report her suspicions to this person.
The solicitor’s best course of action to take next is to determine whether the firm has appointed a deputy nominated officer and report her suspicions to this person. When the nominated officer is away, best practice is for firms to make alternative arrangements, such as appointing an alternative or a deputy nominated officer and informing staff about these arrangements. The nominated officer and deputy nominated officer should be trained to investigate and properly handle suspicious activity reports.
A UK solicitor has undertaken conveyancing work for a client. Over a short period of time, the client buys and sells a number of flats. The client draws money from a number of different bank accounts to pay for the flats, explaining that he maintains several companies and the various flats belong to the different companies. This allays any suspicions the solicitor has. Two months later, the solicitor discovers the client has been charged with an offence of money laundering in relation to these transactions.
Which one of the following offences might the solicitor have committed?
A Concealing or disguising criminal property.
B Converting or transferring criminal property.
C Acquiring, using, or having possession of criminal property.
D Failing to report knowledge or suspicion of money laundering.
E Entering into or becoming concerned in an arrangement which facilitates the retention, use, or control of criminal property by or on behalf of another person.
Failing to report knowledge or suspicion of money laundering.
The solicitor might have committed the offence of failing to report knowledge or suspicion of money laundering. Under the Proceeds of Crime Act 2002 (‘POCA’) it is an offence to fail to report knowledge or suspicion of money laundering. An offence can be committed if a person should have known or been suspicious in the circumstances. In other words, the test to determine the requisite mental state is an objective one. Here, the client’s actions–drawing money from different bank accounts to buy and sell a number of flats–could have raised reasonable grounds for suspicion that the client was money laundering. Thus, the solicitor might have committed the offence of failure to report.
