TESTPAPER

Name_____________________

V-II
1. Answer the following questions (16 points):

1. What is the name of the tort that a person commits because he or she is careless and hurts
someone else as a result of his carelessness?

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2. What is the correct name for an arrangement where a client does not have to pay his or her
lawyer if the client loses his or her action tort?

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3. Name the elements of the negligence that must exist in order for a plaintiff to win a negligence
action.

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4. How many countries form European Union? What was the last country to join EU and when?

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5. What is the motto of European Union?

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6. Name some of the most important treaties that are considered the basis of EU.

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7. What is the European Parliament?

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8. What is European Court of Justice?

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2. Greg Harison is a partner in the law firm Taylor Wallis. He works in the company and
commercial department. Today Greg is speaking to a group of lawyers and giving them his
opinion about working as a solicitor in company law. Fill in the gaps in the text with the
words given below.

Statutory raising formation

Incorporating resolutions insolvency

Employment dispute acquisitions

I have always wanted to work in the area of company law because it is so interesting and
there is so much variety. You have to deal with non-cintetious work, such as
_________________ a new company, and contentious work, such as acting for a company
which is in __________________ with its suppliers. We work closely with the other departments
within the law firm. For example, if a company needs a service agreement for a new director, we
will ask the ____________________ deprtment for assistance. If the matter involves a company
which is experiencing financial difficulties, we will ask for advice from one of our lawyers in the
banking and ___________________ department. If we are dealing with a situation where one
company is taking over another company, we will involve a tax lawyer. I have been with this
firm for 14years and in that time I have dealt many aspects of company law. These include:

 Dealing with company ______________________ and restructuring a company

 Drawing up and advising on shareholders’ agreements.
 Drafting directors’ service agreement.
 Advising on methods of ______________________ finance.
 Giving advice on complying with new legislation.
 Dealing with mergers and ________________________
 Advising on company insolvency procedures
 Dealing with joint entures.

So as you see, company law is a huge area of law, with varied aspects. Some of the law
regulating companies is ____________________ and some comes from the common law. In
2006 a new Act of Parliament was passed, called the Companies Act 2006. The new legislation
affects existing and new companies and all company lawyers have a lot of work to do on
becoming familiar with the legislation and advising their corporate clients on complying with it.
3. Look at the list of people. They are all connected with a company. Match each person in
the list with the correct description below.

directors(1) accountant (5)

shareholders(2) employee (6)

company secretary (3) creditors (7)

auditor (4) debtors (8)

a. All of the people who are empoyed by a company

b. The people or comanies that a comany owes money.
c. The owners of a company.They are also called the members of a company.
d. A person who checks the financial records of a company to verify that the accounts are
true reflection of the company’s financial position.
e. The people who run or manage the company.
f. A person who deals with company’s finance.
g. The people or companies who owe a copmany some money.
h. The person who is responsable for making sure that a company’s statutory obligations are
complied with.

4. Look at the sentences below. Each sentence contains a mistake. The mistake is either an
incorrect word or a word that should not be there. Put a circle around the word.

a. We need to borrow some money to the bank.

b. As a director I must to exercise the duty of care and skill.

c. In my opinion, this motion is not for the best interests of the company.

d. At the meeting the shareholders passed the resolution unanimous.

e. The bank will lend us the money but it wants security of the loan.

f. Our non-executive director knows about this and she will give us a piece of advice.

5. Create an opening statement on behalf of defendant’s lawyer or plaintiff’s lawyer

representing one of the parts in a law suit based on the situation described above. (150
words) 22points

Mr. Gundy owns a large apartment building. When his janitors wax the lobby floor, they place a twelve inch
square sign near the front door that reads: “Caution. Wet Floor.” Mrs. Gonzalez is hurrying home from shopping
carrying two large bags of groceries. She does not see the sign and slips and falls on the freshly waxed floor,
injuring her knee and arm. Mrs. Gonzalez sues Mr. Gundy.
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