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ILEC – Mid Term Exam – Units 9 to 16

Part 1) Grammar & Vocabulary

Questions 1-6 Read the text and choose the correct answer, A, B, or C.

Corporate Insolvency

On a company becoming insolvent, there are informal and formal ways to (1) ..... the situation.
A small company with few creditors may informally negotiate a (2) ..... extension and larger
companies in multi-bank situations may use the London Approach, involving the banks remaining
supportive and continuing banking (3) ..... while seeking a solution involving rescheduling and a
possible debt-for-(4) ..... swap. The danger of informal (5)..... is that there is no protection from
action by other creditors while the terms of a workout are being agreed. The (6) ..... Act tries to
ensure the survival of the business through the formal options of (i) receivership; (ii)
administration; (iii) company voluntary arrangement; and (iv) liquidation.

1) A resolve B solve C remedy

2) A liability B debt C borrowing

3) A activities B facilities C actions

4) A assets B shares C equity

5) A proceeds B processes C procedures

6) A Insolvency B Liquidation C Debentures

Questions 7-12 Read the text and choose the correct answer, A, B,or C.

Basis of EC Competition Law

The inspiration of the EC system was American law, which aimed at developing free interstate
trade by (7) ..... anti-competitive agreements,and notification of agreements to competition law
authorities, (8) .....between competitors at the same level of the market (that is, horizontal
arrangements,) or between persons at different levels of supply (that (9) ..., vertical arrangements).
The European Commission regulates closely all vertical and horizontal arrangements and looks at
market power,the efficiency benefits of an agreement and the effect on consumers.The basic
principle is set (10) ..... in the EC Treaty in Article 2 and in(11) ..... Article 3( f) which envisages ‘the
institution of a system ensuring that competition in the common market is not distorted’. The
framework for regulation of competition between private undertakings (as opposed to public
undertakings and restrictions on state aids) is in Article 85 (which regulates restrictive practices),
Article 86 (which regulates abuse of a dominant position), together with Regulation 17 (which
establishes the machinery for the (12) ..... of the law).

7) A outlawing B prohibiting C banning

8) A both B whether C either

9) A for B means C is

10) A in B out C upon

11) A general B spirit C particular

12) A enforcement B implementation C application

Questions 13-20 Read the following extract from a lease.
Choose the best word to fill each gap from A, B, or C below.

5.01 USE OF PREMISES. Tenant shall use the Leased Premises for the purpose of a sit- down
café with full service bar and entertainment, including live and/or background music. During the
(13) ............... of this Lease and any extensions hereof, so long as Tenant operates a café described
above, neither Landlord nor its affiliates shall lease (14) ............... in the Property or in any premise
within 10 miles of the Property to any other café which operates ina similar manner.

5.02 CONDUCT OF BUSINESS BY TENANT. Tenant shall operate the business in the Premises in
(15)............... with all codes, regulations, statutes and ordinances (16) ...............to the Premises
and Tenant's business, and also with all covenants, declarations and restrictions (17) ............... on
the Premises by the Shopping Center of which the Premises are a part, and shall (18) ...............
Landlord against any costs or damages which Landlord may (19) ............... which are a result of
Tenant having failed to so (20) ………….. its business in the Premises.

13) A span B limit C term

14) A space B area C capacity

15) A allowance B concurrence C accordance

16) A valid B suitable C applicable

17) A forced B imposed C obliged

18) A indemnify B reimburse C recompense

19) A draw B incur C gain

20) A engage B conduct C operate

Part 2) Reading Comprehension

Read the questions below and the extracts from a website article about Canadian real-estate law.
Which section (A, B, C or D) does each question 1-5 refer to?
For each question 1-5,mark one letter (A, B, or C) on your answer sheet. You will need to use some
of these letters more than once. There is an example at the beginning

Example:
A famous principle of land ownership should not be understood literally. A B C

1) The court upheld the validity of the purchase. A B C

2) Work done on the defendant’s property was deemed to be legitimate. A B C

3) A proprietor is at liberty to take action to safeguard property, within reason. A B C

4) An interested party was unaware of relevant documentary evidence. A B C

5) The judgment in the case was based on analysis of precedents. A B C

Canadian real-estate cases

A: Atlantic Aviation v. Nova Scotia Light & Power

This court battle was engaged after Nova Scotia Power built high transmission towers on land
adjacent to Atlantic Aviation’s flying school. The court reviewed case law that suggested that
deliberate or malicious obstruction of airspace was objectionable as a nuisance but other than that
a land owner had a right to ¨erect structures on his land in the exercise of his use and enjoyment of
his land, even if the obstructions interfered with the free passage of aircraft taking off and landing
on an adjoining airfield. The erection and use of the towers and wires by Nova Scotia Power was a
lawful, reasonable and necessary use of the defendant’s air space.¨

B: Babcock v. Archibald
Babcock rented a piece of Beulah Carr’s land. At one point, Mrs. Carr offered to sell the land to
Babcock and they signed a memorandum to that effect. Mrs. Carr’s daughter was informed about
the sale and she felt the price was too low. She solicited a better offer from Mr. Clark, accepted it
and title was transferred to Mr. Clark. Babcock asked the court to set aside the registration. The
court noted that Babcock had not registered the memorandum on the title or taken legal action
against Mrs. Carr, putting the action on title. Mr. Clark had never seen the memorandum and so he
did not have ¨the clear and distinct notice necessary to displace his registered interest in the land.¨

C: Bernstein of Leigh v. Skyview & General

Skyview was a company that took aerial pictures of property and then offered them for sale to the
landowners. Baron Bernstein sued Skyview for trespass based on the well-known maxim cuius est
solum eius est usque ad coelum (who owns the land, also owns up to the heavens). The court threw
Bernstein’s case out, saying that the maxim was not to be taken at face value. A land owner had
rights only so far as practical and necessary to protect their structures or to use their land. To
suggest that a person could restrict traffic over their land all the way to the heavens was
unacceptable.

Part 3) Writing

You must answer this question.

You are a lawyer working in the IP practice group of your firm. One of your clients believes his
company’s intellectual property rights have been infringed. Settlement has been proposed by the
other party. The partner who supervises you has requested your assessment of the case.

Write a memorandum to the partner who supervises you. Your memorandum should:

•outline how your client’s intellectual property rights may have been infringed •discuss the
advantages of settlement
•discuss the disadvantages of settlement
•evaluate whether legal action is appropriate.

Write your answer in 200 – 250 words in an appropriate style.

Part 4) Listening

You will hear a speaker welcoming delegates to a conference on Competition Law.

 For questions 1 – 9, complete the sentences.
You will hear the recording twice.

Conference on Competition Law

The discussion on minority interest acquisitions is described

as being the most (1) ....................................... of the day.

The talk on the most recent (2) ....................................... will begin at 2.30.

The afternoon panel discussion will focus on (3) ....................................... as a form of abuse
of market dominance.

On Day Two, the session on enforcement issues

in competition law will be conducted as a (4) ........................................ .

The conference website included programme details and any

(5) ....................................... that were available in advance.

The session on (6) ....................................... will be chaired by Maurice Blick.

In future, the fee payable by (7) ...................................... lawyers will be €515.

For all delegates who are staying in designated hotels,

(8) ....................................... will be provided.

Delegates wanting accreditation for attendance can obtain

this at the (9) ....................................... .

Part 5) Speaking

1. Explain the following points on these topics.

Property Law
•the most common legal issues involved in the sale of land
•how land purchases are usually financed in your country
•the role of a lawyer in land sales and purchases

Negotiable Instruments
• the meaning of a negotiable instrument
• the importance of a promissory note
• how a bill of exchange works

2. Role-play

Incorporating a Business

One of your clients would like to incorporate a business and has asked you for advice on what this
involves.
Discussion points:
• the advantages of becoming a company
• the legal documents that are needed when a business is incorporated
• what a company is legally required to do annually

3. Discuss the questions

• What are the disadvantages of becoming a company?

• Why do some companies not have shareholders?
• What are the various types of corporation and how are they different?
• In what ways can a company cease to exist?