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A private limited company is proposing to allot some ordinary shares to a man for a cash payment. The company only has ordinary shares in issue and has unamended model articles as set out in Schedule 1 to the Companies (Model Articles) Regulations 2008. Once the allotment has been completed, the man will have 30% of the issued share capital of the company. He is not and will not become a director of the company. Which of the following benefits will be conferred on the man by the allotment of shares?

A solicitor is instructed by a claimant in a personal injury claim. The matter proceeds to trial where the solicitor appears before a male District Judge in the County Court at a hearing centre which is located outside London. How should the solicitor address the judge?

A buyer visits the premises of a caravan seller and sees a vintage caravan. The following day the buyer sends an email to the seller offering to buy the vintage caravan for £12,000, and the seller accepts the buyer’s offer by email a few minutes later. The buyer has not yet paid for the vintage caravan nor collected it. Neither party is aware that the vintage caravan had been destroyed in a flood the previous night after a violent storm. Is there an enforceable contract between the seller and the buyer?

A non-governmental organisation (NGO) was created under statute with responsibilities for providing free after-school activities for children of single parent working families from the most economically deprived cities in the UK. It relies on central government for the bulk of its funding. Spending cuts in last year’s budget forced the NGO to significantly reduce the scope of its after-school activities. Seven months ago, it wrote to the parents of several children explaining that it would no longer be able to provide any after-school care for their children. It did not explain its decision beyond saying that the needs of some families were greater than others. The parents have just applied to the High Court for permission to proceed to a full judicial review of the NGO’s decision but the High Court has refused the application. Which of the following reasons would best justify this refusal?

A woman is given a new microwave as a birthday present from a friend. The friend had bought it from a local retailer. The microwave had been manufactured in China and then imported into the UK by a Welsh company. When the woman is using the microwave, it bursts into flames due to faulty wiring. This causes the woman serious burns. Which of the following statements best explains who could be liable under the Consumer Protection Act 1987?

A solicitor is employed by a law firm. Neither the solicitor nor her firm are authorised by the Financial Conduct Authority to make financial promotions in accordance with the Financial Services and Markets Act 2000 and associated secondary legislation (FSMA). The solicitor takes part in a half marathon. At the end of the run the solicitor talks to another runner who admires the solicitor’s sunglasses. The solicitor explains that the sunglasses are manufactured by a private limited company in which she recently invested some of her own money. She explains that the company is now expanding its operations and is looking for further investment. The runner states that he is considering investing in shares in a company that is involved in the fitness industry, and that he would be interested in learning more about the company with a view to investing in it. The solicitor gives the runner details of the company and recommends that he considers shares in that company as a potential investment. The runner does not know that she is a practising solicitor. Has the solicitor engaged in unlawful financial promotion in breach of FSMA?

A solicitor in a firm believes that he has identified an opportunity to generate new work based on his personal experience of problems with his internet provider. The solicitor had signed a contract with an internet provider ('the Provider') for an ultrafast fibre-optic internet connection to be provided to his home. The Provider breached the contract by not performing the contract by the agreed date. The solicitor successfully negotiated significant compensation from the Provider. The solicitor knows that some of his neighbours who live on the same street have also signed a contract with the Provider and may have experienced similar problems. He suspects that there may be other such neighbours who have also signed contracts with the Provider whom he does not know about. The neighbours include both a former client and current client of the solicitor. The solicitor plans to write to all of his neighbours informing them of their potential legal claim against the Provider and offering them his services. A separate department within the solicitor’s firm will consider the provisions of data protection legislation, but the solicitor is considering whom he can contact by letter without breaching his duty under the SRA Code of Conduct for Solicitors, RELs, RFLs and RSLs ('the Code'). According to the Code, whom (if anyone) can the solicitor contact by letter?

A private limited company has three directors. Two of the directors hold executive roles and are also shareholders. The third director is a non-executive director and has recently decided she wishes to resign as director. The two executive directors have asked the third director to stay for at least a month in order to give them time to find a replacement. The third director insists she wants to leave straight away and submits written notice of her resignation to the company to take effect immediately. The company has unamended model articles as set out in Schedule 1 to the Companies (Model Articles) Regulations 2008 ('the Model Articles'). Can the third director resign with immediate effect?

A claimant based in England owns a national chain of pet shops. It has issued a claim for unspecified damages against one of its suppliers ('the defendant') which is also based in England. The claim is in respect of dog toys which the claimant alleges were neither of satisfactory quality nor fit for purpose. The claim form has been issued but has not yet been served. The claimant believes it needs more time to prepare the particulars of claim. The claimant wants to know whether the particulars of claim must be served with the claim form or if they can be served separately and what the time limits for service are. There are no grounds for alternative service, nor for any extension of time for service. Which of the following statements correctly sets out the rules on service of the particulars of claim in these circumstances?

A partnership agrees to pay £15,000 to a company to hire a large hall in London for an exhibition on 1 March. £5,000 is payable on 14 February and the balance is due on 28 February. The partnership does not make the payment of £5,000. On 26 February, the company spends £2,000 on contractors who set up the hall with equipment, tables, chairs and display boards. On 27 February, a major water leak takes place at the hall, through no fault of the company. The contract is frustrated. The partnership is concerned that the company may seek to recover a payment from it and takes legal advice on its potential liability. What sum, if any, is it most likely a court will order the partnership to pay to the company?

A man and a woman visit a theme park owned and maintained by a company. The man buys two tickets for them to gain entry. On the reverse of the tickets, the company has placed a disclaimer of liability for personal injury, which says: “No liability for death or personal injury howsoever caused.” The woman goes for a ride on the rollercoaster. The carriage she is riding in becomes detached from its tracks because of negligent maintenance and she is thrown to the ground. She suffers personal injury and seeks advice from a solicitor about claiming compensation for her injuries. The solicitor considers whether a duty under the Occupiers’ Liability Act 1957 (‘the Act’) may exist. Which of the statements below best describes the company’s duty, if any, to the woman under the Act?

A solicitor is employed to provide legal advice to the staff teams in the House of Commons. The solicitor is asked to prepare a note explaining the doctrine of Parliamentary Sovereignty, to be included in a guide for visitors to the House. The solicitor considers some illustrations of Parliamentary Sovereignty, to explain how it can be said that Parliament is the supreme legal authority in the UK. He mistakenly includes an exercise of power which does not illustrate the doctrine. Which of the following examples of the exercise of Parliamentary power has the solicitor mistakenly included?

A firm of solicitors enters into a conditional fee agreement (‘the Agreement’) with a client. The client is the claimant in an action for damages for breach of contract (‘the Claim’) against a defendant. The Agreement provides that the claimant will pay her solicitors a success fee of 50% (‘the Success Fee’) if the Claim succeeds. On the advice of her solicitors, the claimant also takes out an after the event insurance policy. Which costs will potentially be recoverable by the claimant from the defendant if the Claim succeeds at trial?

A private limited company has four ordinary shareholders. Shareholder 1 and Shareholder 2 each own 30% of the company’s ordinary shares; Shareholder 3 and Shareholder 4 each own 20% of the company’s ordinary shares. The company has unamended model articles as set out in Schedule 1 to the Companies (Model Articles) Regulations 2008. Recently, the shareholders all received proper notice of a members’ meeting. The meeting was convened to seek shareholder approval of a proposal to enter into a service contract with one of the company’s directors for a fixed term of five years. A request for a poll vote at the members’ meeting was properly made. Only Shareholder 1 and Shareholder 3 attended the meeting, and no proxies were appointed by those not attending. When the resolution was put to the meeting, Shareholder 1 voted for it, giving his consent to the proposed five year fixed term of the service contract. Shareholder 3 voted against the resolution. Has the shareholder resolution been passed on a poll vote?

A solicitor acts for a man who runs a shop and who is a defendant in a debt claim issued and served three months ago. The man accepts that the claimant supplied and delivered goods to him and that the invoice for those goods of £14,000 remains unpaid. However, the man alleges that the goods were faulty and unfit for use and he was therefore unable to open his shop due to a lack of stock. He is bringing a counterclaim for the loss of profits incurred as a result. The counterclaim has a value of £12,000. Both parties seek interest and costs. The trial estimate is half a day and neither party will be calling expert evidence. Which track is the court most likely to allocate the case to and why?

A 25 year old man is injured in a road traffic accident caused by a negligent lorry driver. The man is knocked unconscious and is taken to hospital. He does not regain consciousness as he has suffered serious head injuries. He remains unconscious for six months, after which time he dies of his injuries. The man had been an avid football fan, attending all home and away matches of his local team. He was employed as a zookeeper. The man’s mother, in her capacity as the executor of his estate, wishes to bring a claim in negligence against the lorry driver for compensation. She is correctly advised that the claim is likely to succeed and that the estate will be awarded damages to the date of the man’s death. For which of the following heads of damage will the estate recover compensation?

A woman owns a profitable business as a sole trader. She runs her business from the family home which is owned by her husband in his sole name. The family’s only source of income is from the woman’s business. The husband does not have a paid job, being the full time carer for the couple’s four children. The woman needs to borrow £10,000 to expand her business. A family friend agrees to lend her the money, provided the woman’s husband agrees to guarantee the loan. A meeting is arranged between the woman, the family friend and the husband. Before the meeting takes place, the woman stresses to her husband the importance to the family of getting the loan. The family friend’s wife and adult son also attend the meeting and hear the husband verbally agreeing to personally guarantee repayment of the loan. Following the meeting, the family friend makes the loan of £10,000 to the woman. The woman cannot now repay the loan and the family friend wants to enforce the guarantee against the husband. What advice should the family friend receive in relation to the guarantee?

A Member of Parliament (MP) for the party in opposition makes a statement at a parliamentary select committee. In the statement he refers to evidence given to him by an undercover journalist which is critical of the working practices of a large company, which he names. The MP’s statement is reported widely in the press. The company’s response is that the journalist has wholly misrepresented its working practices. As a consequence, the company wants to bring defamation proceedings against the MP and the journalist. The MP believes that he is protected from such a claim by parliamentary privilege. He contacts the Privileges Committee to clarify the position. Is the MP protected by parliamentary privilege for the statement he made at the parliamentary select committee?

A solicitor works in a litigation department at a firm of solicitors. She realises that two of her matters are listed for hearings of 30 minutes each, in the same court centre on the same morning, but before different judges. The first hearing is scheduled to start at 10.30am (‘the First Hearing’). The second hearing is scheduled to start at 11am (‘the Second Hearing’). The solicitor intends to attend both hearings as she believes she would be the best person to represent the clients as she is familiar with both matters. She also believes that the First Hearing will finish early enough for her to get to the Second Hearing on time. She therefore wants to avoid increasing the costs for either client by instructing a barrister to attend one of the hearings. The solicitor appears at the First Hearing. She finds that it takes longer than anticipated to persuade the judge to rule in favour of her client and the hearing lasts the full 30 minutes. The solicitor is ten minutes late for the Second Hearing. The judge severely reprimands the solicitor for keeping numerous people waiting, indicating that he does not want to listen to her reasons for being late. After hearing arguments on the merits, the judge rules against the solicitor’s client. The judge makes a wasted costs order against the solicitor in respect of the time the other side were kept waiting until the solicitor’s arrival. Was the solicitor in breach of the SRA Code of Conduct for Solicitors, RELs, RFLs and RSLs by being late for the Second Hearing?

A private limited company issued ordinary shares to five shareholders for nominal value on incorporation several years ago. Four of those shareholders are also directors of the company. The fifth shareholder, a man, only has 10% of the ordinary shares. He has never been a director nor involved in the management of the company. There have been no changes to the company’s share capital since incorporation. The company has always made a profit and has distributed a large proportion of those profits annually to the shareholders. This year the directors resolved to award themselves a substantial pay rise, far in excess of the market rate. As a result, the company made very little profit and no dividends have been declared by the directors this year. The man consults a solicitor about what his remedy is likely to be if he is successful in an action for unfair prejudice under the Companies Act 2006. If the man is successful in an action for unfair prejudice, which of the following is the most likely remedy that will be ordered by the court?