, Criminal

law

THESTUDY
OFLAW
*t.
Le&ü*![?
1 A crimeis anyact,or omissionof an act, in violationof a publiclaw.Thereare
manydifferentcrimes,or offences.Howmanyof the offencesin the box do you
know?choosefour and tell a partnerwhat you think they are. Thenlook up any
wordsyou don't knowin a dictionarv.

armedrobbery arson assault battery bribery burglary domesticviolence

drugtrafficking drunkdriving embezzlement extortion forgery fraud
homicide insiderdealing joyriding kidnapping tarceny manslaughter
moneylaundering obstructionof justice rape shoplifting stalking
tax evasion theft vandalism

2 crimes whichare typicallycommittedby officeemployeesand salaried

professionalsare knownas white-collarcrimes (or business/corporate
crimes).which of the crimeslisted in Exercise1 are white-collar
crimes?

K*&ffi$ErS3: Lr! g.T!

,E - ..r- F 6 t 3 E

I tt&É[esv
3 Readthe text on page40 and answerthese questions.
1 Howdo criminallaw cases and civil law casesdifferin the waythey are
initiated?
2 Namethe four most commoncategoriesof criminaloffence.
3 In what way is the standardof proofdifferentfor criminaland civilcases?
4 what is the differencebetweena fetonyand a misdemeanouftDoes vour
jurisdictionmakesucha distinction?
4 Matchthe verbs(1-6) with the nounsthey collocatewith in the text (a-fl.
1-commit a asuit
2 resolve b an offender
3 bring c averdict
4 render d acrime
5 sentence e asentence
6 suspend f adisoute
5 Lookat each of the verb-nounpairs in Exercise4 and,with a partner.take
turns to discusswho typicallycarriesout each of the actions:an offender,a
victim,a lawyer,the court or a judge. Foreach collocationthere is morethan
one possibleanswer.
6 Footnote2 on page40 refersto the oJ simpsoncase,whichis an examore
of an eventwhichgaverise to both a crimeand a tort. what is the difference
betweena crimeand a tort?

(3e
 penallaw,involvesthe
Crimina|law,sometimes(althoughrarely)called
that has been classifiedas
prosecutionby the state of a personfor an act
acrime,Thiscontrastswithcivillaw,whichinvo|vesprivateindividualsand
organisationsseekingtoresolve|egaldisputes.Prosecutionsareinitiatedby
thestatethroughaprosecutor,whi|einacivilcasethevictimbringsthesuit.
prosecutions'
Somejurisdictionsalso allowprivatecriminal
jurisdiction'variouspunishmentsare
Dependingon the offenceand the
availabletothecourt'stopunishanoffender(seeExerciseL2)'Acourtmay
punishmentor loss of liberty
sentence an offenderto execution,corporar put
(imprisonment suspendthe sentence;imposea fine;
or incarceration);
paroleor probation;or
the offenderundergovernmentsupervisionthrough
placethem on a communityserviceordel'

Criminal|awcommon|yproscribes_thatis,itprohibits_severa|categories
(e'g' assault)'offencesagainst
of offences:offencesagainstthe person
and business'
property(e'g. burglary),pubtic-ordercrimes (e'g' prostitution)
or corporate,crimes(e.g.insiderdealing)'
crimes such as statutory
Most crimes (with the exceptionof strict liability
by two elements:
rapel and certain traffic offences)are characterised
acriminalact(actusreus)andcrimina|intent(mensrea).ToSecurea
conviction,prosecutorsmustprovethatbothactusreusandmensreaWere
presentwhen a particularcrimewas committed'
the prosecutorto persuade
rn criminarcases,tne burdenof proofis often on
is guilty beyonda
the trier (whetherjud$e or jury) that the accused
reasonab|edoubtofeverye|ementofthecrimecharged.lftheprosecutor
This standardof proof
fails to provethis, a verdict of not guilty is rendered.
contrastswithcivilcases,wherethec|aimantgenera||yneedstoshowa
(morethan 50% probable)'
defendantis liableon the balanceof probabilities
of the evidence'
In the USA,this is referredto as the preponderance
(moreseriousoffences,such
Somejurisdictionsdistinguishbetweenfe|onies
asrape)andmisdemeanoufs(lessseriousoffences,suchaspettythett)'
|tisa|soWorthnotingthatthesameincidentmaysometimesleadtobotha
criminalprosecutionand an action in tort'2

1ln manyjurisdictions, rt rs ¡llegalfor anyoneto havesexualintercourse with a minor'This is a strict

gúittyot a crimeevenif he or she believedthe partnerwas of
liabilitycrime:the offenderwitt"rtitt¡"
legal,consenting age' 1l-'
in Exercise
2 The oJ Simpsoncase,for instance,is a famousexampleof this. Thiscase is dealtwith
 completethe extractbelowfrom a law textbookby usingthe verbsin the box
and checkyouranswerto Exercise6.

are tried is brought is committed is committed is fined is ounished

is put is resolved was caused

A crime is awrongwhich 1) ........................against

society.The wrongdoer 2) : he or she
3) ...........................
in prison or 4) ................. ....a sum of
money.A tort, on the other hand, is a wrong which
5) ........................ againstan indiüdual. The injured party
can sue the wrongdoer and receivedamagesfrom the court.
Criminal sanctionsexist to make societysaferand to keep
people from committing certain acts.Tort remediesexist to
make the injured partywhole again for the harm which
6) ..........................by the wrongdoer.
A key differencebetween the two is that a crime requiresa
criminal intent (mens rea),whereasa tort can result without
intent to causeharm on the wrongdoer'spart.
Crimes 7) ..........................in the criminal courts.An action
8) ..........................by a governmentalbody againstthe
wrongdoer.A tort, conversely,g) .........................in the
ciül courts; the injured party brings an action againstthe
wrongdoer.

8 Givea short presentationon the main differencesbetweena crimeand a tort.

Includethese points:the parties,the outcomes,the terminologyand procedure
and the standardof proof.Referto yourownjurisdictionin your presentation.

Lmngmase
{.ase
x: Pass$lr*
üffim$trase€ñ*ms
9 Thetextbookexcerptabovecontainsseveralexamplesof passiveverb
constructions.Whydo you think the passivevoiceis used in these sentences?
In whichof the examplesabove¡s the agentof the action(the subjectwhich
carriesout the action)named?
10 Completethese rulesfor formingpassiveconstructions:

ü The passiveconsistsof two verbforms.The first is a form of the auxiliary

verb1) . The secondis the 2) toim
of the mainverb.
w Usually,the agentis not namedin a passivesentence.lf the agentis
named,it is often expressedin a phrasebeginningwith the preposition
3)., . ,,.....

Unit¿ Criminal
law
11 Completethis descriptionof the proceduralhistoryof the OJ Simpsoncase
usingthe passiveforms of the verbsin brackets.Becausea proceduralhistory
describeswhat happenedin a case,all of the verbswill be in the past simple
passive.
1 In 1994, the formerAmericanfootballstar and actor OJSimpson
orhis ex-wire
Nicore
Brown
;il ñ; ; il ;;; i;::::'ñ:ill'.T: #T:"'
2 He.............. (try)in criminalcourt for murder.Aftera lengthyand
......
highly publicised trial, he ........................ (acquit)the followingyear.
3 However, in a subsequentcivilactionin 1997, Simpson
(find)liablefor the wrongfuldeathof Goldmanand ....................
(sentence)topay$33.5 millionin damages.

Keytermsr: Punishments
12 Matchthe followingsentencehalvesto form explanations of punishments
whichare availableto the courts.Whydo you think the passiveis used in
these examples?
1 Whensomeoneis sentencedto a theyare put in prisonfor a crime.
execut¡on, b theyare givena periodof time whentheymust behavewell
2 Whensomeoneis placedon a and not commitanymorecrimesin orderto avoidbeing
communityserviceorder, sentto orison.
3 Whensomeoneis sentencedto c they haveto payan amountof moneyas a punishment for
imprisonment, breaking a law.
4 Whensomeoneis put on parole, d theyare killedas a legalpunishment for a crime.
5 Whensomeoneis put on probation, e theyare releasedbeforetheirprisonsentenceis finished,
6 Whensomeoneis fined, withthe agreement that theywill behavewell.
f the courtrequiresan offender to performunpaidworkin
theirsparetime andto contribute to theircommunity.

13 Discussthe punishmentslistedin Exercise12 with a partner.Whichare the

most effective?Whichare the least effective?Give reasonsfor vour answers.

Listening
r: White-collar
cr¡mein the2rstcentury
Youaregoingto heara [awprofessor beinginterviewed radiostation
on a university
programme.Professorlohn Poulosis a facuttymemberat the University
of California
DavisSchoolof Law Afterpractisingtawin Catifornia,
he introduced
the law school'sfirst
courseon white-cotlar
crime.
L4 << +.r Listento the interview.Does ProfessorPoulosthink that whitecollarcrime
is less seriousthan,as seriousas or moreseriousthan violentstreetcrime?
15 (i¿.r Listenagainand decidewhetherthesestatementsare true (T)orfalse
(F),accordingto the professor.
1 Newtechnologyhas led to a decreasein white-collarcrime,
2 Streetcrime is generallypunishedmore harshlythan white-collar
crime.
3 Increasingly,
white-collarcrime is committedby employeeshigh up in the
corporatehierarchy.
4 The numberof peoplewho are victimsof white-collarcrimeis significant.
5 White-collar
crimehas had l¡ttleeffecton the US economv.
 eb*e,et
*es€x: Ta[ktffiW
Lmmg*aag* effidef$eet
ema¿s*
16 (: +.r ln the interview,ProfessorPoulostalks aboutchangesin white-collar
crimeand the effectof white-collar crimeon society.Listenagainand complete
these extracts.
:
1 The internationalisationof the economy more
......................
, opportunitiesfor white-collarcrime.
2 Whileviolent crime frequently....................... the victims of that
crime,it is usuallyfairlylimited.
3 But whenyou havea savingsand loansscandal,as we'veseen in the
past,or an Enronscandal,thosecrimes.. . ......... mi||ionsof
PeoPle.
4 Enron
5 The other is the sheermass of injuriesinflictedon investorsin cases like
Enron,which..... the systemof investing in the USA.
, 6 Partof the slow of
recovery the economy ...... . white-collar
crimeon the investmentenvironment.

17 Matchthe two halvesof the sentences.

tve well 1 Risingpovertyin US cities has led a an impacton the wholeeconomY.
eing behaviouradverselv
2 Anti-social b olderpeople,as theysometimeslose
the¡r life savings.
ent for
3 Knifecrimemostly c affectsthe communitieswe live in.
4 White-collarcrimehas d impactsyoungmen.
ished, 5 Fraudhas a big impacton e to a rise in gun crime.

rk in Sp*aküng er¡m€
x:Wlnite-ss[[er
v.
18 Discussthese questionswith a partner,As muchas possible,make use of the
expressionsin Exercise16.
crimeis? what do you think are the
1 Howseriousdo you think white-collar
crimeon society?
most imoortanteffectsof white-collar
2 Shouldpeoplewho commitbusinesscrimesbe punishedin the sameway
as peoplewho commitothercrimes?
casesof corporatecr¡mein your
3 Havethere beenanywell-publicised
jurisdiction?

erisme:
a: Whi{e*es[&ar
Kead3s-üS deatüng
Fr*sider
effidrmerket
abuse
Onetypeof white-cotlar lt refers
crimeis insiderdeating[a[soknownas insidertradingJ.
to the act of tradingin securitiesby peoptewhohaveconfidentialinformationabout a
company's finances or operations.Thearticteonthe nextpagedeatswiththefirstcaseto
betriedunderthe Financial ServicesandMarketsAct,a UKActof Parliamentwhichcreated a
newregutatory bodyfor the financial industry.
services

law
Unit¿ Criminal
(
19 Readthroughthe articlebelowquicklyand answerthese questions.
1 What is the professionof the appellant?
2 Whichcrimewas he foundguiltyof?
3 Whatdid he knowaboutthe companyin question?
4 Howmuchprofitdid the appellantmakeon the sale of the shares?

FSAfinesouditorfor morketobuse
TheFinonciol Services ondMorkets Tribunol ihe resnonsibilltv for elementsof Delto'soudii in
hosupheldo Finonciol Services Authori!{FSA) S o n l o m h a )r O O ) I ' e ' e m o i n e do n t h e o u d l tl e o m
coseogoinslMr ArifMohommed, o former n c c i n n a r { t ^ D o l l ^ l,f,r'. '^-' -' ^i Jf ,'^ ' ' t t h a n a r i ¡ r { l a n r l i n
r-'--'---','9
Pricewoterhouse Coopers(PwC)ouditmonoge¡who un tn thc disnosol onnór Incémcnt In oorticrlor Mr
"Y'" "
wosfinedI10,000 forcommiliing morket obuse. Mohommedremoinedresponsible for plonning
Thisis thefirstiimethemorketobuseprovisions in the stoffto workon Deltoond hod reosonto know
Finonciol Services ond MorkebAci 2000 (FSMA) ohor rt the .snle'snroores. he.o,,se of its imncrcton
hovebeenthesrrbiect of o Trlbunol declsion. roq^r 1T.o nlnnnina
r,-,,'.,''v.
Mr Mohommed boughtshores in Deltoplc, At lhe end of November2002, Mr Mohommed
o London StockExchonge llstedelectricol ond wos owoTethotthesoleprocess wos ongoing
engineering servicescompqny, bosedon his ond *os r^rettincr
v. ' ' ' ' \ , closetn nnrocmont
Rr^rsed
ort
knowledge thotthecomponyintended to sellils he purchosed
thisinformotion, l5,O0Oshores in
electricol
d¡vision. Mr Mohommed becomeowore Deltoon 29 November2002 ot BOpeoch.Delto
of thisconf¡dentiolinformotion becouseDelto's ,rnnolncedthedisnosolon 9 December 2002 I
divis¡on
eleciricol wos on ouditclienlof PwC,ond Mr ond Mr Mohommedsoldhisshoresthefollowing 2
Mohonmedworkedon thecompony's oudir doy ot 105p eoch,mokingo profitof 13,250.
lnJuly2002, Mr Mohommed firstbecomeqwoTe TheTribunclheldthottheinformotlon
.rf thonronosed.,crle .,f Delto'selecfricol division. Mr Mohommedhod obouttheproposeddeolwos
He wos toldthotthisinformotion wos confidentiol srlfficient
JUil r! rul clnd nrecis-oen,.,,.,h tn he rnnsidcrerj q5
ond notto be discussed withcomponyofficiols. relevont occordingto themorketcbuse
informotion
Although Mr Mohommed begonhondingover provislons.

20 Readthe articleaga¡n,and decidewhetherthese statementsare true (T)or

false (F).lf a statementis false,correctit.
1 The case was heardbeforethe EurooeanCourtof Justice.
2 Mr Mohammed was sentenced to imprisonment for his crime.
3 The defendantwas not at all responsiblefor the audit of the company.
4 He knewaboutthe progressof the plannedsale. 2l
27-Findwordsin the textthat meanthe sameas theseunderlined
words.
1 secretinformation
2 to buv shares
3 suggesteddeal
4 the Tribunaldecided
5 marketabuse laws
22What do you think can be done to preventcasesof marketabuse(likethe one
describedabove)from occurring?
 LAWIN PRACTICE
Lsad-ñm
crimesinvolvingidentitytheftarebecoming increasinglycommon. Manypeoplethinknothingof
givingawaypersonal information,andthisian be uuuiedby criminats.
whomaybe at riskof identitytheft by ptacing Lawyers canhetpctíents
a fraudaterton theircreditfite,ctosíng
bank
accounts,
filinga policereportandchecking io,.n.'or.instances
of fraud.
23 a Discussthese questionsin small groups.
1 Howwouldyou defineidentitvtheft?
2 Whatexamplesof identitytneft can you
think of?
b compareyour ideaswith this definitiongiven
by the ldentityTheftResourcecenter.

Identity theft is a crime in which

an impostor obtains key pieces of
personal identifying information
(pII), such ,o.int security numbers
and driver'sricencenumbers,anc'usés ",
tn.rn torit.i, own personalgain.
This is calledID theft. It can'siart
with lost or stolenwallets,stolenmail,
a data breach,a computervirus, phishing,
*;;-;; paper
t h r o w n o u t b y y o u o r a b u s i n e s s . r : b q u v o l I l v" r P d P g I u 0 U u m edocuments
nts

Keytermsx: $derrf$ty
thef*
24 Thereare severarcommonkinds
of identitytheft. Matchthe exampres
(1_-6)with the definitions(a_f).
1 bin raidingr a stearingcreditldebitcard numbers
by usinga speciarstoragedevice
2 skimming when processingcards(oftenin orOer
to make illegalcopies)2
b fraudurentry gainingaccessto personarinformation
3 phishing from financial
institutions,terephonecompanies
and othersources
4 changingaddresses c takingwarets,mairand other items
containingpersonarinformation
withoutpermission
5 stealing
d pretending to be a financiarinstitutionor
6 pretexting companyand sending
spam or pop-upmessagesto get people
to revealpersonal
information
e sendingsomeone'sbiring statements
to anotherrocationby
comptetinga changeof addressform
f rookingthroughrubbishfor bits
or otherpapercontain¡ngdetaired
25 wrr¡cn
ortheabove .#;'il:lTe
Haveyou everbeenlll-0..".1
a probrem
inyourcountry?
the victimof any of the above?

dumpsterdiving
I devicesfirst came ,o or',:::,:":-,:llf"l
it was reportedthat restaurant
emptoyeeshad been
'ffi n"*o,'nt patrons
::ili:;::;'f.il:ff[T,:T:i:".::.]:c.:l,o'
:il''?,?lT;T,::f
were
adv¡sed
byanti-
ffi:[J:'ff
i.""$;;;#ilJi;:::ü%.XH:1?#l;",,
Unit4 Criminal
law
 a: Podeasts
Listening L
TheInternetprovides a [ot of usefulinformationfor [ega[practitioners
whoneedto keep 0
up to datewith devetopments btogsareoneexampteof constantty
in the [aw.Specialist
L
updatedsources of information, andtherearemanylaw-retated podcasts
that canbe
b
downtoaded ontoan mp3playerand [istenedto duringthosespareminutesbetween
appointments. Seewww.podcast.net listof audioandvideopodcasts.
for a comprehensive $
26l.'<+.2-c.s Listento four short clips taken from law-relatedpodcasts.Whichof
the commonkindsof identitytheft describedin Exercise24 is beingdescribed
in each?
Listento the full versionsof podcasts7 and 2 and answerthese
27 1'<+.e,¿.2
questions.
1 Why might a victim of identitytheft not realisethat they have been targeted?
2 What must potentialcreditorsdo whenyou haveplaceda fraudalert on your
credit report?
3 Phishingcan involvesendingemailto a personin orderto get them to reveal
personalinformation.Whatotherexampleof phishingis given?
4 Whymay banks refuseto compensatepeoplea secondtime for losses
causeddue to phishing?
5 Howare bankscontributing to the problemof phishing?
28 1ic.e,4.9 Listento the full versionsof podcasts3 and 4 and answerthese
questions.
The stolenlaptopcontainedinformationon how manyHewlettPackard t
employees? L
a 196,OOO c
b 19.600 I
c 1,960
Whymishtthe stoleninformationbe inaccessible? ,l-
a lt is impossibleto extractthe data. tu
b The thievesdo not havethe encryptionkey. ff
c The encryptionkeycan no longerbe used.
According to the survey,how manybins containedboth a bank account
numberand associatedsort code?
a one in five
b 72o/o ú
c two in five
' How manyAmericanshave been the victims of identitytheft?
a 99.9million
b 19.9million
"c 9.9 million

2: Shortpresentation
Speaking
Theseniorpartnerat yourlawfirmhasasked yout0 prepare
a shortpresentation
onsome
of themostcommon theft.Sheis particutarly
formsof identity interested
in whatthefirm
coulddoto reducetherisksto itsstaffandcustomers,andwouldatsoliketo beprepared
forthekindsof questions,
concernsand[ega[problems mighthave.
thefirm'sclients
29 Preparea shortpresentation on the subjectof identitytheft,usingthe
in this unitandthe formatoutlinedin Unit1 (page15).
information
Lmmryaaag#
essffi
3: ffiiw$mg
mdw&es
mmdexpress&xxg
*fu&&ga*6mx"x
Lawyers frequently
needto giveadviceandto te[[theirclientsaboutobligations
imposed
bythe [aw.
30 Readthe transcriptfor audio4.6 (page128) and find examptesof the of
languageof adviceand of obligation.
31 Readthe informationin the box belowand completethe noteson the use of
must and have to in the negative.

Givingadvice
Shouldis often used to give advice:
Youshoutd then reviewyour credit reportscarefuily.
Expressingobligation
Mustand haveto are usedto expressobligation.In statementsabout obligation
with must,the obligationis usuallyone that the speakerimposeson him/
herself. Haveto is often used to refer to an externalobligation(e.g. a law,
regulationor order from anotherperson).compare these two sentences:
t reatty must do somethingto protect mysetf against identity theft.
We now have to shred att documents before throwing them away.
Must cangenerallybe replacedby haveto:
... potential creditors must / have to use what the taw refers to as ...
Mustand have to are used differentlyin the negativeform. You must attend the
meetinghas the same meaningas Youhave to attend the meeting.However,
comparethe meaningsof these two sentences:
You mustnT atfend the meeting.
You don't have to attend the meeting.
YouLl attendthe meetingimpliesan absenceof obligation.
Youmay attendthe meetingif you wish,but it is not compulsory.
You2l attend the meetingimpliesthat you are prohibited
from attendingthe meeting(e.g.confidentialinformationwill be discussedthat
those presentdo not wish you to know).

32 Decidewhetherthese sentencesare givingadviceor expressingobligation.

completethem usingshould,must or have to. Remember,in some cases more
than one answermay be possible.
1 To registeras a victimof identitytheft,you obtaina
registrationapplicationpacketfrom the Departmentof Justice.
Thoseconvictedof aggravatedidentitytheft servean
additionalmandatorytwo-yearprisonterm.
We believethat bankingorganisations providetheir
customerswith betterinformationabout how to preventidentitytheft.
Creditreportingcompanies makeany requestsfor
furtherinformationwithin15 daysof receivingyour ldentityTheftReport.
Victimsof identitytheft . monitorfinancialrecordsfor
severalmonthsafter they discoverthe crime.
Memoriseyour passwordsand personalidentification numbers(plNs)so you
writethem down.

Unit4 Criminal
law
 3: Rote-play:
Speakin$ a cliemt
advisimg
33 Discussthe four cases belowwith a partner.Takeit in turns to playthe roles
of the lawyerand the client.
Lawyer
Whenplayingthe role of the lawyer,take detailednotes and ask any further
questionsnecessaryusingthe WASPtechniqueoutlinedin Unit 3. Adviseyour
clientusingthe languageof givingadviceand expressingobligation'
sLaL*'nenLs0.5 soon tus
FoRrxnupLe:You should, check your cxeAtL-c,o,rd"
gou recntNe üun. lt Uot sep, ang purüwses Uou d)An'b mala, gou shoulA,
üú,e-nge üexn unneAto&dt¿.
Glient
Whenplayingthe role of the client,respondto the questionsposedby the
lawyeras best you can, inventingany detailswhen necessary.Do not giveall of
the informationat once.
1 Youhavejust been forwardedseveralpiecesof mail from a previous
address.The mail includesa bill, a seriesof remindersand follow-upletters
demandingpaymentfor a car that you did not purchase.The most recent
letter is from a lawyerrepresentingthe companyfrom whichthe car was
bought.He is threateningyou with legalaction.
2 Last week,your credit card was refused,althoughyou had not used it for
severalmonthsand had no outstandingdebts.Whenyou calledthe credit-
card company,they said that the card had been used for a series of online
transactionstwo months ago and that you are now over your limit. You have
not receiveda statementfor three months.
3 Youhaverecentlybeguna small businessemployingfour administrative
personnel.Youare concernedaboutthe risinglevelof crimeinvolving
policyto reducethe risk
identityfraud,and wish to developa comprehensive
to your staff and customers.
4 Youare the CEOof a major internationalcompany.Last night,your head of
customersecurityattendeda leavingparty for a colleaguebeforetravellíng
homeon the train.Whenhe woke up this morning,he realisedthat he had
left his laptop somewherebetweenthe office and home.

Writinq:Letterof advice
34 Write a follow-upletter of advicebased on one of your lawyer-clientinterviews
in Exercise33. Usethe structureoutlinedin the email of advicein Unit2.
 Focus
Language

1 PrepositionsCompletethe followingtext with the prepositionsin the box.

against +er of of on on on to

Last month,three high*level employeesof the JunescoCorporation werearrested

fraud. They
f) ..........{o.r:...... were accused 2l having developed a complexscheme
involvinginvestors'money.An actionwas brought3) them the civil court.
in
Allthree wereconvicted4) . fraud and obstructionof justice,and sentenced
5) two years' imprisonment. The judge stated that the actions of the three
men not onlyhad an adverseeffect6) the Junesco Corporation, but also had
a negativeimpact7) investors'confidencein the financialsystem.Afterthe
defendants'lawyersrequestedthat the judge suspendthe sentences,the men were put
8) . probation.
WordseasityconfusedDistinguish the followingwordsby matchingeachwith its definition.
Then use one word from each pair to completethe sentencesthat follow.
1 proof / Wove
(verb):to show a particularresultafter a periodof time
a...................................
b .. . . . . (noun):a fact or pieceof informationwhichshowsthat something
existsor is true
Thestatewas unableto . . . ....,.. that the defendantwas an accomplice to the theft.
2 prosecution / persecution
a . .. .... . : the lawyersin a trialwho try to provethat a personaccusedof
committinga crimeis guiltyof that crime
b . ..... . . .......: treatingsomeoneunfairlyor cruellyovera long periodof time because
of their race,religionor politicalbeliefs
Accordingto news reports,the will seek the death penaltyfor the dictator.
3 proscribe/ prescribe
a ............. ...: to tell someonewhat they must do; to givesomethingas a rule
...,.............
b .. .. .. . : to forbidsomething
Federallaws..... . guidelines
sentencing and rigidmandatory minimum
sentences,especiallyfor drug-and-gun offences.
PassiveconstructionsChangethe underlinedverbsin these sentencesfrom activeto
passive,keepingthe tense the same and makingany othernecessarychanges.
1 The court foundthe co-conspirators guiltyon severalcounts,most notablyfraudand
conspiracy.
2 White-collar crimeaffectsemployees, consumersand citizensalike.
3 A judge sentencedthe formerCEOto 87 monthsin federalprisonfor his role in
arrangingfraudulentloansthat led to the company'sforcedbankruptcy.
4 lf the prosecutorfails to provethat the accusedis guiltybeyonda reasonabledoubt,
'not guilty'.
the jury rendersa verdictof
5 The state prosecutedthe companyfounderfor tax evasion,and he is now servinga
three-year sentence.
6 The parole boardput the prisoneron paroleafterfour yearsof good conductin prison.
7 The judge gave the defendanta suspendedsentencefor the theft of his sister'scar
whileintoxicated.
 law
Company

OFLAW
THESTUDY
Lead-in
to practise
anyoneptanning [aw'Law
commerciat
A knowtedgeof company law is essentiatto
offercóurses examining
organisations,
on business issuessuchashoweach
typicatty
schoots
majortypeofbusinessentitymaybeformed,operatedanddissotved'
1 As businessbecomesincreasingly globalised,companylawyersin one jurisdiction
havetobemoreawareofthecompany|awsofotherjurisdictionsaswe||as
internationa|regu|ations'Discussthesequestionswithapartner.
of
the organisation
1 Whattypes of businessentityare you familiarwith? Describe
your partner'
one type of businessentityin yourjurisdictionto
2Whatexperiencedoyouhaveofforming,runningorworkingforabusiness
entity?What kind of businessentity was it?
3 Whataspectsof companylaw haveyou studied?
¡¡
Readlng iar¡r
I: ConnPany r¡
r¡
are true (T)or
2 a Readthe text belowand decidewhetherthese statements f¡

false(D.
|egalpersona|ities.
1 Underthe |aW,a companyand its membersare distinct
2Companymembersaregenera||ynotpersona||yresponsib|eforthemoney
owed bYthe comPanY'
3Acertificateofincorporationisissuedwhentheproperdocumentsfor
companyformationhavebeenfiled'
4 The memorandum of associationof a companycontainsregulationsrelating
to the internalaffairs of a company'
a partnershipand a
proprietor,
b What are the main differencesbetweena sole
publiclylistedcompany?Usethe Glossaryif necessary'

regulationof
companylawl is the law whichdealswith the creationand
are compan¡es
businessentities.The most commonforms of businessentity
and partnershiPs.
person'with.a
A company2is a groupof peoplewhichis treatedas a legal
property'enter
separateidentityfrom its shareholdin$members.lt can own
This contrastswith a partnersnlp'
into contracts,sue othersand be sued. .
not able to own propeny
whichis not consideredto be a legalpersonand is
in its own name.
for its debts,as
Becauseof the limited liabilityof the membersof a company
we||asitsseparatepersona|ityandtaxtreatment,thecompanyhasbecome
themostpopu|arformofbusinessentityinmostcountriesinthewor|d.

2
law or corporatelaw (US)corporation
1 (US)corporation(s)
 companieshavean inherentflexibilitywhichcan let them grow;there is
no legal reasonwhy a companyinitiallyformed by a sole proprietorcannot
eventuallygrowto be a publiclylisted company,but a partnershipwill
generallyhavea limitednumberof partners.
A companyhas shareholders(thosewho investmoneyin it and get sharesin
return),a board of directors (peoplewho managethe affairs of the company)
and creditors(thoseto whomthe companyowes money).companylaw deals
with the relationshipsbetweencompaniesand their shareholders, creditors.
regulatorsand third parties.
The processof registering
a companyis knownas companyformation.l
companiescan be createdby individuals, specialisedagents,attorneysor
accountants. Today,
the majorityof companiesformedin the uK and the usA
are formedelectronically.
In the uK, a certificateof incorporationis issued
once the company'sconstitutional documentsand statutory forms have
been filed.2
The constitutionof a companyconsistsof two documents.The memorandum
of association3statesthe principalobjectof the company.The second
document,the articles of association,aregulatesthe company'sinternal
management and administrative
affairs,includingmatterssuch as the rights
and obligationsof shareholdersand directors,conductof meetingsand
corporatecontracts.

1 a/so companyregistration(IJK)and incorporation(US)

2 IUS)generallyno officialcertificateis issued
3 (US)art¡clesof incorporationorcert¡ficate
of incorporation(US)
4
1uS¡bytaws

Keyt*rrffi$ ?: Whmdmeswhmt ñmc*rmpeffiv&aqÉv

3 completethe sentencesbelowdealingwith companylaw usingthe verbsin
the box.

enter into has invests is makes manages mon¡tor owes own

OWNS SETVES ON SUE

A legalperson rightsand dutiesunderthe lawjust like a

naturalperson.
The board of directors the affairs of the companvano
companypolicy.
3 A companycan ...................... properry, contracts
and . . ........ other oersons.
4 A shareholder ..... ...... moneyby buyingsharesin a company.
5 A companyd¡rector... ... the governingboardof a corporation.
.......
6 A creditorof a companyis a personor entityto whomthe companv
a debt.
7 Regulators the activitiesof companiesto ensurethat
they complywith the law.
A so/e proprietor a companyand
personally liablefor its debts.

Unit5 Company
law
 ReadÉr*S
k: e*e¿rse
€xx
cmawperty
[aws
4 Readthe outlineof an undergraduate
coursein companylaw and tick the
topicsthat are mentioned.
1 formationof a companyin accordance with regulations n
2 the development of companylegislationovertime T
3 a company'sdealingswith otherentitiesand institutions n
4 financinga company'soperations n
5 the processof joiningtogethertwo companies T
6 increasingcompanyprofits T
7 dissolvinga company T

t--t 1
L.Ompany law
Courseoutline
This module concentrares on UK companylaw in the conrext
of modern capitalismand the wider global economy.A seriesof
introductory lectures and seminars will provide students with an
understandingof, inter alia.the rules governing incorporation, funding
and corporate finance, corporate governarrceand fundamental changes
to the structure of a company (including corporate insolvency and
winding up).We will also consider the more general operatíon of
this particular form of businessvehicle. During the second half of the
course,we will examine the concepts of corporate personaliry corporate
rights and members'rights in moré depth bJfore turning to th. newly
introduced directors'duties under the Companies Act 2006. Finally,
we will consider how progressive lawyers might work with busineiies
in order to ensure that directors meet theír responsibilitiesto their
shareholders, non-affiliated stakeholders,
the environment and the
communities in which they operate.One way of encouragingsuch a
commitment is through the careful drafting of the memorandum and
articles,on which topi. r*o optional halfl-áaysessions are now offered as
a supplement to the company-law module.

5 Matchthe terms and phrasesfrom the text (l--6) with their definitions(a-f).
1 interalia a raisingmoneyto payfor a businessor businessidea
2 funding b responsibillties
of leadingcompanyofficers
3 w i n d i n gu p c amongotherthings
4 businessvehicle d type of companyorganisation
5 directors'duties e processof bringinga companyto an end
6 memorandum and articles f documentsgoverning externaland internalrelationsof a
company
Findwordsthat collocatewith corporateinthe text aboveand in the summary
text (Reading1-,pages50-51). Lookup the meaningsof the onesyou don't know
in the Glossaryor a dictionary.Do you knowany other collocationswith corporate?
Whatdo similarcoursesin yourcountrytypicallyinclude?Discusswith a partner.

52
$-$sterañrtg
x; Lec{mre*ffi tr#É'#peffiy
*mw
Youaregoingto hearan introductory
lecture0n company
law at an American
university.
8 a (is.r Listento the first part of the lectureand saywhether
the professor
is discussingthe advantagesof corporations, the disadvantagesof
corporationsor both.
b {Ís.r Listenagainand answerthesequesttons.
1 According to the speaker,what is the most importantadvantageof
a corporation?
2 Whichsignificant disadvantage doesshe mention?
3 Howcan doubletaxationbe avoided?
9 a (is.z Listento the secondpart of the recture.Howmanyaovantages
and
disadvantages does the professormention?
b (is.z Tickthe correctanswerfor eachof the questionsin the table.
Listen
to the lectureagainif necessarv.

4 Whichentitytype(s)requirerelativelylitfle
; papenruork?
i----"-'-
5 Whichentityrequiresshareholder-employees
to pay
unemptoyment tax?

c {is.z Listento the secondpart of the lectureaga¡nand complete

thesenotes.

Adrantages
I Stocklollers are not ltable for corporate
z Self-enp/oynenttat
3 Conl¿nuous
+ f,a-sier lo ra¿se
5 lasier to
Disadvantages
6 -71igAer
7 Jorna-/orga-rusaüona-nl corf orate
B Uneaploynen|.,,,.,..,..,....,,..,

Unit5 Company
law
 R' an$'
u$e:ulscus$ln{adwnr¡tage$
LanEttage
disadvantages
loalnListeningl-,theprofessorpointsoutthemostimportantadvantagesand
disadvantagesofcorporations.Lookattheaudiotranscriptsofthe|ectureon
referto them'
paget2g and underlinethe wordsand phrasesshe uses to R
b Comoletethese phrasestakenfrom the lecture' Th
1 The advantageof a corporationis that its owners'Known c0
are not personallyliablefor its debts and
as stockholdersor shareholders, 1:
liabilities.
2 One disadvantage of a traditionalcorporationis double
taxation.
3 manyadvantages' " '
Corporations.......................... "' other
businessentities'
4 The seconcl of corporationsis selfcmploymenttax savings'
5 Thefirst of tnese... .... " is the highercost'

I : Role-play:
Speaking intervievu
lar',¡yer-client
the other is the client'
lawyer,
11 Workwith a partner.one of you playsthe role of the
Use the WASPaPProach from Unit 3'

LawYer
Ase|f-emp|oyedc|ienthascalledameetingtodiscusswhethersheshou|dconduct
herbusinessaSasoleproprietorshiporifsheshou|dincorporate(becomea
she is trained
Youknowlittle abouther work otherthan the fact that
corporation).
as a Plumber.
Preparetomeettheclientbyconsideringthekindsofquestionyoushouldaskin
the advantagesand
orderto give her the best advice.As you prepare,consider
disadvantages eachtype of companywouldhavefor the client'

Glient
Youhavebeenworkingasaself-employedp|umberforseveralyearsandhave
recent|ytaKenontwoapprentices'Youwou|dIiketoexpandevenfurther,as
and havebegunto
businessis goingwell.Youhavebuilt up a good reputation
Youwouldlike
specialise¡n provioingplumbingservicesfor retirementcommunities'
adviceon what form yourbusinessshouldtake'
prepareto meet youi Iu*y", by consideringthe kinds of questionyou will needto
be readyto answerquestions
ask. Yourlawyerwill also ask aboutyour business,so
on yourcurrentsituationand plansfor the future'

LAWIN PRACTICE
Lead-in
Actzooóisthelongest everto bepassed
pieceof legislation in theuK'lt sets
Thecompanies
andsystems forhowa company shoutd and
0perate' introducedmany
outthebasicprocedures
.otpány[aw,theActalsostates thatcompaniesmust the
consider
Unlike
reforms. previou,
pru.ii..,onthe community, emptoyees and environment'Doyouhave
of theirbusiness
effects
anequivatentof thecompanies whatdoesit cover?
Actin yourjurisdiction?
 12 The companiesAct 2006 highlightslinks betweena company'sfinancial
successand its socialand environmental impact.what kindsof provisions
do you think it mightcontain?what differentpartieshavean interestin a
company'sbusinesspractices?shouldthe law provideequalprotectionfor
these differentinterests?Discussin small groups.

Readlng
3: Breaeh
of eornpanñe$
Aetacsó
Thedirectors
of Baggers
ptc,an independent supermarket,
havereceived
a letter
concerning
theirpotentialbreachof the Companies
Act2ooó.
13 Readthis tetter.Who mightpippaSollowaybe?

Dear Directors/Chief Executive

Re: Your possible breach of the Companies Act 2006
I am writing to you concerning your company's sourcing of palm oil. As you
may or may not be aware,the activities of many palm-oil suppliershave been
causing environmentaldegradationin South-EastAsia. The establishment
of palm-oil plantations has resulted in deforestation,the destructionof the
habitat of orang-utans,human rights abusesand violent conflict. palm
oil is
used in approximately I}Vo of all of your food products.
The companies Act 2006 (the Act) stipulates(in sections r72 and,4r7
respectively)that you have a duty to take such issuesinto consideration
and
to report on them.
I do not believe that your company is doing enough to ensurethat your
palm oil comes from sustainable,non-destructivesources.I am therefore
concernedabout whether this may consequentlybe a breach of the Act. This
letter has been copied to the Secretaryof Statefor Business,Enterprise
and
Regulatory Reform, who has responsibilit)¡to enforce the Act.
I look forward to hearing from you as soon as possible as to how you plan
to
managethesesignificant issuesand ensurethat your shareholdersare
made
aware of them.
Yours faithfully
Fppa 5ollou"lo
y
Pippa Solloway

i::.¡tt-:ij:j¡::::r:¡i::!?l:;t¡irt:1:1.:it{¡*:i:::i:r:.:;r:ii

14 Readthe letteragainand answerthese questions.

1 Whatenvironmental issue is PippaSollowayconcernedabout in her letter?
2 which sectionsof the companiesAct 2006 mightBaggersplc be in breachof?
3 Who else has been sent a copyof the letter?
15 Explainthese phrasesfrom the letter in yourown words.
1 sourcing
2 a dutyto take such issuesinto consideration
3 sustainable
4 responsibility
to enforce
16 Discussthe directors'possibleresponsesto the letter.Whatwouldvou advise
them to do?
Unit5 Company
law
 Te
Listenin{! meeting
2: Direetors' Dur
Baggers,ExecutiveCommitteeisresponsibleforformulatingandimptementingcompany Com
andSimon
Director]
strategy, oi io. coor,[iroJ, oav¡¿wriqht [Marketinq
andconsists
u t.tting with SaraBat[[Baggers' 21-
Travis[pubticneUtionsOJrec*l 'i hascatted letter.
the company'sresponse to PippaSottowav's
;ñ;,;;;;;"nsetJ to discuss
L71.<s,slistentothefirstpartoftherecording.WhatdoesSimonwanttosend
to PiPPaSollowaY? WhY?
when does Baggershaveto
part of the recording;.
19 (ís.+ Listento the second
417 of the Act?
publishits first businessreviewundersection
the recordingagain.Decidewhetherthese
19 (is.s, s.4Listento both parts of
(F)'
statementsare true (T)or false
lBaggersissuedapolicystatementonenvironmenta|issuesbeforethe
enáctmentof the CompaniesAct 2006'
company'
2 Baggersis a carbon-neutral
informationon the local impact of
3 The Executivecommittee have detailed
Baggers'sourcingof Palmoil'
4Baggers'competitorshavenotyetrespondedtoalltheprovisionsofthe
ComPanies Act 2006'
5Baggersptantopublishabusinessreviewwithinthenextthreeweeks.

Keytermsr: Ft¡bticretations
T h e a d v i c e g i v e n b y c o r p o r a t e l a w y e r s c a n h a v e a s t r o n g i nz fincludes
l u e n c esome
o n t hof
eWayacompany
pubtic. Coo¿ meiia retations areessentiat' Listening
is viewed by the
the termsusedwhendiscussinq the pubticfaceof a corporation'
(1--7)from Listening2 with their
2o Matchthe terms and phrasesin italics
definitions(a-g).
you get?
1 How mucn more proact¡vecan
put out in March2005 "'
2 ... you'veseenthe pressreleasewe
concerningthe environment'
3 We all agreedon the poticystatement
employmentand our role in the community'
4...thebottom/ineisthatjustabouta||thepalmoiIusedinourown.brand
productsis sourcedfrom South-East Asia'
us as setting the agenda"'
5 | want peopleto see
by our own policyinitiatives"'
6 .'. we'repreparedto stand
Act is concerneo"'
7 We'reon trackas far as the rest of the
a the most importantfact in a situation
bdecidingwnatsubjectsotherpeopleshou|ddiscussanddea|with
cadocumentout|iningasetofagreedideasconcerningaparticularissue
d makingprogressand likelyto succeed
etakingactionbycausingchangeandnotonlyreactingtochangewhenit
haPPens
problem
f new actions often intendedto solve a
givento the media to publishif theywish
B a publicstatement
Textana[ysís;
Readinga stata¡te
Duringthe meeting,the cEOof Baggers
distributed
copiesof sections
r7zand4u of the
Companies Act2ooó.
21 Quicklyreadsection 772 of the companies
Act 2006 and choosethe best heading.
a Dutyto considersocialand environmental
issues
b Dutyto promotethe successof the company
c Dutyto respectthe rule of law

172

(1) A directorof a companymust act in

the way he considers,in good faith, would be
most likely to promotethe successof the .o.npuny
for the benefitof its membersas
a whole, and in doing so have regard qamongsi
other matters)to-
(a) the likely consequences of any decisionin the long term;
(b) the interestsof the company,semployees;
(c) the needto fosterthe company'sbusiness
relationshipswith suppliers,
customersand others;
(d) the impact of the company,soperations
on the community and the
environment;
(e) the desirability of the company maintaining
a reputation for high standardsof
businessconduct;and
(0 the need to act fairly as between
membersof the company.
(2) where or to the extent that the purposes
of the company consist of or include
purposesother than the benefitof its members,
subsection(l) has effect as if the
referenceto promoting the successof the company
for the benefit of its members
were to achieving thosepurposes.

(3) The duty imposed by this section

has effect subject to any enactmentor rule
requiring directors, in certain circumstances, of law
to consider or act in the interestsof
creditors of the company.

Readthe statutea secondtime. which subsection

is the easiestro
understand?Whichseems most difficult?
Why?
a statutes are draftedin generarterms to
coverail foreseeabre circumstances.
Theirmeaningmust be interpretedby rawyers judges.
and what strategies
can you think of to make sure that you interpret
a statute correcty,e.g. pay
attentionto the punctuation,assumeeachword has been carefuilychosen
by the drafter,etc.?
b Compareyour ideaswith those in the
box on the next page.

Unit5 Company
[aw
 understandexactly
some statutesare clearlywfitten,meaningthat you can easily
manystatutes are very difficultto
what the legislatureintended.unfortunately,
understand.Herearesomerulestofo||owwheninterpretingaStatute:
sectionsqulct{ly
ü Makesurevou understandthe statute.Beginby readingthe key
for detai|.
to get a generatidea of Whatthe Statutesays,then read.it agajn
.- r pav close attentionio Üre an¿s ano ors. ir'u ,." ot anáto end a series
"ir of the seriesare included, or necessary; an oratthe
*áun"that all elements
endofaseriesmeansthatonlyoneofthee|ementsneedbeincluded'
tempting
.l Assumeall wordsand punctuationin the statutehavemeaning'lt's
punctuation' Try
to skip wordsyou don't quite understandand ignoreawkward
not to do this.
you are studying,interpretit to be
c ir ar," ,i.rut" i. onrvone of several
consistentwith the otherstatutesif at all possible'
j lnterpreta statuteso that it makessense ratherthan leadingto some absuro
or imProbable result'
u- Track down all to other statutes and sectionsand read those
cross-references
statutesand sections.

24Readthe|etterfromPippaSollowaytoBaggersp|cagain'Whichofthe
provisionsof s'i-72(l) might Baggersbe in breachof?
situationsmightit
25 Explainthe mean¡ngof s.L72(2)to a partner.What kind of
cover?Prepareby rewritings.L72(2)in yourown worcls'
26Reads'!72(3).|nwhatwayisthedutyitimposes|imited?

a: Rm&e-p&ey:
Sp*akümS f;sxterqrüew
Lewytrr*c*¡*ffit
committee wascattedto discuss response
Baggers' to Pippa
Themeetingof the Executive
Sottoway'sietter.Bythe endof the meeting,fourpossibte optionshadbeensuggested:
1 Writea shortresponse with the company'sviewof the issue'
of whyBaggers faitedto disctosethe issueand/orconsideredit
2 Writean exptanation
to be immateriatto reportto sharehotders'
3 OuttineBaggers'ptanto mitigatethe issue'
4 Promiseto writea futl response period'
aftera reasonabte

TheCEOmustnowdiscuss the advantagesanddisadvantages of eachof thesewith

lawyeranddecidewhichwoutdbe in
Baggers' the bestinterests of the company'
other is the
27 Workwith a partner'One of you playsthe role of the lawyer'the
CEOof Baggers.Usethe WASPapproachfrom Unit 3'

cEo
Preparefor the meetingby considering the advantagesand disadvantages
why?
of each option.which do you think is in the company'sbest interests?
out of your
what questionsmust you ask your lawyerin orderto get the most
the lawyer
meet¡ngand to ensurethe best resultfor Baggers?Makesure that
explainseverYthingclearlY.

Lawyel
the advantagesand
Preparefor your meetingwith the cEo by considering
disadvantagesofeachoption.Whichdoyouthinkisinthecompany's
of the
best interests?why? Advisethe cEo with referenceto section772
Companies Act 2006, and explain yourreasoningclearly'
rrrr| ¡s,!vturn to GaseStudy 2: Companylaw on page 120'
Language
Focus

1 word formationcompretethis tabreby fiilingin the correctforms.

registrat¡on
Incorporation
regulate
enforcement
windup
I dissolution l
fgndlng :

Cotlocations*r*n ;;;" u"rn" ¡n Exercise1 colocatewith rhe word

companyexceptone."".0"r;
Whichone is it?
Adjeetivecollocations
a Matchthe adjectives(1--6)with the nounsthey commonlycollocatewith (a_fl.
1 limited a party
2 sole b documents
3 third c liability
4 constitutional d funding
5 corporate e company
6 publiclylisted f proprietor
Use the collocationsto completethese senrences.
t . L!n*rL. Wütu is attractiveto invesrors,as it greaily reducestheir
personalfinancialrisks.
2 once you havefiled the requiredstatutoryforms as weil as the

be issuedto you.
3 lf you decideto form an unincorporated businessyourself,you will be what is
Knownas a ...................
4 The on whichmanyresearchers dependis sometimes
consideredethically problematic.
5 All motorinsurancepoliciesnow automatically g¡ve cover
..............
throughout the EU.
6 lf a businessoffers its sharesfor sale to the generalpublic,it is known
as a

€
 law
Commercial

OFLAW
THESTUDY
E¡6

Le&ü*¡tT
1 commerciallaw is the bodyof law that governstrade and commerce.Discuss
thesequestionsin smallgrouPs.
lWhatbodiesoflawgoverncommerceinyourjurisdiction?
2 Howwoulda contractd¡sputebetweentwo companiesfrom different
jurisdictionsbe settled?
3 Whichinternational bodiesdo you knowthat set guidelinesfor commercial
transactions?

'ü:tmmrx'se*"eÉa&
Rsadtxt& [mw
(T) (D'
2 Readthe text belowand decidewhetherthese statementsare true or false
!. Commercialtawis a generalterm for a numberof diverseareasof the law
whichregulatetrade and commerce.
2 Contentiouswork includesthe draftingof contractsand advisingclients'
3 The UniformCommercial Codeappliesto commercial transactions in all of
the membernationsof the European Union'
4 TheWorldTradeOrganisation checksto see if countriesfollowthe trade
agreementsthey havesigned'

Commerciallaw dealswith issuesof both privatelaw and public law' lt

developedas a distinct body of iurisptudencewith the beginningof large-
scaletrade,and manyof its rules are derivedfrom the practicesof traders'
Specificlaw has developedin a numberof commercialfields,including
agency,banking,bankruptcy,carria$eofgoods,commercia|dispute
resolution,companylaw,competition law, contract,debtor and creditor, sale
of goods and services,intellectual property, landlordand tenant, mercantile
agency,mortgages,negot¡ableinstruments,securedtransactions,real-
property and tax law.
The work of a commerciallawyermay involveany aspectof the law as it
relatesto a firm's businessclients,and the role of the lawyeris to facilitate
businessclients'commercialtransactions.lt is essentialfor a commercial
lawyerto have not only a good knowledgeof a lot of substantivelaw, but also
a thoroughunderstanding of both contemporary businesspracticesand the
particularbusinessneedsof each client.
A commerciallawyermay be askedto advisea clienton mattersrelatingto
both non-contentiousand contentiouswork. Non-contentious work largely
involvesadvisingclientson the draftingof contracts,whereascontentious
work commonlyinvolvesthe consequences of breachof contract'
Manyjurisdictionshaveadoptedcivil codesthat containcomprehensive
statementsof their commerciallaw,e.g. the UniformCommercialCode(UCC)'
whichhas beengenerallyadoptedthroughoutthe USA.Withinthe European
Union,the EuropeanParliamentand the legislaturesof membernationsare
workingto unifl their variouscommercialcodes'
A substantialamount of commerciallaw is governedby internationaltreaties
and conventions. The UnitedNationsCommissionon International Trade
Law(UNCITRAL) trade
regulatesinternational in cooperationwith the World
Tradeorganisation(wTo).The wTo is responsiblefor negotiatingand
implementing newtrade agreements,and is in chargeof policingmember
countries'adherenceto these agreements, whichare signedby the majority
of the world'stradingnationsand ratifiedby their legislatures(for example,
Parliamentin the UK or Congressin the USA).

effiS*#ffi**Pts$r'*
6mst€€x.e*$ffiffi$
Key€*rffis: Fñebds,
r18

il&w
corffirT?ercs&t
3 Lookat the areasof activityin commerciallaw mentionedin the first paragraph
of the text aboveand answerthese questions.Use the glossaryif necessary'
1 Whichfield dealswith the legalrightsassociatedwith productsof the mind,
such as patents,copyri$htsand trademarks?
2 Whichfield involvesthe lawsand regulat¡ons governingmarketbehaviour,
particularly
agreementsand practices
that free enterprise?
restrict
3 Whichinstitutiondealswith the supplyof creditinformationaboutbusiness
organisations to other businessesand financialinstitutions?
4 Whichfield concernedwith the legalrelationships
is betweenthe shipper(or
owner)of goods,the carrier,and the receiver/consignee of goods?
5 Whichfield focuseson the laws regulatingmoneypaid to the governmentin
connectionwith commercialtransactions?
4 Choosethe correctwordor phraseto completethese definitions.
1 'Agency'is the term for the relationshipof a personwho acts in additionto /
on behalfof / on accountof anotherperson,knownas the principal.
2 Bankruptcyis when someonecannotpaywhat they owe/ own/ won,and all
their propertyis surrendered to a court-appo¡ntedpersonwho liquidatesthe
propertyto pay the claims of creditors/ owners/ debtors'
3 A securedtransactionis a loan or credit translation/ transaction/
terminationin which the lender/ Ioaner/ debtoracquiresa securityinterest
in certainpropertyownedby the borrowerand has the rightto repossessthe
propertyif the borrowercannot pay.
4 Negotiableinstrumentsare documentswhichrepresenta rightof charge/
payment/ creditfora specifiedsum of moneyon demandor at a definedtime.

law
Unitó Commercial
 8 Fo

Lüstem&mgx:Pr*f&{emf&tsrT}mereiat[awyen
of,[aw,commercia[
L

tawitsetfencompasses manydistinctfietds
Justas commercia[
lr
lawyersoftendealwithdifferentareasofcommerciatactivityinthecourseoftheir 2
c a r e e r s . Y o u a r e g o i n g t o n . u r t h e p o d c a s t o f athe
n i website
n t e r v i eof
wthe
w i tatumni
hMichaelGrant'an
on
associate at a commercltiu* firm'whichappears 3
association of an Austratian university'
questions'
5 (ie.r Listenano answerthese
to university? 4
1 Whyhas he oecidedto return
students regardingcareerchoices?
2 What does he adviselaw
6(ie'rListenagainandticktheworkhedidbeforejoiningRavenstone,Altman
and Ofner,LLP'
1 PreParing noticesof dismissal
tr
positionsat his firm T
i int"rui"*ing juniorlawyersfor
technicaldocuments
n
3 AnalYsing
4 SubmittingPatentaPPlications
tr
l ft
5 WritingPatentdrafts
6 Draftingmaritimelegislation
T rc
7 Resolving charterpartydisputes
T
f t
8 Handling cargoclaims
9 LitigatingshiPcollisions
T

axs*:&*werh$qef;"Bet&ons
Lartgwm*e
ln expressedbYthe verb' We
:
fl";T:[:1ifi E*?]; Íili;'; ;;;' ot''
0""'o' u'ln"'' i'r'
*r.'
:ilil:: an actionis"'carried out('n*íi' Adverbscan also be
describehow ""'"1'"¡
particutartyíntlresting'
used to qualifyadjectives(e'g'

TaUnderlinetheadverbsinthesentencesbelowfromListeningl-andthen
have(a-c)'
decidewhichfunctionthe adverbs
a describingtime of action
b describingmannerof action
an adjective
c qualifYing
of e-Lawat MonashUniversity'
1 He'scurrentlyundertakinga Master's
of takinga complexcommercial
2 There,ssomethingaboutthe challenge
t r a n s a c t i o n a n d e x p r e s s i n g i t c l e a r | y a n d c o n c idetailed
s e | y t h adescriptions
t r e a l l y a p pof
ea|stome.
had to write patent drafts, whichare incredibly
3 I also
the inventionsin preciselegalterms'
times extremelydifficultand demanding'
4 lt was interesting,althoughat with the
I likedbest was workingclosely
5 But l quicklyreaiseOthai what
or enforcingpatents'
other lawyerson liti$ation'defending
6|usua||yspendmos-tofthedayreviewingdocuments,draftingagreements'
answeringemails'
meetingwith clientsand' of course'
placedin relationto the verbs?
b Whereare me adverbs
8 Foreach of these sentences,decidewhichadverbsdon't fit.
1 My work often/ carefully/ regutartyinvolveslitigatingcharter party disputes,
althoughI occasionally/ sometimes/ remarkablyhandlecollisioncases as
well.
2 Maritimesalvageclaims can be ctosety/ extremety/ incrediblychallenging
due to the complicatedlegalsituation.
3 The remarkably/ quickly/ extremelyfast pace of change in the area of
informationtechnologylaw means that lawyersat our firm havero mainty
/
regularly/ often attend seminarsabout the effects of new legislation.
4 Researchingtechnicalinnovationscarefuily/ extensivety / extremelyis
a(n) very/ extremely/ regularlyinterestingstep in the processof writinga
patent draft.

Speakins
t: lnternshíps
Listening
r, MichaelGrantdescribed
hisinternship
with a marit¡me
lawfirm.lt is
forlaw-schootstudents
to workinthesummer months asaninternin a law
T, government
department,
non-profit
groupororganisation.
Aninternshipcanbepaid
unpaid.
Someinternships
leadto coursecredits
whichcounttowardsa lawdegree.'
Discussthese questionswith a Dartner.
1 Haveyou done an internship?lf so, describethe organisation
and your
dutiesthere.
2 what do you think makesan internshipa valuableexperience? what can be
gainedfrom it?
3 Whatwouldyour idealinternshipbe?

rt analysis:
Letterof applíeatisn
for an
ennsFrip
studentsoftenwritea letterof apptication
to apptyforaninternshipin response
ro a
ificadvertisement.
However, it isatsocommon fora student
to writewhatis known
a prospectingletter,or letterof interest,in whichthe senderasksif thereareanv
eningsfor internsat the company or institution.
Quicklyread the letter on page 64 written by a student. ls it a prospecting
letter or a letter of applicationreplyingto a specificadvertisement?
Readthe letteragainand answerthese questions.
1 What kind of organisation
is she applyingto?
2 Whichareasof the law is she interestedin?
What legalwork experiencehas she had?
Whichdocumentsare enclosedin the letter?
the adverbsused in the letter.why do you think the writeruses so
adverbs?What effect does it have?

Unitó Commercial
law
 13
,:
ít

7:.
JuliaSchwende *).
1 Marktgasse17 :i.

1210Vienna "*
Austria v:
Í.
i.
l::
,:
2 1 November2008
v.,
ia:
.;.
k'

n
3Robson,Mumsenand MeechLLP i::
t;
?
8 HawthornRoad .:
SaffronWalden .r!.
x
Essex f,l

C B 1 13 K L t:
t;
!:

a DearSir or Madam

Summer internship in commercial law

6l in my second
5 | am a studentof law at the Universityof Vienna,Austria' am now
yearandlexpecttocomptetemydegreeinJune2ofi'7|am interestedinapplying
law which is adveftisedon your website'
for the summerinternshipin commerclal
Btn my studies,I havecámptetedall of the requiredcoursessule¡si_ut]1t*:t:
lamparticu|arlyinterestedincommercia||aw,andhavetakene|ectivecourses|n
e Furthermore'I havefrequently
debtor-creditorlaw and negotiableinstruments'
at my universityon topics relatedto
attendedguest lecturesuná di""u"sions
10 gainedwork experienceat a law firm' as I
commerciallaw. | havealso already my
smatllaw firm specialisingin tax law in
carriedout an internshiplast summeralta
hometownofDornbirn.llTheremydutiesincludedresearchingnew|egislationand
12Fulldetailsof my studiesand work
helpingthe pannerspreparecasesfor trial.
résumé'
experiénceare includedon the enclosed liketo get
13The internshipyou are offeringis especiallyattractivet-?*", as I would
many international
to work at a targl commerciallaw firm with
to know what it ¡s t¡t<e
abroadin an English-speaking country'
clientsand to havethe experienceof iorking that I wou[d
1aI am extremelymotivatedand a hardworkérand I sincerelybelieve
makethe best of such an opportunity'
151can confidentlysaythat I havea particularly good knowledgeof English'as I
two
my familyin the usA and I havetaken
havespent."u"rál summervacationswith161ám English
enólosingwritingsamplesin
coursesin LegalEnglishat my universiiy.
werewrittenas part of my LegalEnglish
as you requestin your adveruthe letters
1BI look forwardto
?iül"ffa you requirefuftherinformation,pleasedo contactme'
hearingfrom You.

YoursfaithfullY

JuLia/chñenae
 13 Matchthe sectionsand ideaswhichshouldbe includedin a letterof
application (a-m)withthe corresponding
for an internship sentencesin the
enoe letter(1-18). Somesections/ideasare used morethan once.
-^ 1-7
>t ll
a Reference to howyou found out aboutthe internship
enna b Youraddress
Jstfla c Reference to thingsrequestedin the ad (writingsample,references,etc.)
and enclosedin the letter
2008 d Recipient's address
e Reasonsfor your interest in internship
f Descriptionof your legalwork experience
g Introduction, sayingwho you are
h Date
i Descriptionof yourstudiesand coursework
j A 'callfor action'whichclosesthe letter
k Salutation
I Reasonfor writingletter
m Detailsof any personalqualities, qualifications
or skillsthat makeyou right
for the internshio

D^oJ****.d*"És-4't'-E¡
F r ¡ d é q & s s 3e Ec $ o
*e d'.W"#Bm
l E EE
t l \Y
d t !U #
E fff it* g & A e
E
ef fFi BsH Á S m F P itsrd $ 3qB?8ry
nd l\k&*4W!;üY$ SetAbt E€EF

14 Readthis text. Wheredo you think it appeared?

:nn
Powderhouse Sommerville LLP International Commercial Law Internship
The international
commerciallaw firm PowderhouseSommervilleLLP launchedits International
CommercialLaw Internshipat the UniversityLaw Schoolin 2006 and has renewedit for the
current academicyear.
rmy PowderhouseSommervilleLLP is one of the world'slargestlaw firms,with over 1,600lawyers
lno and 15 officesin NorthAmerica,Europeand Asia.
( ProfessorMay Rikos, Directorof the UniversityLaw School,said: 'The UniversityLaw School
welcomesthe opportunityto work with one of the first-rankglobalcommerciallaw firms.'
get
Underthe terms of the internship,studentstakingInternational CommercialLaw coursesin
onal
'ntn/
Mergers,ComparativeAntitrust Law and World TradeLaw will be invitedto compete for the
internship.Selectionwill be on the basis of an essay plus interviewof the students who achieve
rd
the top essay mark in each of the relevantcourses.Applicationsmust be submitted by March
10, and the interviewswill take place in late March/earlyApril. The Internshipwill take place from
May to July inclusivein the PowderhouseSommervilleFrankfurtOffice.
n two
rglish Linkto applicationat the bottom of this page.
h

Readthe text againand answerthese questions.

Jto
1 Whocan applyfor the internship?
2 Howwill studentsbe chosenfor the internshio?
3 Whenand wherewillthe internshiptake place?
4 Howcan a studentapply?

rit$mg
x: Le€ten'
#f mpp*$*mt$*sx
Writea letterof applicationin responseto the internshipadvertisement
in
Exercise1,4.Be sure to includeall of the sectionsand ideasnecessarv.
Unitó Commercial
law
LAWIN PRACTICE
Lead-$r¡
| n t e r n s h i p s a r e V e r y o f t e n t h e f i r s t e x p e r i e n chave
e y ooffices
u n g t aacross s h aqtobe'
w y e rthe veofthereatitiesof
in trre wort<piu... Nunv'turge tegattirms
gtobatisation
ámptoyinq lawyers of manynationatities'
with a partner'
17 Discussthese questions
the term globalisation?
1 What do you understandby economies?
to the üobalisation of the world's
2 What factors navecontributuo
of globalisation for:
3 Whatare the implications
lawYers?
a businesses? b commercial

asertts
3; Kstesf ecm!'*ertEe[
R.eadim$
M o s t c o m p a n i e s e n g a g e d i n i n t e r n a t i o n a l t r is
a dcommontv
e m a k e ugoverned e na
s e o f a g bv tstorepresentthem
principat
abroad. Therelations;;ffi; ;;;, _.rJ its
andthe European Ünionhassoughtto harmoniset
commercia[ agencyagreement,
to giveagentsgreaterprotection'
memberstates,uq.n.},tu*, in order
T h i s t e x t i s t a k e n f r o m t h e i n t r o d u c t i o n t o a d o c u agreements'
mentwrittentoinformlawyersabout
the law concerning commercia[ agency
recent chanqes in

lsReadthetextanddecidewhetherthesestatementsaretrue(T)orfalse(F).
goodsand services
agentis a personwho sells
1 under EU law,a commercial
on behalfof a PrinciPal'
2Agentsaregenerattypaidaflatrate;thatis'achargethatisthesamefor Re
agreements base
oncea customer l}c
agency
. ilL?,ili; wi' oftenabandon
becomesestablished'

definedbvEU
lTheroleo.fcommercialagentsis.wellknor¡¡n.Theyactasindependentintermediaries
representingffi;;;'tt"' i"'t'" ;'**' ; ":#'":':1-agent is
havingcontinuing
,*t o i, ul"rr-employed,intermediary
Directiveg6/653asa person

I',t""
il,tüx L*:w;:mnl'"lli
***::,:,';"lx
r::ffi * rr p;;;;;from ttreirprincipals,but arrangesales
directly
his principal...,.rhey do nor b"y
IHXT"T;"""TT'lllllug
Hfi,ffiil*filif.T".:H*'T:i*'*run:ff desa
provi
T:H::llffi'triffisupplier,o radert
, É;;*:l*"""-i,ffi a foreign
': :11'::::"" ""'{
o"n"rrui"'* o""tt*ut
market'By
ñ;;;;"
convenienr
:ffi:H?liT:J:"#"'J"':
"nuutirrg
*il:*i:h".:T:f
*i**;tffi
#it"$*:ilfr
'j*};,'Jln-i"';tJ*;J:;*"**tt"X':""'"mm
:ffi
:tff
H:H*,i;;;;';:;;;u. *urk".-ton a'no cufe,no pav'basis'

states adoptthe same laws'

¡s tne processby whichdifferent
I Harmonisation
 3 But the position of the commercial agent is r,rrlnerable.
Becauseof the agent,srole as
intermediary, the principal necessarilyhas perfect
knowledge of ü" .,r;;;;";,
by the agent. As sales volumes build, the temptation or"**¿
for the principal to circumvent
the agent and enter into direct relationships with
customers can often become
overwhelming against the background of an increasing
commission bill, often fuelled by
repeat orders from the same customers. It is ao*-orrpluce,
therefbre, for the commercial
agent to find his relationship with his principal brought
ro an end precisely at the
moment where the agent's efforts have resulted in
the establishment of a significant
new customer base for the principal in a new market.
In this way, the agent becomes
the victim of his or¡m successand the principal
takes advanrug"trah" goodwill in the
principal's product, created largely as a result
of the agent,sefforts.

19 Readthe text againand answerthesequestrons.

1 why is commerciar
agencyimportantfor internationar
trade?
2 Howdo commercialagentssometimesbecome'victimsof the¡rown success.?
20 Matchthesewordsand phrasesfromthe text (1-4)
withtheirdefinitions
(a_d).
1 commission a wnenpaymentis onlymadefollowing a positiveresult
2 intermediary b the benefita businessgets from havinga good reputation
3 a 'no cure,no pay'basis c someonewho carriesmessagesbetweenpeoprewho
4 goodwill are unabre
to meet
d paymentto someonewho seils goodswhichis directry
reratedto
the amountof goodssold

Remd$*ug
4: fl#**fl$?trscñe*
e{Xtr$}üy
##ffigr&cfx
Ihelcc'z
Model commerciat Agency contract
iscommonty usedbybusinesses
entering
a
newmarket, andisanexampte of a standard
form¡contract.
ltsprovisions
arebasedon
prevailing
practice
in international
traderatherthannational
laws.
what are the advantages of usinga standardform contractbasedon common
businesspracticesratherthan negotiatingcontractsaccordingto domesticraws?
what kind of provisionswourdyou expectto find in
a commerciaragency
of contract?
rll' ChanceComputingis a UK-based companythat producesbudgettaptop
computersfor schoorchildren. lt uses agentsto sell its productsto other
'f countries.Readthe crauseson the next pagetaken
from chancecomputing,s
standardcommercial agencycontractand answerthesequestions.
1 Canthe agentset the priceat whichgoodswiil
be sordto third parties?
2 Underwhat circumstances can the contractbe terminated?
I
3 What is the governinglaw?
¡T
4 lf the principalbreachesthe contract,what court
r hasjurisdiction?

commercial agencyagreement
Internationarchamberof commerce¡s an organ¡sation of businessesfrom over
Jntriesthat worksto promoteand support globaltrade
and globaltsat¡on

unitó commercialtaw
e
 businessfor the Principd anü
The Agent shall endeavourto obtain
saidPrincipal to the best of his
is bound to servethe interestsof the
ail information necessaryfor the
abitity.He will do his best to provide
purposeof promoting b"i"t"' and especiallyinform the Principal
immediateiy about every order received'
and paymentconditions
tt" *uy rroid"-oiut" toá tne prices' deiivery
of the Principalwithout his consent'

gThecontractshallcomeintoforceonl0February2006andshallbe
valitl tbr an indefinite Period'
sherethecontracthasbeenagreedforaflredperiod,itshallbe
expectedfbrthesameperiodprovidedthatnoticeofterminatioi"o."]'
nothavebeensewed,byregisteredletter'atleastsixmonthspriorto.
the end of a calendarquarter'
indefinite period' it may
strere the contracthas been agreedfor an
by registeredletter' six
be terminatedby either party thereto giving'
quarter'
months' notice irior to the end of a calendar
l0TheprovisionsoftheEECCouncilDirectiveoflsDecember1936
ontheco-ordinationofthelawsoftheMemberStatesrelatingto
In other
self-employed agents(86/655/EEC)applyto this agreement'
is to be consulted'
respects'the law of the domicile of the Agent
ltArrydisputesarisingoutoforinconnectionwiththisagreementshall
where the claimant
be deciiledby the cámpetentcourt in the area
has his residenceor registeredoffices'

24Takeitlnturnswithapartnertoexp|aintheprovisionsofthecontractusing
$Á[pl¡]vour ' own words.
l A N s w EI R
iiüüil pexmLss'ankom üe prr'na4al
Ctause4 sat¿süaL üe a4enbneed's
EXAMpLE:
eb'
tn üange prkx-s and' c'ond)ü'onsof saJ'e'

Readins "E'he &ge*tsfe*uneEt

e**"*rr*ercEat
s:
xSSS
ffimgaa&mt&mms
ffiinective$
rgg¡[asamended]
Regutations is an example
Thecommerciat Agents[councitDirectiveJ
EUDirective8ólós¡'as
of an EUdirective ¡n.otüutu¿ into Engtiihtaw,andimplements
agencycontractin Exercisez3'
referredto in the commercial
pageand answerthese questions'
25 Quicklyread Regulation17(1) on the next
1 What ¡s the generalaim of the regulations?
2UndertheAct,whattwowordsareusedtorefertothemoneytowhichan
agentm|ghtbeentit|edfo||owingtheterminationofanagencyagreement?
these two words?
What is the differencein meaningbetween
 Entitlement of commercial agent to indemnity or compensation
on termination of agency contract
77 (1) Thisregulation haseffectfor the purposeof ensuringthat the commercial
agentis, afterterminationof the agencycontract,indemnified in
accordance with paragraphs (3) to (5) belowor compensated for damage
in accordance with paragraphs (6) and (7) below.
(2) Exceptwherethe agencycontractotherwiseprovides,the commercial
ratherthan indemnified.
agentshallbe entitledto be compensated
agent
(3) Subjectto paragraph(9) and to regulation18 below,the commercial
shallbe entitledto an indemnityif and to the extentthat-
(a) he has broughtthe principalnew customers or hassignificantly
increased the volumeof businesswith existingcustomers and the
principalcontinues benefitsfrom the business
to derivesubstantial
with suchcustomers;and
(b) the paymentof this indemnityis equitablehavingregardto all
the circumstancesand, in particular,
the commission lostby the
commercialagenton the business transactedwith suchcustomers.
(a) The amountof the indemnityshallnot exceeda figureequivalent to an
indemnityfor one year calculated
from the commercialagent'saverage
annualremuneration overthe precedingfive yearsand if the contractgoes
backlessthan five yearsthe indemnityshallbe calculated on the average
for the periodin question.
(5) The grantof an indemnityas mentionedaboveshallnot preventthe
commercialagentfrom seekingdamages.
(6) Subjectto paragraph(9) and to regulation18 below,the commercial agent
shallbe entitledto compensation for the damagehe suffersas a resultof
the terminationof his relationswith his principal.
suchdamageshallbe deemedto
(7) Forthe purposeof theseRegulations
whenthe terminationtakesplacein eitheror bothof the
occurparticularly
namelycircumstances
followingcircumstances, which-
(a) deprivethe commercial agentof the commissionwhichproper
performanceof the agencycontractwouldhave procuredfor him
whilstprovidinghis principalwith substantial
benefitslinkedto the
agent;or
activitiesof the commercial
(b) havenot enabledthe commercial agentto amortisethe costsand
expenses that he had incurredin the performanceof the agency
contracton the adviceof his principal.
(8) Entitlement to the indemnityor compensation for damageas provided
for underparagraphs (2) to (7) above also
shall arisewherethe agency
contractis terminatedas a resultof the deathof the commercial
agent.

Readthe wholeof Regulation!7r andanswerthese questions.

1 Accordingto L7(2),underwhat circumstances will agentsbe grantedan
indemnityratherthan compensation?
2 Accordingto 1-7(3),what is necessarybeforean indemnityis granted?
3 Accordingto L7(4),how is the indemnitycalculated?
4 ls compensation availableif contractends followingthe deathof the agent?

last two paragraphs(17(9) and 17(10)),havebeen cut from this extract.

[aw
Unitó Commercial
 you to ask aboutthe legalprotections
27 A colleaguefrom outsidethe EUcontacts
inp|aceintheEUforcommercia|agents.WriteaSummaryofRegulationl-7to
circulateto your liti$ationdepartment'
¡
counset
2: l,leetingw¡th corporate
Listening to break
Europe, chancecomputing wants
Fottowing satesin southern
two yearsof increasing
market.JennyMilter'sates of chance
Director
intothe morecompetitive centralEuropean
corporatecounsel,for adviceon terminatinga numberof
Computing, hasaskedCtiveSanborn,
agreements.
agenc}/
28(.<e,zlistentothefirstpartoftheirconversationandanswerthesequesttons.
lWhydoesChanceComputingwanttoendtheagreementswiththeiragentsln
southernEuroPe?
an agentcan be paid,according
2 what is the maximumamountof compensation
to the regulations?
and answerthese questions'
conversation
29 ( i e.e Listento the secondpart of their
1 ls compensation limitedonlyto lost commissions?
2Forhowmanyyearsaretheagents'commercia|activitiesrestrictedfollowing
terminationof the agreement?
3o(íe.2,6.3L¡stentothewholeconversationagainanddecidewhetherthese
statementsare true (T) or false (F)'
1 The agents are in breachof contract'
2 Underthe agreement, the minimumnoticeperiodis six months'
3Theagreementa||owsforthepaymentofanindemnityofuptooneyear's
averagecommissionfees'
4Theagentsmustmakeanyclaimsforcompensationwithinoneyearofthe
terminationof the agreement'
clause is valid for five years'
5 The restraint-of-trade
6Underthe|aw,arestra¡nt-of-tradec|auseinanagencyagreementmustreferto
eitherthe relevantgeographical area or the type of goodsin question'
TThe|awyerne|ievesacourtwou|dbeIike|ytofindfortheagentsandnotupho|d
therestraint-of.tradec|auseiftheprincipa|breachedthetermsoftheagreement.

2: Rote-ptay:
Speaking options
discuss¡ng
discussesthe options
31 Fo|lowing his discussionwith JennyMi||er,C|iveSanborn
avai|ab|etoChanceComputingwithaninternwhoisshadowinghim.Withapartner'
r o l e - p l a y t h e i r c o n v e r s a t i o n . D i s c u s s t h e v a r i o u s o p t i o n s t h a t a r e a vcase'
ai|ab|eto
possibleoutcomes.considerthe best
chancecorpuiing, togetherwith their
worst case and most likelyscenartos'
Studentl:YouareC|iveSanborn.SummarisethepositionthatChanceComputing
are in'
student 2: you are the intern shadowingclive. suggest some optionsfor the
companybasedon the informationin this unit'

Writing2: Surnmary packagefor

a modelcompensation
32 Writea summaryof yourdiscussion'Include
to offertheiragents'
Computing
ffifm Chance
lDp.f47l
Language
Focus

1 word formationcompletethe table with the adjectiveform of these nouns.

merchant
j commerce
,Tugot"t'*

Noun-adiectivecollocationsWhichof the adjectivesfrom Exercise1 collocate

with
thesenouns?(Somecan coilocatewith morethan one adjective.¡
1 ................. instrument
trad¡ng
3 .......
.........................
bank
.......
4 agency
5 law
6 . . . .terms
AbbreviationsWhat do these abbreviationsstand for?
1 UCC
2 WTO
3 UNCITRAL
Key terms in intellectual property law which word completesall of these
expressions?
t draft
2 application
3 to securea
4 to enforce
5 to grant

l.--;:-.-^,
. .".:':',
-,andsentencesberowrromtheunitusingthe
phrases
;::ff:[,l:T;;il?|"$:ie
by for into of of on on

1 to advisea cfient a matter

2 a breach contract
Commercial law is governed. . ........... international
treaties.
An agentworks . behalf a principal.
to apPly an internship
a contractcomes .......... force
 Rea[propertylaw

OFLAW
THESTUDY
Lead-ir¡
whicha personmayhave
law governs
Property the right 0f use,controtanddisposition
overpersonalproperty andrealproperty'
personalpropertyand real property?
1 a Wfrat is the differencebetween
property?
b Whichof these is consideredreal
f farmland
a an apartmentbuilding
g a forest
b aCD
tracks h a businessPlan
c railwaY
i acar
d a largeoutdoorsculPture
e a factorY

[aw
I: Rea[Pr&PtrrtY
Readins (D'
these statementsare true (T)or false
2 Readthe text belowand decidewhether
duration'
1 A fee simpleis an estate of indefinite
2 A l i f e e s t a t e c a n b e p a s s e d o n t o . t h e g r a n t e e ' S h eai rlimited
s' term'
of real propertyfor
3 A leasegranrsexclusivepossession
property'
but does not confertitle interest in the
real propertyis usuallyvalid'
4 An oral contractfor the purchaseof

estatesl and leaseholds'

Real property can be dividedinto freehold
F r e e h o l d e s t a t e s a r e t h o s e i n w h i c h a n ' i n d i v i d u aproperty
l h a s o wlaw,
n e rthe
s h iterm
pof|andforan
indefinite
';;;;i;r; periodotii*u. lt is importantto note that in
gfows on that real estate)' any
to reat estate (and everythingthat
to the minerals
ffi;;;ñ ü*" real estate (eg. buildings)and the right
, n o " ' " " o n t h e | a n d a n d t h e a i r s p a c e a b o v e i t . T h e r e a r e g € nsimple2,
e r a l l y t hthe
ree
types of freehold;;;,; ing,,.nrp".aking jurisdictions:the fee
A fourth type of freeholdestate,the
life estate and the estate puiautre vie.
of titte in land from one person
; *.ü i; r1"* ,"ú"v onsálete.The üansfer
to anotheris knownas the conveyance'
T h e m o s t c o m p l e t e , u n | i m i t e d f o r m o f f r e e h o l d e s t a t e i s t h e f e e swants
imple,which
and lasts as long as tne owner (or any subsequentheirs)
is inheritable
individualretainspossessionof
to keep it. A life estate is oneln whichthe
Althoughthe ownershipof a life
the land for the o*u,ion of his or her life.
estateistechnicallytemporarybecauseitendswhentheownerdies,itis

also
1 The term estate refersto a person'sinterestin real property'lt
person's real and personalproperty'
refersto a deceaseo
2 alsofeesimpleabsolute
 treatedas completeownership(fee simple)for the durationof the person'slife.The
estate pur autrevie is similarto the life estate,but differsin that it is measured
by the life of someoneother than the grantee (to whom an interest in the real
propertyis conveyedby a grantor).An exampleof an estate pur autre vie would be
a landownerwho wishesto leavepropertyto a charityin her will, but to enjoytax
savingsduringher life. She couldformallydonatethe propertybut retainpossession
duringher own life (a life estate)and specifythat she wantssomeone,e.g. her husband,
to be ableto remainin the propertyshouldhe outliveher (estatepur autrevie).
In common-law jurisdictions,leaseholdinterestsin land are sometimesclassified
as personal property, alongwith tangiblepropertysuch as goodsand chattels.
Leaseholdsare propertyinterestsof limiteddurationand are generallycreated
througha lease - a contractfor exelusivepossessionin returnfor which the tenant
paysthe landlordor landladya specifiedrent or compensation. A licencel is l¡ke
a lease,but is generally for a shorter period of time, usuallyless than 12 months.
Furthermore, if there is no exclusivepossession of the property(as in a hotelroom),
then a licenceis created,not a lease.A licenseeis not grantedanytitle interest in
the land,merelypermission to enter it for a specificpurposethat wouldotherwise
constitutea tresoass.
TheStatute of Fraudsis generallyapplicableto interestsin land,requiringthat
instrumentssuch as deeds,real-estatesales contractsand certainleasesbe in
writingto be legallyenforceable.
1 (us)t¡cense

effid p*ffip[* &r*rmm*

Key €mrffisx: Hmstraxffyle$&€$
prop*rgy
&mw
3 Matchthe sentencehalvesto completethese definitions.
lnstruments
7- A leaseis an instrumentwhichgrants
2 A licenceis an instrumentwh¡chgives
3 A deed is an instrumentwhich
transfers
Feopfe
4 A tenantis someonewho leasesor
rCNIS
5 A landlordis someonewho owns
G An heir is someonewho is entitled
to inherit
7 A grantoris someonewho conveys
t A granteeis someonewho acquires
9 A /icenseeis someonewho receives
a title to a propertyfrom one ownerto another.
b temporarypossessionof a propertywithout
conferringownership.
the rightto use propertyfor a certainpurpose
withoutconferringeitherpossessionor
ownership.
d part or all of a deceasedperson'sestate.
e an interestin real propertyto another.
Í propertyfrom a landlord.
e permissionto enteranotherperson'sproperty
temporarily.
property,and rents it out or leasesit to others
for money.
an interestin propertyfrom anotherby deed or
otherwritteninstrument.

a partner,take turns makingsentencesthat combinethe peopleand the

ments.
when he/she renLs prope.rLgkon a
A tnnanL sr4ns o. Le,o-se
A
Unit7 Rea[propertylaw
 !l
with
a djectives
uset: ForminE
Language
negative
Preflxes (e'g' urr'
Findtwo adjectivesin Readingl with negativePrefixes
I 5
. . i

to completethese
choose the correct prefixes(il-, in-, inv-,ir- or ur)
6
if necessary'
sentences.Use your dictionary
and -sanitary premises
doctrine'a lease of -safe
1 Underthe -legal lease and thus -
code is deemedan -legal'
that violatetne ücal housing rent but remainin
the tenant to withhold
enforceable,contract'allowing
duedate
payrentwhendue,buton or beforesuch
, ir"a.rt"?*li is _ante to
h e l s h e g i v e s t n e | a n d | o r d w r i t t e n n o t i c e tlandlord
h a t i t i s -shall
p o s sattempt
i b | e f o rto
h iworK
m/her
the '""ton'' the
to pay said rent on time and
rent'
out a procedurefor payingsuch
3 F r e e h o | d u s u a | l y p e r m i t s t h e o w n e r t o u san e t h e | a n d f oor p a r t i c u |period'
r a-limited arpurpose'
OV gou"''i'n"nt and planningtaws'for -definite
allowed person holds or
to an estate in which a
4 The term estate at w¡ttrefers term of -specified
permi.,ián át.n" o*|.'"r, for a
occupiespropertywith the
is no fixed term to the tenancy'
or -certa¡n ou'"iion' i'e' there

taw
Reading2: Rea[propertyinvestment
M y c h a j t o i s a g r a d u a t e s t u d e n t o f l a w e n rRea[
o l l e d i n a M aLaw,
s t ehe
r ' shas
deg give
tor e e p ar o g r a m m e i n
Law. In ,.*inu|. on EasternEuropean Property
European
" Ht h"t foundan Engtish
presentation on the proptnv.** is
"ui p'opertyinvestmentiaw oí hi' o*n country'Ukraine'and
:t-1:ff"iitlutit¿ittion'
text exptaining tf'u native language
"ui Ho*.u.,, sinceMychajto's
considering usingit .;'J;;;;,.:rt information.
understandinq the text'
i, noiftqiitf,, ne nasdifficutty
and match the
from the text on page 75 carefully
7 Readthroughthe extract need two of the
(a-e) with the appropri"t" t""tiont"(1-3)' Youwill not
headings
headings.
Lease ri$htto land
a
lmProvements
b
to the landlord
Groundsfor terminationavailable
c
to the tenant
Groundsfor terminationavailable
d
Termination
e
you think might make it
again' What featuresdo
8 Quicklyread the extract
difficultto understand?
 1).
pafiy 0n
Leaseagreementsfor an tndefinitetelm may be telmlnatedat any time by elthel
three calendarmonths'notice.Leaseagreementsfor a deflnitetelm may be termlnatedonly
in caseof mutualagreementof the pafiies,or by a coult of law
2)
The iandiordshailhavethe rlght to terminatethe leaseagreementtf:
. the tenantusesthe real propertytn violattonof the agreemenioI the leal ploperty's
designatlon;
. the tenanttiansfersthe use of the real propeltyto anothelpeISOnwlthout the landlold's
pnoI consent;
. the tenant,due to his/hernegltgencecreatesa threatcf posslbiedanageto the real
pIoPerty,
. the tenanthas not commencedany majOIIepalISof the Ieal pIoDeI:-i' '¡¡heiean obltgatlonto

do so was imposedon the tenant.

The landloldshallhavethe nght to temlnate a ieaseagleementand clalmthe letuln of
ptopefiy
real propertyIf the tenant doesnot makeleasepaymentsfor the use ol the real
the
durÍngthree consecutlemonths.In the eventthe landlordterminatesa ieaseagreement,
the
leaseagreementshalibe deemedterminatedfiom the momentthe tenant1snotifledby
landlordof termtnation.
3)
pursuantto the civil code of ukraine,the tenant shallhavethe dght to demandtermtnattonof
LheleaseagreemenL lf
. the landlordtransferredthe leasedreal property,and the quality of the leasedpropelty
contravenes the termsand conditionsstrpulatedby the leaseagreementor the designatton
of the real PIoPertY;
. the landlordfails to complywrth the obligationto makecapitalrepaÍrsof the real plopefiy.

Accordlngto Uklarnranlaw, an agreementon leaseof the land shallbe telminatedin certatn

casesprovidedbY the }aw, namelY:
. compuisorypurchaselof the land for publicneedsand forcedalienationof land on the
groundsof publlcnecessltyunderthe procedureset by ukrainianlaw

I (US)(upon)exerciseof the powerof eminentdomain

Unit7 Rea[propertylaw (
 Bü Ak.

s€ya*:syffi#s3yffi$
w$#a: ffmrswm&f&et$*rmm&
{_maxrywmffiffi L i s t e nt
the fact that lt
be difficulttcI understandis
speaK
One reason why the text might
styleof language
are typlcatof moreformal 13 In
containsseveral*o'O''*hltit ,a style is often found in written
speecr' This e
and are not common * """rto"u moreformal
in s-poXen languageas well' ln general' th
legaltexts,und som"times less formal words are often
of +^
words are oii.,.rn.origin,wÑte Ltr
English "t "" demonstrate (formal))'One example
Anglo-Saxon originie'!' snow(intorm?l) ltReading1-: t
in
;?;; i;"guág* utu tun be found 2
3
Alifeestateisonemwhichtheindividua|rctainspossessionofthelandfor
4
the durationof his or her life'
5
T h e p h r a s e t o r e t a ¡ n p o s s e s s i o n o f t h e l aReading
| d i s f o r 2m contains
a l i n s t y lthe
e ' wfollowing
hiletokeep
in
the landwould be *Jrá-,ntorrnal.The text L4P
i
examPle:
any time by
term maybe termina:ted at
l
Lease agreementsfor an indefintte L
months' notice'
eitherpárty on threecatendar 'to end' something'
'to or
a formal way of saying bringto an end'
Toterm¡nateis

gFindmoreforma|wordsandphrases(highlightedinReading2onpageT5)
LA
to thesewords'
whichcorresPond I

8 in agreementwith L ¡_
1 agreementbefore 5 followingin order
legaldescription
2 begun 6 do what is required 9 privatety
:
7 goes against 10 state purchaseof
3 common -
ownedProPerry
4 endeo
::
in small$roups'
10 Discussthesequestions
matters?What 15
is it to
appropriate use a formallanguagestyle in legal
1 When
factorsdoes lt dePendon?
2|nwhichofthefolIowingsituationsdoyouthinkitwou|dbeappropriateto
use formallanguage? semlnar
piesentationon a legaltopic in a
w Whenglving"a
Ü Whenwritinga seminarPaPer Ke
Ü WhensPeaking to a client
or email summarisingthe law to a client t5
¡, Whenwritinga letter
a - 8 *r¡qdsbfl#qsffitm €6wm
$ :
LBs€*$3&$tffi F # r # P # i l g y * [ f f i wpu* s b d v e 6 e s e r
YouaregoingtohearanexcerptfromMychajto,sseminarpresentation[seeReadingzJ.
buy real property
are foreignerspermittedto
L1-<'<z'rUnderwhat circumstances law in Ukraine
the excerpt'Howdoes the
in yourjurisdiction?Listento
jurisdiction?
compareto the law in your
L2<.7'lListenagainanddecidewhetherthesesentencesaretrue(T)orfa|se(F).
lForeignerSarenotpermittedtobuyagricu|tUralIandinUkraineUnderany
rsailowed
helshe rtforthepurpose
to retain
, i;:.i:}:lllliirn",.n, farmrand,
of conductingbusinessthere'
3Foreignousinessentitiesmaynotacquirebuildingsorstructuresonnon-
land'
agricultural
in Ukraineby foundinga company'
4 Foreigners acquireland
can
 r: *üvümg
Speak8rag pn$nts
tc tru*pontant
ennphasts
Listeners
canbetterunderstandandremember givenin a presentation
information if the
indicates
speaker andgivesit sufficientemphasis.
its importance
13 In his presentation,
Mychajlomakesuse of severalof thesetechniquesfor
emphasising importantideas.Whichtechniquesdoes he use? Readthrough
the audiotranscriptof his talk (page132) and underlinethe examplesof each
technique.
1 Repetition
2 Rephrasing an idea in differentwords
3 Usingthe voiceto stressan idea
4 Usingsentenceopenersthat pointto an importantidea
5 Usingintensifyingadverbsor adjectives
L4 Preparea short presentation aboutthe real propertylaw in a jurisdictionyou are
interestedin. Discussthe circumstances underwhichforeignerscan buyand
leasereal property.Observethe gu¡delinesfor givingpresentations givenin
Unit1, makinguse of variouswaysof g¡vingemphasisto importantpoints.

LAWIN PRACTICE
ad-&n
y-to-tet,the practice of buyinga property to rentout to tenantsasa sourceof income,
form
an attractive of investment for many people.In recentyears,EUenlargement and
avaitabilityof cheapftightsfrombudgetairtineshaveresultedin a growthin so-
fty-to-[et- that is,buyingto let in othercountries.
Discussthesequestionsin smallgroups.
1 Wouldyou considerinvestingin propertyin a foreigncountry?
2 Whatare the uncertaintiesinvolvedin dealingwith foreignmarkets?
3 Whatadvicewouldyou give someoneconsideringsuch an investment?

reelpr&perty
termsa: Saxyirlg
Choosethe correctwordto completeeach of these five definitionsof terms
often usedwhen discussingthe purchaseof property.
L A deposit/ lien / conveyanceis the initial paymentyou make when buyinga
house.
The tenancyagreement/ property transfer tax / rental income is the money
receivedfrom let properties(the moneypaid by a tenantto a landlord).
A(n) mortgage/ escrow/ easementis an agreementwhich allowsyou
to borrowmoney,especiallyin orderto buy a houseor apartment,or the
amountof moneyitself.
fhe cadastral register/ chain of title / capital appreciationis the increase
in the valueof an asset.
The stamp duty/ purchaseprice/ notarialdeed is the amountyou must pay
for an asset.

Unit7 Realproperty
law
 f-7 complete this adverusement using the words from Exercise 1-6.You wlll not
need to use all of them.

Buy-to-let
in Prague
WhyPrague? lt isestimatedthat50,000newhomes needto befinished
annuallyuntil2010to meetthecurrent housingshortagein theCzech Republic,
Themajorityof housing isrequired
in Prague
itself,
asEUinvestment continues
to createnewjobs.
Typical
example
of a Prague
buy-to-letn:
1) €50,000
€7,500
€42,500
Monthlymortgagepayment €246 pcm 3.49%20-yrrepayment
4) €291pcm @ 7Yopa (conservative
estimate)
Rent as a"/" of mortgage 118o/o

* Theabovefiguresareillustrationsof whatmightbe achieved. Theactualfigurescouldbe higher,

or lower.Withanypropertyinvestment, thereare risks;interestratescouldrise,propertyvalues
andrentscouldfall.lt is important
to considertherisksas wellas thepotential rewards.

18 Doesbuy-to-let in Praguelook like a good investment?

Whatcouldyou do to
checkthat the figuresquotedaboveare realistic?

E 9-¡ - - 9 , , ry f; F 6 E g
LESKtrffiESTg
A: E*Aepffi#ffie
e$}qq.e$ry:
ffi$y*Eü*[*E "

MartaCervera
is a Spanish
womanwhois thinkingof investing
in a buy-to-tetpropertyin
Prague.Shecalts]anaFialová,
a Czechlawyer,to askaboutthe [ega[issuesinvolvedin
sucha ourchase.
19 {:z.z Listento the first partof the conversation
and answerthesequestions.
1 Howdid Marta Cerverafirst hear aboutJana Fialová?
2 Does Ms Cerveraneedto form a companyto buy a propertyin the Czech
Reoublic?
20 <= z.z Listento the first part of the conversation
againand choosethe correct
answersto these ouestions.
1 What made Ms Cerveraconsiderinvestingin a buy-to-let
in Prague?
a She has inheritedsome money.
b She needsto lose some moneyfor tax purposes.
c She has receivedsome moneyfrom an earlierinvestment.
2 Howdoes Ms Fialovádescribethe processof buyingpropertyin Prague?
a Simole
b Complicated

_3
c Quick
 3 Who normallypaysthe stamp dutyl in the CzechRepublic?
a Theseller
b The buyer
c Thereis no stamp duty.
4 How longcan incorporationtake in the CzechRepublic?
a Six to eight days
b Six to eightweeks
c Six to eight months
2L <'<2.3Listento the secondpart of the conversation
and tick the terms that
JanaFialovámentions.

1 notarised f 6 liens T 11 completion f

2 purchaseagreement T 7 foreclosure r 12 easements f
3 gazump T 8 encumbrances r 13 survey T
4 escrow l 9 restrictivecovenants T 14 tenancyagreement n
5 title u 1O planningpermission tr 15 boundaries n
221'=z.s Listenagainand decidewhetherthese sentencesare true (T)or false (F).
1 Czechbanks generallyrequirea deposit of between7oo/oand 30% of the
purchasepricebeforetheywill granta mortgage.
2 Ms Fialovásuggeststhat some of the purchasepriceshouldbe kept in a
separateaccountto be releasedonce all of the conditionsof purchasehave
been met.
3 Czechpropertydevelopersoften incurlargedebts that they are unableto pay.
4 Buyersof Czechpropertyare not liablefor chargesagainstpropertyincurred
by previousowners.
5 Restrictivecovenantstypicallygive a third partythe right to use another
oerson'sland.
6 Ms Fialováhas the detailsof Ms Cervera'sfuturetenants.

Keyterms3: Conveyencins
terms (1-10) with the correctdefinitions(a-j).
23 Matchthe conveyancing
1 stamp duty a A liabilityor chargeon real property
2 notarise b A third party interest¡n real propertyreservedfor specificpurposes
3 purchaseagreement c A tax on the conveyanceof real property
4 escrow d To authenticatea written document
5 chainof title e A promiseto do or not to do somethingwith or on real property
6 encumbrance f A legallybindingdocumentcontainingdetailsabout rentalterms
7 lien e A contractbetweena buyerand a seller
8 covenant h Moneykept by a third partyas secur¡tyuntil a particularcondition
9 easement is comoleted
1O tenancyagreement2 ¡ The successiveownershipsor transfersof real property
j A restrictionon the use of real property

I a/so propertytransfer tax

2 a/so rental agreement

Unit7 Rea[propertylaw
 Lir
email
Writing:Fottow-up lane
24Writeafollow.upemai|fromJanaFia|ovátoMartaCervera'|nc|udethese 26
Points:
Ü a suitablegreeting Cervera
would be pleasedto act for Ms Te
ü confirmationtnái"vou
points discussed
é u ,u**"ry of the main 27
Ü details of the next stages
Ü a suitableending

agreennent
3: Drafttenancy
Readinq
M a r t a C e r v e r a f i n d s a f t a t t h a t s h e w o u t d t i k e t o b u y a nfor
d m a k e s a s u approval'
ccessfuloffer.
a draft,;;.í agreement MsCervera's
lana Fiatová,s brotherthen prepares

25Quick|yreadthefirstpageofthedraftagreementandanswerthesequestions.
lWhathappensattheendofthetenancyperiodifafurtherrenta|agreement
has not been signed? followinga
helshe wishes to evict the tenants
2 What must tne ündlord do if
the fixed term?
breachof the agreementduring

Shorthold tenancy agreement

The IANDLORD will providS de.tai[::, ^^*
*rvrnnrn tne rr'Ni:t) r
TANDLORD(S):
RoBINMcLEVY which schemeis being used to
CenvERAAND within 14 days of üe commencement
oI tne
TENANT(S): tenancy,or as requiredbYlaw'
D\,TIELLINGIHOUSE: This aqreementcreatesa SHORIHOLD -
PRAHA3
LAUBOVA1) ................".....'.. fiÑÑcY. The I.ANDLoRD has an absolute
property
let for a rieht to recoverpossessionof üe
The D\MELLINGHOUSEwillbe of the FXED TERM' and at any
months from: ut'ttt"
fXgO TERM of 2) """"""""""""' "tpity er,bvfollowing-th"-qt::.t91',"'
(commencementdate)
3)................
;;i;i,ü*áft
'ut ends'
tp""in"¿ bylaw If the FXEDTERM
Perweek/ agreement hasbeen
FoTaRENT of-CZK4l and no new tenancy
payablein signed,a statutory periodic tenancy'rs
month (deleteas applicable)
"" of eachu¡eerl
advanceon 5) ......"""""" ÑomaticallY created'
month (delete as aPPlicable)
If the I,ANDLORD believes thatthe
of
The TANDLORD agreesto letthe fgNANf has breached anYPart
at recover
owgLLrNC HOUSE to the TENANT(S) this agreement, andwishes to
for the HOUSE
,n" nnNi payable as set out above .,.r*r."rtiot of the DIVELLING
duration of the FUCOTERM' iti-. itt" end of the FXEDTERM' the
in
i;ÑÑT ;ust first be servedwith notice
TheDEPOSITisCZKG) TdYttt,
accordancewith statute'
be protected by a government-autnor$eo
terünry deposit protection scheme'

i:,ifiilffil"H*;;;;";iooi' i"*n'v''1"."-',1" must

randrord eive
;Jliiff:ffillil'ff"t1:i,':
to quit it ñe wisnes the tenants
," r"á"L. The tenants must give one month's notice
two months, notice
(to the end of the next rental period)'
 L$stemñr¡g
3: Telephcne
emqtxñny:
tss]aney
egre*¡ment
lanaFialová
caltsMartaCervera
to ctarifysomeof the detaitsof thetenancy
agreement.
26 <<z'+ Listenand completethe agreementon page80 accordtng
to what is decided.
Use no morethan threewordsfor each soace.

- ! 'F-E e e
t€x{ af}ar.ysts:
Y*qw¡'***!",*9*
te[epnoneeffiq{"{ürteS
27 a Lookatthese typesof functionallanguageused in telephoneenquiries.Tickthe
ones that are used in Listenings2 and3. Lookat the audiotranscriptson pages
132-L34 if necessarv.
1 answeringthe phone ILL askingthe catlerto cail back later I
2 offeringhetp tl L2 explainingthat the personis unavailablel-l
3 askingto speakto someone I13 leavinga message T
4 askingwho'scalling IL4 takinga message T
5 sayingwho'scalling f1s showinginterest/ showingthat you're
6 connectingthe caller T listening T
7 givinga reasonfor calling
n16 askingfor repetitionand/or clarificationT
8 greeting
fLz clarifying T
9 askingthe callerto wait I18 apologising I
10 checkingthat the personwho answers
19 endingthe call T
has time to talk f20 referringto future contact T
b what languageis used by the speakersto expresseach of the functionsyou
haveticked?underlinethe expressionsin the audiotranscripts.
TNT 28 Matchthese examplesof commontelephonelanguagewith the appropriate
f the function(l-2o) from Exercise2Ta. some functionsare representedseveral
times,othersnot at all.
a I wonderif I couldcall you againnextweek? j Wouldyou mind sayingthat again?
¡lute
b Let me just get a pen. k He can't get to the phonerightnow.
rty
any c Whencan I expectto hear from you? I I'm callingin connection with ...
lures d Sorry,I didn't catchthat. m So that's i, as in igloo?
nds, e ls this a good time? n Whatcan I do for you?
n f I see. o lt's about...
g Canyou ask her to call me back? p I'd betterreadthat backto you.
h Niceto hearfrom you againl q Wouldyou mindcallingbackin an hour?
i Reallv?

eaking
a: lJsing
Hngtñsh
cn thephune
e when did you last use Englishon the telephone?Do you evertalk to people
over
cein the Internet?Howconfidentdo you feel speakingEnglishon the tetephone?
Do you haveany usefultips for speakingEnglishon the telephone?Discuss
your ideaswith a partner,then compareyour list with the one in
the answerkev
(page149).
work with a partner.Beforeyou beginyour phonecall,sit backto back so
that
you cannotsee each other.lf possible,use a mobilephoneand
stand at the
otherside of the room.
Student A: Turnto page 115.
Student B: Turnto page!!T.

UnitZ Rea[propertylaw
 Focus
Language
f
table'
Tt
formationComPletethis

Un\th
- *- * -T*'*
define : specification-- ]

i inherit

i-'*-_*'-*'-*-"

the adjectives
of the the box collocatewith
CollocationsDecidewhich Tul:il,^,^
morethan one adjective'
*n",.'one adiective.
;:iffi:;l: #;J;; noun'sowith

1 real esLa*'e, "'

2 prtor
3 mutuat
4 exclusive
their more formal
Match the verbs (1-7) with
Formal/informalsynonyms
synonYms(a-g)'
a terminate
1 go against
b commence
2 start
c consent
3 keeP
d redeem
4 agree
e contravene
5 end
f renounce
6 buYbacx
g retain
7 give uP of
to formexampres
of the sentences
harves
Match
ranguage the two
;"il;."_
language'
commontelePhoning Milligancase'
a I'm callingaboutthe
1 Goodafternoon' b later on this afternoon?
through
2 Hello,can YouPut me u..oon as I haveany news'
Goodbye'
3 CertainlY.Who shall I "d I'm exPecting a call anYtime now'
busyrightnow'
4 l'm sorY, Ms Mooreis e saYis calling?
just a few moments'
5 *, ttoot" will be f for YourhelP'
haveto stop you there'
6 i;* t"" sorry,but I'll g Cun I ask her to call Youback?
7 Can I call Youbacx h CanYouhold?
I Hello?Ms Moore? i Wintermintand RaineY'
9 Thanksvery much i to Mr CrisP,Please?
to agaln
1O Not at alt, I'll sPeak You

a
 L¡t¡gation
andarbitration

THESTUDY
OFLAW
cgs
¡ AGd ¡*
E E*É€Fñ*EE*

A disputeis a disagreement
or argumentaboutsomething important.
Therearea[[
kindsof [ega[disputes,
fromdisputesoverpeople'sbehaviourand business to
disputes
planningandenvironmental to namejust a few.
disputes,
1 Legaldisputescan be resolvedin the courtroom,but there are otherwaysof
resolvingthem, as well.Whatforms of disputeresolutiondo you knor,v?
What oroceduresdo thev involve?

Remd8mg
x: L$€€gmtñmm
emdmrh6€ra€$*m
2 Readthe text and decidewhetherthese statementsare true (T)or false (F).
1 The term litigationrefersonlyto the hearingor a trial.
2 Mediationdiffersfrom arbitrationin that the disputingpartiesare actively
involvedin the decision-making process.
3 Internationalarbitrationdevelopedin responseto the needto settle
disputesinvolving morethan onejurisdiction.
4 Onlinedisputeresolutionrequiresthat the disputingpartiesmeet in person
with the arbitratorsbeforea final decisioncan be made.

lf a dispute is not settled by agreementbetweenthe disputing parties, it will

eventuallybe heardand decidedby a judge and/orjuryin a court.A lawsuit
beforea court is commonlyreferredto as litigation.In fact, litigationincludes
all stagesbefore,duringand after a trial.
Litigationmay be usedto resolvea disputebetweenprivateindividuals,
an
individualand a business,or betweentwo businesses.Litigationsometimes
involvesdisputesbetweenan individualor businessand a government
, or betweentwo governmental bodies.
the UK,the majorityof pre-trialwork is carriedout by a solicitor beforethe
l.
is passedon to a barrister,who will representeitherthe claimantlor
defendantduringa hearingor a trial. In the USA,the same attorneymay
Ee. with the case from the time the clientfirst makescontactthroughto the
t
and enforcementstages. The steps in betweenthese two stagestypicalty
an attempt to reach a settlement beforeand/or after filing a lawsuit
pleadings,enteringthe discoveryphaseand then proceeding to trial. At
end of a trial,the courtwill deliverits judgmentand passan order,which
winningparty'scounsel2and/orthe court may help the winningparty
cnfurce.

plaintiff
or more of the lawyers taking part in a trial

(
Crimina|mattersarealsoconsidered|itigation,andmanycivi||itigation
as some forms of alternative
lawyersalso deal with criminalcases' as well
dispute resolution(ADR)'
Thetermliti{ationissometimesusedtodistinguish|awsuitsfromADR
m e t h o d s S u c h a S n e g o t i a t ¡ o n , a r b i t r a t i o n a n d m e d i a t i o n ' | f a c a s e(the
goesto
impartialreferees
arbitration, the dispuúngpartiesreferit to one or more
parties agreeto be boundby the
arbitrators,arbiters or árbitral tribunal);the
referees,decision(e.g.anawardfordamages).Arbitrationisthemainformof
ADRusedbybusinesses'Mediationinvo|vesatypeofstructuredmeet¡ngwith
thedisputingpartlesandanindependentthirdpartywhoworkstohe|pthem
reachanagreemenlbetweenthemselves.Inarbitration,abindingdecisionis
imposedbyanindependentthirdparty.Withmediation,thero|eofthethird
partyistofaciIitatenegotiationandagreementbetweenthedisputingparties.
Arbitrationisoftenusedtoresolvecommercialdisputes,particularlythose
invo|vinginternationalcommerciaItransactions,anditdevelopedhistorical|y
a|ongsideinternationaltrade'Thearbitralprocessforresolvtngdisputesunder
internationa|commercia|contractsisreferredtoasinternationa|arbitration.
ArbitrationisaIsousedinsomejurisdictionstoreso|veothertypesofdispute'
issues'
such as those involvingemployment-related
Recentyearsnaveseenthedeve|opmentofonlinedisputeresolution(oDR).
ODRproceedingsstartwiththefilingofaclaimonline'followedby
whichtake placeoverthe Internet'
proceedings

Peñ.t&*s
Key€mr*"res; effid
effidphmses&m&$e*gmt*mrx
mrhé€rm€*msx
3Comp|etethesentencesbe|owusingthewordsforpartiesinvo|vedindispute
resolutionfrom the box'

1 In litigation,the . . files a lawsuitagainstthe

- Usuatty, a ..... .....-.......
..... carriesout pre-tr¡al
workin preparat¡on of the case,whitea represents
theclaimantordefendantincourt.whenthecasehasbeenheard,the
deliversjudgment.
.. ' decideson the
ln arbitration,an ..................... or ...........
outcomeof the case.
an independent
ln mediation, .. helpsthe
reacha settlement.
 Matchthe phasesof ritigation(1-4) with the descriptions(a-d).
L pre-tr¡alphase a one or both partiesgathersevidenceaboutthe disputeby taking
2 discoveryphase the testimonyof witnesses,examiningdocumentsor physical

phase
3tria, , ilHA;;;;:i:#;H:[',niH::?il."ii,.*"andajury
4 enforcement
phase Thecourtdeliversa judgmentin the case.
c The rosingpartymayfire post-triarmotionsto convince judge
the to
amendthe judgment,or maydecideto appearto a higner
court.The
wtnningpartyhas the task of coilecting the judgment.
d when a disputearises,one partywiil usuailyhavetheir
rawyer
send
a retterto the other partyin an attemptto reacha setilement.
This
partymakesa demandof the other,who wiilthen
senoa response.
Informar discussions oftenfoilow.rf the partiescannotreacnan
agreement, formalactionmaybe startedand a suit is filed.
Readthis outlineof the advantages
of one particurar form of dispute
resolution,
takenfrom a governmentwebsite.which form is beingreferred
to?
:*
LJ
,.¡..

It works becauseit:
1 is a positive processwhich encouragescooperativeproblem-solving
relationships;
and preserves ili.l
2 allows people to have a say in resolving their dispute;
3 can look at an aspectsof the problem.not just the immediate
4 enables people to hear directly from each other and gain
issues; l.j
a better understanding of each
other'sneeds.

.:

In youropinion,what are the advantagesand disadvantages

of the otherforms
of disputeresolution - including
litigation?
Discussin smallgroups.use some
of the phrasesfor talkingaboutadvantagesand disadvantages
introducedin
U n i t5 .

p: $-mK€*r
aS$rxg #f $rxw#gme$msx
lawfacultyof a largeuniversity
hasinviteda distinguished professor
schotar, Zhang
to speakon thesubjectof Chinesearbitration
[aw.Nicholas0'Brien,
a lawstudentat
haswrittento professor
university, Zhang.
Readthe letteron pageg6 and answerthese questions.
1 Whatdoes NicholasinviteprofessorZhangtodo?
2 Whatwill the simulatedarbitrationbe about?
3 Whatdoes Nicholasofferto send to professorZhang?

UnitB Litigation
andarbitration
 Dear ProfessorZhang
Dublin' Il"lll{' and a
I am a student of law at University College'
memberoftheEuropeanLawStudents'Association(ELSA).Thissemester'
Iamtaking""o.rrr"onalternativedisputeresolution'andwearealso
PeterDonnelly' has
learning about ADR in china. My lecturer,Professor
and giutl_g^"presentation
informed me that you afe visiting the university
11 March' ELSAwill
on tt. subjectof Chinesearbitraiion law on
certain that many
advertiseyour talk on its website and on campus.I'm
studentswill attend.
you to take partin a simulated
on behalf of ELSA I would like to invite
taking the ADR course.
arbitration, which will be carried out by students
holding the simulation the morning of 12 March' and very
Wé
"r" time to participate'We have selectedan
L
much hope that you will have ,peanutkórnel' case(1999), and will use it as
interestingchinese case,the 10
I can send you more detailed
the basis of the ,i*,rütio". If you would like,
information about the planned simulation'
Iwouldalsoliketoinviteyou'onbehalfofELSA'tobetheguestof'
at B p'm' I very much
honour at a dinner we are hosting on 11 March
hope that you will be able to acceptthis invitation'

I look forward to Your rePlY'

Sincerely

NicholasO'Brien

uset: Futureforms
Language

(be + verb + -in$ in the letter'

8 a Findexamplesof the presentcontinuoustense
Whichexamplesrefertothefuture,andwhichtothepresent?Labelthem
with the correct letter (A or B)'
in the future
A future meaning:fixed arrangements
of speaking
B presentmeaning:an ongoingprocessat the moment
bNowlookforexamplesofwill+verb,andlabelthemwiththecorrectletter(c'DorE)'
do something
C mak¡ngan offer or expressingan intentionto
D makinga predictionaboutthe future
E referringto future time
with the correct
to the invitation,
9 completethe letteron page87, writtenin response
brackets'
forms (verb+ -ingor witt+ verb)of the verbsin
 !;.

¡;1.
DearMr O'Brien
Manythanksforyourkindinvitation. I amverygratefulto youandELSA my
for requesting
participationin thesimulated you1)
arbitration (hold) 12March. | 2) ."" " " "
Unfortunately' fr

(fly)to HongKongearlyin themorningthatdayandtherefore cannottakepart'Also,| 3) ¡i:.

F:

(meet)witha groupof professors fromtheLawFaculty on the evening of the11th'However, ii

f-

I 4) myschedule
(try)to rearrange forthatevening to maketimeto attendyourdinner.
| 5) (contact) YouandletYouknow. 'peanutkernel'
lf youhaveany questionsaboutChinese lawin general
arbitration or the casein I
please
particular, to askand| 6)
do nothesitate (be)veryhappyto answer them. i
Sincerely t
ZhangLin ¡.

session
t: Question-and-answer
Listening
1O Theseterms are used duringa question-andanswer-sessionfollowing
law'
ProfessorZhang'slectureon Chinesearbitration Matchthe terms (1-3)
with their definitions(a-c).
1 enforcementof an award a an internationalagreementsi$ned
by two states
2 bilateraltreaty b a partythat has signedan international
agreement
3 signatoryto a convention c ensuringthat the decisionof (e'g' an arbitral
tribunall)is obeyedor carriedout
sessionand tick the topicsthat
11 (ie.r Listento the question-and-answer
ProfessorThangtalks about.
1 The structureof China'seconomy I
2 The clETAc I
3 conventions
lnternational to whichChinais a signatory n
4 The enforcementof Chineseawardsin foreigncountries I
5 Rightsof appealfollowingarbitrationin China n
6 A Chinesecase aboutto be decidedby an arbitraltribunal n
phrases
p 1'-e.tlisten again.The audiencemembersbegintheir questionswith
that signalthat a questionis coming.Tickthe questionopenersyou hear.

1 | was wondering if you couldtell us '.. E

2 You mentioned that ... .-
3 Couldyou backto the pointyou madeabout ..'
go
!
4 I've got a question...
5 Couldyoutell us moreabout... I
6 I'm afraidI didn't understandwhat you said about "' I

x:Tatkon titigation/arbltratinn
Speakins
13 prepareand hold a short talk (twoto three minutes)about an aspectof litigation
Takenotesduringotherstudents'talks,and ask
or arbitrationin yourjurisdiction.
questionsusingsome of the questionopenerslisted in Exercise12.

1 a/so arbitrationaltribunal
2 ChinaInternationalEconomicand TradeArbitrationCommission andarbitration
Unit8 Litigation
 Kea
LAWIN PRACTICE 18 Lc
1,
LsmS-&sx litigation'
advising
2
to setttedi'Pytu:.:.utof courtbefore
genei'aLty
Lawyers attempt main
three stages:fiting
.,ri.t'o iitiqationinvo[ves
unauoi¿a.ote.
sometimes
However, Litigation atso
can
prupuiinq,h..ur. u.¿,t'nJilr,rttelourthearing'
thectaim/det.n..,
involvetheenforcementofajudgmentwhennecessary.
Whatarethe
of an example of a casethat hasgoneto a final'hearing'
14 Think the right
casei wnat arethe legat isJueszwhichsidewon?was
factsof *re
decisionreached?

L6t&q$et{*m
3; &qrw*S&€tffi
Ksmd6m&
1 5 W h a t c a n b u s i n e s s e s d o t o a v o i d | i t i g a t iwith
o n ?a| f partner'
|itigationisunavoidable,howcan
costs? Discuss
a businessmin¡miseits legal
the first half of each
this articre on limiting legalproblemsand match
16 Read
secondhalf (a-e) below'
paragraph(1-5) with the correct

ffi feesbylimitingleqalProblems
bv Daniel L.Abrams
an
to prevent a ñre him or her without consulting
It is always easier (and cheaper) employmentlawYer'[" ']
with a
from arising than to deal rn
i"*J n-üu* It is a good idea to get everything
Saving money on
pÁUf.- through litigation' w r i d n g [. ' . . 1
ignoring problems,
legal fees does not mean ConriJ., insertinga'loser
pays'rule into
when you.need
or handling matters yourself your commercialcontracts'["
']
for example:
1egal expertise. Be proactive' Ifyoo ,r. about to be sued'
check Your
to sue you' do not
1 If somebody threatens insurancePolicies'["']
w a i t f o r t h e l a w s u i t 'l " ' l
employee' do not
2 If youhave a problem

frivolouslitigation'
a This discourages
b B u s i n e s s e s o c c a s i o n a | | y p a y t h e i r l a w ycovered
ersford
bye insurance'
fendingalawsuitWithout
are
recognising that the litigationexpenses

c H i r e a I a w y e r r m m e d i a t e | y . E a r l y S e t t l efees
m e nand
t t a l damages'
kscanclarifypositionSandSaVe
of both legal
substantial*onuu a *re iorm
dTheycantellyouhowtoconductthefiringinawaythatminimisesyourexposureto
a lawsuit'
e T o o m u c h l i t i g a t i o n a r i s e s o u t o f . h e s ato
i d / s h e s a iwith
d ' d iyour
s p ulawyers t c awell'
t e s t h aas nbeavoided
This |.u'" uÁou"r dealings
by simpledocumentation.
lTaReadtheartic|eagainandcomparetheideasyoudiscussedinExercise15'
b W h a t o t h e r p o i n t s w o u | d y o u a d d t o ( o order
r r e m of
o vimportance'
efrom)thelist?Discussthesewitha
list in
partnerand then rankthe complete
 e: tms€mffL€e$gm€$ms?
ReedEslg
18 Lookquicklyat the articlebelowand answerthesequestions.
1 What do you think the word burdenin the headlinemeans?
2 Whatare the two most commontypes of litigation?

fuwm#mre
fuffi€#gm€trmm €mrffffiwswm
r#mmw
wffiffiffi#ruru&#w
USlawyers
I ccordingto an annualsurveyby
AFulbright & Iaworski,nearly800/o of UK
firms surveyedfacedsome couft proceedingslast
year.Worldwidq litigation costshaverisen by
25010.US and UK firms facedaverage litigation
costsof$12m and $1m respectively.
Constructionfirms facethe highestlitigation
costsworldwide of any industry with average
expenses of $:gm. Insurershavepaid out $36m
on average,while manufacturershaveincurred
costsof more than $14m.
Although the cost of litigation is not ashigh
in the UK as acrossthe Atlantic, the number
oflegal actionsand their expenseis risingfast.
'Despite general
the consensus that the UK is
not thought to be astightly regulatedasthe US,
e rsee x p e r i e n c i nmgo r ee x p o s u r e
t l K b u s i n e s sa
to regulatorvmatters,'saidListaCannon,Head
of EuropeanDisputesat Fulbright& Iaworski.
'All
companiesmust €nsurethev arepreparedto
addresscuilent regulatoryissuesand anticipate
futureregulatorychanges.'
The most common sourcesof litigation are
employmentand contractdisputes.While
arbitrationis considereda quickerway of
resolvingdisputesthan litigation, most firms
believethere is little differencein terms of cost.

19 Readthe text morecloselvand decidewhetherthese statementsare true (T)

or false(F).
1 Averagelitigationcosts for Britishbusinessesare 12 times hlgherthan
thosein the USA.
firms havethe hi$hestlegalexpensesworldwide.
2 Building
3 Most businesses is cheaperthan litigatlon.
believethat arbitration
20 Readthe text again.What is a majorfactor in the increasedcosts of litigation?
21 Matchthese wordsor phrasesfrom the text (1--4)with their definitions(a-d).
1 to incur a a legalrestrictionimposedby a governmentadministrative agency
2 to face / to address b a largesum of moneywhichis paidto someone
3 regulation c to experience something, usuallysomethingunpleasant,as a resultof
4 payout actionsyou havetaken (e.9.costs)
d to g¡veattentionto or deal with a matteror problem(e.9.court
proceedings or litigationcosts)

%:ñ*m€€mr
Remd$slg mct$*m
hmfmrm
22 In what differentwayscan a person'semploymentend?Whichof these might
resultin litigationor arbitration?Discusswith a partner.
Readthe letteron page90 quicklyand answerthese questlons.
1 Whatdo you think the term constructivedismissal1means?
2 WhymightMs Loushehavea strongcase for a claimfor defamation?
UnitI Litigation
andarbitration
(
 Te
64Waldingñeld Road
Law
Doncaster befo
SouthYorkshire
DNl 3GF 25
telephone:+441405738 59235
fax +44 1405738 59236
YOURREF: email: info@minchinlaceY'co'uk
OURREF:CSK/DT-I
29 February 2008
STRTCTLYPRIVATEAND CONFIDENTTAL

David TYlerConstruction Ltd'

KerseyLane Industrial Estate
Shawditch Road
Doncastet
SouthYorkshire
DN2 3SQ

Dear Sirs
Our clienü faYcee Loushe
employment with your
We are instruated by:the above named in qonnectisn with her
company.
13
we understand that our client has been employed by you since January
2007,and üat L
she was accused by Mr
on 26 February,while attending to her dutiés with a colleague, Le
from your offices. Our client strenuously
David Tyler of stealingconfideñtial information for
denies these accusations'
our client'swork' In 27
we a¡e informed üat there had been no preüous criticism of
that she was a positiveasset to t"*l1y-1,11
fact,Mr TylerrecentJyinformed her th"
promotion, togetherwith a substantialincrease in her remuneraüon'
suesestedthat a
wñrid strortly be fnrthcomin g.

Inligbtofyouractionsof26February,itisclearthatourclientwouldbefully
Due io the
entitledto resignanOUringa tribunal claim for constructivedismissal'
*r'i.iirt" asainst our client were made' we have also
.il;;;;;1;;;;
rf.l"
al'tui "uesations
would siand prospects of should
success she
adüsed Ms Loushe
"".óll"rrt
decide to pursue a,claim for exemplary damages2and/or defamation'
this
However, our client would be prepared to discussalternative means by which
matter might be resolved.Our instructions are to:ommel;qg ryrocegdin9$againstyou
14 days'
if we do nót receive satisfa*Ory prOposat$fÓr settlement of this matter within
Yours faithfully
Minchin & LaceySolícitors
t
Minchin & LaceySolicitors 2

2 ComOensatlonin excessof actualdamagesawardedin cases of maliciousor

party(alsopunitivedamages
designedto punishthe breaching
wilfulmisconduct

24 Readthe letteragainand answerthese questions'

1 What is the PurPoseof the letter?
2 What are the facts of the case?
3 What legalactionsmightthe recipientface?
4 What must the recipientdo to avoidlitigation?
 LetterbeforeaetEsn
Textamalysis: A letter
throughthe courtsif at att possibte'
Lawyerswitt try to avoidhavingto pursuea ctaim
d
asto ho* tegatproceeding againstthemcanbe avoided'
ll beforeactionis usedto advisea party
each of the
¡? to find in a letter beforeaction?Match
;F 25 Whichof these wouldyou expect
examples(a-i)'
¡5 paragraphsin the letter(1--5)with one of these
5
ú a detailsof the legalremediesavailable
law and/or legislation
b full detailsof any supportingcase
action
c what must be doneto avoidlegal
with the court
d detailsof the pleadingsfiled
e the instructingclient'scomplaint
must appearin court
f the date on whichthe defendant
gthenamesanoaddressesofanywitnessestheinstructingc|ientintendstoca||
client
ñ an initialreferenceto the instructing
ianoutlineofanyevidencesupportingtheinstructingc|ient'SVieW
a partner'
26 Discussthese questionswith
preparedto go backto workfor DavidTyler
1 Do you think Ms Loushewouldbe
Construction Ltd? Supportyour opinionwith reasons'
2Whatkindofsett|ementdoyouthinkwou|dbeacceptab|etoMsLoushe?

l1s[¡egsusea:F*rxma[ltyErateqa[eürre$p&ndenee
Icorrespondenceisoftenmoreformatthanbrrsiness:.-,j:'^l:'d..ce'However,the[eve[of
L v ¡ ' e v r - ' ' - - -

andtypeof correspondence'
, u r

matlty wiil depend onthesituation

I W h a t f e a t u r e s o f t h e | e t t e r i n E x e r c i s e 2 3 m a k e i t a v e- i ^ri yn af ot hram issues?
a|pieceofwriting?
the
summarising icqr lA<

ffi';il|];.:" i*",'o'n"r fromanemailto a colleague

Findthehigh|ightedphrasesinthe|etterthatcorrespondtothese|essforma|
equivalents.
l h e r w o r k f o r y o u T s h e w o u | d s o o n g e t ga l a r g e p a y r l s efor Ms Loushe
her acting/working
2 becauseof the wayyou accused
9 following
3 acceptablesuggestedcompensation
g L0 a goodworker
4 concernin
11 havebeentold
5 probablywin if she sues
6 to sue You

intervñew
a: Lewyer*e[ient
;temlnq
arrang"t,i,l:"i:t^Y:?J::
23'MrTyler'
oftheletterin Exercise
(ie.z Therecipient
*"l,ll:.::l':j::j,:::1:?:"f
:;ffiJi;';:il:. ;.:il;;;l *n'i"-.''inrormatitn ::"
canadviseMrTyler?LiStentothefirstpartoftheIawyer-c|ientinterviewandchecKyour
answer.
are true (T)or false (F)'
(ie.z Listenagainand decidewhetherthese statements

1 Mr TYlerhas dismissedMs Loushe'

on the groundsof her pregnancy'
2 Mr Tylerdismissedhis previoussecretary
3 Mr Tyler'sfirm is in financialdifficulties'
4MrTy|erhasnoproofthatMsLousheisgui|tyofthetheftofconfidentia|documents'
5MrTy|erhascontactedother|ocalbui|dingfirmstowarnthemnottoemployMsLoushe.

andarbitration
UnitI Litigation
 on what you nave
31 ( i e'gHowconvincing do you find Mr Tyler'scase?Based
part of the
him? Listento the second
heard so far, how *o"u'Oyáu advise
interviewand checkYouranswers'
32(íe.gListenagainandanswerthesequestions.
orderto avoid
what must MrTylerprovidein
1 lf the case goesto tribunal,
havingto PaYdamages? her client?
Ms Lousheif Ms Loushewas
2 HowwouldMs Cooperadvise
3WhatisMrTy|er,sbestchanceofavoidinglitigation?
dismissalcalculated?
4 Howare oamagesfor unfair
5Whatisthecuirentmaximumcompensatoryawardinunfairdismissalcases
(in England)?

thefaets
r¡se3: Estabtishing
Lanquage
Litigationcanbeverystressful,andclientsoftenbecomeemotionalduringtheinitial it is atsohis/herjob to
lawyer-client interview. Whitea lawyer,nu,t,t'o* understanding,
in orderto estabtish the relevantfactsof
the interv¡ew *'.ii.r,ir.t' as possiUie
conduct
giváinformedtegatadviceto a ctient'
a case.Ontythen*n ui"*Vtt
several
in Listening2 (audio8.2) includes
33 The first part of the conversation
e x a m p l e s o f | a n g u a g e t h e l a w y e r u s e s t o e s t a b lyou
i s h ttell
h eme
f a cexactly
t s a n d twhat
oencourage
issues' e'g' Could
her client to focJs o-ntf'" relevant in the audio
happened?Underline the examplesof this kind of language
transcripton Page136'

Writingl:Respondingtoatetterbeforeaction witl
the potentiatctaimant's test
Theinitiatresponseto a letterbeforeactionis oftento
in¡,iutoffer maybe put forward[often
by strongtydenying..u .ü*t. otternat¡vety,-an
belowwhatthe potentíat ctaimantmightwishforJ'

3 4 Y o u a r e t h e | a w y e r a c t i n g o n b e h a | f o f M r T23)'
y | e ruse
. W rsome
i t e a l of
e t the
t e r ifeatures
nresponsetothe
case (see Exercise
6Ar{TLnletter ouilining,u,, Lousñe's lnclude the
outlinedin Exercises27 and28'
11};$ll of formatr"g"r .oir"rpondence
following:
greetingand introduction
Ü an appropriate
claimsmade againstyourclient
Ü yourresponseto the lawyers
facts as presentedby Ms Loushe's
Ü any clarificationof the
(if you wish to makeone)
Ü a proposedsettlement
and si$n-off'
Ü an appropriateending

intervlew
2: Lawyer*ctient
Speaking
this situationwith a partner'
35 Role-play
Student B: Turnto page 117'
Student A: Turnto page 116'

Wrltingz: Letterbeforeaction
3 6 W r i t e a | e t t e r b e f o r e a c t i o n t o y o u r c | i e n t ' s f o r m e23
remployerbasedonyour
letterin Exercise as a model'
discussionin Exercise35' Usethe
rrrr}¡gyyturntocaseStudy3:Litigationandarbitration:anemp|oyment|awcase
on PageL22'
Language
Focus

CollocationsMatchthe verbs(1-5) with the nounsin the boxthey collocatewith.

Someof the verbsgo with morethan one noun.

1 to reach an a4reewenL,...
2 to file
3 to deliver
4 to decide on
5 to settle
Word formation Completeth¡s table with the correctforms.

settle

3 Goffocations
with disputeUsethe wordsin the boxto completethe collocations.

alternative legal Ba+ti€s resolution resolve/settle

1 disputing........
'.....p9¡l*?.?_
2 to.......... . adispute
3 a dispute
4... . dispute
Questionopenersunscrambtethese phrasesfor beginninga question.
1 us was if tell wondering
you I could...
^": wondel,ng u{ gou autl tdl us ...
^ I
2 that Youmentioned...
3 the pointCouldbackaboutgo youto ...
4 aboutI'm afraidsaid understand I didn'twhatyou ...
sentencecollocationMatchthe halvesof these sentencesa lawyerwould
use
when discussingthe facts of a case with a clientfor the first time.
1 First,we needto establish a to the facts.
2 Pleasedo giveas much b you suspect.
3 Trynot to avoidany facts whichmay c detailas possible.
4 lt's probablybestjust to stick d the relevantfacts.
5 | think you'dbettertelt me just what e be uncomfortable.
 law
lnternational

OFLAW
THESTUDY
Lem*-Bat law
[aw'privateinternationa[
caninctudepubticinternational
Theterminternationallaw
law'
supranational
and,morerecentty,
1 Discussthesequestions'
lWhatisthedifferencebetweenpubIicinternationalIawandprivate
i n t e r n a t i o n a | l a w ? W h i c h b o d i e s o r o r g a n i s a t i o n s alaw?
r e i ncan
v o | vyou
e d think
?
can a nation state be compelledlo obeyinternational
2 How
ofanyexamp|esofacountrythathasvio|atedinternattonalagreements?
3Whataretheconsequencesifaprivateindividua|orcompanybreaksthe
lawsof anotherjurisdiction?

&aw
$: &mterx-*m*Ewsem&
KeadEffiW
questions'
2 Readthe text and answerthese
law?
of publicinternational
1 what are the three main sources
2Whatarethetwoprincipalquestionswhichprivateinternationa||awis
concernedwith?
tegal frameworlQ
3 What is meant ay a supranat¡onal

ln its widestsense,international law can includepublicinternational

recently'supranationallaw' ln
law, private internationallaw and' more
i t s n a r r o w e s t m e a n i n g , t h e t e r m i n t e r n a t i o n a t l a w i s u s e d t o r law
efertowhat
!aw. Privaleinternational
is commonlyknownis pubticinternational
isalsoreferredtoasconf|ictof|aws.Conflictoflawscanalsoreferto
system' such as the USA'
conflictsbetweenstates in a federal
Publicinternational|aWisthebodyofru|es,|awsorlegalprincip|esthat
governtherightsanddutiesofnationStatesinrelationtoeachother,
ltisderivedfromanumberofSources,inc|udingcustom,legislation
a n d t r e a t i e s . A r t i c | e 2 o f 'an
theViennaConventionontheLawofTreaties
agreementconcluded
international
(l-969)definesa treatyas
betweenStatesinwrittenformandgovernedbyinternationa|law'..'.
Thesetreatiesmaybeintheformofconventions,agreements,charters'
frameworkconventionsoroutlineconventions'Custom,alsoreferred
toascustomaryinternationa||aw,isanotherbindingSourceoflaw,and
originatesfromapatternofstatepracticemotivatedbyasenseoflegat
rightorob|igation'Lawsofwarwereamatterofcustomarylawbefore
and othertreaties'
beingcodifiedin the GenevaConventions
InternationaIinstitutionsandintergovernmentalol$anisationswhose
principalvehiclefor making,applying'
membersare states havebecomea
 imptementingand enforcingpubticinternational[aw,especiattysince the
end of WorldWar ll. The best-knownintergovernmentalorganisation is the
UnitedNations,whichdevelopsnew advisorystandards,e.g. the Universal
Declarationof HumanRights.Otherinternational normsand laws have
been establishedthroughinternational agreementssuch as the Geneva
Conventions on the conductof war or armedconflict,as well as by other
international
organisations,such as the WorldHealthOrganisation, the
WorldlntellectualPropertyOrganisation,the WorldTradeOrganisation and
MonetaryFund.
the International
law refersto the bodyof rightsand dutiesof
Privateinternational
privateindividualsand businessentitiesof differentsovereignstates.
It addressestwo main questions:1) the jurisdictionin whicha case
may be heard,and 2) which lawsfrom whichjurisdiction(s) apply.lt is
distinguishedfrom publicinternationallaw becauseit governsconflicts
betweenprivateindividualsor lousinessentities,ratherthan conflicts
betweenstates or other internationalbodies.
Supranational law,or the law of supranational refersto
organisations,
regionalagreementswherethe lawsof a nationstate are not applicable
if in conflictwith a supranational legal framework.At present,the onry
exampleof this is the EuropeanUnion,whichconstitutesa new legal
orderin international law wheresovereignnationshaveunitedtheir
authoritythrougha systemof courts and politicalinstitutions.The
East AfricanCommunity,currentlya customs union in East Africa,has
ambitionsto becomea politicalfederationwith its own form of binding
supranational law by 2O1.iO.

Keytensns al"!dpr*fixes
T;Prepos¡tás$ts
3 Comoletethe sentencesbelowwith the preoositions
from the box.

by in on to to to to under

1 Parties a treatyare the Statesor the International Organisations

whichhaveconsentedto be bound the treatyand for whichthe
treatyis ............
. . force.
2 By becominga signatory .. . . ... . a conventionwithL72 othercountries,
Russiais takingan importantstep to facilitateanti-smoking legislation.
3 . . . . .. .. the Convention on the Rightsof the Child, persons underthe age
of 1-8yearsare entitled specialprotection.
4 International .. . the citizensof all signatorynations.
lawsapply..................
5 The Council of Ministersof the East AfricanCommunity is a policyorganwhose
decisions, directives and regulations are binding PartnerStates.

Unit9 lnternational
law
 A
Thetextonpagesglr-g5containssevera|adjectivesformedwithprefixes' 60
suchasinternationaland¡ntergovernmental.Matchthesecommonprefixes _Y:_
(1-6) with their meanings(a-f)'

1 bi- a many I
2 inter- b above,beYond I
3 intra- c two
4 multi- d between,among
5 non- e not, otherthan
6 suPra- f within,inside
(a-f)'
prefixes(1-6) with their definitions
5 Match these wordswith
powers
1 intera$encY a neutral,especiallytowardsmajor
2 non-alig¡ne6 b involvingtwo groupsor two countries
of a government
c without any participationor representation
3 non-governmental
4 bilateral d within the boundariesof a state
5 multinational e involvingseveraldifferentcountries
especiailygovernmentagenctes
6 intrastate f invorvingtwo or more agencies,

in EUtaw
2; DevetoPments
Reading
|nmanycountries,practisinglawyersarerequiredtokeeptheirtegatskitlsand
IntheuK'thisis known
courses.
of thetawup,o ¿u,.iv completing certain
knowtedge in the usAis Continuing
astontrnürngr'**r*{"iol*"t i*"..'tceo\. rtretermused ona wide
offers.uchcourses
LegatEducation. Bothp-ui.lrJprivate iegaiorganisations knowtedgeof
courses providing
to iourses in-depth
rangeof topics,fromskittsandethics part
beingofferedontine'as
areatsoincreasingty
areasof tr¡euvu cpocourses
specific
programmes'
of distance-education
LawyerspractisinginjurisdictionswithinthesupranationattegatframeworkoftheEU
is
textin thissection
needto learnaboutchangesin thetawwhichattecttheirwork'The
courseprovider'
un.*..rpt fromthep'og'át*t of a CPD
6 Discussthesequestions'
of CPD?What is it called?
1 Doesyourjurisdictionhavean equivalent
2Haveyouevertakensuchacourse?|fso,whatwasthesubjectofthecourse?
3WhatdoyouthinkaretheadvantagesanddisadvantagesoftakingCPD
coursesonline?
page^97'What are the topics of the two
7 Quicklyskim throughthe texts on
seminars?Forwhomare they intended?
S D e c i d e w h i c h o f t h e t w o c o u r s e s w o u l d b e s u i t a b l e(Course
f o r e a cA)'
h oBf t(Course
hefollowing
WriteA
people.In some cases,neithermay be suitable'
B) or N (neither)'
corporationwants to researchlegal
1 A Spanishtax lawyeradvisinga large
developments relatingto shareholders'rights'
recentchangesin the law concerning
2 An ltalian lawyeris interestedin
workplace'
discrimination againstpeoplein wheelchairsin the
to understand the differencesbetween
3 A Germanin-rloÁe counselneeds
US and EUemPloYment law'
merger
4 A Swedisrrlaw práfessor wants to learn about changesaffecting
requirements in the EU'
5ATurkishtaxlawyerwantstofindoutaboutthehistoryoftaxlegis|ationin
the EU.
 ,{A
S &,&.,,,..' ,,,',,.,.,
,,',,..,,'",., ,.,,.,, .C

Date:1.0-1,1 March2009
Areasof [aw:Anti-discrimination, labour[aw,socia[law
Targetaudience:Lawyers in privatepractice,
in-housecounselor civil servants
specialisedin labourlawor workingwith businesses. associations
or tradeunionsat
nationaIor European [eve[
Description: Theseminar wil.[present the mostimportant recentdevetopmentsin the
community's legislationandpolicyin the fietdof labourlaw,in particutar:
o Themodernisation of European labourlaw
es o Flexicurity,the welfare-statemodelwhichcombines easyhiringandfiringandhigh
benefitsfor the unemployed
o Therelationship between socialrightsandthe internalmarketrutes;with speciat
attentionto the Lavat(C 341./05) andViking(C-438l05) cases
o Recent developments on gender equatityandnon-discrimination.

w &
:ft. q,4

Date:3-4 Aprit2009
Areasof law:company [aw,financial services andbanking[aw,internalmarket
Targetaudience:Lawyers in privatepractice, in-house counset, officialsin tax administrations,
accountants andacademics
Description:Directive2007 /36/ECon the exercjse of certainrightsof shareholders was
published in Juty2007.An importantproposal to simpLifo the 3rdand6th Company Law
Directjves by remoüngthe requirements for expertreportsin mergers anddivisions of companies
wasalsoapproved in Juty2007.Atsoin JuLy2007,theCommission pubLished its Communication
COM (2007)394on a simplified busjness enüronmentfor companies in the areasof company
law,accounting andauditing.
A recommendation on several aspects of shareholders' rightsis expected this autumn.Another
important issueis the casefor the European Private Company Statute. Several othermeasures
areexpected to comptement this [ist, notab[ythe proposaI for a directiveon the transferof a
company's registeredofficefromonemember stateto another.
In this seminar, expertsfromdifferentareaswi[[ anatyse the impactof atl thesedevelopments,
consider the chatlenges for the future,andanalyse theirimpacton otherimportant areasof [aw.

Unit9 Internationa[
law
Keytermsa: Legatlnstrurnents
gUnder|inethe|ega|instrumentsmentionedinthedescriptionofCourseB.one
has alreadybeen done for you (Directive)'
loComp|etethedefinitionsofinstrumentsbe|owusingwordsfromthebox'You
maYneed to consultthe glossarY'

preferencesexpressedby EU institutions'
1 ......................... are views and
but they are not bindingon the memberstates'
throughout
are detailedinstructionswhichare applicable
2 ...........................
member states,which means
the EU and whichare directlybindingon the
thattheybecomeapartofthememberstate'snationa||ega|system
automatica||ywithouttheneedforseparatenationaIlegalmeasures.
the EU
a areEUdecisionswhichare bindingon
I -..........................

they are only generalinstructionson

institutionsuno iná memberstates, but
thegoa|tobeachieved;thewaythegoalisreachedislefttothediscretion
of each memberstate'
to whomthey are addressed
4 ....................... are fully bindingon those
Theyare basedon a specific
(a member.,u,", a companyor an individual)'
TreatyArtic|eanddonotrequirenationa|imp|ementing|egislation.
out the
are publishedby the Commissionand set
5 ...........................
backgroundtoapolicyarea.TheyusuallyindicatetheCommission's
intendedcourseof actionin this area'
llFindwordsorpnrasesinthedefinitionsinExerciselOwhichco|locatewith
these words.
5 action
1 binding 2 member 3 $oal 4 discretion

t: CPD
Listening on labourtaw
seminar
in courseA on
youaregoingto hearpartof the cPDseminaron labourtawdescribed
page97,whichdeatswith the Lavalcase'
seminar,in whichthe instructordescribes
L21.<g.tlisten to this excerptfrom the
thefactsofthecaseandvariousreactionstoit,andanswerthesequestions.
a landmarkcase?
1 Why is the Lavalcase referredto as
2 Who or what are:
a Laval b Vaxholm c L' and P' Baltic Bygg
3 In whichcourtswas the case heard?
13{Ís.rListenagainanddecidewhetherthesestatementsaretrue(T)or
false (F).
lThetradeUnionca|ledforab|ockadeofthesitebecausetheLatvian
workerswere not entitledto work in Sweden'
Latviancompanythat providedthe
2 The blockadeled to the bankruptcyof the
workers.
against Lavalto be an infringement
3 The court consideredthe actionstaken
of the company'sright to providea service'
on existingwageagreements'
4 Thetrade unioÁsnet¡evethe rulingis an attack
L4 ('<s.t Listenagainand completethe lawyer'snotesaboutthe case.

Laval &5e
Landrnarkrulmg
. Contex1:enlargenvntof lt\; Faar oF tl dum2tng
' Impagt on countri¿sw¡th no m¡nimumuega,,but w¡th
collartiv¿2)
facts t.
' Construction
urrk¿rsfrom s¡ workingin 5vudishtar.n
:,'
of Vaxholmin 7004. t:,

5vudsÁ rnionarcused compoin¿ / oF payivtg4 ) . . . u J e g e s

than allow¿din S,¿udan.
ünion blockaded,vnrk sfa.; cnmpanywent into
5)..
. CaseVv.ard5,7luropeanCourt of e) . R-ulingin
7).. .
hl.
K_Ultng
- lrada, unionhra.dno 8) . . fo Forc¿Latv¡an rrlmpolny
ro ?ey minimum vega,.
' Court racognised,nght to dlecfiva action,but union
r¿stricfed,lght of company to provida.gl
' ün¡on'5actionsincompatibl¿ withlü rol Dire¡tiva
. P.-asctions
to ruling:¿TüC uid-sr.t) r a5 ruling :
clsllev¡ges
collarfivZbargainingsystem.

peaking
r: Debate
In groups,chooseone of the followingmotionsto debate.
1 The decisionin Lavalunjustlyinterfereswith trade unions'abilityto promote
the equaltreatmentand protectionof workers.
2 The decisionin Lavalrepresentsa necessaryrestrictionon the powerof
unions.
3 The decisionin Lavalwas best for both businessand workersalike.
Splityourgroupinto two. One half of the grouppreparesthe argumentsand
defencesfor its motion,the other half preparesthe argumentsand defences
againstthe motion.Decidehowyou will presentyourcase,usingeverymemberof
the group.
One personwill act as the chairperson.
The chairsshouldfamiliarise
themselveswith the argumentsfor both sides and ensurethat the debateis
carriedout in a structuredfashion.

Unit9 Internationa[
[aw
 19

LAWIN PRACTICE
L*ad-tm oranimprovement 0nan
A patentisa monopoly rightto makeorseI aninvention' is to
abte
a, . p."ii."larnumber ot¡,¡ari ln thisway,theinventor [aw'
invention,
existing property
intettectual
hisor her ¡Ñ.rtr.nt. lt is one.t it'.-r,.utonttpi' in
compensate
to another
Severatinternationattreatieshavestandardisedmanvi:p:t::tii::t:u*tpropertvtaw'
jurisdiction
laws ;;.r..r.n, stittvarywidetyfromone
these
However, "J;;;
16 Discussthesequestions'
lWhatkindsofconflictoflawcou|dresultfrompatentinfringement?
2lnwhat*uy'Oo"'acaseinvolvingtw oormorenationstatesdifferfroma
the samejurisdiction?
casebetweeni*o p"ttiusfrom R
taws TL
3: USPatemt
Readin$ is the best headline
reportquickryand decidewhich
17 Readthe onlinenews
(t,2 or3)'

1 MicrosoftPatentrow continues
battle
2 Microsoftwins AT&TPatent
aPPeal chance
3 Microsoftwins AT&T

L***t.tv::¡:'v'
reach of us
casein the US SupremeCourt about the
Microsofthaswon a long-running
patentlaws.
svstem
operatins
windows
comput:ls-tlsllq.T:ttotons
allesing
li;; ;;. t;ed Microsoft' software'
hadbreachedits patentin voice-compression
computers
to damasesfor ar windows-based
?;; ;.; ;;id it shourdbe entired
manufactured outsideof the USA'

raw theworrd
?;;;;;;,*0,*n united
that states tffTi :?Tilffi'l;"::l%T:ft1:"'e
RuthBaderGinsburg'
t"t"" i" patentlaw' saidJustice
applieswith particu'tt
4) ... .

these sentences(a-d)'
18 Completethe report using
aMicrosoftacceptedpatentviolations.intheUsA,butarguedtheinfringement
sfroutOnot be extendedinternationally' court had gone
According to the judges' an earlierrutingOythe federal:ll"t't
b
t o o f a r l a n d h a d ] a p p l i e d i t s t e s t i n " * á v i r , " t * u . t o oMicrosoft's
n a r r o w a nposition'
dtoorl¡lid.
SupremeCourtsupported
c But in a7-lruling' the US patent dispute
was not liable in a software
d The court rutedtnát Microsoft
AT&T'
involvingUS telecoms operator
 terms in the reportwith the followingmeanings'
19 Findhighlighted
!whenyoubelievethatsometh¡ngistruewithouthav¡nganyproof
groupof people'etc'
2 controlsand directsthe publicbusinessof a country,city,
3 incapableof compromiseor flexibility
4 giventhe right to do or have something
5 limited
6 the breakingof a rule or law
7 a decisionin a case
8 whenthe influenceof somethingis expanded
9 a question(or questions)that help a judge reacha decision
yourown words' Do
Explainthe facts of the case and the court'sdecisionin
(not)?Howwould
you think the supremecourt cameto the rightdecision?why
a highercourt in yourjurisdictionhaveruled in this case?

v' AT&T
eed¡n$,4:Flienssw'fft
of Microsoftcorp. v. AT&T
21 Readthe decisionof the Supremecourt in the case
and answerthese questions.
had breached?
1 Whatwas the patentthat AT&Tclaimedthat Microsoft
patentedinvention's
2 What does the Act meanwhen it refersto supplyinga
componentsfor combination abroad?

SUPREMECOURTOF THE UNITEDSTATES

MICROSOFTCORP.v. AT&TCORP'
circuit
to the unitedStatesCourlof Appealsfor the Federal
certiorari

No.O5-1056.ArguedFebruary21,2OO7-DecidedApril30'2007
occurswnen
It is the generalruleunderUnitedStatespatentlawthatno infringement
exception' Section
a patentedproductis madeandsoldin anothercountry'Thereis an
thatinfringementdoesoccurwhenone
271(f)ofthePatentAct,adoptedin 1984,provides
,,suppl[ies]... fromthe Unitedstates,"for "combination"abroad,a patented invention's
,,components." Thiscaseconcerns
. s.271(f)(1). theapplicability to
of s'271(f)
35 U.S.C
firstsentfromthe unitedstatesto a foreignmanufactureron a master
computersoftware
transmission, for
thencopiedby theforeignrecipient on
installatton
disk,or by electronic
comouters madeandsoldabroad.

AT&Tfiledan infringementsuitchargingMicrosoft fortheforeigninstallations

withliability
AT&Tcontended' Microsoft
of Windows.By sendingWindowsto foreignmanufacturers,
abroad,
... fromthe UnitedStates,"for "combination"
"supplie[d] "components" of AT&T's
patentedspeech-processing computer, wasliableunders'271(f)'
and,accordingly,
responded thatunincorporated becauseit is intangible
software, information,
Microsoft
unders'271(f)'
of an invention Microsoftalso urgedthatthe
cannotbe typeda "component"
copiesof Windowsactuallyinstalledabroadwerenot "supplie[d] ' " from
foreign-generated

.,_,j.51-i::{'.r'i:ia'::i:¡!i:rr:-:.r:r.r.¡

law
Unite International
 27<
courtheldMicrosoft
theDistrict liableunder f!
theseresponses,
theUnitedstates,"Rejecting
s.271(f),anda divided Circuitpanelaffirmed'
Federal
of windows
Held:BecauseMicrosoft doesnoi exportfromthe UnitedStatesthecopies ?¿
computers doesnot"suppl[y]
Microsoft
in questron, " ' fromthe
ontheforeign-made
installed as
I

of thosecomputers, andthereforeis notliableunders'271(f)

UnitedStates""components"
written.
currentlY I

.l
l
22Readthedecisionaga|nandanswerthesequestions. I

rule underUS patentlaw that no

I What is the exceptionto the general
infringementoccurswhenapatentedproductismadeandsoldlnanother
countrY? hearing?
2 what were Microsoft,s two main argumentsduringthe Districtcourt In
Court'sdecision? 9I^
3 Whatwas the reasoningbehindthe Supreme
1C
23Theru|inginMicrosoftCorp'v,AT&TmeantthatAT&Twasnotentit|edto
computers
manufactured
damagesfor breachesof its patenton non-US
runningWindows.Underwhatcircumstanceswou|dMicrosofthavebeenIiab|e
for these damages?
paragraph(2) of g27l-(f)supported
24 In dissentl,JusticeStevensarguedthat
AT&T,scase,anosaidthat.ifadiskwithsoftwareinscribedonitisa
,,component,,,lfinditdifficulttounderstandwhythemostimportantingredient
Do you agreewith him? why do
of that componentis not arsoa component'.
you think the majoritydecidedagainstAT&T? I
¿

2: ffiwttipte
Lüstening inarisdietisns ?
refusing
of a domestic-court to extend
Thecaseof Microsoft Corp.v. AT&Tis an exampte 4
whena caseinvolves the lawsof more
its jurisdictionto anotheistate;but whathappens I
Youaregoingto heara discussion betweena lawyer[MrConnor]
thanonejurisdiction?
MrJoneshasrecentty soldhissharein a
andhisctient[Mrlon.rj .Uouiru.Éu case. between
the agreement
in Austria.unfortunatety'
restaurant in orderto setup business
himsetfandhisnewbusiness partnerhascotlapsed'
t
Whichcountriesand
25 t-=g.zlistento the first part of the dtscussion' c
nationalitiesare mentioned? t
quest¡ons'
261'<g.z Listenagainand answerthese
1 Whatwas Mr Jones'splannedbusinessventure?
and Mr KundakQt?
2 Whatwas the agreementbetweenMr Jones
3 WhYhas the deal fallenthrough?
4Whatisthefirstissuethecourtwil||ookatifthecasegoestotria|?

ranexp|icitdisagreementbyoneormorejudgeswiththedecisionofthemajorityinacase(a|So:
d¡s se nting i udgment, d¡s sent¡ng opin ion)
27 l.'<g'zListenagainand completeMr Connor'snotesfrom
his conversation
with
Mr Jones.

?e-oole
-.-T_-.

Bilql KunáaL+, (buver)

TurLisLt nol;.>nálc-ur/3nl,ly livin3 in 1) ....... . ; Mosl .f l;fu sgenl in 2¡
?lanne-á lo movo lo ¡usl'rio.

Harry Jonos (buvur)

Dual,/c,*iz-ont!,?r.4 .aná Amortcan. Ltvo; in 41 ...........................uos1
of li^u (rqn q
resraurqnl). Domicila is S)...........................,
movin3 io e¡...........................$ell;ry
mqrr,oá)
Anlon,o Piombo (seller)
Ilolicrn livin3 in 7)
'#2:í"::;::Trvzii:,"'"2;¡; -saiá
h's
10) . ).
;,:tn:Ii'i',1,2'ÍfJliin,t"
f^,^:;;:;,

28 a (íg's Listento the secondpart of the conversation.

Whatare the five main
stagesto a case involvinga conflictof laws?
b {íg.s L¡stenagainand decidewhetherthesestatements
are true (T)or
false (F).
1 A court maydecideit hasjurisdictionin some aspects
of a case,but not others.
2 Forumshoppingis the practiceof filinga lawsuitin
the jurisdictionthought
most likelyto providea favourableoutcomefor the claimanr.
3 The causeof actionis the legalargumentin a case.
4 An incidentar questionis one that is not rerevant
to the maincra¡m.
5 Renvoirefers to the choiceof rawruresthat may be appriedwnenever
a
court is directedto considerthe rawof anotherjurisdiction.
6 once a court has decrareditserfcompetentto hear
a case, its judgmentwirl
definitelybe recognisedacrossborders.
Readthe audiotranscriptof the lawyer-client interview(pages136_13g)and
compareit with the wASp criteriain unit 3. Are all of
the .tugu" inctuded?ls
thereany other informationthat the lawyercouldhave
askedfor at this stage?

ns{*ege
&¿se:
ffixp[a$xNür}g
[egattern*$t$
n*&awryers
are some of the phrasesMr connor uses to exprain
some of the reeal
'ts so that the clientcan understand
them.

your,domicileis America?That is, Americais your

officiatpermanent residence?
w: rtrst need to consider which court has
lt iurisdiction. ln other words, which
is competentto deat w¡thany of the tegataspects that
m¡ght ar¡se....

Unit9 Internationa[
[a,,,
2 """ """""""
the purchase'
L
Let's saY that You cat n'tgo aheadwith
That's rn, Oro""u bY which "'

!u*''
to a cas.e.''\?'-'::g^?::::.'",?f
''áirÁrn:*;;^re essentiattv
k;, fivestages -,
¡;;;;i ,,,i" 'Á'íp*e to
around set thebestdea!in a case?'
*"1i,;;;
'Basicall!,Yes.'
.. connectionwith the main c'laim.
Put simply, questionswhich arisein
4 -- '
' will be the same' no matter wll i c h c o u r t i n
tn theory, the ourcomeof a case
wnicn cáuntry finalty acceptsthe case'
";'
;;;;;;;;rt ¡i ln¡smavbe the rutesonrenvoi'
the box abovewith these headings'
30 a Labelthe functional$roupsin
I givingexamPles
I givingfurtherdetails
Ü rephrasing
¡, simPlifYing
each of the categories?
b What other pnrasescan be addedto

wxpbm€firu&g?ry
R: ffimf&sru&{é*ersfffi*Lw-p&mp;
spmmk$ffi#
€wmmsx*&mwY*ns
tmrrsas
&wrym&
31 Workwith a Partner'
StudentA: Turnto Page116'
StudentB: Turnto Pagell-7'
32 Workwith a Partner'
Student A: Turnto Pagell'6'
Student B: Turnto Page1-17'

&m€€wr
$*L&*w-uaP
Wr$e&mg:
yourinterviewand
summarising advistngon
33 write a follow-uptetterto the client
how best to proceeo'Includethe following:
,,, the facts of the case
mightarise
ü any possiblelegalissuesthat
involvingconflictof laws
ü ,f'á .,ug"s involvedin a case
do
Ü whatYourclientshouldnow
Ü what Youwill do next'
plainlanguage'
Explainany difficultlegalterms using
Language
Focus

1 CollocationsCompletethe phrasesusingthe adjectivalform of wordsfrom the box.

advise bifid custom enforce government intellect

1- ..........,.|nüng.............
sourceof law
2 .... standards
3 internationallaw
4 .......... practices
5 . organisation
6 propertyrights
2 VocabularyCompletethe sentencesusingwordsfrom the box.

ffi inter-state non-governmentalsupranational

1 Finlandand Swedenhaveconcludeda.... ..V.'14&%.6L.........

..agreementon
economicco-operation in internationalemergencysituations.
2 A . ...... . organisation is a legallyconstitutedorganisationcreated
by privatepersonsor organisations with no participationor representation
of any
government.
3 The EU is a organisation that creates,implementsand
enforcessubstantivepoliciesfor its members.
4 The International
Courtof Justicehas been criticisedfor its failureto resolve
disputes.
3 Explaininglegal terms Matchthe halvesof these sentences,whichcontain
phrasesfor explaininglegalterms to non-lawyers.
1 A customsunionis, put a which rightsare grantedto an
2 A legalframeworkis, in international
bodyby the signatory
nationsto the agreement.
3 A charter is an agreementby
b words,it dealswith such questionsas
4 'Conflictof laws' refersto whichlawappliesin the caseat hand.
the bodyof law dealingwith
disputesbetweenprivate c simply,a groupof nationswho wish to
personswho live in different removecustomsbarriersbetweenthem.
jurisdictions;in other d essence,a broad system of rules.
 lQp Comparative
law

THESTUDY
OFLAW
tead-in
Peop[ewhodescribe andanatyse thetegatsystemsofthewortddividethemintovarious
categories,
orfamities.
Althoughdifferent
classification
schemesexist,thefottowing
systems
arecommonty distinguished:
civit[aw,common tawfoftengroupedtogether asWásterntaw],
religious
law[e.9.Hindu taw,lslamiclawand]ewishtawJ,cñinesehwándsociatist law.ln
addition,
some[ega[systems canbestbedescribed asmixedforpturatistic]
systems.
1 Discussthesequestions.
1 whatdo youthinkis meantbya mixedsystem?Doyouknowanysystems
that mightbelongto this group?
2 Whichsystemdoesyourjurisdiction belongto?
3 Whatis the legalsystemof the vastmajority
of Engtish-speaking
jurisdictions?

ReadirS
r: eempanatiwe
[aw
2 Readthe overviewof comparativelaw belowand answerthese questions.
1 Whyis comparativelaw growingin importance?
2 What is the HCC,and what ¡s its goat?
3 what is the best-known
conventionproducedbv uNrDRorr?

,:. the study of differencesand simiraritiesbetweendifferent

9_*1"1"tiu".,"y
jurisdictions,
includingcivil-lawsystems,common-law systemsand religious
(or theologicat¡legat systems.
comparativelaw has becomeof increasingpracticalimportancefor
two
First,the llobatisationof worldtrade meansthat commercial
::asons
lawyersare often requiredto work with colleaguesand clientsfrom
unfamiliar
jurisdictions.The secondreasonis the increa-sing
trarmoni""i¡"" r",
unification)of rawsbetweenpreviousry separate1'urisdictions,
u. *¡Ü, th"
EuropeanUnionand the Unionof SouthAmericanNations.
comparativelaw is closelyrelatedto privateinternational law and the
harmonisation of law.privateinternationallaw concernsthe applicability of
laws in situationsinvotvingotherjurisdictions.Harmonisati"" ;; ;;"iop"o
";
out of a needto simplifythese rures,both at a nationarrever(e.g.
the us
uniformcommerciarcode) and betweensovereignstates
1e.g. taw¡,
Eu
Anotherkey aspect of comparativelaw is the idea of uniform law.
There
are two main sourcesof international uniformlawrThe Hagueconference
on PrivateInternationalLaw(HCC)and the International lnstitutefor the
unificationof PrivateLaw(uNlDRolr).The Hagueconference,a gtobal
mt:rg:v:Tmentar organisation with over60 memberstates,is tñe reading
organisationin the area of privateinternationallaw.An increasingnumbei
ro6
 of non-member states are also becomingpartiesto the Hagueconventions.
The statutorymissionof the HCCis to workfor the progressive unification
of privateinternationallaw in a wide rangeof areas,from commerciallaw to
internationalcivil procedureand from child protectionto mattersof marriage
and personalstatus.This involvesfindinginternationally agreedapproaches
to issuessuchas jurisdiction of the courts,applicablelawand the recognition
and enforcementof judgments.UNIDROIT also has about60 memberstates
and was establishedto researchthe needsand methodsfor modernising,
harmonising and co-ordinating private,especially
commercial, international
law.lts most notableconventionis the UniformLawon the International Sale
of Goods,t964.

Keyterrn$:nxprff$$ges?$ in comparative
a,á$ed law
3 Explainwhat is meantby these expressionsin yourown words.
1 applicability
of laws
2 international
civil orocedure
3 enforcementof judgments
4 progressiveunificationof law

s: C&urse
Reading r€ad*r
As partof the curriculum
of a MastersProgramin Comparative
Lawat an American
university,studentstakea coursein whichtheylearnaboutthe differences
betweencivil
law andcommon[aw.
4 Readthe extractbelowfrom the coursereader(a collectionof texts selected
by the instructor)and answerthese questions.
1 Wheredid civil law orig¡nate?
2 What is the role of precedentin common-law systems?
3 What does the term stare decrslsmean?
4 Whichtwo terms are given in contrastto the Ierm unenactedlaw, in the final
paragraph?

Civil law may be defined as that legal tradition which has its origin in
Roman law, as codified in the Corpus Juris Civilis (the Justinian Code), and
as subsequently developed in contlnental Europe and around the world.
Civil law is highly systematized and structured, and reiies on declarations
of broad, general principles.
Common 1awis the legal tradition that evolved in England from the 11th
century onwards. Its prrnciples appear for the most part in reported judgments,
usually of the higher courts, in relation to speci-flcsituations arising in disputes
that the courts have adjudicated. The common law ls usually much more
detailed in its prescriptions than the civil law. it is the foundation of private
law, not only for England, Wales and lreland, but also in 49 U.S. states, mne
Canadian provinces, and in most former colonies of the British Empire (many
of which now form part of the Commonwealth of Nations).
Common{aw and civil-law legal traditions share similar social objectives
(indlvidualism, Iiberalism, and personal rights). Because of this functional
similarity, they are often referred to as {}¡g \ifs<rarn l¡r¡¡ f¡mih¡
Unitto Comoarative
law l07
 L
js
A major difference belween common-law
and cjvil{aw systems the heavy c
relianceonCaSelawncommon{awSystems.InsuchSystems,thecourtslnterplet
Statutelawthroughthedevelopmentofcaselaw.Judicialintelpletationofstatute
i s b i n d i n g u n t i l c h a l l e n g e d b y a h i g h e r c o u r t U n d e r t h e d o c t r i n e o f s t a r e dThus,eclsls'
Iower courts ur" to foilow decisions rendered ln higher courts.
"orrrp"il"d
precedentisatthecoreofcommonlawlegalsystems.Additiona]Iy,thecourtsrn gaps
existing law or legal principles rn the
common-law systems are able to develop
} e f t b y S t a t u t e . I n a r r i v i n g a t a d e c i s i o n r n a c a s e , a C o u l t w i ] ] f l r s t d ehow
t e r mthese
inewhether
provisions it witl then look to see
there are any appllcable statutory
apply any binding
provisions have been -t"rpr*"i ft at al) in earlier cases, an¿ will
statute, the court will piace lts own
precedent. If there is no pr;vious case law on the
apply' the court wili look to previous case
interpretation on the statute lf no statutes
law'Inacommonlawsystem,theleglslatuleCanoveltulnpreviouslydevelopedcase
law [hrough new legislation'
of statutes) is paramount in both legal
Although codifled law (mainly in the form
traditions,itdiffersinitsimportance.Incivil-]awjurisdictions,pllolltylSglven
toenacted]awoverunenactedlaw.Codesprovidethecorebodyoflawandare
supplementedbydecisionsinindividualcases.Conversely,theoppositeistrueinthe
is the major soulce of law'
common-law tradition, in which precedent

FindwordsinthetextthatmeantheSameaStheunderlinedWordsbe|ow'
say whichword is moreformal'
Foreach pair of synonyms,
1A|thoughcivi||aworiginatedinRomanIaw,itwasIaterdeve|opedaroundthe
world,mainlYin EuroPe'
forces lowercourtsto accept
2 The common law conceptof stare decisis
decisionsof the highercourts'
decisionsmadein higher
with the principleof stare decisis,
3 In accordance
courtsare binding'
are of greatestimoortance'
4 ln both commonlaw and civil law alike'statutes
eventhoughtheir functionsare different'
6Youhavebeenaskedtogiveashortoralpresentationaboutimportant
differencesbetween law and civil law.Usinginformationfrom the extract
"otton
above,completethis table'

Countriesfoundin

lmportanceof case law

Lamgasag*
*ás#:ffixpáa$m$mg,
e*ffipmnárxg
ar¡d
g
e* mtrastt*x
7 Underlinethe wordsand phrasesusedfor contrastingand for expressing
similarityin Reading2. Thenwritethem underthe correctheading.Thefirst
one has beendone for you.Theremay be morethan one possibleanswer.
Gontrasting=... Ls much more d"et¡iJ.<Á.
üan ...
Expressingsimilarity:
I Completethese sentencesusingthe wordsand phrasesfor expressing
similarityand contrastfrom Exercise7.
1 Civillawand commonlaw . . . . .. theirorigins.Commonlaw
was developedby custom,beginningbeforetherewereanywrittenlaws.
' civil law developedout of the Romanlaw of Justinian's
óil; ;;i; ó¡"iii..
2 In civil-lawsystems,court-madelaw is almost unknown,
in commonlawsystems,wherelargeareasof law are createdand shapedby
courtdecisions.
civil law and commonlaw,statutorylaw is of enormous
imoortance.
4 ....................... commonlaw and civil law concernsthe methodof
argument.In the civil law,the principalmethodof argumentis by deduction
from generalprinciplesor from statutestowardsparticularcases.
, in the commonlaw,the principalmethodof analysis
is induction(reasoning from detailedfacts to generalprinciple)and analogy
(drawinga comparisonin orderto show a similarity).
9 Presentthe informationfrom Exercise6 to an audience,usingthe expressions
for comparisonand contrastfrom Exercise7.

istmsnñrlg
x: L*ga&trmffis&atímsx
Discussthesequestions.
1 What kindsof problemcan occurwhena legaltext is translated?
2 Howdo you think these problemscould best be avoided?
3 Whywoulda practisinglawyerneedto be awareof these problems?
(iro.r Listento the first part of an excerptfrom a lectureheld by a guest
speakerfrom Mexico,who has been invitedto talk to law studentsat a US
universityabout legaltranslation.Apartfrom languageproficiency, what else do
legaltranslatorsneed in orderto work effectively?
1'=to-zListento the secondpart of the lecture.what is meantby the term
false friends?
1-<to.zListenaga¡nand answerthese questions.
1 What is the first categoryof wordsshe distinguishes?
2 Howshoulda translatordeal with the wordsin the secondcategory?
3 what problemis posedby the third category?Howshouldit be dealtwith?
Do you knowany legalterms in yourown languagethat are particularlydifficult
to translateinto English?What makesthem so difficultto translate?

Unitro Comparative
law
 ski[ts:Fir¡ding
l-anguage tegat
andchoosing
terms
as practisinglawyers,often encounter
15 Studentsof comparativelaw,as well
unfamiliartermsfromother|ega|systems.Discussthesequestionswitha
partner.
lWherecanyou|ookforinformationaboutunknownlega|termsinEng|ish?
2Whatdoyouoowhenyouencounteranunfamiliar|egalterm¡nEng|ishthat
has no equivalentin Yourlanguage?
abouta legalterm' what are the
16 Considerthis list of sourcesof information
Discussyour viewswith a partner'
advantagesand disadvantagesof each?
terms on its website
Ü Lawfirm's glossaryof legal
Ü Onlinelegaldict¡onary
Ü LegaldictionarY in bookform
pGlossaryottermsonthewebsiteofaninternationa|organisation
(resultsof define: + term search)
Q Google'sdefinitionof a term
of its use in a documentonline
Ü Findingthe term in the context
Englishlegalterms and try to find an
17 Look up the followingdifficult-to-translate
equiva|entinyourown|anguage.Makenotesaboutthesourcesyou|ookedat
is and how you found it. whenever
and then tell a partnerwrrátyour solution similarities'
and expressing
possible,use tne wordsand phrasesfor contrasting
'good- c¡JL
cnncx4Lol {úth' Ls anüw Lo whaL we
buL ih dütexs m üe foUowing Na{t "'

1 equitableremedY
2 promissoryestoppel
3 misdemeanorl
4 (past)consideration
5 the LordChancellor

LAWIN PRACTICE
Lead-ln
Astradebecomes [awyers
gtobatised,
increasingty oftenfindthattheyneedto befamitiar
of theirinternational
butatsowiththejurisdictions
notontywiththeirownjurisdictions,
andctients'
cotteagues
lsMakealistofthethreecountrieswhoselegalsystemsyouknowthemost
about.Howdidyou|earnaboutthesejurisdictions?HowSUreareyouthatthe
Youhaveis correct?
information

1 (UK)misdemeanour
 fu$s*sex$mg
R: tm*e*mpeffiy
cffiü,atr$*
Garethteaches
an in-company
rLECr
courseto a smail qroupof judgesworkingin
Líechtenstein.
19 (íro'gListen to the first part of the discussion
duringone of Gareth,sclasses
with the judges.which of these differentmeanings
of the term equityis the
closestto that describedby Beate,one of his students?
a the differencebetweenthe marketvarueof a property
and the craimsherd
aga¡nstit
b the ownershipinterestof shareholdersin a corporation
c a systemof courtsthat developedalongsidethe
law courts in England
20 1'=to.sListento the first partof the discusslon
againand answerthese
quest¡ons.
1 Whydoes the subjectof equitycome up?
2 \Nhyis Beate able to talk about equitv?
3 Whywas equitydeveloped?
2L 1--to'c Listento the secondpart of the
discussionand decidewhetherthese
statementsare true (T)or false (F).
1 The positionof Lordchanceilorwas removed
by the constitutionarReform
Act 2005.
2 Damagesis an exampleof an equitableremedy.
3 lf applyingthe ruresof equitywould readto a different
resultthan apflying
the strÍctlegafrules,equitytakes precedence.
4 Equityis administeredby the Courtof Chancery.
221'<to.s Listento the thirdpart of the discussion
and decidewhetherthese
statementsare true (T)or false (F).
1 TheGermanconceptof rreu und Glaubenis similarto the English,clean
hands'doctrine.
2 The Frenchdoctrineof the abuseof rightsis similarto the English
concept
of equity.
Lookat the audiotranscriptsfor the wholediscussion(pages1_3g_139)
and
find phrasesusedfor describinga legalsystem.

pemk*rxry
x: m#sflnüfuñrxg_
ü#ffipetr$mg
mmd
on€rms*$mru
Choosean aspectof yourjurisdictionand explainit to a partner.Where
possible,your partner shoutdcontrastthat either with
anotheraspect of
the sarne legar systemor with the crosestequivarent
ín a foreignjurisdiction.
Usethe hnguageof descríbing, comparingand contrastingduringyour
discussion.

cambridgeInternat¡onal LegalEnglishcertificate(ILEC),an internat¡onally

recognisedtest of legal
h lt is des¡gnedfor lawyersand law studentsrequiringEnglish
languageskillst"owork effectively
rnternationallegalenvironment. Unitro Comparative
ta,.,
 B:Assmtprmtect&*m
Kead*mff
is oneof manyjurisdictions
Liechtenstein astax havens.
themsetves
that haveestabtished

25 Discussthese questions.
1 What constitutesa tax haven?
2 What othercountriescan you think of that are also consideredto be tax havens?
3 What is the differencebetweentax avoidanceand tax evasion?
4 What do you think the term asset protectionmight refer to?
26 Readthe first paragraphof the text on page113. Whichof these descriptionsbest
describesthe text?
a A letter of advicefrom a lawyerto a businesswomanseekingto reduceher tax burden
b A memowrittenby a junior lawyerto a seniorlawyercontrast¡ng differentforms of
charitable foundation
c A summaryof variousmeansof safeguarding moneyfrom creditors,takenfrom a
websitefor businesspeople and lawyers

27 Readthe wholetext quicklyand choosethe correctwordto completeeach of these

definitions.
1 The Stiftung/ Anstalt/ founderis a type of civil lawfoundationusedto hold
assets,propertyor shares.
2 The Stiftung/ Anstalt/ trust is a hybridentityoften used as a holdingcompany
for overseassubsidiaries.
3 The assets of a Liechtenstein-based foundationare held on behalfof the Council
of Members/ beneficiaries / creditors'
4 Behaviour that is illegalbecause¡t does not obeyor respectthe rulesof a law
court is referredto as contempt/ holding/ interpretation.

Siscau.rse
Textanalysls: fmrtextechesisn
m&rkers
In the letteron page13,oneof the lawyer's is to presentcompticated
mainobjectives information
various
this,he uses
in a clearway.In orderto achieve wordsand phrases at the of sentences
beginning
'[exicat guidingthe
to showtherelationship betweenideas.These markers
discourse actas signposts',
readerthroughthe text andmakinqit easierto understand.

ln this Sentencefrom the letter,the discoursemarkersignalsthat further

informationabouta previousidea is beinggiven:
Furthermore, Liechtensteintaw may not protect the setttorfrom a IJ.S. court's
finding of contempt.
The word furthermore,whichhere means'in addition',showsthat an idea
introducedin the previoussentencewill now be furtherdeveloped.In this I
case,the generalidea beingexpressedis that the asset protectionmethods I
discussedin the text may not offer 1OO%securityfrom legalchallenges. f
f
28 Look at the highlighteddiscourse markers in the letter and decide which of the
followingfour functions each discourse marker fulfils. List any other similar words
or phrasesyou know.
the resultof previousinformation
g Givingextrainformation:furüh?,rmore f Introducing
contrastingand qualifying Q Emphasising
$ Comparing,
 Dear Ms Radford
Asset protection entities in Liechtenstein
Your instructions to me were to provide a summary of the
structuresavailable in Liechtenstein to
facllitate your need to insulate future liabilities. I have now
had the opportunity to researchthis
and can provide you with the following details.
Although there are a number of civil-law entities available for
assetprotection purposes,the
most popular structuresfor u.S. plannersare two trust-likeentities,
the stiftung and the Anstaltl,
createdunder the law of Liechtenstein.
The Stiftung is a type of foundation,commonly usedto hold
assets,fixed property or shares.It is
createdby a founder' from whom it has a separatelegal identity.
R Stiftung is noisubject tt, any
form of income tax, capitaltax, transfertax or inheritance
tax in Liechtenstein.Its assetsmust be
segregated from any personalassets,and are generallynot availableto
the founder,screditors.
The bylaws of suchentitiesare typically not ñled in any public
registry.consequently,it is very
difficult to get informarionabout a Stiftung registeredin Liechtenltein.
Notably,the stiftung-cannotbe usedsolely for commercialpurposes.
lnstead,it is designedto
act as a privatefoundation.For assetprotectionpurposes,itl.
ú.tt.. if the Stiftung is cieated
for the promotion of someimportantinterest(suchas to further
educationor medicalresearch)
becausetheremay be lesschancethat contributionsto it
made for assetprotectionpurposeswill be
consideredfraudulentby any investigatingauthorities.
While a Stiftung may have beneficiaries,including the founder,
it cannot have anyshareholde¡s.
T&at said, named beneficiariesare not recommended,as they
can give the Stiftung the appearance
of a foreign asset-protectio: t*:1. Becauseof this, the
Stiftung shiuld be limited-by it, i.rms
to supporting the purpose for which it was created.
Despite this limitation, there are methods to
utilize the assetsof a Stiftung to endow private scholarships,
etc.
Besidesthe Stiftung, the most important entity for tax purposes
in Liechtenstein is the Anstalt,
a hybrid of a company limited by sharesand a foundation.
Such entities are commonly used by
foreign companiesas a holding company for overseas
subsidiaries.The Anstalt has no members,
participants or shareholders,but can have
beneficiaries.The principal practical difference
an Anstalt and a stiftung is that, unlike a Stiftung, berween
an Anstalt can ónouct all kinds of business
activities.
The civil-law basis ofthese entities, and the
fact that they usually do not have identifiable
beneficiaries,make them very difficult for
u-S. creditors' utto-áy* to conceptualize,and
attack' Nevertheless,it must be noted that thus
a u.S. judge could ,i.pry fteat them as foreign
protection trusts and order that their assets asset-
be repátriátea purtt ermár*, Liechtenstein lJw
protectthe settlorfrom a U.S. court,sfinding may not
ofiontempt.

l Thetermsstiftung
andAnstart
arebothGerman
."r..'"r0, o"g; *¡ir.,u.upriurr.tt",
"r.¡.n,
eak¡n$?: Adwisíu'$
,lo&.

s*ue$setprotectín*
Youare commerciallawyersspecialisingin asset protect¡on.you havebeen askedto
advisean Americanclienton the asset-protection
entitiesavailablein Liechtenstein.
Discussthe advantagesand disadvantages
of the variousentitieswith a partnerand
decidehow to adviseyourclient.

rit$mg;
Lettensaxry*m&rísñnxg
mptlmms
I Yourclient is concernedthat the asset-protection
entitiesin Liechtenstein
mightprove
i:;::i: thenotesonpasei_15,
writea retter
to your
:H::?::"::"^:ii:Ilii""'
the panamanian
clientouttining ,using
foundation,
anotherpopurar
rornrái;;;o;;;#r1
use discourse
markers to exprain,
compare
andcontrastthe foundation
formsof assetprotection, withother

Unitto Comparative
law
 Ur
Focus
Language The
ol

T
op
listed' a
filling in the correctforms of the words
1, Word formationcompletethis table by ol

C
b
t
oI
I
e'l

(1-5) with its synonym(a-e)'

synonymsMatch each word or phrase
-_\ a vervimPortant
I ylnverselv -.--.-----:
'#:i*",",
3 hand
:"i?" other
l::ff" : ;:nHT:J"
co||ocationsMatchtheverbsintheboxwiththenounstheyco||ocatewith
both nouns'
(judgmentor law);some of the verbscollocatewith

1 a judgment:o¡Pt¿, "'

and phrasesfrom the box.

- markerscompletethis text usingthe words

",*"";" witTn*g:' d::io?tf:lt-n

occurring finding
changes
Thisessaydiscusses "t"
the unitedstates'Thesechanges include
wideacceptance in lawsch-ools throughout
;;;"tdisciptines,l) npt4¡1,{ economicsandbehavioural
;;:#:",ffffi of the legal
sciences, andthe .on,ü**i,r.r"v i.ráx" a rutterunderstanding in whichthe
to
areincreasinglyexploringtheways
.... , '?* scnáo,ls
system.2) .. .............. luY.
maydifferfromthe lawin action' 3i- '
lawin textbooks .nearly"y"tY
education'
schoolis investigating the consequences of legalrulesthroughtl':::"' legal,
,,Áu,u,"olaboratory experience for rawstudents. most
The
il;;",;;;;;;J";
::'"?'i*''''
:lTiliiHt*-;#tt-ltiJl*'*ljf;;:l-,,.:in¡::T:'fl
organisinghis or her knowtedge aboutthe.tegalsvstem
;;il1;;"" "."- an attemptto
beendeveloped..in
;;: .": ,;;o;;ative tawcourseshave
providingnew insightsinto
inspirestudents,o tr..'in"x.r"utivelyaboutlegalproblemsby
the legalsystem.
j;jXHil:il]fl'|jjj,T'"':;":#::";;\"[!;{!{i''':'#"!'i"'fg::#i:in:un''Ieo
!,iü'J,
 s#,ffix*rctse
UreFt B3
The Panamanian foundation
. LiechtensteinAnstaltand Stiftungare relativelyexpensiveto form and maintain.
ThePanamanian foundationis comparatively inexpensive.
. Anotheradvantage is that Panamais in the sametime zone,making
administrationof the foundationfrom the UnitedStateseasier.
. Thetime differencebetweenthe USAand Liechtenstein may provefrustratingto
creditorsin communicating withtheirlocalcounsel.However, it wouldprobably
be moreimmediately frustratingto the clientand plannerattemptingto form and
then administerthe entity from the USA.
. Fortheseand otherreasons,Panamacopiedmuchof Liechtenstein's Stiftung
givingus the optionof the Panamanian
legislation, foundation.
. ThePanamanian foundation can holdtitle to assetsin its own namelike
a corporation. lt can also makediscretionary payments to the founderor
beneficiaries,likea trust.
. Thefoundationis mostlycontrolledby its bylaws,whichdo not haveto be
registeredor publiclydisclosed(as with the Stiftung).
. Panamahas a three-year statuteof limitationfor fraudulenttransferchallenges
to contributions to the foundation. lf giftingis utilisedto fundthe foundation,
creditorshavethreeyearsto attemptto void the gifts.Afterthese threeyears,
the assets are probablysafe from creditors.
. Thefoundationassets may not be appliedtowardsthe debts of eitherthe
founderor any beneficiary.
. As with the Stiftung,probablythe best use of the Panamanian foundationis
not to hold assets,but ratherto own an entitythat ls used as a management
company.The managementcompanywouldbe ownedby a Panamanian charity'
with three Panamanian residents as members of the foundation's council.
Thereforeit is verydifficultfor a creditorto claimthat the US ownerof the asset
beingmanagedhas anyties to or controloverthe foundation.

Rm[e
eerds
StudentA

Unit 7, Exercise 31
Youare a propertylawyerand receivea call from a foreignerinterestedin
buyingpropertyin yourjurisdiction.Prepareto take the call by reviewing
the languagefrom your presentation(Exercise14) and the telephone
conversation betweenMarta Cerveraand JanaFialová(Listening2 and 3).
Tryto anticipatethe kind of questionsyou will be askedand makenoteson
youranswers.

materiaI
Additionat
sl
Student B

Unit 7, Exercise 31
Youare interestedin buyingpropertyin anothercountryand phonea lawyerwho has
been recommended to you by a colleague.Preparefor the call by reviewingthe language
from your presentation(Exercise1,4)andthe telephoneconversationbetweenMarta
Cerveraand Jana Fia{ová(Listening2 and 3). Writedownthe questionsyou needto ask.

Unit 8, Exercise 35
Youare a lawyerspecialisingin employmentlaw.Youare due to meet a new clientwho
hasjust beenfiredwithoutnoticefrom a well-paidpositionin publishing.Preparefor
your meetingby notingdownthe kindsof questionthat you will needto ask yourclient
to establishthe facts,to find out what the client hopesto achieveand to be able to
offerthe best advicepossible.Duringyour meeting,try to get yourclientto stick to
the concrete,provablefacts of the case as muchas possibleusingthe languagefrom
Exercise33.

Unit 9. Exetcise 31
Explainthese terms to StudentA usingsome of the languagefrom the interview
(Listening2).
1 joint purchase(of land) 3 domicile 5 cross-border
recognition
2 residence 4 renvoi 6 adiudicate

Unit 9, Exercise 32
Youare the ownerof an onlinediscussiongroup.Oneof the recentdiscussionthreads
concernsproblemsthat groupmembershavebeen experiencing followingthe most
recentupgradeto their anti-virussoftware.Severalof them havelost data following
this upgrade,althoughare unsureas to whetherthis was causedby the software
itself or by virusesthe softwaremay have let in. The softwarewas written by Redfern,
an Americancompanybasedin California.Whenone memberof the groupcontacted
Redfern,she was told that therewas no problemwith the software.She was also told
that even if there had been a problem,Redfernwouldn'tbe liableto claimantsfrom
outsideCalifornia.The potentialclaimants,20 in total, comefrom four differentUS
states,three EU memberstates,Egypt,SouthKorea,Pakistan,Venezuela and South
Africa.
Youhavesuggestedthat all those who haveexperienced problemsshouldjoin together
and try to claimdamagesin a class actionsuit againstRedfern,and havearranged
a
meetingwith a lawyer.Preparefor your meetingby familiarisingyoursetfwith the facts
the case' Be readyto provídeyour lawyerw¡th any further backgroundinformation

AdditionaI
materiaI
 Ca$i

Thefactsof the case

Yourlawfirm hasaskedyouto reviewthe followingcasein preparation
for a meetingwith a ctient.
Readthis description
of the factsof the case.Whatis the legalissuehere?

DeepBluePoolsLtd beganas a smallbusinessin L997, manufacturing and installing

high-quality
swimmingpoolsfor privateresidences.lt has sincedevelopeda reputationfor excellenceand has
receiveda numberof lucrativecontracts,generatingsubstantialincomefor the company.
Lastyear,Gainsborough ConstructionLtd contractedwith DeepBluePoolsto buildone swimming
poolfor each of the ten luxurypropertiesit is currentlybuildingin south-eastEngland.DeepBlue
Poolswas paid a total of t265,600 for the work.
Sometimeaftertheir installation,it becameclearthat each pool was shallowerthan the depthof
2.4m specifiedin the contract(by 25 to 50cm at differentpoints).DeepBlue Poolsclaimedthat
each poolwas still safe for divingand there wouldbe no loss of enjoyment.
Gainsborough Constructionis claimingL3L2,68O to demolishand rebuildthe poolsto the proper
depth(cost of curel),arguingthat it is entitledto its exactpreferenceconcerningthe pools' depth.
Gainsborough Constructionalso claimsthat DeepBluePoolsdeliberately misledthem as to the
sizeof the poolsprovidedin orderto reducecosts,
DeepBlue Poolssaysthat the amountclaimedis whollydisproportionate to the disadvantage
sufferedby GainsboroughConstruction,
and that the housesare no less valuable.DeepBluePools
also claimsthat Gainsborough
Construction
has no real intentionof effectinga cure,and that any
damagesawardedwouldbe an unfair'windfall2'.

n F
;t¿*J€q Hc
bietn
+FFJt*ÉAl\ErtY Yaskx:
Divideinto two groups,with one grouprepresenting
Gainsborough Wnit*ng
Construction and one grouprepresentingDeepBlue Pools.
Writea letterof advice
with the other party.Youshould:
1 Preparefor negotiations to one of the parties
(yourchoice),in which
U identiñy the legalissuesof the caseand determineargumentsfor yourside;
list the strengthsand weaknessesof yourside of the case; you outlinethe legal
ü
list the strengthsand weaknessesof the otherside of the case; issuesraisedby the
ü
decidewhichpartsof the relevantlegaldocumentsmost stronglysupport case,referto relevant
Ü
yourcase and can be usedto argueagainstthe otherparty'scase; statutesor related
Ü makenotesfor the negotiation: Whatare yourgoals?Whatare youwilling casesand provideyour
to give?Whatare you not willingto give? opinionas to the likely
outcomeof the case.
of the other partyand attemptto negotiate
2 Pairup with a representative
a settlement.
3 Reportthe resultsof your negotiations
to the class.

1 See Text2 on the oppos¡tepage.

2 an unexpected profitor gain
F [ega[documents
Relevant
Textr: Saleof OoodsAct 1979,
SectionSf [t-¡)
(l\ Where there is a brcach o{ wanantyl by the selter, ot whete the buyet elects (or is comqelledJ to
treat any breach of a condition on the part of the seller as a breach of warranry the buyer is not by
reason only of such breach of warranty entitled to reject the goods; but he may-
(a) set up against the seller the breach of warranty in diminution2 or extinction of the price, or
(b) maintain an action against the seller for damagesfor the breach of warranty.
(2) The measure of damagesfor breach of warranty is the estimated loss directly and naturally
resulting, in the ordinary course of events, from the breach of warranty.
(3) In the caseof breach of warranty of quality such loss is prima facier the difference between the
value of the goods at the time of delivery to the buyer and the value they would have had if they
had fulfilled the warranw.
u3irt_v
d ras 1 In somejurisdictions,
contracttermsareclassed as eitherwarranties Thebreach
or conditions. of a warrantycangiveriseto
a claimfor damages, but notto a rightto treatthe contractas terminated. Thebreachof a condition cangiveriseto a cla¡mfor
damages andalsog¡vesthethe rightto treatthecontract as terminated.
2 the act of decreasing
or lessening something; reduction3 at first sight;acceptedas correctuntildisproved
B .,,le
Textz: excerptfroma textbookon contractlaw
.of
lra'. Diminution of volue,cost of cure or lossof omenity afterwards by replanting'coconuts andotherfood-bea ring
Ihe claimant'slossof the expected performancel can be trees'.Thecompanyfailedto do this,and the islanders
measured by: claimedthe costof curecalculated af $73,140per acre.
. 'diminutionof value'(fhemarketvolueof the Thecourtdeniedthis because, by the time of the action,
oe0in. performance allthe islandershadresettledsome1,500milesawayafter
the defendantundertookminusthat
theirislandwasdevastated by eventsof WorldWarll. Ihey
tfre actuollygiven),or
.'costof cure'(thecostof buyingsubstitute exacf wereonlyentitledto the diminutionof value,whichwas
performance f rom another). assessed at $75oeracre.
e [The assessmentof damages]is subject to the
Ihe two measuresmay producethe sameamount. For requirementof reasonableness which necessitates an
r Poo,s example,wherea sellerfailsto delivergoods(worth15,000) assessment of:
t- o \ beforethe buyerhaspaidthe contractprice(f4,000),the (a) the claimant's purpose(s)in contracting;
buyercan,in accordance with section51(3)Saleof Coods (b) whetherthe claimanthascuredor intendsto cure;
Act1979, claimthe difference betweenthe contractprice
. and
and the market price of the goods(11,000).However, (c) the proportionalitybetweenthe cost of cure, the
in certaincases, the two measures may producewildly contractprice,the benefitalreadyreceivedby the
different r esulrs.In lito v. WaddeII (No 2) (1977) a company claimant,and the benefitwhich curewouldadd to
wasgranteda licence to minephosphate on Oceanlsland, that benefit.
a smallPacificisland,and promised to restorethe island

1 thefulfilment
of one'sobl¡gations
required
bycontract

fromthejudgmentin RuxleyElectronics
Text3: excerpt Ltdv.
andConstruction
[rqqo]AC¡¿+
Forsyth
It is a commonfeatureof smallbuildingworksperformedon residential property... that comparatively
minordeviationsfrom specification or soundworkmanshipmay haveno directfinancialeffectat all.Yetthe
householder mustsurelybe entitledto saythat he choseto obtainfrom the buildera promiseto produce
a particular becausehe wantedto makehishousemorecomfortable,
result moreconvenientand more
conformableto hisown particulartastes;not becausehe had in mind that the work might increase the
amountwhich he would receiveif,contraryto expectation, he thought it expedientin the futureto exchange
hishomefor cash.Tosaythat in orderto escapeunscathed, the builderhasonly to showthat to the mind of
the averageonlooker,or the averagepotentialbuyer,the resultswhich he hasproducedseemjust asgood as
thosewhich he had promisedwould makea part of the promiseillusory,and unbalancethe bargain.

CaseStudyr Contract
lav,'
 Re
Tex
se
-.

Thefactsof the case for

law casein preparation
yourlaw firm hasaskedyouto reviewthe fottowingcompany
a meetinqwith the otherparty'slawyer'
Readthisdescriptionofthefactsofthecase.WhatistheIegaIissuehere?
(America)'
to sell their company'solaris Energy
Twoyearsago,Alexand Lesie Ballentinedecided prepared set of documents'
statement(a carefully
Inc.,by publicoffering.A statutoryregistration commission'However' the
was filed with the us securitiesand Exchange
includinga prospectus) Inc" The
sold privatelyto cordeauxGabelle'
publicsale did not go ahead,and the companywas
increasein the company'snet worth Te
purchasepriceincludeda paymentreflectingán estimated the
from the end of the previousfinancial
y"ur' B"tu"e hardfinancialdata was unavailable' v.
c o n t r a c t S t a t e d t h a t i f a y e a r - e n d a u d i t a n d f i n a n c i a | s t a t e m e n t s s h or
o w e d a d i f f e rby
e nthe
cebetweentne
amountpaid wouldbe increased decreased
estimatedand actualincreasedvalue,the
appropriateamountto reflectthe actualvalue'
been
revealedthat the valueof the companyhad
An audit completedsix monthsafter the sale to recover an adjustment'
$1.2m. The buyersweretherefore entitled
overestimatedby approximately
H o w e v e r , C o r d e a u x G a b e l | e h a s b e e n a d v i s e d t h a t i t m a y b e e n t i against
t | e d t o asellers
r e m ewho
d y u make
nder!2a(2)of
an expressrightof rescission
the securitiesAct 1g33, whichgivesbuyers havealso beenadvisedthat
materialm¡sstatements or omissions'bymeansof a prospectus''They
ana|ternativeremedymaybeavai|ab|eundersectionl.loftheact'
C o r d e a u x G a b e l | e i s c l a i m i n g d a m a g e s o f $ 1 4 ' 6 m . T h e B a | | e nbetween
tinesaa
r gprivate
u e t h abuyer
tsectionllison|y
relevantin the case of a public offering.They
also arguethat a contract T
Act'
is used in section 12(a)(2)of the Securities
and selleris not a'prospectus'as the term
to publicofferings'and not to privatesales'
thereforesection t2{a)(2)also onlyapplies

Taskt: Speaking Taskx: Writing

Alexand Leslie Writea letterof advice::
Divideinto two groups,with one grouprepresenting one of the Parties(Your
and one grouprepresenting Cordeaux Gabelle'
Ballentine choice),in whichYou
I Preparefor negotiations with the other party'Youshould: outlinethe legalissues
case and determineargumentsfor raisedbYthe case,refe'
ü identiÜthe legalissuesof the to relevantstatutes or
yourside;
of yourside of the case; relatedcases and Provtoe
Ü list the strengthsand weaknesses youroPinionas to the
of the otherside of the case;
Ü list the strengthsand weaknesses likelyoutcomeof the
legaldocumentsmost stronglysupport
ü decidewhichparts of the relevant party'scase; n2 qA
yourcase and can be usedto argueagainstthe other
What are yourgoals?What are you
ü make notesfor the negotiation:
give?
willingto give?What are you not willingto
2PairUpWitharepresentativeoftheotherpartyandattempttonegotiatea
settlement.
to the class'
3 Reportthe resultsof your negotiations
l20\
 [ega[documents
Relevant
Actof t933'
underthe USSecurities
Textl: an outlineof civittiabitities
sectionstt andtz

To claim under either s.11 or s.12, the buyer must prove a material
misstarementor omissionof a material fact. Section 11 liability flows from
the requirementsfor filing a registration statement.Liability under s'12(a)(2)
flows from the requirementto distribute prospectuses.Under sections11
and 12, the issuerof a registeredsecurity may be liable to the buyer for
damagesif the sale of the security included a referenceto false or misleading
information. The buyer does not have to show any reliance on the false
statements.The issueris strictly liable (liable without fault). This liability is
subjectto a defenceof reasonablecare; the issuermay avoid liabiliqr if it can
)nca), be shown that reasonablecarewas taken in providing information concerning
ents, the securitv in dispute.
r. the
The
)rth fromthe Supreme
Textz: excerpt et a[.
Courtjudgmentin ArthurL Gustafson,
l
v. AttoydCompany,lnc.fka AttoydHotdinqs, 28,1995]
Inc,et at. [February
)n the
'the
It is understandable that Congress would provide buyers with a right to rescind, without proof of
fraud or reliance, as to misstatements contained in a document prepared with care, following well-
pubiic
n established procedures relating to investigations v¿ith due diligenc e and in the context of a
;tment. offering by án issuer or its controlling shareholders. It is not plausible to-infer that Congress
¿) of createJthis extensive liability for every casual communication between buyer[s] and se1lerfs]. '.
It is often difficu1t, if not altogether impractical, for those engaged in casual communications not
) maKe for
to omit some fact that wouldJf included, qualify the accuracy of a statement. We flnd no basis
)d that
interpreiing the statute to reach so far.

, only
¡Jyer
froman artictediscussing
Text3: excerpts ¡n Gustafson
the decision
t.

Vhere do Secondary Market Purchasers Stand After Gustafson?

byJosephS.Allerhandand BenjaminM. Hain (corporatecounsel),February1999
Sixty-five years after the passageof the Securities Act of 7933, and nearly four years after the
Writin S.1p|.-e Court'.s decision in Gustafion v. A11oyd Co., a deceptively simple question remains
rrof advice:o unresolved: who has standing to sue under sections 11 and 12(a)(2) of the Securities Act?
Specifically,is standing limited to investors who purchase securities in public offerings, or does
Értres(your
sánding extend also tá investors who purchase securities in the secondary market but can'trace'
, h i c hy o u their securities to those registered and sold in the public offering?
egalissues 'With
regard ro sranding under s.12(a)(2),before Gustafson the courts were divided as to rvhether
e case,refe' standing was limited to purchasersof securities in public offerings, or rvhether standing extended
;tatutesor also to all p.rrchar.rs in the secondary market, irrespective of whether the purchased securities
ls and provt rvere traceable to the public offering. There is currently 1ro consensusanlong district courts as
I as to the to the impact of Gusiafson on s.11's standing requirernents.Although Gustafson dealt r,vith a
s.12(a)(2) claim, several district courts have nonetheless applied Gustafson'.sholding and broad
ne of the
language to s.11,and held that standing under s.11 extends only to purchasersin public offerings.
Other district courts have taken the opposite position: they have refused to extend the holding in
Gustafson to s.11 claims,and have continued to grant standing to secondary-market purchasersof
securities that are traceable to the public offering.

Reprinted with permission from Josephs. Allerhandof weil, Gotshal& MangesLLP.

Originallypublishedin the Febraury1999 issue of Metropol¡tanCorporateCounsel'
la,',
CaseStudyz Compan.v
 Ta
Wri

andarbitration:
Litigation lawcase
anemptoYment
l^Á.
lEé(

pro

Rt
Thefactsof the case law
the fottowingemptoyment
Te
youworkfor,a labourunion,hasaskedyouto review
Theorganisation
for a meetingwiththe other tawyer'
party's
documents
caseandthe retevant in preparation

Readthisdescriptionofthefactsofthecase.WhatisthelegaItssuehere?

The|awfirmofRed|inandorbisonhasofficesaroundthewor|d'T hefirmregu|arlysends|awyers
from a few monthsto a few yearsworkingin
from its main office in New Yorkto spend anywhere
experienced and ambitiousintellectualpropertylawyer'
one of its officesabroad.chiaraJohnson,an
returnedto NewYork'she becameunhappy
spenttwo yearsin the Romeoffice.when Johnson
in the firm, particularly afteryoungermale colleagueswith no
with her prospectsfor advancement should Te
partnerl.Johnsonclaimedthat senior.management
foreignworkingexperiencehad made the main office
that her two-yearabsencefrom
have made it clear to her before her stay abroad Johnson'who
wouldput her at a disadvantage wnen nlw partnerswerebeingelected'Although
was allowedto work part of the weekat home'
has two small children(oneof whom is disabled), -
that she spendmoreface-timeat the firm that
she allegesthat her bois continuallydemanded work from
is, workfrom home |ess often.According to Johnson,a male colleaguewas allowedto
furtheralleged th-u,,!* o"'o less than
home becausehe had disabledchildrenlJohnson ln"t twol"::male colleaguesin
ayear atihe time'while
her male counterparts.(Johnsonearned$100,000
contends that male associateswere promoted
comparablepositionsearned$115,O00.)Johnson
firm, filinga lawsuitagainsther formeremployer'
more quicklythan femaleones.Johnsonleft the careerprospects'
seekingdamagesfor psychiatric damageand,lossof earnings'pensionrightsand
a spokeswoman for Redlinand orbisonpointedout that 20
ln responseto these allegations, the firm
the nationalaverage'Moreover'
per cent of the firm's partnersare women,morethan
beginningthat the positionMs Johnsonhad
maintainedthat it l'rai made it clearfrom the routinely
takenwas a non-partnership job, and that the firm's hiringand promotionpoliciesare
communicated to prospective employees'

Taskt: Speaking
Johnsonand one grouprepresenting
DivideIntotwo groups,with one grouprepresenting
Redlinand Orbison'
1 Preparefor negotiationswith the other party'Youshould:

Üidentifythelega|issuesofthecaseanddetermtneargumentsforyourside;
of your side of the case;
Ü list the strengthsand weaknesses
of the otherside of the case;
Ü list the strengthsand weaknesses
Üdecidewhichpartsofthere|evant|ega|documentsmostStrong|ysupportyourcase
party'scase;
and can be usedto argueagainstthe other give?
ü makenotesfor the negotiation:what are yourgoals?what are you willingto
Whatare Younot willingto give?
2PairupwitharepresentativeoftheotherpartyandattempttonegotiateaSettlement.
to the class'
3 Reportthe resultsof your negotiations
r To makepartnermeansto becomea partnerin the f¡rm
 Taska: Writirtg
Writea letterof adviceto one of the parties(yourchoice),in whichyou outlinethe
:ase legalissuesraisedby the case, referto relevantstatutesor relatedcasesand
provideyouropinionas to the likelyoutcomeof the case.

[ega[documents
Retevant
Textt: excerptfromthe EqualPayAct t97o

(4) A woman is to be regarded as employed on like work with men if, but only if, her work
and theirs is of the o, a broadly similar nature, and the differences (if any) between
"-*á
the things she does and the things they do are not of practical importance in relation to
vyers terms and conditions of employment; and accordingly in comparing her work with theirs
ng In regard shall be had to the frequency or otherwÍse with whÍch any such differences occur in
practice as well as to the nature and extent of the differences.
y lawyer,
ppy
¡ith no
rould Textz: excerptfroma casebrief
ffice
who
lome, Lowenpay for woman professorviolatesEqualPayAct
- that
from Description:Appealscourtuphelda verdictin favorof a womanprofessor
who contended
ss than shewai paidleisthanmenpiofessors who hadsimilar and
backgrounds Whilethe
duties.
¡guesIn professoiswho werecomparedwerenot identical, enough
theyweresimilar to a
rndicate
noted basedon sex.(...)
patternof paydisparity
ployer, Toestablish a violationof the EqualPayAct,the plaintiffneednot
Decision:Affirmed.
ospects. demonstratethat herjob is to
identical a higher-paid position,butonlymustshowthatthe
o two positions
aresubitantiallyequal in effort
skill, and Thefactthat male
responsibility
professors
usedfor comparison did not have posttionsidenticalto hers they
is not critical;
m
werein thesameunitand had similar Lavin
responsibilities. presentedsufficient evidenceto
evidence,
show,throughstatistical that male professorsof similar years
rank, of serviceand
€ly the
background werepaidmore.Statistical evidence of gender-based salarydisparityacross
collegecouldbe usedto enhance hercase'
citation:Lavin-McEleney v. Maristcollege,239 F.3d476(2ndCir.,2001)

for the positionChiara

fromjob advertisement
Text3: excerpt
Johnson appliedfor

GLOBAL LAW FIRM expands Intellectual Property Practice group.

work with two partners willing to mentor and offer unlimited career growth
possibilities. Two to five years'experience in intellectual property with either
electrical engineering, computer engineering, or computer science undergrad;
prefer patent bar. Job responsibilities include patent litigation and prosecution
matters.
Salary is higher than the paid national average for associates. trirm pays all
relocation costs. Firm allows applicants to take required state bar; firm cover
cosg tur prep cou(se.lab openingsin Adan?, DCand Nek/ YOk.

CaseStudy3 Employment
law
 , Answerkey
UnitI
1 1 criminallaw,contractlaw,tort law,land law,equityand
trusts, administrativelaw and constitutionallaw
2 companylaw,commerciallaw,and litigationand
arbitrat¡on
2 1 F Familylaw is usuallyan opt¡onalcoursein the UK.
2r
3 F Lawclinicsgive law studentsthe opportunityto learn
about the day-to-daywork of a lawyer.
4 F Today,commerciallaw firms expectrecruitsto havea
good commandof Engl¡sh.
3 legalwrit¡ng,legal research,legal practice,legal
assistance,legalcommunity
law degreeprogramme,law student,law practice,law
clinic,lawfirm
6 The universityis not in the UK,since this two-year
programmedoes not includesome of the usual
compulsorycoursesin the UK,such as land law,equity
and trusts, and administrativelaw.Otherindirectevidence
includes:
ü -ize,/-yze spelling (e.9. familiarize,analyze),which is
frequently(but not always)writtenwith an s in British
Engl¡sh(e.g. familiarise,analyse)l
ü the use of the serial comma(i.e. a commabeforethe
final and) in lists;
ü the mentiono'f homicide,which is used more frequently
in AmericanEnglishto referto
(but not exclusively)
murderand otherkillingsof people,includingcausing
accidentaldeath,and imqeachment,
ü prom¡nentmentionof US institutionssuch as the
IJniform Commercial Code, state and federal courts
and the const¡tut¡on.
7 1 Contractlaw 2 Tort law 3 Criminallaw
4 Constitutionallaw 5 Legalresearchand wr¡ting
8 1 Introductionto law
2 Legal researchand writing
3 Evidence
11 Heid¡'scourse Pavel'scourse
(Speaker1) (Speaker2)
t,/
2,/
3,/ { BarkerRose.l'll then go on to outline what we have
4,/ ,/
5/ ,/
6,/
13 1b 2c 3d,h 4a 5d 6d 7f
8g,h 9e
14 1 more practical 2 best 3 more challenging
4 more time-consuming 5 most useful 6 easier
16 1 Youdo not need a law degreeto enter the Graduate
RecruitmentProgramme, just a 2"7 degreein any subject.
2 BarkerRose will pay the full course fees for both the
GDLand LPCplus maintenanceof -f.6'000duringthe
GDLand t7,000 throughthe LPCstudyyear.
17 1 Andreawouldn'tbe suitablefor BarkerRose,as they
onlywork in the field of commerciallaw.
2 AlthoughSandiponlygota2i2, the advertisement says
that Barker Rose are w¡il¡ngto progress candidates
140
whose appticationotherwise demonstrates first'
rate personal qual¡t¡esand experience.He might be
consideredsu¡tabledue to his provenbusinessskills
and experience,but we cannotbe certain'
3 Meralwouldn'tbe suitable,as candidatesmust apply
by 31st Julytwo years beforethe start of the training
contract, and she wants to start next year'
4 Orenwould be suitable.BarkerRoseacceptstudentsof
anydiscipline.
20 1 F (Theyare approachingtheir mid-termexams')
2 NC (Weare told that she is a graduate,but not what
she studied.)
3 F (Theyhaveyet to becomepartners.)
4r
5 F (Therewere sevenlawyersin 1979.)
6T
21, 1 t 3 6 , 0 0 0
2 Associatesreceivea year-endbonusdependingon the
firm's overallprofitability, how manyhoursthey have
workeddur¡ngthe year and how longthey haveworked
for the firm.
3 A standardmedical-benefits package,life insurance'
a retirementplan and voluntarydental ¡nsurance.
4 1,800 to 2,000
5 Seven
22 7a 2a 3b 4b 5b
23 L.21 lines1-2 2 lines5-7 3 lines7-€ 4lines 8-12
5 lines 13-20 6 lines 21-29 7 lines 30-41
1.3 8 lines 1-7 9 lines 8-25 10 l¡nes26-37
11 lines 38-44 12 lines 45-53
24 L Hello,everyone,and thanks for coming along'
2 lt's great that so many of you were able to make ¡t this
mornrng.
3 OK, let me just start by introducingmyself.
4 I've been asked alongto talk about the '..
5 ... a programmeI'm sure will be of particular¡nterest
to you as ...
6 lt's right now that Youneedto ...
7 l r e m e m b e r w h e1n. . .
8 I knowfrom my own experiencethat ...
9 There are thlee main points I'd like to cover today.
10 First,l'll start by givingyou a little informationabout
to offer to new associates.F¡nally,l'll also talk a little
about what we expectfrom our potentialgraduate
recrurts.
11 So, to start with, who are BarkerRose?
12 This bringsme to my next point:what ...
13 This leads directly to what ...
14 Let's now move on to what we ...
15 To summarise,BarkerRose ...
16 Finally,I'd like to remindyou aboutwhat I said at the
beginningof my talk today.
25 The presentationis not very formal,althoughthe general
tone and subjectmatter remainseriousthroughout.
The speakeruses friendly,often quite colloquialor
informal language,e.g. /t's great that so many of you were
able to make it th¡s morn¡ng,OK
 transportedby ship).Clause2a reads: Ihe buyershall
LanguageFocus nominate the date of sh¡pment.
11c 2d 3e 4a 5b 2 Notify(= tell) the seller of th¡s date at least two weeks
2 tlegal 2law 3 law;legal 4legal; legal in advance.Clause2a reads: Ihe buyershall give the
3 a by; about b of; for c on; to d by e about;from selter at least two weeks' notice of probable readiness
f for g about;at h with i to; to of vessel(s).
4tf 2d 3a 4c 5e 6h 7i 8b 9g 3 Notifythe seller of the approximatequantityof goods
to be loaded(= similaramountbut not necessarily the
exactfinal amount).Clause2a reads: ... and of the
5¡- e
LJmüt approximatequant¡tyto be loaded.
ght be 2 An offer must be made and it must be accepted'In some 4 Arrangea port at whichthe goodscan be loadedon to
ss skills legalsystems,the partiesmust g¡ve(or promiseto give) a ship. Clause2b reads: Uponnotificationof probable
each other somethingof value. readiness of vessel(s),the seller shall nominate a port
lst apply 3 The two remediesmentionedare damagesand speclfic for the load¡ngof goods.
training oerformance. 25 1 Drexler.
4 1 F (ln most legalsystems,partiesmust give'..) 2 BecauseDrexlerbreachedone of the terms (clause
;tudentsof 2 F (An offer must be acceptedbeforea contract¡s agreed) 2a). As a consequence,ExportThreadswere unableto
3T arrangefor a port for the loadingof goods.
4 F (A court mayforeethe partyto performthe contract.) 3 No.
ot wnat 5T 4 Yes.
5 1 formation 2 counter-offer 3 terms 4 oral contract 5 lf the term breachedby Drexlerwas a condition,Export
5 obligat¡ons 6 breach 7 damages Threadscouldend the contract.
6 1-acceptanoffer,makeanoffer,rejectanoffer 26 td0ntundenitand: ; f'msorry,ld0n't
ldontseeh0iY,,,
2 breacha contract,form a contract,negotiatea contract, followyou. What exactlyare you say¡ng?
oerform a contract Givingan explanation:lt's like this .,.; in otherwords,...;
3 awarddamages.acceptdamages l'll try to be a little clearer.
ng on the 4 file a lawsuít 27 a7c 2b 3a
ry nave 7 enforcea contract,negotiatean offer c Whereone partyhas,basedon reasonable rel¡ance
r€ worKeo 8 1 a party makesan offer uponthe promisesof anotherparty,changed¡ts
a partyacceptsan offer position,then it may be arguedthat there ¡s an
urance. a party rejects an offer enforceablecontract.In cases involvinga chain of
nce. a party breachesa contract sales,severalpartiesmust rely on the performance
a party performsa contract by a third party/ third partiesof a collateralcontract
2 the partiesnegotiatean offer beforethey can performtheir own contracts.The
the parties negotiatea contract consequencesof certainbreachesmay be so severe
hnes8-12 the oartiesform a contract as to relievethe non-breachíng party/ partiesof their
3 the court enforcesa contract contractualduties (i.e. the breachedterm may be found
-37
the court awardsdamages to be a condition,ratherthan simplya warranty).
4 a lawyerfiles a lawsuit 2A 2 ft we offer a generousout-of-court settlement,they
s a lawyernegotiatesan offer might not sue us.
-(e it this a lawyernegotiatesa contract 3 Theymight sue you if you breachthe contract.
9 The term remedyrefersto the meansto achievejustice ¡n 4 lf you can assureus that such a breachwill not happen
any matter in which legal rightsare involved. again,then we might not take any furtheraction.
10 The most commonremedyis damages. 5 | think we canlcould work togetheragain in the future.
r lnterest 11 The studentis confusedaboutthe meaningof the word 6 lf you raisedyour prices,we couldn'twork together.
damages,whichrefersto moneypaid in compensationfor 29 ! ln paragraph2, two days'notlceshould read two weeks'
a loss. He confusesit with the word damage. not¡ce.
12 3.5.6 2 ln paragraph2, a lorry for the transportationof goods
15 1.5.6 should read a port for the load¡ngof goods.
today. LG Allowme to clarifyis the most formal.A lawyermight use 3 ln paragraph4, the courts would rule aga¡nstyou
(xr about should read the courts would rule in your favour/ for
it with a client helshe does not knowwell,for example.
É have 18 The generalsubjectof the lectureis contractformat¡on. you.
ark a little 19 1 The speakermentionsthe terms agreement, 4 ln paragraph5, renegotiateshouldread terminate.
duate cons¡deration,negot¡ation,offer and acceptance. 30 1a 2d 3e 4c 5b
2 The lecturerwill talk about considerationin more detail 31 I am writingto summariseour discussionand to conf¡rm
next time. your instructions.
20 1-agreement 2 consideration 3 legal 4 negotiations Youtold me that ...
5 accepted 6 price 7 communicated 8 silence Younowwishto ...
9 price 10 b¡nding 11 consideration The legalissuehereis whetheror not ...
22 1 vessel Recentcase law suggeststhat ...
a|d at tne 2 The clausedeals with the amountof noticeneededto I will write a letterto ...
be givenfor the deliveryof goods by ship. Pleasedo not hesltateto contactme if you haveany
the general 3 buyer and seller questions.
ghout.
4 Probablereadiness refers to the first date on which it ¡s With kind regards
|aror most likelythat the buyerwill makea ship availableto the
I of you were se¡lerfor the purposesof loadingand transportingthe
goodsthat are the subjectof the contract.
5 Shallmeansthe same as must.
23 1 Decideon the date that the goodswill be shipped(= A n s ¿ ekr e .
 32 To:JoannaStaines
Subject:BurnettTV Supplies
DearMs Staines
Thankyoufor comingto see me this morningto discuss
your problemswith BurnettW Supplies.I'm writingto
summariseour discussionand to confirmyour instructions.
Youtold me that Berlinguarecentlyboughta new satellite
system(includingbuilt-inhard drive)for educationaluse
at 50% of the normalpricefrom BurnettTV Supplies.This
was to be used to recordfore¡gn-language TV programmes
for use duringlessons.Whenyou first set the system
up and triedto record,you real¡sedthat the timerfunction
was broken.Whenyou contactedMr Burnettto ask for a
replacement,you weretold that you couldn'texpectit to
work perfectlyat such a cheap price.Theyrefusedto replace
the system,but did offer to repairit at a cost of 1130.
The law is veryclearon problemssuchas yours.lf a
reductionis offereddue to a defect in the product,this
defect must be pointedout at the time of purchase.As Mr
Burnettdid not do this, you may claim either a full refund
(at the priceyou paid)or a replacementsystem.
Please could you confirm which of the two options you
wouldprefer?| will then wr¡teto Mr Burneüon your
behalf.I am quitesurethat he will see sense;he would
havel¡ttleor no chancein a smallclaimscourt.
I look forwardto hearingfrom you.
Kind regards
SusanCarter
LanguageFocus
t the defendant,the railroad,for negligence.The trial court
2 2 to; under 3 against 4 in 5 to; for 6 for
3 2 | don'tfollowyou.
3 | don't understandthat
4 I don't knowwhat that word means.
5 That doesn't make sense to me.
4 2acceoted 3created 4breached 5claim
Ilnit r
1a1b 2c 3a
b The cases all have in commonthat peoplewere harmed
(eitherphysically, emotionallyor throughsufferingloss)
due to the actionsof another.
2 lac| 2harm 3party 4damages
3 l- The two main objectivesof tort law are to providerelief
for the loss or harm sufferedand deter othersfrom
committingthe same civil wrongs.
2 Someof the types of loss mentionedin the text are
damageto property,loss of earningscapac¡ty,pain and
suffering,and reasonable medicalexpenses.
3 An injunction is a courtordertellingsomeoneto
stop doingsomethingor compelling him/herto do
something.
4 strict liab¡litytort
4 7b 2e 3d 4c 5f 6a
r42
1 civilwrong 2 injuredparty 3 monetarydamages
4 medicalexpenses 5 fraudulentmisrepresentation
6 contractualrelations
Examplesof assaultincludehittinga personwith a stick
or a fist, draw¡nga weapon,and throw¡ngsomethingwith
intentto woundor strike. Examplesof negligenceinclude
a localauthoritydigg¡ng a hole in a publicfootpathand not
taking steps to preventpeoplefrom fallinginto it, or when
a buildingownerleavesdangerouselectricalwires exposed.
A personwho enters anotherperson'spropertyor home
withoutpermissionmay be liablefor trespass.
7 1b 2d 3f 4a 5c 6e
8 1 The name of the case is Palsgrafv. The Long lsland
RailroadCompany.
2 Thedefendantis the LonglslandRailroadCompany.
3 Theclaimantis Ms Palsgraf.
4 The defendantis allegedto havedirectlycausedthe
injurysufferedby the plaintiff/claimant.
1 The lowercourt foundfor the plaintiff/claimant.
2 The appellatecourt affirmedthe judgmentof the first court.
3 The courtdeterminedthat the exolosionof the f¡reworks
was the proximatecause of claimant'sinjuries.
Sect¡ons3 (Procedural History),5(Ruling)and
6 (Reasoning) all containinformation aboutthe decisionof
the highestcourt.
LL 1 claimant/plaintiff2 defendant 3 findsfor 4 appeal
5 appellatecourt;court of appeals 6 affirms 7 reverses
L2 Theclaimantwas injuredwhena railroademployeecaused
a packageof fireworksin anotherpassenger'sarms to fall
on the train track. The result¡ngexplos¡oncausedsome
equipmentto fall, injuringthe claimant.The cla¡mantsued
foundfor the cla¡mant. Whenthe defendants appealed, the
appellatecourt affirmedthe judgmentof the first court. The
defendantappealedoncemore,and the Courtof Appeals
reversedthe decisionof the first two courts.
L4 Compensatory damagesrefersto moneyawardedto
reimburseactualcosts incurredby the injuredparty,such
as medicalbillsand lost wages.Punitivedamagesis the
term for moneyawardedto an injuredperson,over and
abovethe measurablevalue of the injury,in orderto punish
Ihe tortfeasor.In jurisdictionsthat allow punit¡vedamages,
these awardscan often be significantlyhigherthan those
for generaldamages.
15 1 He thinks the lawsuitis not to be taken seriously,and
that the amountof damagesawardedis far too high for
the injurysuffered.
2 The claimant/plaintiffreceivedthird-degree burnsfrom
soilledcoffee.
3 McDonald'srefusedto settle becausethey most l¡kely
thoughtthe claimant/plaintiff couldnot win the case,as
in other cases the courts had ruledthat coffee burns
werean open and obviousdanger.
4 At first, Liebeckwas awarded$200,000 in compensatory
damages,whichwas then reducedby 2Oo/o to $160,000.
Thejudgealso awardedher $2.7 millionin punitive
damages,whichwas then reducedto $480,000.
5 lt is not knownhowmuchshe finallyreceivedin damages,
but it ¡s thoughtthat the amountwas under$600,000.
16 1 settlement 2 defendant 3 found for 4 awarded
5 damages 6 punitive 7 appealed
L7 1 The seriouspurposeof the StellaAwardsmight be that
they questionwhetherthose involvedin the cases are
usingthe courts to achievejustice for the injuredparties.
or whetherthey are simplytryingto take advantageof
the so-called'compensationculture'to get moneyfrom
anyonethey can.
rges 18 1 (law)studentsand qualifiedlawyers when Nick asked So you took it back to the shop?
::n 2no Charles'sresponsewas fairlybrief,and Nickthen had to
3 interviewing, negotiatingand advocacy ask a second,open,questionin orderto find out exactly
a strck 19 1 tribunal 2 l¡tigant(slin-person (US:pro se) 3 advocacy what happened. Openquestionsallowthe clientto tell the
"É t!lln 21 La laptop(computefl story in their own words;the less this flow is broken,the
':i:rde 2 Oneof the pixelswas burnedout (notwork¡ng). more information the clientis likelyto give.
- 3rd not 3 Underthe terms of the guarantee,sevenpixelshad Nickcouldhaveusedactivelisteningtechniques to
:'r,nen to be burnedout beforethe laptopwouldbe replaced. periodically summarisewhat had beensaid.Althoughhe
Charles'slaptophad onlyone burned-out pixel. didn'tdo this, he did seek confirmation wherenecessary.
- llte 4 One optionwouldhavebeenfirst to threatenand Towardsthe end of the interview,Nick seemedto make a
then to seek legaladvice.Charlesmightalso have subjectivejudgmenton Charles'sbehaviour, whichcaused
complained to a consumerorganisation. In some Charlesto becomedefensive:
jurisdictions,mediasourcescarry¡ng advertisements Nick: Well,they'reprobablyjust try¡ngto stop you from
havean obligation to followup complaintsarisingfrom tak¡ngyour campa¡gnany further.
:¿^!. problemswiththeir advertisers, so this mighthavebeen Charles: lt's hardly a campaign!
a furtheroption. At the start of the interview,it seemedthat Charlesmight
22 1, Charlesthreatenedto writeto as manyma¡linglists be a difficultclient;Nickhandledthis well,and gained
as possibleto tell peoplenot to buycomputersfrom Charless confidence earlyon.
Carmecom. 29 7 Defamatorydescribesa statementor actionthat injures
''s: lo'Jri. 2 Charlesstoodoutsideand told potentialcustomers a personor a company's reputation.
' a r .l ' ( s abouthis experience with Carmecom. He alsotold them 2 He must signa retraction by a givendate.
not to buyanfhing fromthe store,as theircomputers 30 Charleswentstra¡ghtto the frontof a queueof shoppers.
were'rubb¡sh'(poorquality). Charled s e m a n d e ad r e f u n di m m e d i a t e(l a
v n dn o t a
?:S 3 Charleshas to s¡gna retraction or he w¡llbe suedfor reDlacement),
defamation. Charlesdroppeda bagcontaining the computerontothe
23 Nick's questions c a s hd e s k .
1 ... couldyou first tell me what happened? Charlesshouted(allegeddefamatory) statementsas he
2 And there was a problemwith ¡t? left the shop.
3 So you took it backto the shop? Charleswas carryinga secondbag from one of
4 What did they say? Carmecom's compet¡tors. (Theimplication hereis that
5 Andyou didn'tacceptthis? Charlesboughtthe same laptopat a dlfferentshopfor
6 Didyou see the laptopworkingin the shopbefore less money- whichis the real reasonthat he wantsh¡s
É¿::: - buyingit? moneybackfor the computerhe boughtat Carmecom.)
- .
a:," 7 So what did you do when they refusedto replaceit? Carmecomhavelost businessdue to Charles's actions
8 Unlessthey replacedthe laptop? (duringthe interview, this is whatCharlessaid he wanted).
9 Did you leavethe shop withoutthe laptop? 31 Nickshouldbeginwith an openquestion:
l:, l-0 Whatdo you mean? How wouldyou answer the allegationsmade in the letter?
f_. :,-' 11 To hurt Carmecom? He shouldthen ask morespecificquestionsto find out
72 Youdidn't just want a replacement? moredeta¡led¡nformation on particularpoints:
,' z' :. l-3 Anylvay, what happenednext? Exactlywhat allegationsdid you make against Carmecom?
r': :'-- :- 14 Howdid they reactto this? He wouldfinallyuse a elosedquestionto confirmhis
- - '::'j' 15 So they askedfor your address- ¡s that r¡ght? understanding or checkparticularpoints:
)-:' :' 16 What did the letter sav exactlv? Was th¡s allegat¡ontrue?
Charles'squestions 32 1 tort 2 statement 3 L¡bel 4 Slander
77 ... are you one of the lawyers? 34 As the adv¡cegivenwill be dependenton the true facts of
18 CouldI see a lawyer,please? the case,¡t is importantthat the lawyerfindsout exactly
l-9 Can't I just speak to a lawyerdirectly? what happened.Dependingon the facts, the lawyermay
.s.-- 24 Lc 2a 3b adviseCharlesto s¡gnthe retractionto avo¡dfurther legal
25 1, lf I don't sign the retraction,will I haveto go to court? action.However, assumingthat Charles'versionof events
si ,.: . 2 Howlongdo youthink a trialwouldlast? was accurate,Charlescould raise a 'just¡f¡cation by truth'
I :¿:': :' 3 Whatwouldbe my chancesof winning? defenceto the allegations of defamation (shouldthe case
| :,-" . 4 WouldI haveto pay anythingfor my defence? proceedto trial).Charlescouldthen makea counter-claim
5 Whatare the consequences if I losethe case? in orderto pursuehis demandsfor compensation for the
f 1:-
'. 6 Do you thinktherels a chanceof me gettinga new faultylaptop.Alternatively, Charlescouldsimplydenythe
:4, ,,, comouter? facts. However, shouldthe case then go to court,this
26 This is the most likelygrouping.In somecases(e.g.k), might be a difficultdefenceto prove,as he has alread,
t: an argumentmaybe madefor havinga pointin morethan admittedsomeof the allegat¡ons.
a'-.a;. < one section. 35 o,c,a,e,D
¡:r- .' 1¡ 36 DearSirs
É':¡--'. 2b,d,g,j Re: GeorgeHardy,CarmecomLtd.
3a.e.h.k Allegeddefamatorystatementsmade by Mr Charles
'a¿":' 4 c.f.k.l Tholthorpe
'-: 27 ldeasfor th¡stask are discussedin the answerto
ÉfS :: We write to advisethat this matter has been referred
'' Exercise 28.
Fi l,: e3, to us. All furthercorrespondence shouldbe sent to the
r-¡€= :' 28 Generally speaking,Nickd¡dwell,especially considering aboveaddress.
r€t'-:,- the fact that he ¡s a studentvolunteerand not a trained Ourclientdeniescompletely the versionof evenls
lawyer.Nick may havegot more informationearlieron presentedin vourletterof 5 December 2008.
from Charleshad he usedmoreopenquestions, e.g.
. \ f 5 , 1 e r. e , 143
 We can confirmthat our client requiresa full refundfor A judge resolvesa dispute,rendersa verdict,sentences
the pricepaid for the faulty laptopcomputer. an offender.susoendsa sentence.
We look forwardto receivingpaymentof t899 within l-4 6 A crime ¡s a wrongcommittedagainstsocietyand requires
days,failingwhichwe will take steps to issue proceedings. criminalintenu a tort is a wrongcommittedagainstan
Yoursfaithfully individual and doesnot requirecriminalintent.
1 is committed 2 is punished 3 is put 4 is fined
5 is committed 6 was caused 7 are tried
LanguageFocus 8 ¡s brought 9 is resolved
L 9 The passivevoice is used to focus on the action,not on
the persondoing it. The agent is namedin ... the harm
which was caused by the wrongdoer and An act¡on is
misrepresent misrepresentation broughthy a govemmental body ...
interfere interterence 10 7 (to) be 2 past participle 3 by
settle settlement LL 1 was charged 2 was tried; was acquitted
3 was found; was sentenced
InJUre InJury L2 Id 2f 3a 4e 5b 6c
sue su¡t The passiveis used in these examplesbecausethe
awaro award actionwhichcan be takenin eachcase- the punishment
givento an offender- is the focal point of the sentence,
rute rule,ruling
ratherthan the agent (in this case,the courts)who takes
the action.
L4 He thinks ¡t is as seriousas v¡olentstreet crime.
15 1 F (ProfessorPoulossays 'l do think that with the growth
of technology... the opportunitiesfor white-collarcrime
haveincreasedgreatly'.) 2 F (ProfessorPoulossays
'Beforethe federalgovernmentchangedthe sentencing
of white-collar the verystrictpunishments
criminals, [...]
for [...] streetcrimedrovemanypeople[...]to white-collar
procedure I procedural
crime becauseit gavethem more rewardsfor less risk.'
reason ¡ reasonable [i.e. the situationis now different] 3 T 4 T
5 F (ProfessorPoulossays 'Part of the slow recoveryof
the economyis the effect of white-collarcrime on the
2 2 foundfor 3 awarded 4 aooealed 5 reversed investment environment'.)
6 affirmed 7 found that 16 t has led to 2 has a big impacton 3 affect
3 1 What are the facts of the case? / Couldvou tell me the 4 impacted 5 adverselyaffect 6 is the effect of
facts of the case? L7 te 2c 3d 4a 5b
2 Did you knowthe trunk was brokenwhen you received 19 1 audit manager 2 marketabuse 3 He knewthat the
the car? companywas planningto sell its electricaldivision.
3 Youcouldn'tclose the trunk?/ The trunk could not be 4 He made a profitof t3,750.
closed?/ Whendid you find out that the trunk was 20 1 F The case was heardbeforethe FinancialServicesand
broken? MarketsTribunal.
4 Wherewereyou standing?/ How did you try to close 2 F Mr lVohammedwas sentencedto pay a fine for his
the trunk?/ What did yourfriend do? cr¡me.
5 Did you see the car coming?/ What happenednext? 3 F The defendantwas partiallyresponsiblefor the audit
of the company.
Unüt
s 21
4I
1 confidential 2 purchase 3 proposed 4 held
2 embezzlement, fraud,insiderdealing,moneylaundering, 5 provisions
tax evasion 23 a 1 ldentitytheft occurswhen someoneuses someone
3 1 The state ¡nitiatesa criminalcase,wh¡lethe victim else'spersonally identifyinginformation,
suchas their
bringsthe suit in a civilcase. name,social securitynumberor credit-cardnumber,
2 Offencesagainstthe person,offencesagainstproperty, withouttheir permission, to commitfraudor other
publ¡c-ordercrimes,and business(or corporate) crimes. crimes.
3 In criminalcases,the burdenof proof is often on the 2 Possibleanswersinclude:credit-cardfraud,services
prosecutorto persuadethe trier that the accusedis (utilities)
fraud,bankingand financialfraud,
guiltybeyonda reasonabledoubt of everyfact of the governmentdocumentsfraud (e.9.gettingan official
crime charged.lf the prosecutorfails to provethis, a lD ¡n the nameof anotherperson).
verdictof 'not guilty' is rendered.In civil cases,the 24 1,t 2a 3d 4e 5c 6b
claimantgenerally needsto showa defendantis liable 26 1 Changing addresses 2 Phishing 3 Stealing
on the balanceof orobabilities. 4 Bin raiding
4 A felonyis a more seriousoffence,and a 27 1 Criminalsmayensurethat billsand bankstatements
misdemeanouris a less seriousoffence. are sent to an addressother than the victim's.
4 td 2f 3a 4c 5b 6e 2 Theymust verifyyour identitybefore¡ssuingcreditto
5 An offendercommitsa crime. you.
A victim bringsa suit. 3 Creatinglook-alikewebsites,often of banks and other
A lawyerresolvesa dispute,bringsa suit, (commitsa financialinstitutions,and dupingpeopleintovisiting
cr¡me). them and g¡vingout personalinformation.
The couft resolvesa dispute,rendersa verd¡ct,sentences
an offender.susoendsa sentence.
r44
tntences 4 On the groundsthat the customer'snegligencewas a corporatelaw,corporatecontracts,corporatepersonality,
contributoryfactor. corporategovernance, corporater¡ghts,corporatefinance,
ú requires 5 Althoughbanksgenerally claimtheywill neversend corpofateinsolvency
nst an emailsto theircustomersaskingfor,or quot¡ng,any I a The professordiscussesboth advantagesand
confidentialinformationaboutthe customer.thev often disadvantages of corporations.
lined do just that. b 1 Accordingto the speaker,the primaryadvantageof
28 La 2c 3a 4c a corporationis that its owners(stockholdersor
30 Advice shareholders) are not personally liablefor the debts
1, not on lf you think you may be the victimof identitytheft, you and liabilitiesof the corporation.
E harm shouldplacea fraud alert on your credit reportas soon 2 The significantdisadvantagehe mentionsis double
tJon¡s as possible. taxat¡on, whichmeansthat in somecasesa
Youshou¡dthen reviewyour credit reportscarefully. corporationpaysa corporatetax on its corporate
Obligation income,and the stockholders pav incometax on the
. .. membersof the publicare ... beingtold that they must dividends theyreceive"
be morevigilantaboutdiscarding personalrecords. 3 One wayto avoiddoubletaxationis to make a special
... potentialcreditorsmust use whatthe law refersto as electionto be taxed as a pass-through entity,like a
I the 'reasonable policiesand procedures' ... partnership or a sole proprietorship; the corporate
,nrshment 31 l- don't haveto 2 mustn't profits passthrough'to the owners,who paytaxes
enlence, 32 Note: these are the most likely answers,although others on the profitsat their individual tax rates.
ño takes may be possible, dependingon the context. a The speakermentionsf¡veadvantages and three
1 must / haveto (obligation) disadvantages.
)- 2 must / haveto (obligation) b 1 corporation 2 sole proprietorsh¡p3 corporation
üte growth 3 should(advice) 4 partnership; sole proprietorship 5 corporation
f, cnme 4 must / haveto (obligation) cldebts 2savings 3life 4money 5transfer
eys 5 should(advice) 6 cost 7 formalities 8 tax
nencrng 6 haveto (obligation) 10 a The mainadvantage of a corporation is that its owners,
rnts[...] knownas stockholders or shareholders. are not
hrte-collar personally
ss risk.' Language
Focus liablefor ¡ts debtsand l¡ab¡líties.
Onemaiordisadvantage of a traditionalcorooration is
7. lfor 2of 3aga¡nst 4o'f 5to 6on 7on 8on doubletaxation.
tery of 2 I a prove b proof (prove) Corporationsenioymanyadvantagesover partnerships
n the 2 a prosecution b persecut¡on(prosecution) and sole proprietorsh¡ps.
3 a prescribe b proscribe(prescribe) But there are also disadvantages.
3 1 The co-conspirators werefound guiltyon severalcounts, So what is the main advantage?
lof most notablyfraud and conspiracy. The secondbenefitof coroorationsis self-employment
2 Employees, consumersand citizensalike are affected tax savings.
Ythat the by white-collar cr¡me. The third advantageof a coroorationis its continuous
m. 3 The formerCEOwas sentencedto 87 months in federal life.
prisonfor his role in arranging fraudulentloansthat led The fourth advantageis the fact that it is easierfor a
rvrcesand to the company'sforcedbankruptcy. corporationto raise money.
4 lf the prosecutorfails to provethat the accusedis guilty The fifth and last advantageis the ease of transfer.
for his beyonda reasonabledoubt,a verdictof 'not guilty' is The first of these drawbacksis the highercost.
renoere0, The seconddisadvantageis the formal organisation
¡f|e audit 5 The companyfounderwas prosecutedfor tax evasion, and the corporateformalities.
and he is now servinga three-yearsentence. Thethirdand finaldisadvantage is unemployment tax.
6 The prisonerwas put on paroleafter four yearsof good b 1 main 2 malor 3 enjoy;over 4 benefit
Eld conductin prison. 5 drawbacks
7 The defendantwas givena suspendedsentencefor the 13 Althoughit is not explicit¡n the letter,Pippais definitelya
meone theft of his sister'scar while intoxicated. personconcerned by greenissues.She is possiblyalso
'| as their involvedin campaigning.
rumber, I I^l+ * L4 1 The sourcingof palmoil
'otner {.ilrrr 5 2 SectionsI72 and 477
a LT 2f 3 T 4 F ( T h em e m o r a n d u omf a s s o c i a t i o n 3 The Secretaryof State for Business,Enterpriseand
services states the principleobjectof the company. RegulatoryReform
b A sole proprietorship is a businessthat is ownedby a 15 1 The processof identifying,conductingnegotiat¡onswith
n official singleindividual who earnsall the profitsand assumes and form¡ngsupplyagreements withvendorsof goods
all the liabilities.
In the caseof a partnersh¡p, these and services
profitsand liabilitiesare sharedbetweenthe partners, 2 A legalobligationto considercertainmatterswhen
, who betweenthem ownthe business.A publiclylisted dec¡d¡ng on policy
companyis one which is able to sell its sharesto the 3 Causinglittleor no damageto the environment and
lfnents publicand whosedirectorsand shareholders are nor thereforeable to continuefor a long time
personally liablefor the company's lossesbeyondtheir 4 Dutyto compelobedienceto a law
€drt to own investmentsin the form of shares. L7 A copyof the press releaseof lvlarch2005 and the
t has 2 manages;makes 3 own;enterinto;sue (environmental) policystatement.He hopesthis will stop
ú other 4 invests 5 serveson 6 owes 7 monitor 8 owns:rs PippaSolloway goingto the pressand sayingthat BagEe.s
rsrtrng 4 1,,3,4,7 don't careaboutgreenissues(the environment anc
5 1c 2a 3e 4d 5b 6f associatedissuesof concern).

A n s ¡ e rx e ¡
 3 c I also had to write patentdrafts,whichare
18 Not for at least another12 months
incrediblydetalleddescrlptionsof the inventions¡n
19 1T 2F 3F 4T 5T preciselegalterms.
20 Ie 2g 3c 4a 5b 6f 7d
4 c lt was interesting,althoughat times extremely
2Lb
difficultand demanding.
22 Subsection1 is probablyclearest,becausetne
5 b But I quicklyrealisedthat what I liked best was
informationis set out as a list, althoughthe words as
workingcloselywith the other lawyerson litigation'
betweenin 1f are very difficultto understand'
defendingor enforcingPatents'
Subsection2 is difficultto understand,becauseit takes
6 a I usuallvspend most of the day reviewing
a long time to get to the subjectand mainverb of the
documents,draftingagreements,meetingwith
sentence(subsect¡on(7) has effect)'The sentencealso
clients and, of course,answeringemails'
relieson omittingrepeatedwords (as in the parts with or
whichneed to be read b Adverbsof time are usuallyplacedbeforethe verb;
and the phrasewereto ach¡ev¡ng,
times before they can be understood' adverbsof mannercan be beforeor after the verb;
several
adverbsqualifyingan adjectivealwayscome beforethe
Subsection3 is fairly clear,althoughit wouldbe much
were spelledout' adjective.
clearerif lhe certa¡ncircumstances
1 carefully;remarkably 2 closely 3 quickly;mainly
ratherthan hintedat.
4 extremely;regularly
24 Provision(d); possiblyalso (e), dependingon how this
provisionis interpreted 10 It is a letter of applicationreplyingto a specific
advert¡sement.
25 In the case of charitablecompanies,a directormust act in
LL 1 She is applyingto a commerciallaw firm in the UK'
the way he or she thinks wouldbe most likelyto ach¡eve
2 She is ¡nterestedin commerciallaw in general'but also
the goals of the charity.
in debtor-creditorand negotiableInstruments'
26 The duty to promotethe successof the companymay be
qualifiedby (subiectto) anyfuture regulationsconcernrng 3 She workedat a small tax law firm for the summer'
the creditors' 4 She has encloseda résumé(CV)and writingsamples
creditors(i.e. undercertainc¡rcumstances, (letters).
interestsmay come beforethose of the company)'
12 successfully, frequently,especially' extremely'
particularly,
sincerely,conf¡dently, particularly
Focus
Language The writeruses the adverbsto intensifyher statements
and convincethe readerthat she wouldbe suitablefor the
t
internshlP.
Lg tb 2h 3d 4k 5g 6g 7a,l 8¡ 9i 1Of
form formation I 1,1,f 72c 13e L4m 15m 16c L7i 18j
registration 14 The ad appearedon the webs¡teof a university's
reÉister
internshiP Programme.
incorporat¡on
incorporate 15 1 Studentstaking InternationalCommercialLawcourses
reÉulate regulation i in Mergers,Comparative AntitrustLawand WorldTrade
enforce enforcement Lawwho get top marks on the essaysthey submit in
these coursescan applyfor the internsh¡p'
windup winding-up
2 Studentswill be selectedon the basis of the essays
dissolve dissolut¡on they wr¡tefor those coursesplus an interv¡ew'
fund funding 3 The internshipwill take placefrom Mayto Julyin the
Powderhouse SommervilleFrankfurtOffice'
2 The verb whichdoes not collocatewilh companys 4 A studentcan applyusingthe onlineapplication located
enforce.Youcan enforcerightsor enforcea law,for on the Pageof the announcement'
example. 17 1 The letm gobat¡satlon often refers to the increase of
3 a2f 3a 4b 5d 6e trade aroundthe world,especiallyby largecompanies
b 2 constitut¡onaldocuments 3 sole propr¡etor producingand tradinggoods in manydifferentcountries'
4 corporatefunding 5 third PartY 2 Thereare manyfactors,includinggovernmentpolicies
6 publiclYl¡sted/ownedcomPanY and trade agreementsaimed at facilitatingthe free flow
of goods,services,capitaland peopleacrossnational
froñtiers(e.g.the EU,NAFIA),the growthin powerof
[Jnit& institutionssuch as the WorldBank and the IMF'the
2 7T 2 F (Non-contentious work includesthesethings') rise in powerof corporationsand the developmentof
3 F (TheUCCappliesto the USA,not the EU') 4T the lnternet.
3 1 intellectualproperty 2 competition 3 a Globalisation has led to a rapid¡ncrease¡n the
3 a mercantileagency 4 carriageof goods 5 tax levelsof internationaltrade and capitalmobility;
4 1 on behalfof 2 owe; creditors 3 transaction;lender information,goodsand serv¡cesemanatingfrom
4 payment in demand
one part of the world are increas¡ngly
5 1 To get a Master'sdegreein elaw. globally.This createschallengesand opportunitiesfor
2 He advisesstudentsto try out as manydifferentareas businesses.
of the law as they can and then to chooseone they are b As capitalmovesawayfrom fixed legalstructures
genuinely interestedin' withln nations,there is an ever€rowlng
6 3,4,5,7,8. interdependency of transportation,distribution'
7 a ! a He's currentlvundertakinga Master'sof e-Lawat communicationand economicnetworksacross
MonashUniversitY. internationalborders.This raisesthe needfor
2 b There'ssomethingabout the challengeof taking a commerciallawyersto developincreas¡ngly complex
complexcommercial transaction and expressingit legalframeworks within whichcompantes can
clearlvand conciselvthat reallvappealsto me' operate.

r46
re 18 1 F (onlygoods) 2 F (theyare pa¡da commission) 3 T calculating the entitlement underthe compensation
ent¡onsin 19 l- lt enablesa foreignsupplierto penetratean overseas optionare vaguer.The partiescan choosebetweenthe
marketby benefitingfrom local knowledgewith limited two options,but the compensation alternative will apply
emery expenditure" wherethere is no agreement for an indemnity. Both
2 As salesbuild,princ¡pals oftenenterinto d¡rect terms referto the paymentof a lumpsum,the maln
5l was relat¡onsh¡ps with customers(avoiding the agent difference beingthe circumstances underwh¡cheach
I lit¡gation, altogether). part¡cular form of lump-sumpaymentw¡llbe grantedand
20 Id 2c 3a 4b calculated.
, 21 Timeand moneymaybe savedthat wouldotherwisebe 26 1, lf stated in the contract.
g with spentcheckingto see if the contractconformsto local 2 a) Theagenthas to haveeitherbroughtnewcustomers
regulations. In caseswherebusinesspeople choose or significantly increased saleswith existingcustomers
! verb; to draft the contractsthemselvesratherthan consult and b) the paymentof an indemnityhas to be fair (this
I verb; a lawyer(e.9.for contractsof lim¡tedeconomicvalue), will dependon the surrounding circumstances).
beforethe modelcontractscan helpreducethe risksof bad drafting. 3 The maximumamountof ¡ndemn¡ty is one year's
22 Commonprovisions ¡nclude: commission basedon the agent'saverageearnings
marnty . identification of the parties in the last five years.lf the contracthas run for less
. durationof the contract than five years,the indemnity will be calculated on the
. agentand principalresponsibilities averagefor the periodof the contract.
. paymentof commission 4 Y e s( 1 7 ( 8 ) ) .
le UK. . indemnity/compensation 27 Regulation 17 dealswith the entitlement of a commercial
tl. but also ' appl¡cable lawandjurisdiction agentto an indemnityor compensation on termination
¡- 23 l- No. He can onlychangethe condit¡ons of sale w¡ththe of the agencycontract.statrngthat it has effectfor the
mmer. consentof the principal. purposeof ensuringthat the commerciai agentis, after
samples 2 As this contract¡s for an indefiniteperiod,underclause termination of the agencycontract.indemnified [...] or
9 ¡t can onlybe terminatedfollowings¡x months'notice compensated for damage.
extremely, (by registeredletter)beforethe end of a calendar Regulation l-7(2)goeson to statethat exceptwhere
quarter. the agencycontractotheMiseprovides. the commercial
tements 3 The provisions of the EECCounc¡lDirective of 18 agentshallbe entitledto be compensated ratherthan
ablefor the December1986 on the co-ordination of the lawsof ¡ndemnified'.
the MemberStates relatingto self-employed agents Regulation 17(3)dealswith entitlement to the indemnity
' 10f (86/653/EEC),togetherwith the law governingthe and Regulation 17(4)establ¡shes a cap to the amountof
18j agent'sdomic¡le(placeof residence). the indemnity.
s 4 The competentCourtin the areawherethe agenthas Regulation 1-7(5)providesthe poss¡b¡l¡ty for the
his residenceor registeredoffices. commerc¡al agentto seek damagesin additionto the
Y COUTSeS 24 Accordingto clause3, the agent has to carryout his ¡ndemnity.
orld Trade dutiesto the principalas wellas he poss¡bly can.The Regulation 17(6)dealswiththe entitlement to
Jbmitin agent has to provideinformationto customersabout the compensationfor the damagesufferedby the agent
principal's business,and musttell the principalas soon 'as a resultof the
term¡nation of his relationswith his
essays as he has receiveda new order. principal'.
t- Clause4 saysthat the agent needs permissionfrom the Regulations t7(7) and 17(8)dealwiththe circumstances
y Intne principal to changepricesand conditionsof sale,etc. in whichth¡s damageshallbe deemedto ar¡se.
Underclause9, the contractis validfrom 10 February 28 1 The companyfeels it no longerneeds its agentsin
|on located 2006 and runsfor an indefin¡te period.Thecontractcan orderto sell products¡n southernEurope.lt is getting
be endedby eitherthe agentor the princ¡palby registered lots of repeatordersand relativelyfew new customers,
€ase of letter.Six months' notice must be given,and this notice and no longerwantsto keeppay¡ngcommission on all
rnpanies periodmust coincidewiththe end of a calendarquarter. sales to ¡ts agents.
I countries. Clausel-0 states that the provisionsof EECDirective 2 Thereis no maximumlim¡tfor comoensation.
: policies a6/653/EEC applyto the contract.lf Directive86/653/ 29 1- No,compensation is also payablefor any reasonable
e free flow EECdoes not covera particularset of circumstances, the expensesincurredby the agents.
natona¡ law of the countryin whichthe agent is domícífedmust be 2 Twoyears.
ol'r€rOf considered. 30 1 F (Theyare not ¡n breachof contract.) 2f
f,lF.the Clause11 saysthat any disputesconcerningthe contract 3 F (Theagreementdoesn't providefor an indemn¡ty.)
ment of must be heardbeforea court ¡n the jurisdictionín which 4l 5 F (lt ¡s validfor two years.) 6 F (Theclause
the claimantis residentor in whichthe claimant's must referto both the geographical area ánd the type of
the businessis registered. goods.) 7 T
brlrt!: 25 1 The aim is to providecommercialagentswith a level 32 DearJenny
, from of protectionand securityby ensuringthat they are Compensationfor early terminationof agencycontracts
fr€nd compensatedfolfowíngterminat¡onof the agency Following our recentdiscussion, I understand that you
trrnrtiesfor contract. would like to end the currentagreementswith your agents
2 Under Regulat¡on 77,Ihere are two alternativewaysof in France, Spainand Portugal. Thisshouldbe doneas
ctures calculating a lumpsum paymentfollowingtermination quicklyand inexpensively as possible.
of an agencycontract: indemnity and compensaüon. As I confirmedduringour meeting,youragentswould
)or1. Thecircumstances underwhichan indemnity will be be entitledto compensation shouldyou chooseto
oss grantedare outlinedin t7(3), and the calculation end the agreernentswithoutfirst g¡vtngnotjce.Under
for of the indemnity¡s coveredby t7(4). The rulesfor currentregulations, eachagentwouldbe enti|ed to
COrnP'e\ full compensation for lost commissions that thev\\oL :
ü1

Ansrrer
ker
 otherwisehaveexpectedto receiveunderthe agency
agreement.Theywouldalso be entitledto recoverany
reasonableexpenses¡ncurredwhilst performingtheir
dutles as agents.
The contractualnoticeperiodis six months pr¡orto the
end of the calendarquarter.Althoughyou havejust
missedone calendarquarter,this does not necessarily
meanthat you would haveto compensatefor the (almost)
full nine months.However, your agentsmight be more
willingto acceptless generousterms if they werefirst
givensome noticewhilst still on full commission.
I wouldsuggestoffer¡nga compensationpackagebased
on the followingterms:
. an initial notice periodof three months underfull
commission, duringwhichtime theywouldcontinueto
fulfil their duties underyour agreement;
. a lump sum based on 5070of three months' lost
commissions(calculatedat the averagemonthly
commissionpaid since the commencementof the
agencyagreements);
. reasonableexpenses
Theseterms shouldbe enoughto deter most agents
from pursuinga more generoussettlement.lf you think
that there would be a reasonablechanceof your agents
accept¡nga lowersum, I would be very pleasedto d¡scuss
this with you further.
Pleasedo contactme shouldyou haveany questionson
th¡s.
Kind regards
CliveSanborn
LanguageFocus
t-
2 l negotiable 2commercial 3 mercantile/commercial
4 mercantile 5 mercant¡le/commercial 6 commercial/
negotiable
3 1 UniformCommercialCode 2 WorldTradeOrganisation
3 UnitedNationsCommissionon Internat¡onal TradeLaw
4 The missingword ¡n all the expressionsis patent.
5 1on 2of 3 by 4on;of 5for 6into
Unity
1 a In common-lawlegalsystems,propertylaw distinguishes
real property(landand immovableproperty,such as
houses)from personalproperty(oftenreferredto as
chatfel).Civil-lawsystemsgenerallymake a similar
divisionbetweenmovableproperty(personalproperty)
and immovableproperty(realestate).
b Realpropertyia, c, e,f, g
Personalproperty:b, h, i
A largeoutdoorsculpture(d) could be either real or
personalproperty,dependingon how permanenta
fixtureit is.
2TI 2F 3T 4F
31b 2c 3a 4f 5h 6d 7e 8i 9g
148
A tenant signs a leasewhen he/she rents propertyfrom a
landlord.
A landlordsigns a lease when he/she rents propertyto a
tenant.
Whenhelshe inheritsproperty,an he¡rreceivesa deed
grant¡ngtitle to property.
A grantortransfersa title to propertyto anotherpersonby
meansof a deed.
A granteeacquiresan interestin propertythrougha deed.
A licenseereceivespermissionto enter anotherperson's
propertythrougha licence.
indefinite(line3), unlimited(line11)
(Note that althoughthe adjective inher¡tablestarts with
rn-, in this case it's not beingused as a negat¡veprefih,
i.e. it doesn'tmean'not ableto be passedon to an heir'.)
1 illegal;unsafe;unsanitary;illegal;unenforceable
2 unable:imoossible
3 indefinite; unlimited
4 unsoecified:uncertain
7 1e 2c 3d
8 Featuresthat may make the text difficult for a learner of
English:
. use of formalvocabulary
. manytechnicalterms
. non{olloquialuse of shall,may
. long sentences,complexsentencestructure
1 oriorconsent 2 commenced 3 mutual
4 terminated 5 consecutive 6 complywith
7 contravenes 8 pursuantto
9 designation 10 compulsorypurchase
10 1 Generallyspeaking,a formal style in writ¡ngand
speakingis appropriatewhen dealingwith official
bodiesand organisations,peopleyou do not knowwell
(suchas a new client)or with your superiors(unless
you know that they prefer a more informal style of
speaking/writing). The factorsthat m¡ghtaffectthe
choiceof a more formal style includethe natureof the
relationshipof the peopleinvolvedand the conventions
of the text type in question(for example,a documentto
be subm¡ttedto the court wouldbe written¡n a formal
style).
2 Formallanguagewould be most suitablefor the seminar
presentationand seminarpaper.Both,however,would
benefitfrom some paraphrasesof technicallanguage
Into plainEnglish, as this will aid communication. A
more neutralregisterwould be appropriatefor speaking
and writingto a client (but see Backgroundnote below
for furtherdiscussionof this).
L2 Lf 2 F (A fore¡gnermust sell inheritedagriculturalland
w¡thina year.) 3 F (Foreignbusinessentities may
acquirebuildings/structures on non-agricultural land.)
4 F (Foreigners can acquireland ¡n Ukraineby buying
sharesin a Ukrainiancompanythat owns land.)
1 allowedto buy,exception,circumstances, ownership
rights
2 Andthis one is particularly important...
So, it is not possiblefor foreignersto own farmland.
So, if they planto do businessand buy existingfacilities
or constructnew facilitiesfor business,they may have
certainownershiprightsto land
... cannotbuyfarmland.
3 Let me stress that although foreigners can't own
farmland,they are allowedto lease it.
The situationwith norFagricultural land is quite different.
In this case, it is poss¡blefor foreigners,...
Now let's turn to a very importantpo¡nt:the
circumstancesunderwhichforeignownershipof land in
Ukra¡nels oossible.
erty from a 4 But I must pointout ... The periodicis the one that ¡s automat¡cally renewed
Let me stress that ... at the end of the tenancyperiod,right?
perty to a But I shouldstressthat ... 17 Yes,that's right.
Now let's turn to a very importantpoint: ... That'sright.
a 0ee0 5 Andthis one is particularly importantfor ... That kindof thing,yes.
But I must point out that there are some significant 18 I'm sorry.
'personoy exceptions. 19 I'm expecting a call in a few minutes,so don't have
16 1 deposit 2 rental income 3 mortgage mucht¡me left.
gh a deed. 4 capitalapprec¡ation 5 purchasepr¡ce Thanksverymuchfor yourhelp.
'person's 17 1-purchaseprice 2 deposit 3 mortgage 20 l'll be in touchnearerthe time.
4 rental income Not at all, and thanksfor calling.
18 On the face of it, this seems like a good investment. Goodbye.
ñs with Possibilit¡es for checking¡ncludespeakingto an 28 a79,2O b9 c79,20 d16 e10 fL5 913
re prefix, independent financ¡aladviser,runninga searchon an h7 ¡15 j16 k72 t7 m 16 n2 o8
o an heir'.) independent financialwebsite(e.g.www.fool.co.uk) and p\4 q7t
ble compar¡ngthe f¡guresquotedwith those quotedby other 30 - Planyourcall.N4ake noteson whatyou wantto say
agenctes. and writeout ¡mportantphrasesor questions.
19 1 Froma colleague(Jord¡Forrat) - Practisewhat you are go¡ngto say beforeyou call. Do
2No you needto speakmoreslowly?
2O 7c 2b 3a 4b - As you makecalls,writedownany newexpressions
Erner of 2t t, 2, 4, 5, 6, 8, 9, 72,L4 you hearand add them to a phrasebook.
22 7T 2f 3 F (ln replyto Ms Cervera's quest¡onabout - lf the speakertalks too qu¡ckly, don't be afraidto ask
what happensif a developergoes bankrupt,Ms F¡alová h¡m/herto slowdown.
replies'That'srarein the CzechRepublic'.) 4 F (lf - At the end of a call.summarisewhatyou haveagreed
someonehas used a propertyas securityfor a loan,the so that you can confirmyou both understand.
lienholderwould havea legalclaim aga¡nstthe property
if the lien has not beensatisfied.) 5 F (Restrictive
covenantslim¡tthe use of property.) 6 F (she recommends Language
Focus
her brotheras a lettingagentfor find¡ngtenants.) L
23 lc 2d 39 4h 5i 6j 7a 8e 9b l_0f
nd 25 l- A statutoryperiodictenancy¡s automat¡cally created.
cial 2 The landlordcan chooseto evictthe tenant,in which
mow well case he/she must first serve notice(of ev¡ction).
untess 26 t5 2 s i x 3 l S e p t e m b e r ( y e a r n o t g i v e n4) I 4 , O O O
le of Czechcrowns 5 28th 6 28,000 Czechcrowns
tt the 27 1 Novákand Fialová, how may I help?
re of the 2 Howmay I help?
ñventions I'd be very pleasedto.
qjment to 3 Hello,can I speakto Ms Fialová, please?
a formal 4 Can I tell her who'scalling?
5 lt's tvlartaCerverafrom Jacksonsin Valencia.
E Semtnar 6 l'll put you through 2 ! rcal estate,real property
L woulo 7 Hello,Ms Cervera? 2 prior agreement,priorconsent
nguage 8 I'm callingaboutmy recentemail. 3 mutualagreement,mutualconsent
pn. A I wonderedif it wouldbe possibleto discusssome of 4 exclusiveagreement,exclusivepossession
'speaKrng the points overthe phone? 3 2b 3g 4c 5a 6d 7f
ie below ... we wonderedif you couldhandlethe conveyance? 42j 3e 4g 5h 6d 7b 8a 9f 10c
I wonderif you wouldn'tmind talkingme throughthe
ural land essentials?
nay l'vejust receivedthe translatedtenancyagreementand Ur:itS
bnd.) wantedto checkon a coupleof things. 21,F 2T 3T 4F
uyng 10 Do you havea moment? 3 1-claimant;defendant;solicitor;barrister;court
15 | thoughtso 2 arbitrator; arb¡trationtribuna| (arbitrationtr¡bunal;
ersnIp Of course. arbitrato0
So I'd heard. 3 th¡rd party;disputingparties
Really? 4 td 2a 3b 4c
mland. That'sright. 5 The websiterefersto mediation.
¡ facilities Great,thanks. 6 ADRis often much quickerthan l¡tigation(in the USA,
natynave I'm pleasedto hearthat. the averagecontract-based lawsuittakes two years;
Really? similarcasesin arbitration can be as shortas five or
16 lt's a buy-toJetpropertythat you'reinterestedin, is that six months).Thiscan meanthat arbitration is also much
Yfl right? cheaperthan litigation.Partiescan st¡pulatethat the
Right,so I don't needto form a limitedcompanyfirst to arbitratormust havespecificexperiencein the mauer
! different. own property? underdispute.Judgesmay be experiencedin law,our
Why?Are there tax advantages? may not havespecificexperiencein the f¡eldthat is
Sorry,can you say that again,please? beinglitigated.EmployingADRmethodsoften means
of land ¡n I'm sorry,what was your question? that partiesare morelikelyto continueto do business
What,likeno animals- that kindof thinÉ?

Ans'rerker
 his employeesnas
is likely 24 tfo informthe recipientthat one of
with each other,and is a good option lf litigat¡on left his firm and intends to sue for damages'
ADRmay not
to cause publ¡cembarrassment'However' z lvtrTyteraccusedMs Lousheof stealing
confidentlal
option where one party wants a test case to set a
be an information.
also be
pi"""O"nt or is seekinginjunctiverelief' lt may 3 A tribunalclaim for constructivedismissal
and a
that one party is hoping to drive anotnerour tr
the case defamation su¡t (both are claimsfor damages)'
better achieved
of business,an outcomethat is often 4 Suggestan acceptablesettlement
(saüsfactoryproposats)'
through the time and expense of litigation' 5c
to litigating' 25 Lh 2e 3¡ 4a
One partymay see a strategicadvantage 26 1 The letter states that our client would be
preparedto
particularly true
ratherthán attemptingADR'This can be discuss alternatúe means by which this matter m¡ght
or if it is
iion" punv has greaterfinancialresources' be resolved. This suggeststhat Ms Lousheis leavlng
that one party would be likely to win a more
perceived her options open for the time being'
may also
lun.tunt¡uf awardshouldit go to trial' Litigation 2 On the face of it, she is in a very strongbargalnlng
unsettled legal
Oea preterreOoption if the case involves position,due to the exact natureof Mr Tyler's
conduct'
However'litigation
issues,ratherthan purelyfactualones' It is possiblethat she may simply accept a return to
will often havea negativeimpacton the relationship work, together w¡th some kind of financial compensat¡on
betweenparties,and can be bad for business' . for hurt ieelings. However, she maytry to use the
Zhang to take part In a
7 1 Nicholasinvites Professor
situation to her advantage and insist on the promot¡on
to join the
simulatedarbitrationat the LawFacultyand and increasein salarymentionedin the
letter (as well
membersof ELSAas their guest at a olnner' as thls, she may also require some kind of financial
a Chinesecase
2 The simulatedarb¡trationwill be about compensatlon oue to the maliciousnatufeof Mf
'Peanutkernel'case'
calledthe iyt"rl, u"tion.;' Alternatively' she mayfeel that she
relevant
3 Nicholasoffersto send ProfessorZhang is no longerableto work for the firm and insiston a
information aboutthe plannedsimulation' generousfinancialsettlement'
8 a am taking(B) 27 Tyircatfeaturesof formal legalcorrespondence-include:
are also learning(B) use of the passlve'words of Latinorigin
often favoured
are visiting... and giving(A) overwords of Anglo-Saxon origin'a tone which is often
are holding(A) (whichis generally
colderthan buslnesscorrespondence
are hosting(A) more neutral),tne use of (formal)standard
phrases'e'g'
b will advertise(C) we are instructed by the above named client'
will attend (D) 28 L heremploymentw¡thyour company
2 due to the
will be carriedout (E) which the allegations.ag€inst our
circumstances under
will havetime (E) clientwere made 3 satisfactory
proposalsror
will use (E) settlementof this matter 4 in connection
with
will be able(E) 5 stand excellent prospectsof successshouldshe decide
4 w¡ll try
1 are holding 2 am flying 3 am meeting to pursuea clalm 6 to commence
proceedingsagalnst
5 will contact 6 will be would
you 7 a substantialincreasein her remuneration
10 ! c 2a 3b 8 ¡nstructed by the above named
shorttyUeforthcoming
LL He talks abouttopics2, 3 and 5' 9 In light of 10 a posit¡ve asset to the company
L2 1 . 2 , 5 , 6 1l- are informed
16 1 c 2 d 3 e 4 a 5 b (includingthe
you carry' lt is also used 29 Fulldetailsof exactlywhat happened
18 t n burOenis a heaw loadthat circumstancesof the alleged theft' what evidenceMr Tyler
that you nave
to mean somethingdifficultor unpleasant has and how he might have defamed Ms Loushe)'
to deal with or worryabout' 1 F (Ms Loushe has not come into work' but has not
employment 30
2 The most commontypes of litigationare resignedor been dism¡ssed') 2 F
(He fired her for
and contractdisputes' profássional negligence') 3T 4f 5T
USA') 2 T
-tg LF (Theyare l-2 times higherin the 3lonthefaceofit,notVeryconvincing.MrTy|er'sSuspic¡ons
quicker'but see little
á f irney oonsiOerarb¡trationto be are based purelyon circumstantialevidence'
conjecture
differencein cost.) A lawyer would probably advise him to settle
and rumour.
20 lncreasedregulation as soonas Possible'
27.7c 2d 3a 4b 32 1 Concreteevidenceof the allegedtheft'
(and not
iZ ¡nuy couldcome to the end of their contract 2 To take Mr Tylerto a tribunal(for construct¡ve
haveit reneweo). dismissal).
at the end of the
Theycould hand in their not¡ceand leave 3 He shouldoffer a generoussettlement'
periodof notlce. the bas¡c
job because 4 The damagesconsistof two separateawards'
iney coutdbe dismissed(fired)'i'e' lose their award and the compensatory award'The basic awardis
as a wayof
tney travedone somethingwrongor badly'or calculatedaccordingto a formulabased
on age' length
saving the cost of emPloYing them' gross pay'The compensatoryawardis to
job of service and
Theycouldalso be maderedundant' i'e' losetheir beingunfairly
compensatefor the loss sufferedthrough
becáusetheir employerno longerneedsthem' dismissed.
breachof
Theycould leaveas a result of the employer's 5 t58,400
contract and sue for constructive dismissal' to establishthe
due to h¡s/her employer's 33 BeforeI can glveyou any advice'I need
23 1 Whenan employeeresigns relevantfacts.
employer'
behaviourand bringsan actionaga¡nstthe Pleasedo g¡veas much detail as
possible'and try not to
prove that the employer's actions
The employeemust avoidany fácts which may be uncomfortable' lt's better
unlawful'
were either in sertousbreachof contractor I hear everything now in order to avoid any unfortunate
claims)and
2 The allegattonswere untrue(so the client surpriseslater'
were made in front of another person'

150
 ñas It's probablybest just to stick to the facts surrounding... for suchviolationsincludethe claimsthat important
Andyouthinkthat this is in somewayconnected with ...? nationalsecurityand foreignpolicygoals are at stake.
tal I thinkyou'dbettertell me just whatyou suspect... 3 lf the casegoesto trial,the courtwill first decide
Anddo you haveany proof...? whetheror not it hasjurisdiction. The legalquestions
So thesearejust suspicions? will then be identified,and choiceof law ruleswill
34 DearSirs determ¡ne what lawsshouldbe applied.Thecasewil
0osais). Re: JayceeLoushe then proceedaccordingto these laws.
Thankyou for your letterof 29 February2008. 1 Custom,leg¡slat¡on and treaties
g¡o We cannotacceptthe allegations yourclientmakes 2 1 ln whichjurisdictionmaya case be heard?
lEht againstMr Tyler.With regardto the specificpointsyou 2 Whichlawsfrom whichjurisdiction(s)apply?
¡ \I n g ra¡se: 3 A supranationallegalframeworkis one that involves
1 lt is clearthat Ms Loushehas misunderstood Mr morethan one countryand has poweror author¡ty that
1C Tyler'sconcernoverthe possiblemisuseof confidential is greaterthan that of singlecountries.The laws of a
r 0u c t . informat¡on. Mr Tylerhas certainlytakenMs Lousheinto nationstateare not appl¡cable if in conflictwith those
rlo his confidence on this issue,but it had not occurredto of a supranat¡onal legalframework.
frsatron him that the difficultiescurrentlyfaced by DavidTyler 3 l- to; by; tn 2 lo 3 Under;to 4 to 5 on
ConstructionLtd could haveanythingto do w¡thyour 4 1c 2d 3f 4a 5e 6b
no:on client. 5 If 2a 3c 4b 5e 6d
'Recentdevelopments in
i ^e,i 2 Ourclientdenieseverhavingmadeany reference to Ms 7 Thetop¡cof the first seminaris
Loushe'spossiblepromotion. Europeanlabourlaw : it is intendedfor lawyersin private
3 Ourclientdenieseverhavingmadeanydefamatory practice.in-house counselor civilservantsspecialised in
f€ statementsconcerningMs Loushe. labourlawor workingwith businesses, associations or
ua Shouldyourclientchooseto pursuetheseallegations, Mr tradeunionsat nationalor European level.Thetopicof
Tylerwill haveno optionbut to file a counterclaim aga¡nst the secondseminaris Recentdevelopments in Eurcpean
tüoe: lvlsLoushefor recoveryof damagesarisingfrom her companylaw';it is intendedfor lawyersin private
ure3 suddendeparturewithoutnotice. practice,in-house counsel,officialsin tax administrat¡ons,
fler Yoursfaithfully accountants and academics.
rera ' Tong,Nelsonand YarbroughSolicitors 8 l_B 2A 3N 4B 5N
Tong,Nelsonand YarbroughSolicitors 9 Directive2OO7/36/ECon ...
... the 3rd and 6th CompanyLawDirect¡ves ...
€ ... the Commission publishedits Communication
LanguageFocus coM(2007)394...
1 1 to reachan agreement,an outcome,a settlement A recommendation on ...
2 to file a lawsuit ... for the EuropeanPrivateCompanyStatute.
3 to delivera judgment ...theproposalfor a Direct¡ve on ....
f,,a's: 4 to decideon an outcome,a settlement 10 1 Recommendat¡ons and opinions 2 Regulations
I rO- l 5 to settlea disoute.a lawsuit 3 Directives 4 Decisions 5 Communications
2 LI 1 fullybind¡ng, bindingon (Theterm bindinguponis
also used, although is increasinglyless common in
contemporarylegal texts.) 2 lvlemberState
9 3 achievea goal,reacha goal (Thetwo collocationsmean
ll' r, e' the same.) 4 leavesomething to the discretionof
5 courseof action
Ei L2 1 A landmarkcase (or landmarkdecision,landmark
ú ruling)is one that establishesa precedentwhicheither
3 2 resolve/settle 3 legal 4 alternative;resolution substantiallychangesthe interpretationof the law or
ÉO.C C- S 4 2 Youmentioned that ... establishes newcase lawon a particularissue.Th¡s
3 Couldyou go backto the po¡ntabout... case is considered to be a landmarkcase becauseit
)s€:¿ whatyou said about...
4 I'm afraidI didn'tunderstand will havean impacton countriesthat do not havea
51d 2c 3e 4a 5b m¡nimumwagebut who relyon collective bargaining.
2 a Laval:.a Latvianconstruct¡oncompanyemployed
to carryout some renovationwork on a school
Urn€t
ry in Sweden;Lavalgavethe work to one of its
subsidiaries (seebelow).
1 1 Publicinternationallaw refersto the corpusof
¡E :3S : legal ruiesthat applybetweensovereignstates and b Vaxholm:the Swedishtown wherethe schoolwas
tra': s international organisations (e.9.the UnitedNationsand located
r €.Éi-
the International Courtof Justice).Privateinternational c L. and P. BalticBygg:the subsidiary companyof
trc s:- law is that part of lawthat dealswith cases involvinga Lavalwho actuallycarriedout the renovationwork on
t ,C r ¿ . ,
foreignlaw elementwheredifferentjudgmentsmay result the schoolin Vaxholm
depending on whichjurisdiction's lawsare applied. 3 The casewas heardin the SwedishLabourCourtand
2 Thetwo mainweaponsavailable to the international the European Courtof Justice.
6¡ :': communitywhen a state refusesto complywith 13 1 F (Theycalledfor the blockadebecausethe Latvian
internat¡onal laware sanct¡ons(agreements among workerswerebeingpaid lessthan theyshouldhave
I rE::: states to ceasetrade with a state that has violated been.) 2f 3T 4T
He' ¡nternationallaw)and the threat of war. lt is sometimes L4 1 wage 2 bargaining 3 Latvia 4 lower
.ca'-e said that most states follow most internationallaw 5 bankruptcy 6 Justice 7 2OO7 8 right 9 se., :es
most of the time, and countrieshaveoften stretched 10 Posting l-l- disappointed
or violatedinternational law.Commoniustif¡cations
A n s , r e kr e i
 29 Welcomethe client:Yes
16 1 ldeas emanatingfrom one jurisd¡ctioncan be developed
Acouireinformation:Yes
by individualsor companiesfrom otherjurisd¡ctions'
Supplyinformationand advise:The lawyersupplieda lot
leadingto possibleissues concerninginternationallaw'
of informationon the stagesof a conflictof laws case'
e.g. open sourcesoftware,often developedcollectively this will
from manyjurisdictions,sometimes althoughhe gave little actual advice'Presumably
by programmers
reglstered be includedin his follow-upletter once he has had the
infr¡nges Patents.
opportunityto researchthe possiblelegalclaims and
2 A case involvingpartlesfrom differentjurisdictionswill
jurisdict¡on issues in more depth.
often involvequestionsof a) what court has
Part: Yes
to hear a case, and b) what laws (fromwhich
jurisdictions)applyto whichaspectsof the case' 30 a 1 rephrasing
2 givingexamples
17 Headline2
3 simplifying
18 l-d 2a 3c 4b
4 givingfurtherdetails
19 1 presumption 2 governs(to govern) 3 rigid
b rephrasing: to put it another way "'; this actually
4 entitled(to entitle) 5 narrow 6 infringement
means...
7 ruling 8 extended(to extend) 9 test
software giving examples: for example,for instance
21 1 AT&Tholds a patent on its voice-compression
(refened to as AI&f's speech-process¡ngcomputerin simp¡ify¡ng:¡n essence,reallY
giving further details: specifically,in particular
the decision).
31 Student A
2 Sendinga part of a patentedinventionoverseasto be
1 nationality:the officialrightto belongto a particular
incorporatedinto anotherproduct'
country;
22 1 Section27L(f) of the PatentAct providesthat
'suppllies] from the 2 dual citizenship:the state of beinga memberof two
infringementoccurswhen one "'
'combination'abroad,a patented oarticularcountriesand havingrightsin both because
UnitedStates',for
of this
invention's'comPonents'.
softwareis not a
'component'of an 3 competent:a court is competent(or has competence)if
2 1 Unincorporated
it has jurisdictionto hear a particularlawsuit
inventionunder5271(0 becauseit is ¡ntangible(not
4 forum shopping:the practiceof filing a lawsuitin the
materialor physical)information'
jur¡sdictionthoughtmost likelyto providea favourable
2 Copiesof Windowsmade overseasand installed
'supplield] fromthe United outcomefor the claimant
abroadwerenot "'
5 expat (= expatr¡ate):a personwho has decidedto live
States' underS27l-(f).
in anothercountry,often for work purposesor to retire
3 Microsoftwas not liable underS271(f)becauseit did
6 cause of action:the fact or facts that givea personthe
not exportthe copiesof Windowsinstalledon the
computersin questionfrom the United r¡ghtto seek a legalremedythroughlitigat¡on
foreign-made
'suppllyl from the Student B
States,and thereforedid not "'
'components'of those computers' 1 joint purchase(of land):to buy land togetherwith one or
Un¡tedStates'
more other peopleor businessentities
23 The softwareat the centreof this case was first sent
2 residence:the placewhereyou live (a personmay have
from the UnitedStatesto the foreignmanufacturerseither
hfs/her state of domicileelsewherefor tax or other
on a masterdisk, or by electronictransmission'lt was
purposes,especiallyif the residenceis for convenience
then copiedby the foreignrec¡pientsfor installat¡onon
or temPorarY)
comoutersmade and sold abroad'The rulingmay have
3 domicile:the placewherea personhas his or her
been differenthad Microsoftphysicallysuppliedeach copy
permanentprincipalresidence(home)to which he or
of Windows(i.e. by post on CD or DVD)that was then
she returnsor ¡ntendsto return
installedon the foreigncomputers'
4 renvoi:the choiceof law rules that may be applied
25 countries:Scotland,Austria,Germany,Slovenia,America
whenevera court is directedto considerthe law of
(the term USAis also mentioned),UK' Russia
anotherjurisdiction
nationalities:Austrian,Turkish,British,American'ltalian
5 cross-border recognition:for something(e'g' a judicial
26 I A restaurantin Austria(lnnsbruck)
decision)from onejurisdict¡onto be acceptedin another
2 Thejoint purchaseof a restaurantfrom Mr Piombo
6 adjudicate:to act as judge in a legaldispute;to maKea
3 As a Turkishnational,Mr Kundakqrcan't buy property¡n
formal decisionabout something
Austria.
jurisdict¡on)
4 Wh¡chcourt ls competentto hearthe case (has
(UK)
27 1 Slovenia 2 Germany 3 British 4 Scotland Focus
Language
5 Kentucky(USA) 6 Austria 7 Russia 8 email
9 Jones 10 cred¡trating 1 1 binding 2 advisory 3 customary 4enforceable
5 governmental 6 intellectual
28 a 1-Court must decidewhetherit has jurisdictionin each
of the possiblelegalactions¡n the case' 2 1 bilateral 2 non-governmental 3 supranational
g¡ve 4 inter'state
2 Bteak down the cause of action (the facts that
r¡seto the legal claim) into its component legal 31c 2d 3a 4b
categorles.
3 Oncethe legalissues havebeen determined'decide
whichlawsshouldbe aPplied'
Unitlo
4 Applythe appropriatelaw to reacha judgment' 1 1 A systemthat combinestwo or more aspectsof
5 Securecross-border recognitionof any award' differentlegalsystems.
b 1T 2f 3 F (lt is the factsthat giveriseto a legal Mixedsystemsincludethose based on civil law
and commonlaw (e.g.Scotland, and
the Philippines
action.) 4 F (lt is a questionthat arises in connection
jurisdictionsbasedon SouthAfricanlaw)'civil law
withthemainclaim.) 5T 6F(Cross-border
recognitionneedsto be securedseparately') ánd religiouslaw (e.g. Egypt,Indonesiaand Morocco)'
commonlaw and religiouslaw (e'g' lndia,Pakistanand
SingaPore)'
152
 3 The majorityof English-speaking jurisdictionshave Expressingsimilarity
commonlawor m¡xedsystemsbasedon commonlaw. . . . s h a r es i m i l a r. .. ; . . . i n b o t h. . .
!dalot 2 7 The importanceof comparativelaw is growingdue 1 differin; On the otherhand/ Conversely
c¿se, to the globalisation of worldtrade,whichmeans 2 whilethe oppositeis true
thrs will that lawyersoften haveto work w¡th more than 3 ln both
ct the onejurisdiction, and as a resultof the increasing 4 A majordifferencebetween;0n the other hand /
ano harmonisation of lawsworldw¡de. Internationalism Conversely
and democratisation havealso led to the growthin 10 1 The translatorcan translatea term incorrectly. This is
¡mportanceof the studyof comparativelaw. often due to interferencefrom anotherlanguage(i.e.
2 HCCstandsfor the HagueConferenceon private the translatorwronglythinksthat a similarsounding
InternationalLaw.lt is a globalintergovernmental wordfrom his or her own languagemeansthe same).
organ¡sat¡on whichaims to work for the progressive it couldalso be becausethere¡s no equivalent concept
unificationof private¡nternationallaw. in the language of the jurisdictioninto whichthe text is
|,^ 3 The Un¡formLawon the International Saleof Goods. beingtranslated.In the lattercase,the translatormight
1964. choosea wrongword,leaveout the unknownterm or
3 1 Applicability of lawsrefersto the questionthat anses fa¡lto prov¡de an adequateparaphrase.
when a case involvespartiesfrom more than one 2 Theseproblemscan best be avoidedif the translator
jurisdiction:whichset of lawsappliesto the case? has a goodknowledge of both legalsystemsof the
2 Internat¡onal civil procedurerefersto the processthat sourcelanguage and the targetlanguage, or if the
tula. courtswill followwhenhearingcivilcasesthat havean translatorworkstogetherwtthsomeonewho knowsthe
¡nternationalelement. legalsystemwith whichthe translatoris not familiar,
I t*c 3 Enforcementofjudgmentsmeansthe efforts that are or if the translatorrs fullyawareof the problemsthat
eC¿uSe madeto makesurethat a legaldecision¡s obeyed(e.g. c a n o c c u ra n d r e s e a r c h et sh e u n f a m i l i at er r m sv e r v
ensuringthat an awardfor damagesis paid,or that a carefuIly.
:
?tence contractis performed). 3 A practis;ng lawyershouldbe awareof these problems
4 The phraseprogressiveunificationof law is used ro whenmakinguse of textswhichhavebeenor needto
¡ tne talk aboutthe processby which lawsfrom different be translatedso that helshe can makesurethe quality
I¡fao e jurisdictions are mademores¡milar. of the translatedtext is goodbeforerelyingon it. This
4 l- Civillaworiginated in ancientRomeand was later is especially true whendealingwith clients.documents
llo ,e developed in continental Europe. and/or lawsfrom anotherjurisd¡ction.
|o fe:'e 2 Precedent¡s at the core of commonlaw systems.The LL Theyneedto be awareof the differencesbetween
tso. :'e term refersto decisionsthat establishlegalprinciples, differentlegalsystems,whichinvolveshavinga high
or whichreversethe decisionin an earliercase.These levelof familiarity withthe legalsystemsof the countries
precedentsare then appliedin future cases. 'originating
and receivingthe translatedmessage'.
n¡ ore or 3 Stare declslsis the doctrinethat compelslowercourts L2 Falsefriendsare wordsthat appearto be the same as
to followdecisionsmadeby highercourts. other words ¡n the target language,but whichactuallv
tra\ na\ e 4 codifiedlaw,enactedlaw havea differentmeaning.
il€r Note:The lerm written/aw is also used. Theseterms 13 1 The f¡rst categoryincludesconceptsthat havea nearlv
Fnrence contrast with the tetms uncod¡f¡edlaw, unenactedlaw identicalequ¡valentin the target language.
and unwr¡tten/aw(all used to referto precedent). 2 Thetranslatorshouldresearchcarefullyand avoid
fEr 5 1-subsequenily
2 compels3 rendered4 paramount misleading
thereader
ordistortin{
ihemessage
?E O. when
In eachpair,the secondword(theone in the or¡ginal
text) choos¡ng terms.
is moreformal. 3 The problemposed by the third category¡s when there
Eú 6 are tegalconceptswith no near or roughequivalentIn
¡ol
the target legalsystem.Theyshouldbe explainedto the
Origin England(fromthe 1lth degreenecessaryto the particu¡arcontext.
fÉc a Romanlaw,
centuryon); reported L7 1- Equitableremediesare the remediesdevelopedby the
I ano:'€' as codifiedin
judgmentsof adjudicated the Corpus old courtsof equity,suchas the Courtof Chanceryin
O rn¿.e :
disputes JurisCivilisof England. Theseremediesare still available today¡n
Justinian commonlawjurisdictions and includeinjunction, specific
Countries England,Walesand lreland, Continental performance, rescissionand estoppel.
foundin 49 US states,nine Canadian Europeand 2 The doctrineof promissoryestoppelpreventsone party
prov¡nces,most independent aroundthe world from withdrawinga promisemadeto a secondparty ¡f
C&,e States of the British the latter has reasonablyreliedon that promiseand
Commonwealth acteduponit to his detriment.
6¡
lmportance Precedentis the major Supplements the 3 Somejurisdictionshavedifferentgeneralcategories
of case law sourceof law; lowercourts codifiedbody of cr¡medepend¡ng on the¡rseriousness. In US
compelledto followdecisíons of law jurisd¡ctions,a misdemeanour is a lessercrime
of highercourts (s¿are punishable by a fine and/orcountyjail time for up
declsls) to one year.Misdemeanours are distinguished from
lmportance Priorityg¡vento unenacted Prioritygivento felonies,whichare moreseriouscrimesand can be
a of enacted law overenactedlaw enactedlaw over punishedby a state pr¡sonterm.
law unenactedlaw 4 Thethingof valuethat inducesanotherto enter¡ntoa
contract,includingmoneypayment, servicesofferedin
i tad returnand prom¡ses,is referredlo as cons¡derat¡on. ln
F common-law systems,consideration must be foundin
¡f¡:: orderfor a contractto be legallybinding.Consideration
út a':

Answerkey
 must not be from the past,whichmeansthat a
contractcannotbe based upon considerationthat was
givenbeforethe contractwas made. Forexample,if
A promisesto rewardB for an act that B has already
performed,the performanceof that act is past
cons¡deration and thereforenot good consideration.
5 The Lord HighChancellorof GreatBritain(or Lord
Chancellor)is responslblefor the efficientfunctioning
and independence of the courts'
19
20 1 Michaelasks Garethwhat the term means.
2 Becauseshe took her first degreein the UK. She also
wrote her dissertationon the topic of equity.
3 Equitydevelopedas a way of deal¡ngwith the inflexibility
of the Englishlegalsystem.
2L 1 F (lt removedthe LordChancellor's judicial roles')
2 F (Theexamplesof equitableremediesgivenin the text
are injunctionand specificperformance.)
3T
4 F (TheCourt of Chancerywas abolishedby the
JudicatureActs 1873-1875.)
l- F (lt is similarto the Englishconceptof goodfaith.)
2 T (lt has the effect of softeningthe harshnessof the
law in the samewayas equitydoes in England.)
23 ls that the equivalent of Treuund Glauben?
Fromwhat Beatesaid, it's basicallythe same as your
concept of goodfaith. lt has a similar effect to equ¡ty¡n
certa¡ncases.
I think that equ¡tycorrespondsto certain concepts in the
FrenchCodecivil,but these haven't had quite the same
amountof influencethat the conceptof goodfaith has
had in Germany.Still,they'recomparableto each other.
What they do have is somethingsimilar called the
doctrineof the abuse of rights.That has the effect of
softeningthe harshnessof the law in the same way as
equitydoes ¡n England.
34 l- A tax havenis a countryor independentreg¡onwhere
certaintaxes are leviedat a low rate or not at all.
2 Thereare manytax havensthroughoutthe world,
including Andorra, the Bahamas, Jersey,Monacoand
Panama.
3 Taxavoidancerefersto legalmeasuresthat can be
taken to minimisea personor businessentity'stax
burden.Taxevasionrefersto unlawfulmeasuresto
achievethe same ends as tax avoidance.
4 Assetprotectionrefersto methodsby which individuals
or entitiesprotecttheir assets from legal problems
(e.g"judgments)and/or taxes throughthe use of
multiplebusinessentities,trusts,insurance, and estate
planning.
26a
27 1 Stiftung 2Anstalt 3 beneficiaries 4contempt
28 Examplesin italicsare not includedin the text.
Besides, Furthermore,ln addition, On top of
this, Similarly,Moreover,What's mare
Comparing, Alth""gh,Wh,É,Instead,That said,Despite
contrastingand Lhis,However,On the other hand,
quali¡iing ln contrast,Atternat¡vely
Consequently, Becauseof this, As a result.
Therefore,As a consequence,lt follows
from this,For this reason,So, Thus,
Accordingly
Notably,The fact that-,ln fact, ln particular.
Of course, Ctearly,Ultimately,lndeed
r54
3O DearMs Radford
Asset protection entities in Panama
Thankyou for yourphonecall of 5 June2008. As I outlined
brieflyduringour conversation,I believethe Panamanian
foundation(hereafterthe foundation)might be a suitable
alternativeasset protectlonmechanism.I havenow had
the opportunityto researchthis morefully,and am pleased
to providethe followingsummaryof the foundat¡on.
The foundationis largelybasedon Liechtenstein'sStiftung,
as describedin my letter of 2 June2008. Likea corporat¡on'
the foundationcan hold title to assets ¡n its own name.
However,it can also make discretionarypaymentsto the
founderor beneficiar¡es, like a trust.As withthe Stiftung'the
foundationis mostlycontrolledby its bylaws'Thesebylaws
do not haveto be registered or publiclydisclosed.
Perhapsthe greatestadvantageof the Panamanian
foundationoverthe Stiftungis that the Panaman¡an
versionis relativelyinexpensiveto form and ma¡ntain.
Anotheradvantageis that Panamais in the U.S. Eastern
time zone,makingadministrationof the foundationfrom
the U.S.easier.However, the t¡me differencebetween
the U.S.A.and Liechtensteindoes havethe advantageof
beingpotentiallyfrustratingto creditorsin communicating
withtheir localcounsel.
Panamahas a three-yearstatute of limitationfor
fraudulenttransferchallengesto contributionsto the
Foundation.lf giftingis utilisedto fund the foundation'
there will be a three-yearwindowavailablefor creditors
to attemptto void the gifts. Oncepast the three-year
lim¡tation,the assets are generallysafe from creditors.
Panamanianlaw spec¡fically providesthat the foundation
assets may not be appliedtowardsthe debts of eitherthe
founderor any beneficiary.
As withthe Stiftung,probably the best use of the
Panamanian foundationis not to holdassetsbut rather
to ownan entitythat is usedas a management company'
Froma creditor'sviewpoint, the management companywill
be ownedby a Panamanian charitywiththreePanamanian
residentsas membersof the foundation's council.The
cred¡torwill likelynot see that the U.S.settlorhas appointed
one or more protectorsto make sure that the council
memberscarryout the purposesof the foundation, as set
forth in the charter.Thereforeit wouldbe very difflcultfor
a creditorto claimthat the U.S.ownerof the asset being
managedhas anyties to or controloverthe foundation.
I wouldbe very pleasedto provideyou with further details
shouldyou be interestedin settingup such an entity,and
look forwardto rece¡vingfurther instruct¡ons.
Yourstruly
JohnPlatt
Focus
Language
L
2 1c 2d 3a 4b 5e
3 1 apply,enforce,render,recognise
2 apply,enforce,harmonise,modernise,recognise
1 on the other hand 2 Indeed 3 Conversely
4 However 5 notablY 6 In add¡tion
7 lhus / Therefore 8 however 9 Therefore/ Thus