Professional Conduct MCQS Flashcards
Identify whether the following scenario indicates a high or low risk of money laundering:
Your client, a British national, is purchasing a flat for his daughter. He deposits £500,000 in your firm’s client account for the purchase from a bank account in Bermuda. The next day he rings you to inform you that the purchase is not going ahead. He asks you to transfer the £500,000 to his wife’s bank account in the Cayman Islands
A) Low risk. Neither Bermuda nor the Cayman Islands are on the FATF list of countries with a high risk of money laundering.
B) High risk, because the client’s deposit came from an offshore bank account in a tax haven, the transaction has been cancelled at short notice and the client is asking you to transfer the money to a different account, also offshore in a different tax haven
C) High risk because Bermuda and the Cayman Islands are on the European Commission’s list of high risk jurisdictions.
B) High risk, because the client’s deposit came from an offshore bank account in a tax haven, the transaction has been cancelled at short notice and the client is asking you to transfer the money to a different account, also offshore in a different tax haven
(Correct. There are a number of risk factors here which should alert you to the high risk of money laundering. The client has deposited a large sum of money in cash in your firm’s account. The money came from an offshore bank account in a tax haven. The transaction has been cancelled at short notice and the client is asking you to transfer the money to a different account, also offshore in a different tax haven.)
Identify whether the following scenario indicates a high or low risk of money laundering:
Your client, a French national, living in the UK is setting up a trust for her grandchildren. She plans to invest £50,000 in the trust over the course of two years.
A) High risk because the client is investing a large sum of money in a trust which is a suspicious area of activity because it could be a vehicle for money laundering
B) High risk because although the client is a French national, she is setting up a trust in the UK
C) Low risk because France is not a high risk country and there appears to be a legitimate reason for the client to set up the trust
C) Low risk because France is not a high risk country and there appears to be a legitimate reason for the client to set up the trust
(Correct. A client setting up a trust, does have the potential to be a vehicle for money laundering and you will need to carry out customer due diligence on the client, as you will see later in this topic. However there is nothing to suggest a high risk of money laundering here, France is not a high risk country and there appears to be a legitimate reason for the client to set up the trust)
Identify whether the following scenario indicates a high or low risk of money laundering:
Your client, a South African national, has instructed you on a litigation claim and asked you to commence proceedings against her neighbour. The neighbour contacts you and wants to pay £100,000 into your firm’s client account to settle the matter.
A) High risk because the dispute being settled early is an indicator that the litigation might be a sham. Also the other party is seeking to pay a large sum of money into your firm’s bank account
B) High risk because South Africa is on the European Commission’s list of high risk jurisdictions
C) Low risk because litigation is not a high risk activity from a money laundering perspective
A) High risk because the dispute being settled early is an indicator that the litigation might be a sham. Also the other party is seeking to pay a large sum of money into your firm’s bank account
(Correct. There are a number of risk factors here which should alert you to the high risk of money laundering. A dispute being settled early and easily should alert you to the risk of this being a sham litigation, and the other party seeking to pay a large sum of money into your firm’s account is another warning sign. South Africa is not on the list of high risk countries, but there are enough other factors here to indicate a high risk of money laundering)
Which ONE of the following activities does NOT fall within the definition of ‘regulated sector’ in Schedule 9 of PoCA?
A) Advising a client on the purchase of a property
B) Advising a client on setting up a trust for their grandchildren
C) Advising a client on an employment dispute
C) Advising a client on an employment dispute
(Correct. ‘Regulated sector’ as defined in Schedule 9 PoCA includes “participating in financial and real property transactions concerning:
the buying and selling of real property or business entities
the managing of client money, securities or other assets,
the opening or management of bank, savings or securities accounts;
the organisation of contributions necessary for the creation, operation and management of companies;
the creation, operation or management of trusts, companies or similar structures
Advising a client on the purchase of a property and on setting up a trust would fall within participating in financial and real property transactions. However advising on litigation matters (including an employment dispute) does not fall within the definition of regulated sector, as set out in Schedule 9)
You are an apprentice in the property department of a law firm and you are contacted by a new client who has never instructed the firm before. The client contacts you directly asking for details of the firm’s client account. He wants to send the sum of £6,000,000 from an account in Bermuda to the firm’s client account in readiness for a quick completion of his purchase of a property in London, on which he is just about to instruct the firm (the ‘Purchase’). He insists that he wants you to act personally on the purchase.
You explain to the Client that you are not able to give the Client the firm’s client account details. The Client tells you he will call in at the office tomorrow and he wants you to give him the firm’s client account details then.
Which ONE of the following statements is CORRECT?
A) When the Client arrives at the office, you should not give him the client account details, but tell him that you have reported the matter to the MLRO (money laundering reporting officer) because you suspect money laundering
B) You should meet the Client and give him the account details. There are no grounds for suspicion here as it is not unusual for a property in London to cost £6,000,000
C) You should meet the Client and give him the client account details – so as not to arouse suspicion
D) You should immediately make a disclosure to the firm’s MLRO (money laundering reporting officer) under the Proceeds of Crime Act 2002 (‘PoCA’) that you suspect the money is criminal property. You must wait to receive appropriate consent from the MLRO before carrying out the Client’s instructions
D) You should immediately make a disclosure to the firm’s MLRO (money laundering reporting officer) under the Proceeds of Crime Act 2002 (‘PoCA’) that you suspect the money is criminal property. You must wait to receive appropriate consent from the MLRO before carrying out the Client’s instructions
(Correct. There are a number of risk factors here which should alert you to the risk of the Client attempting to launder money, notably: the client is new to your firm and has sent a large amount of money (£6 million) in cash to your firm’s client account, the client wants the transaction to complete quickly and he wants you (an inexperienced apprentice) to act personally on the transaction.
If you carry out the Client’s instruction you are at risk of committing an offence under s. 327 (transferring criminal property), s. 328 (becoming concerned in an arrangement which facilitates the acquisition…use or control of criminal property) and/or s. 329 PoCA (acquires, uses or has possession of criminal property).
You will also commit an offence under s. 330 PoCA if you fail to disclose your suspicion to the firm’s nominated officer. You should not take further action until you receive appropriate consent from the MLRO, s. 327(2)(a), s. 328(2)(a) PoCA.
You should be careful that you do not commit the offence of tipping off the client under s. 333A PoCA)
Xavier Gaston is a French national. He has never instructed Price Prior before, where you are currently an apprentice in the corporate department. Xavier has sent the sum of £2,000,000 from an account in Jersey to Price Prior’s client account in readiness for a quick completion of his acquisition of all the shares in FWL (Retail) Ltd, which he is just about to instruct you on (the ‘Acquisition’). Xavier insists that he wants you to act personally on the deal.
If you proceed with Xavier’s instructions and complete the Acquisition WITHOUT making an authorised disclosure to Price Prior’s MLRO, which ONE of the following statements is CORRECT in relation to offences that you have committed under the Proceeds of Crime Act 2002 (‘PoCA’)?
A) You are likely to have committed an offence under sections 329 and 330 PoCA
B) You are not likely to have committed an offence under PoCA
C) You are likely to have committed a direct involvement offence under section 329 PoCA, but not a non-direct involvement offence because you are not working in the regulated sector
D) You are likely to have committed an offence under section 333A PoCA.
A) You are likely to have committed an offence under sections 329 and 330 PoCA
(Correct. There are a number of risk factors here which should alert you to the risk of Xavier attempting to launder money, notably: the client is new to your firm and has sent a large amount of money (£2 million) in cash to your firm’s client account, the client wants the transaction to complete quickly and he wants you (an inexperienced apprentice) to act personally on the transaction.
If it is later discovered that the Acquisition was part of a money laundering operation, you will have had possession of criminal property (the proceeds of crime) so you are likely to have committed an offence under s. 329 PoCA 2002.
In addition, you will have committed an offence under s. 330 PoCA 2002 because there is sufficient grounds for you to suspect that Xavier is engaged in money laundering, for the reasons set out above. Under s. 330 PoCA 2002 it is an offence for someone practising in the regulated sector (which you are, as you are involved in buying a business entity) not to make a disclosure to your firm’s MLRO. You are practising in the regulated sector because you are buying a business entity which falls within the definition of “participating in financial and real property transactions concerning: the buying and selling of real property or business entities”.
You will not have committed an offence under s. 333A PoCA 2002 because you have not done anything to tip Xavier off to the fact that you suspect he may be attempting to launder money)
Identify whether the following scenario requires standard CDD, enhanced CDD or ongoing monitoring:
You have been instructed by a company Autolext Corporation (‘Autolext’) on the purchase of 60% of the shares in a data analytics company, Data Inc for £2 million. Data Inc is registered in the Cayman Islands. Autolext is registered in Bermuda and has a majority shareholder who is Iranian. Autolext has asked to you set up a wholly owned subsidiary, Autolext Data Limited which will be the vehicle that purchases the shares in the Data Inc. Autotext will pay cash for the shares.
A) Standard CDD
B) Enhanced CDD
C) Ongoing monitoring
B) Enhanced CDD
(Correct. There are a number of factors that suggest that there is a high risk of money laundering in this scenario. The client is registered in Bermuda, an off-shore tax haven, and its majority shareholder is from a high risk country, Iran. The value of the transaction is high and is being funded in cash. The client is also asking you to establish a subsidiary for the sole purpose of purchasing the shares, which could indicate a transaction that is unusually complex with no apparent purpose. The target is also registered in an off-shore tax haven, the Cayman Islands. You would need to make further enquiries to satisfy yourself as to the source of the £2 million, the identity of the majority shareholder and that the transaction is genuine)
Identify whether the following scenario requires standard CDD, enhanced CDD or ongoing monitoring:
Plaza Properties Limited is a private limited company and an existing client of your firm and regularly instructs you on the acquisition and sale of properties in its portfolio. You have received a new instruction to act for it on the acquisition of the freehold of an office building near Maidenhead for £10 million. Part of the acquisition is funded by a loan.
A) Standard CDD
B) Ongoing monitoring
C) Enhanced CDD
B) Ongoing monitoring
(Correct. This is an existing client whom the firm acts for on a regular basis. The firm will already have carried out CDD on the client. The firm will need to carry out ongoing monitoring, by checking that the transaction is consistent with the firm’s knowledge of the client and checking at regular intervals that the identification documents it holds for the client are up to date. There is nothing on these facts to suggest that this client present a high risk of money laundering)
Identify whether the following scenario requires standard CDD, enhanced CDD or ongoing monitoring:
Your client, a British national, is purchasing a flat for her daughter for a price of £750,000. She is funding 50% of the purchase in cash from the sale of some shares, and 50% by a mortgage with a high street bank. You have not acted for the client before and you expect that this will be a one-off transaction for the client.
A) Ongoing monitoring
B) Standard CDD
C) Enhanced CDD
B) Standard CDD
(Correct. There is nothing on these facts to suggest that this client present a high risk of money laundering. The is not from a high risk country and is funding 50% of the purchase through a mortgage. As this is a one-off transaction, it will be an occasional transaction and you should obtain standard CDD on the client before you start working for her)
You are a solicitor in the corporate department of Price Prior. Your client wishes to buy 50% of the shares in a company as an investment. Your client has instructed you to advise her on the acquisition (including on the merits).
Which one of the following statements is correct regarding authorisation under FSMA?
A) There is a specific exclusion relating to advising on the merits that will allow you to act
B) FSMA does apply and you will need to be authorised by the FCA to act for the client on the acquisition
C) You will not need to be authorised by the FCA to act for the client because acting for a client who is acquiring shares in a company is not a specified activity under Article 53(1) RAO
D) Shares are not a specified investment, therefore FSMA does not apply
E) You will not need to be authorised by the FCA to act for the client because your advice will be excluded from FSMA under Article 70 RAO
E) You will not need to be authorised by the FCA to act for the client because your advice will be excluded from FSMA under Article 70 RAO
Which one of the following would not be classified as financial services and therefore not be regulated under FSMA?
A) Arranging investment products on behalf of clients
B) Dealing in investment products on behalf of clients
C) Advising on the acquisition of a business
D) Advising on investment products on behalf of clients
C) Advising on the acquisition of a business
You recently acted for a client in connection with the sale of his personal training business and that sale has now concluded.
The client tells you that following the sale, he now has £50,000 cash and he would like some advice about how to invest this money, specifically whether he should buy shares in XYZ Plc. He wants to know whether shares are generally a good investment at the moment and, in particular, whether or not he should buy the shares in XYZ.
Which one of the following statements is correct in relation to the above scenario?
A) The advice is not likely to be incidental under s 327 FSMA
B) The advice is likely to be complementary under Scope Rule 2
C) You would be able to give the client generic advice on the rights attaching to shares because this advice does not fall within Article 53(1) RAO
D) It is likely that Article 67 of the Financial Services and Markets Act (Regulated Activities) Order 2001 (‘RAO’) would apply to your advice
E) You would be free to advise about the merits of the shares in XYZ Ltd because you could rely on the exclusion under Art 70 RAO
C) You would be able to give the client generic advice on the rights attaching to shares because this advice does not fall within Article 53(1) RAO
Which of the following is not a key part of the criminal justice process as discussed in this element?
A) Appeal
B) Trial
C) Plea
D) Arrest
E) The prevention of crime
E) The prevention of crime
(Correct. The key elements of the criminal justice process discussed in this element were: arrest/ requisition, plea, trial, sentencing and appeals. The prevention of crime is more of a matter for criminology studies but does become a factor when sentencing someone found guilty of a crime)
All of the following bodies can bring prosecutions. However, which of the following is the main body which brings prosecutions in England and Wales?
A) Transport for London
B) Health and safety executive
C) Crown Prosecution Service
D) Railway operators
E) Private individuals
C) Crown Prosecution Service
(Correct. Other bodies such as Transport for London, railway operators and the Health and Safety Executive prosecute their own matters. Private individuals can bring prosecutions too but the CPS has the right to intervene and take over such cases)
What is the main statute that governs police conduct in criminal investigations?
A) Police Powers Act 1984
B) Governance of Police Powers Act 1984
C) Police and Criminal Evidence Act 1984
C) Police and Criminal Evidence Act 1984
(Correct. Commonly known as ‘PACE’ which is accompanied by Codes of Practice)
What does trial on indictment mean?
A) Trial by jury in the Crown Court
B) Trial by magistrates in a magistrates’ court
C) Trial by jury in a magistrates’ court
A) Trial by jury in the Crown Court
(Correct. Either-way offences and indictable only offences can be heard before a jury)
What are the three classifications of offences?
A) Property offences, fatal offences and non-fatal offences against the person
B) Low, medium and high
C) Summary, either-way and indictable only
C) Summary, either-way and indictable only
(Correct. Either-way offences are also known as ‘indictable’ as they are capable of being tried on indictment)
If the statute provides a maximum penalty on summary conviction but does not provide for a penalty on conviction on indictment, what type of offence is it?
A) Summary offence
B) Indictable offence
C) Either-way offence
A) Summary offence
(Correct. Reading the statute is one of the ways to determine the classification of an offence)
If the statute provides one penalty for summary conviction and a different one for conviction on indictment, what type of offence is it?
A) Indictable only
B) Summary
C) Either-way
C) Either-way
(Correct. A close reading of the statute is one way to tell whether an offence is either-way. An offence can also be either-way if listed in Schedule 1, Magistrates’ Courts Act 1980)
If the statute provides only for a penalty on conviction on indictment or is a common-law offence what type of offence is it?
A) Indictable-only
B) Summary
C) Either-way
A) Indictable-only
(Correct. Reading the statute and knowledge of the common-law offences helps determine the classification of offences)
What is the function of a jury in a Crown Court trial?
A) Tribunal of law
B) Tribunal of fact
C) Sums up the case
B) Tribunal of fact
(Correct. There are certain circumstances in which the judge may also act as a tribunal of fact such as when hearing a submission of no case to answer, a voir dire or a Newton hearing which will be considered in separate elements)
How are the roles of tribunal of fact and tribunal of law dealt with in the magistrates’ court?
A) The magistrates are the tribunal of fact and tribunal of law
B) The magistrates are the tribunal of fact and the legal advisor is the tribunal of law
C) The magistrates are the tribunal of law, there is no tribunal of fact
A) The magistrates are the tribunal of fact and tribunal of law
(Correct. This is arguably an unsatisfactory position when the magistrates make a ruling of law that certain evidence is inadmissible but hear the evidence in order to make that decision. In contrast, in the Crown court it would be the judge that would make a ruling of law that certain evidence is inadmissible and the jury would never hear the evidence)
How many Crown Courts are there in England and Wales?
A) 10-19
B) One
C) Less than 10
D) More than 20
B) One
(Correct. The Crown Court is regarded as a single court that sits in different places)
Which judges can sit in a summary trial?
A) Lay justices, District Judges or Deputy District Judges
B) Lay justices or District Judges
C) District Judges
D) Lay justices
A) Lay justices, District Judges or Deputy District Judges
(Correct. Lay justices (also known as Justices of the Peace), District Judges (a salaried judge) or a Deputy District Judge (a solicitor or barrister with a part-time judicial post) can conduct trials in the magistrates’ court)
You represent a man suspected of the offence of battery and is charged with common assault. He is currently out of work and so receives welfare benefits.
Which of the following best explains whether you client is eligible for public funding?
A) He will automatically pass the means test because he is in receipt of welfare benefits but he must also pass the merits test to be eligible
B) He will receive public funding because the offence of battery is an imprisonable offence
C) He will pass the means test if he can show that his income and capital are below a certain limit
D) He will automatically qualify for public funding because he is in receipt of welfare benefits
E) He will have to pass both the means test and the merits test in order to be granted public funding
A) He will automatically pass the means test because he is in receipt of welfare benefits but he must also pass the merits test to be eligible
(He is passported through the means test because of his receipt of welfare benefits, but he will still have to show that it is in the interests of justice for him to receive public funding for his defence.
The other answers are plausible but incorrect:
- He does not need to pass the means test – he automatically passes it
- He won’t automatically qualify for public funding because he still has to pass the merits test
- Whether the offence is imprisonable or not is not a deciding factor)
Your client is a university professor who lives alone and earns £90,000. He is suspected of the offence of battery on a student and is charged with common assault. He is due to appear before the magistrates’ court He has no previous offences and intends to plead not guilty.
Is your client likely to obtain a representation order that grants public funding for his defence?
A) He will obtain a representation order because it is likely he will lose his livelihood
B) He will not obtain a representation order because it is not in the interests of justice that he be represented
C) He will not obtain a representation order as will fail the means test
D) He will not obtain a representation order because he is not in receipt of benefits
E) He will obtain a representation order because it is likely that he will suffer serious damage to his reputation
C) He will not obtain a representation order as will fail the means test
(In light of the university professor’s salary and the size of his household (he lives alone) he will be ineligible for public funding because his weighted gross annual income will be above the upper threshold i.e. £22, 325.
The other answers while plausible are incorrect:
· While he will suffer serious damage to his reputation, might lose his livelihood and therefore it might be in the interests of justice that he be represented, he will not pass the means test.
· While he is not in receipt of benefits that does not mean he will automatically fail the means test)
Your client has been charged with burglary. She is in receipt of benefits and therefore is passported through the means test. You are assisting your client in completing the CRM 14 form.
She informs you that she has numerous convictions for burglary, including one last year when she was given a suspended sentence. She denies the offence and says she has an alibi. However, your client is worried about what the arresting officer will say. The arresting officer said she had admitted the offence on arrest, when she did not say anything. She’s also worried about her daughter who is only 12 and will be left on her own if she is sent to prison.
Which of these is not a matter to include in the CRM 14 form?
A) She is likely to lose her liberty
B) It is in the interests of her daughter that she is represented
C) She has been given a sentence that is suspended which will be activated if she is convicted of the current offence
D) An alibi witness will need to be traced and interviewed
E) The proceedings will involve the cross examination of a police officer
B) It is in the interests of her daughter that she is represented
(For the purposes of the merits/ interests of justice test, the interests of another person does not include family members impacted by a sentence.
The other answers while plausible are not correct. All could be included in the relevant sections of the CRM 14 form)
In which of the following situations can you accept instructions from the person identified?
A) A majority shareholder instructing you to sell the company’s headquarters.
B) From a man on behalf of his elderly mother in selling her home to pay for care fees. His mother has lost mental capacity and so is unable to instruct you.
C) A branch manager of a shop on behalf of a nationwide retail company in buying premises neighbouring the branch.
D) From a woman on behalf of her brother in the sale of his flat as he is travelling overseas.
E) From a woman on behalf of her and her civil partner. You met them both initially in which they confirmed that you can accept instructions from either of them on behalf of the other.
E) From a woman on behalf of her and her civil partner. You met them both initially in which they confirmed that you can accept instructions from either of them on behalf of the other.
(Correct. As they have given you authority, you can rely on that)
You are acting for a couple purchasing a house. You are also acting for their lender, a high street bank. The couple do not want you to tell the lender that they intend to let out the property as they know the lender would then insist that the mortgage interest rate would increase from the mortgage rate they have been offered on the basis of the house being lived in by the couple as their main residence. What is the professional conduct issue here?
A) You have a duty to report the couple’s plans to the lender.
B) You advise the clients to proceed as it is unlikely that the lender will ever discover that the property is let.
C) Your duty of confidentiality to the couple overrides your duty to disclose. You must inform the lender that you cannot now act for professional reasons.
D) You have a duty to immediately report to the relevant authority that the clients are committing mortgage fraud.
C) Your duty of confidentiality to the couple overrides your duty to disclose. You must inform the lender that you cannot now act for professional reasons.
You are acting for a landlord that is granting a lease to a company. You have drafted the lease and sent a copy of the lease directly to the company as it had not yet instructed solicitors. One of the directors of the company calls you and asks you to act for the company as well as the landlord to save costs. The director says that the rent is agreed.
**Which one of the following statements is correct?*
A) The landlord and the company have a substantially common interest as all the key terms in the lease have been agreed so you, personally would be able to act for both of them by relying on CCS 6.2(a) so long as you could show you had satisfied all the elements of CCS 6.2 (i) to (iii).
B) If you, personally, were to act for both the landlord and the company, there is a risk you would breach CCS 6.2
C) As this transaction falls within CCS 6.1 you personally would not be able to act for both the landlord and the tenant
D) GCL and NWL are competing for the same objective as they both have the same objective of wanting the lease to be granted so you, personally, could act for them both by relying on CCS 6.2(b) so long as you could show you had satisfied all the elements of CCS 6.2 (i) to (iii).
B) If you, personally, were to act for both the landlord and the company, there is a risk you would breach CCS 6.2
(Correct. In negotiating the lease you will not be able to act in both the landlord’s and the company’s best interests leading to a conflict of interests under CCS 6.2. There are more clauses in the lease to be agreed than just the rent)
As a solicitor, which of the following would NOT be a breach of client confidentiality?
A) Updating your parents on the work you are doing for your sibling.
B) Sending details of your client’s financial circumstances to solicitors acting for the client’s buyer.
C) Sending details of your client’s property to solicitors acting for the client’s buyer.
D) Advertising on your website that you act for a famous client without disclosing the precise nature of your instructions.
E) Notifying your client’s lender (who is also your client) that the price of the property your client is buying is lower than the lender was told.
C) Sending details of your client’s property to solicitors acting for the client’s buyer
(Correct. You are likely to have either express (in your client care letter) or implied consent to provide this information which is necessary to progress the sale)
Which one of the following best describes who the SRA Accounts Rules apply to?
A) All firms (including sole practices) the SRA regulates, including all who manage or work within them.
B) Managers and employees of a law firm’s accounts department only.
C) Authorised bodies only.
D) All law firms (including sole practices) worldwide, including all who manage or work within them.
A) All firms (including sole practices) the SRA regulates, including all who manage or work within them
(Correct. The SRA make this clear in their introduction to the SRA Accounts rules and in Rule 1)
Who is responsible for compliance with the SRA Accounts Rules?
A) The managers of an authorised body are severally responsible.
B) All managers and employees of an authorised body are jointly and severally responsible.
C) Only the authorised body’s compliance manager is responsible.
D) The managers of an authorised body are jointly and severally responsible.
D) The managers of an authorised body are jointly and severally responsible.
(Correct. Rule 1.2 states that: ‘The authorised body’s managers are jointly and severally responsible for compliance by the authorised body, its managers and employees with these rules)
Which topic do the majority of the SRA Accounts Rules relate to?
A) Accountants’ reports and storage and retention of accounting records.
B) Application of the SRA Accounts Rules
C) Dealings with other money (not client money) belonging to clients or third parties.
D) Client money and client accounts
D) Client money and client accounts
(Correct. Rules 2-8 (of 13) are on this topic and are the largest section of the SRA Accounts Rules)
A client is selling a property. You receive the deposit money for the property from the buyer’s solicitor before exchange and hold it to their order, as requested.
Which one of the following best explains whether the money is client money or not?
A) The money is client money because it is held by you on behalf of a third party in relation to regulated services delivered by you.
B) The money is not client money because you do not provide regulated services to the sender of the money (the buyer’s solicitor).
C) The money is not client money because it does not belong to a client of yours.
A) The money is client money because it is held by you on behalf of a third party in relation to regulated services delivered by you
(Correct. This situation falls within Rule 2.1(b))
Your client is buying a property and prior to completion of the purchase sends you a cheque in respect of the stamp duty land tax which will be paid on the purchase after completion.
Which one of the following best explains what kind of money this cheque represents and why?
A) It is non-client money as a bill has not yet been delivered to the client for the stamp duty land tax.
B) It is non-client money as the stamp duty land tax is a paid disbursement.
C) It is client money because it has been received in respect of an unpaid cost or expense.
C) It is client money because it has been received in respect of an unpaid cost or expense.
(Correct. It is client money under Rule 2.1(d))
Which one of the following is correct in respect of non-client money?
A) If you receive money from a client in respect of a paid disbursement, it is non-client money.
B) If you receive money generally on account of costs in a transaction from a client, it will be non-client money as it is not for a specific cost.
C) If you receive money from a client in respect of an unpaid disbursement, it is non-client money
A) If you receive money from a client in respect of a paid disbursement, it is non-client money
(Correct. It will fall outside Rule 2.1(d) and the definition set out there of client money and so it will be non-client money)
Which one of the following is NOT a requirement under Rule 8 of the SRA Accounts Rules?
A) To keep accurate, contemporaneous and chronological records in respect of client ledgers (including the business side of the client ledger account) and a cash book for client accounts.
B) To, at least every five weeks, for all client accounts, reconcile the bank statement with the cash book balance and the client ledger total.
C) To keep a record of all bills or other notifications of costs given by you.
D) To obtain, at least every week, bank statements for all client accounts and business accounts which you hold or operate
D) To obtain, at least every week, bank statements for all client accounts and business accounts which you hold or operate
(Correct. Whilst this looks like the requirement under Rule 8.2, the correct frequency in Rule 8.2 is at least every five weeks not at least every week. The time period (at least every five weeks) matches that of the reconciliation required in Rule 8.3)
Which of the following correctly sets out the accounts where a receipt of client money from Dr Jones (a client) on account of costs for her property purchase would be recorded by the authorised body?
A) Business side of the client ledger for Dr Jones’ property purchase and the client cash book.
B) Client side of the client ledger for Dr Jones’ property purchase and the business account cash book.
C) Business side of the client ledger for Dr Jones’ company incorporation and the client cash book.
D) Client side of the client ledger for Dr Jones’ property purchase and the client cash book
D) Client side of the client ledger for Dr Jones’ property purchase and the client cash book.
(Correct. See Rules 8.1(a)(i) and 8.1(c) as well as Rule 8.1(a) and SRA guidance ‘Helping you keep accurate accounting records’)
Which one of the following statements about the client ledger balance is correct?
A) The balance on the client side of a client’s client ledger account shows how much money there is in total in the client account.
B) The balance on the client side of a client’s client ledger account shows how much money in the client account belongs to that client.
C) The balance on the client side of a client’s client ledger account shows how much money that client owes to the authorised body.
B) The balance on the client side of a client’s client ledger account shows how much money in the client account belongs to that client.
C wishes to bring a personal injury claim against a retailer following an accident in a shop. The claim is valued at £75,000. What is the best advice to give C about whether to issue a claim in the County Court or the High Court?
A) The claim can be issued in either the County Court or the High Court.
B) The claim should be issued in the Chancery Division of the High Court.
C) The claim must be issued in the County Court.
D) The claim must be issued in the High Court.
E) The claim should be issued in a specialist division of the County Court
A) The claim can be issued in either the County Court or the High Court
(Correct. As this is a personal injury claim exceeding £50,000, both the County Court and High Court have jurisdiction. You will need to consider the factors of the value, complexity and importance to the public when making a final decision about whether to issue in the County Court or the High Court)
If the court has ordered that one party will pay the costs of another party, the court will also need to put a figure on those costs. When it is deciding this figure, it will generally only allow recovery of…
A) …a reasonable and proportionate sum.
B) …a sum which is proportionate to the value of the claim.
C) …a reasonable sum.
A) …a reasonable and proportionate sum.
A wholesaler brings a breach of contract claim against a manufacturer. The wholesaler incurs costs of £85,000 in bringing this claim. What is the best advice to give to the wholesaler in relation to the cost consequences of the wholesaler succeeding at trial?
A) The wholesaler is likely to recover £85,000 in relation to costs.
B) The wholesaler will recover £85,000 in relation to costs.
C) The wholesaler is likely to be awarded its costs, but not the full £85,000.
D) The wholesaler may recover its costs, and they will be assessed at less than £85,000.
C) The wholesaler is likely to be awarded its costs, but not the full £85,000
(Correct. The general rule indicates that the wholesaler should recover its costs, so this is the ‘likely’ outcome on the facts presented, but the court will assess these costs, so it is unlikely that the full £85,000 will be recovered)
The general rule in relation to costs is that…
A) The party paying costs is stipulated in the CPR.
B) Each party will bear its own costs.
C) The court has a discretion to determine whether one party will pay the other party’s costs.
D) The unsuccessful party will be ordered to pay the costs of the successful party.
D) The unsuccessful party will be ordered to pay the costs of the successful party.
(This is the general rule. In terms of the other answers, it is correct that the court has a discretion to determine whether one party will pay the other party’s costs, but this is not what you would describe as a ‘general rule’. It is very occasionally true that the party paying costs is stipulated in the CPR, but this is the exception rather than the rule)
*Which one of the following would be a binding precedent in the Magistrates Court?**
A) A decision of the Crown Court
B) A dissenting judgment in the High Court
C) A decision of the Court of Appeal
D) A decision of the County Court.
E) An obiter dicta in a decision of the Supreme Court
C) A decision of the Court of Appeal
Which one of the following statements is incorrect?
A) The Supreme Court in its Practice Statement of 1966 recognises too rigid adherence to precedent may lead to injustice and unduly restrict the proper development of the law.
B) The Supreme Court in departing from a previous judgement will bear in mind the danger of disturbing retrospectively the basis on which contract, settlement of property and fiscal arrangements have been entered into and the need for certainty as to the criminal law.
C) The Supreme Court is bound by its previous decisions pursuant to the Practice Statement 1966 and will only depart from a previous decision when it appears right to do so.
D) The Supreme Court was bound by its previous decisions before the Practice Statement of 1966. It sees the use of precedent as an indispensable foundation which provides legal certainty and allows the orderly development of legal rules.
E) The Supreme Court is not bound by its previous decisions pursuant to the Practice Statement 1966 and will only depart from a previous decision when it appears right to do so.
C) The Supreme Court is bound by its previous decisions pursuant to the Practice Statement 1966 and will only depart from a previous decision when it appears right to do so
(Correct. This is incorrect. A Supreme Court by virtue of the Practice Statement 1966 is not bound by its previous decisions. It rarely will depart and will do so when it appears right to do so)
In which one of the following circumstances will the Court of Appeal be bound by a previous Court of Appeal judgment on the same issue?
A) Where the Court of Appeal considers an earlier Court of Appeal decision to have been given per incuriam.
B) Where the Court of Appeal considers it would be in the interests of justice to depart from an earlier Court of Appeal decision.
C) Where the Court of Appeal is faced with two earlier conflicting Court of Appeal decisions
D) Where the Court of Appeal decision conflicts with a Supreme Court Decision
E) Where the Court of Appeal does not agree with an earlier Court of Appeal decision
E) Where the Court of Appeal does not agree with an earlier Court of Appeal decision
(Correct. This answer is incorrect. Young v Bristol Aeroplane sets out the three circumstances where a Court of Appeal can depart from a previous Court of Appeal judgement on the same issue)
_________categories of civil claim qualify in principle for Civil CLS funding.
A) No
B) Very few
C) Most
D) All
B) Very few
(Correct. The vast majority of civil legal work is not eligible for CLS funding)
Which of the following best describes the situation in relation to a CFA where the client wins their case at trial?
A) The client may recover the basic fee, disbursements, damages and success fee from the opponent
B) The client may recover the basic fee from the opponent but cannot recover the disbursements, success fee or damages
C) The client may recover the basic fee and disbursements from the other side, together with damages. The client will owe the solicitor a success fee which will be payable from the damages and is not recoverable from the opponent
D) The client may recover the basic fee and damages from the opponent. The client will owe the solicitor a success fee which will be payable from the damages and is not recoverable from the opponent.
C) The client may recover the basic fee and disbursements from the other side, together with damages. The client will owe the solicitor a success fee which will be payable from the damages and is not recoverable from the opponent
Civil CLS funding is subject to ____________
A) A merit test.
B) A means test.
C) A means test and a merit test
D) A public interest test.
E) A merit test and a public interest test.
C) A means test and a merit test
(Correct. Civil CLS funding is only available for clients with limited income and capital, and if the client’s position is sufficiently meritorious)
Your client, Mr. Ibbotson, would like to know how damages based agreements (‘DBAs’) work in practice. Which one of the following best describes the advice you would give to him on this matter in relation to a typical DBA?
A) Lawyers do not recover any fees if they lose the case. If they win, they receive a proportion of the damages awarded to the client by way of payment for their work.
B) Lawyers will recover their basic fee if they lose the case. If they win, they can recover a success fee from the damages awarded to the client.
C) Lawyers do not recover any fees if they lose the case. If they win, they can recover their normal fees plus an uplift out of the damages awarded to the client.
D) Lawyers will recover their basic fee if they lose the case. If they win, they can recover double the basic fee.
A) Lawyers do not recover any fees if they lose the case. If they win, they receive a proportion of the damages awarded to the client by way of payment for their work.
Mrs Meade has been told that her solicitors have taken on her claim on a ‘no win, no fee’ CFA basis. Does this mean that if she loses, she won’t have to pay any costs?
A) No. She will still be liable for her own disbursements and might still be held liable for the other side’s costs.
B) Yes. A conditional fee agreement means that she won’t have to pay any solicitors’ costs if she loses.
C) Yes. Her solicitors will have to pay the defendant’s costs if she loses.
D) No. She will still be liable for both sides’ costs.
A) No. She will still be liable for her own disbursements and might still be held liable for the other side’s costs.
Martha Van Hoffer is the managing director of VanH Limited (“VanH”). VanH have instructed your firm to act on their behalf in relation to a large litigation action. Martha is interested in taking out ‘after the event’ insurance, if possible, but is concerned about the level of the premium. She would like to know whether any premium might be recoverable from her opponent if VanH is successful in the litigation. VanH do not have ‘before the event’ legal expenses insurance.
Which one of the following statements is correct if VanH win at trial and is awarded its costs?
A) VanH will not be able to claim the premium.
B) If successful, VanH should be able to claim any premium paid from the other side as part of the costs of the proceedings, so long as it is reasonable
C) VanH will only be able to claim a certain percentage of the premium, provided that it is not in excess of £10,000
D) VanH is not in fact able to take out ‘after the event’ insurance because it is a company, not an individual
A) VanH will not be able to claim the premium
(Correct. Well done. ATE insurance premiums are not recoverable from an opponent)
Which ONE of the following is the correct definition of an undertaking as set out in the SRA Glossary?
A) “A statement, given orally or in writing, whether or not it includes the word “undertake” or “undertaking” to someone who reasonably places reliance on it, that you or a third party will do something or cause something to be done, or refrain from doing something”.
B) “A statement, given in writing to someone that you or a third party will do something or cause something to be done, or refrain from doing something”.
C) “A statement, given orally or in writing to someone who reasonably places reliance on it, that you or a third party will do something or cause something to be done, or refrain from doing something”
A) “A statement, given orally or in writing, whether or not it includes the word “undertake” or “undertaking” to someone who reasonably places reliance on it, that you or a third party will do something or cause something to be done, or refrain from doing something”
(Correct. Note that
an undertaking can be given orally or in writing, and
does not have to include the word “undertake” or “undertaking”.
If the recipient reasonable places reliance on the statement it will be binding on the person giving it)
Which ONE of the following statements about undertakings is CORRECT?
A) An undertaking can be given by any individual in a law firm who is legally qualified. An undertaking could therefore be given by a partner or a qualified lawyer, but not by an apprentice, or a secretary.
B) An undertaking can only be given by a partner in a law firm.
C) An undertaking can be given by any individual in a law firm provided it can be reasonably relied upon by the recipient. An undertaking could therefore be given by a partner, a qualified lawyer, an apprentice, secretary or any other individual in the firm
C) An undertaking can be given by any individual in a law firm provided it can be reasonably relied upon by the recipient. An undertaking could therefore be given by a partner, a qualified lawyer, an apprentice, secretary or any other individual in the firm
(Correct. Note that it is important that any individual in a law firm can be found to have given an undertaking)
Which provision of CCS contains the following requirement:
“You draw the court’s attention to relevant cases and statutory provisions, or procedural irregularities of which you are aware, and which are likely to have a material effect on the outcome of the proceedings.”
A) CCS 2.3
B) CCS 2.4
C) CCS 2.7
D) CCS 2.6
C) CCS 2.7
(Correct. CCS 2.3 contains the requirement that you do not provide or offer to provide any benefit to witnesses dependent upon the nature of their evidence or the outcome of the case. CCS 2.4 contains the requirement that you only make assertions or put forward statements, representations or submissions to the court or others which are properly arguable. CCS 2.6 contains the statement that you do not waste the court’s time)
Which one of the following is not a quality you would expect from a legal professional?
A) A desire to get the best outcome for your client, whatever the circumstances.
B) A high level of education and training.
C) A desire to promote the public good.
D) Morality.
E) Integrity.
A) A desire to get the best outcome for your client, whatever the circumstances
(Correct. The circumstances may be such that your obligation to act in the best interest of your client is replaced by an overriding duty to promote the public good)
Which one of the following statements correctly describes the key aspects of being a legal professional?
A) Being a legal professional requires you to demonstrate knowledge, skill, and expertise and therefore a high level of education and training. Provided you act in the best interests of your client, you will meet the standard expected of a legal professional.
B) You do not need to worry about demonstrating trust, morality and integrity if you are working in-house because your only obligation is to present the best case for your employer.
C) As well as knowledge and expertise, being a legal professional requires you to demonstrate trust, morality and integrity. Trust, morality and integrity are important so that your clients know that they can trust the advice you give them.
D) As well as knowledge and expertise, being a legal professional requires you to demonstrate trust, morality and integrity. Trust, morality and integrity are important to maintain the public’s trust in the legal profession.
D) As well as knowledge and expertise, being a legal professional requires you to demonstrate trust, morality and integrity. Trust, morality and integrity are important to maintain the public’s trust in the legal profession.
(Correct. As well as owing a duty to your clients, you also have a duty to promote the public good. Trust, morality and integrity are therefore important qualities in a legal professional)
Your colleague, a newly qualified solicitor in the property department, is giving you a lift back to the office after a football match. Your colleague has a minor collision with another car. As your colleague exchanges details with the owner of the other car, you hear your colleague say:
“Don’t bother suing me for the damage to your car. I’ve just qualified as a solicitor so you will be wasting your time. It’ll cost you so much in legal costs, which you won’t recover whatever happens, I’m sure you’ll regret suing me for a very long time”.
Which one of the following statements is true?
A) Your colleague has not breached the standards expected of a legal professional because the collision was not with a client.
B) Your colleague has breached the standards expected of a legal professional.
C) Your colleague is giving free advice to the owner of the other car and has not breached the standards expected of a legal professional.
D) Your colleague has not breached the standards expected of a legal professional because the collision occurred outside working hours.
B) Your colleague has breached the standards expected of a legal professional
(Correct. The standards of truth, integrity and morality apply to legal professionals in their personal as well as their professional lives and when they are dealing with members of the public as well as clients)
Which one of the following is not a power of the Solicitors Disciplinary Tribunal?
A) Award costs against a party to proceedings.
B) Award compensation to a party that has suffered loss.
C) Impose a fine.
D) Impose a restriction on the area in which a solicitor can practice.
E) Reprimand a solicitor.
B) Award compensation to a party that has suffered loss
(Correct. This action would have to be taken by a court)
Which one of the following statements is false?
A) The Legal Services Board regulates all lawyers in England and Wales.
B) The Solicitors Disciplinary Tribunal deals with serious breaches of the SRA’s rules and disciplines solicitors.
C) Clients can refer complaints about poor service from a solicitor to the Legal Ombudsman at any time.
D) The SRA sets the principles and codes of conduct that solicitors and lawyers regulated by the SRA must comply with.
C) Clients can refer complaints about poor service from a solicitor to the Legal Ombudsman at any time.
(Correct. The statement is false. The right to refer a complaint to the Legal Ombudsman applies to individuals, small businesses, charities, clubs and trusts. It does not apply to larger companies. In addition the client should exhaust the law firm’s procedure before referring a complaint to the legal Ombudsman)
Which one of the following is not a power of the SRA?
A) Commence disciplinary proceedings against a solicitor by the Solicitors Disciplinary Tribunal
B) Order a solicitor to repay or refund the whole of part of the costs to the client.
C) Strike a solicitor off the roll.
D) Close down a law firm.
E) Impose a disciplinary sanction on a firm, for example a fine.
C) Strike a solicitor off the roll
(Correct. This a power of the Solicitors Disciplinary Tribunal)
Which one of the following is not an SRA Principle?
A) Act in a way that encourages equality, diversity and inclusion.
B) Act in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice.
C) Act in the best interests of your employer.
D) Act in a way that upholds public trust and confidence in the solicitors’ profession and in legal services provided by authorised persons.
E) Act with independence.
C) Act in the best interests of your employer
(Correct. Acting in the best interests of your employer is not an SRA Principle. Whether you work for a law firm or in-house, you are subject to the Principles to act with independence, with honesty, with integrity, and in a way that upholds public trust and confidence in the profession. If these Principles came into conflict with a desire to act in the best interests of your employer, the Principles would take priority)
CCS 2.3 relates to proceedings before the courts. It states:
‘You do not provide or offer to provide any benefit to witnesses dependent upon the nature of their evidence or the outcome of the case.’
If you breached this provision of CCS, which one of the following Principles would you also be in breach of?
A) Principle 6: act in a way that encourages equality, diversity and inclusion.
B) Principle 1: act in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice.
C) Principle 7: act in the best interests of each client.
B) Principle 1: act in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice
(Correct. If you provided a benefit to witness for providing evidence of a particular nature you would be jeopardising the proper administration of justice)
Which ONE of the following statements about the Principles is FALSE?
A) If you behave in an untrustworthy way but that behaviour is outside of your usual professional practice, you cannot be found liable to have breached Principles 4 or 5.
B) Your duty to act with integrity (under Principle 5) extends not only to your relationship with your client but also to your dealings with the court, other lawyers and members of the public.
C) The Principles apply to all individuals authorised by the SRA to provide legal services, as well as authorised firms and their managers and employees.
D) Should the Principles come into conflict, those which safeguard the wider public interest take precedence over an individual client’s interests.
A) If you behave in an untrustworthy way but that behaviour is outside of your usual professional practice, you cannot be found liable to have breached Principles 4 or 5.
(Correct. Principles 4 and 5 apply to legal professionals in their personal as well as their professional lives. Therefore, the statement that you cannot be found liable to have breached Principles 4 and 5 if you behave in an untrustworthy way outside of your usual professional practice is FALSE)
Your supervisor has been asked to act for the local conservative MP on the sale of their house. Your supervisor is a member of the labour party and refuses to act on the sale because they do not want to ‘help’ a member of the conservative party. Which section of CCS has your supervisor breached?
A) CCS 1.1: ‘you do not unfairly discriminate by allowing your personal views to affect your professional relationships and the way in which you provide your services. ‘
B) CCS 1.4: ‘you do not mislead or attempt to mislead your clients, the court or others, either by your own acts or omissions or allowing or being complicit in the acts or omissions of others (including your client).’
C) CCS 3.2 ‘you ensure that the service you provide to clients is competent and delivered in a timely manner.’
D) CCS 1.2: ‘you do not abuse your position by taking unfair advantage of clients or others.’
A) CCS 1.1: ‘you do not unfairly discriminate by allowing your personal views to affect your professional relationships and the way in which you provide your services. ‘
(Correct. In refusing to accept the instructions, the supervisor has allowed their personal political views to affect their professional relationships)
Your client has asked you to lie to the police and provide a witness statement stating that you were in a meeting with your client at the time a crime was alleged to have been committed. You were not in a meeting with the client at that time. Should you:
A) Refuse to provide the witness statement, as to do so would breach Principles 1, 2, 3, 4 and 5.
B) Comply with the client’s request in order to comply with Principles 1 and 2.
C) Refuse to comply with the client’s request as to do so would breach Principle 6.
D) Comply with the client’s request and provide the witness statement in order to comply with Principle 7.
A) Refuse to provide the witness statement, as to do so would breach Principles 1, 2, 3, 4 and 5
(Correct. If you complied with your client’s instruction, you would be breaching Principles 1 (upholding the rule of law and the proper administration of justice), 2 (upholding public trust and confidence in the solicitor’s profession), 3 (act with independence), 4 (act with integrity) and 5 (act with honesty))
You are acting for a client in relation to a dispute. You receive a defence from the individual on the other side which is badly drafted and contains numerous errors. You suspect that the individual does not have legal representation.
Which ONE of the following statements is CORRECT?
A) You should contact the individual on the other side and suggest that they instruct a lawyer. Failing to do so puts you at risk of breaching CCS 1.1.
B) You should contact the individual on the other side and suggest that they instruct a lawyer. Failing to do so puts you at risk of breaching CCS 1.2.
C) The existence of errors in the other side’s defence is good news for your client. You should continue your client’s case as aggressively as you can in order to comply with Principle 7.
D) The existence of errors in the other side’s defence is good news for your client. You should continue your client’s case as aggressively as you can in order to comply with Principle 3.
B) You should contact the individual on the other side and suggest that they instruct a lawyer. Failing to do so puts you at risk of breaching CCS 1.2
(Correct. Acting for your client where the individual on the other side does not have legal representation can be very challenging and puts you at risk of breaching CCS 1.2 ‘you do not abuse your position by taking unfair advantage of clients or others’. The simplest solution for you is for the individual on the other side to get their own lawyer)
The SRA’s requirements in relation to equality, diversity and inclusion apply to which ONE of the following categories:
A) Legal professionals in their dealings with clients only.
B) Managers of law firms only.
C) All individuals regulated by the SRA in relation to their dealings with clients, the people they work with and other members of the public they deal with.
D) Legal Professionals in their dealings with fellow members of staff only.
C) All individuals regulated by the SRA in relation to their dealings with clients, the people they work with and other members of the public they deal with.
(Correct. Principle 6 is broad. As stated in the SRA’s guidance on their approach to equality, diversity and inclusion (‘EDI’), it applies to an individual’s dealings with the people they work with, clients and others)
Which ONE of the following is NOT a protected characteristic under the Equality Act 2010?
A) Vegetarianism
B) Age.
C) Gender Reassignment.
D) Disability.
A) Vegetarianism
(Correct. Vegetarianism is not one of the protected characteristics listed in your materials under the Equality Act 2010)
Which one of the following statements about a legal professional’s obligations in relation to EDI under the SRA’s Guidance on their approach to EDI is FALSE?
A) Law firms must collect, report and publish data about the diversity of their workforce.
B) Individuals regulated by the SRA are responsible for upholding the reputation of the profession in their professional and personal life and for treating people fairly and with dignity and respect. They should ensure their personal views do not have a negative impact on others. This includes expressing extreme personal, moral or political opinions on social media.
C) Law firms have a legal obligation to provide reasonable adjustments to disabled clients and employees to make sure they are not at a substantial disadvantage compared to those who are not disabled. Law firms may pass on the costs of those adjustments to those clients or employees.
D) Firms and individuals regulated by the SRA must encourage diversity at all levels of the workforce.
C) Law firms have a legal obligation to provide reasonable adjustments to disabled clients and employees to make sure they are not at a substantial disadvantage compared to those who are not disabled. Law firms may pass on the costs of those adjustments to those clients or employees.
(Correct. This statement is FALSE. Read the guidance note again to check whether law firms can pass on the costs of such adjustments)
Which ONE of the following is NOT a protected characteristic under the Equality Act 2010?
A) Measles
B) Race
C) Sex
D) Religion or belief
A) Measles
(Correct. Measles is not one of the protected characteristics listed in your materials under the Equality Act 2010)
Which one of the following is NOT an example of direct discrimination?
A) A shop will not serve someone because of their ethnic origin.
B) A nightclub charges a higher price for entry to a man because of their sex where the service provided to a woman is exactly the same.
C) A bowls club will not admit someone with a hearing impairment as a member.
D) A large department store provides a private resting area for women who are pregnant or breastfeeding. A man feeling tired complains that he does not have access to a similar facility.
D) A large department store provides a private resting area for women who are pregnant or breastfeeding. A man feeling tired complains that he does not have access to a similar facility.
(Under section 13(1) Equality Act, direct discrimination occurs where “because of a protected characteristic, A treats B less favourably than A treats or would treat others”.
Note however that, under section 13(6)(b) of the Act, in considering discrimination against a man, it is not relevant to take into account any special treatment given to a woman in connection with pregnancy or childbirth. This example is not discrimination because a man cannot compare himself to a woman in connection with pregnancy, childbirth, or it would follow, breast feeding.
The other examples would amount to direct discrimination:
A shop will not serve someone because of their ethnic origin: in this example the protected characteristic is race and the shop is treating the customer less favourably than they would treat others.
A nightclub charges a higher price for entry to a man because of their sex where the service provided to a woman is exactly the same: in this example the protected characteristic is sex. The night club owner is treating men less favourably than they treat others (i.e women).
A bowls club will not admit someone with a hearing impairment as a member: in this example the protected characteristic is disability. The bowls club is treating the person with a hearing impairment less favourably than they treat others (people without a hearing impairment))
Which ONE of the following statements about the duty to make reasonable adjustments is CORRECT?
A) The duty to make reasonable adjustments aims to make sure that a disabled person can use a service as close as it is reasonably possible to get to the standard usually offered to non-disabled people.
If a disabled person wants to use the service, the service provider must ensure that it makes reasonable adjustments to the service within a reasonable time of the disabled person’s request.
Many adjustments will not be particularly expensive and a service-provider is not required to do more than is reasonable.
B) The duty to make reasonable adjustments aims to make sure that a disabled person can use a service as close as possible to get to the standard usually offered to non-disabled people.
The duty is ‘anticipatory’. This means a service provider cannot wait until a disabled person wants to use the service. They must think in advance (and on an ongoing basis) about what disabled people with a range of impairments (such as people who have a visual or hearing impairment, a mobility impairment or a learning disability) might reasonably need.
The service-provider must use its best endeavours to provide the same service to a disabled person as to a non-disabled person, and bear the cost of all necessary expenditure.
C) The duty to make reasonable adjustments aims to make sure that a disabled person can use a service as close as it is reasonably possible to get to the standard usually offered to non-disabled people.
The duty is ‘anticipatory’. This means a service provider cannot wait until a disabled person wants to use the service. They must think in advance (and on an ongoing basis) about what disabled people with a range of impairments (such as people who have a visual or hearing impairment, a mobility impairment or a learning disability) might reasonably need.
Many adjustments will not be particularly expensive and a service-provider is not required to do more than is reasonable.
C) The duty to make reasonable adjustments aims to make sure that a disabled person can use a service as close as it is reasonably possible to get to the standard usually offered to non-disabled people.
The duty is ‘anticipatory’. This means a service provider cannot wait until a disabled person wants to use the service. They must think in advance (and on an ongoing basis) about what disabled people with a range of impairments (such as people who have a visual or hearing impairment, a mobility impairment or a learning disability) might reasonably need.
Many adjustments will not be particularly expensive and a service-provider is not required to do more than is reasonable
You have been helping your supervisor write advice to a client on the likelihood of his claim against a counter party succeeding. You have just amended the advice and your supervisor has not yet reviewed it. As your supervisor left the office for the evening, she asked you to email it to her that evening so that she could review it before sending it to the client tomorrow morning.
The client rings you up. He has been trying to get hold of your supervisor. The client explains that the advice has suddenly become urgent and asks you to email it to him as soon as possible that evening so that he can send it to his managing director who is waiting for it.
Which one of the following should you do?
A) Explain the position to the client. Say that you will try to get hold of your supervisor and get back to the client. Then leave for the evening. You have a team drinks event you have been looking forward to. The matter can wait until the morning.
B) Refuse to send the advice to the client. Tell him that he will have to wait until your supervisor is back in the morning. Then leave the office for the evening, you have a team drinks event you have been looking forward to.
C) Email the advice to the client straight away. It is nearly final, your supervisor seemed happy with it and you feel relatively confident that your supervisor would be happy for you to send the advice out.
D) Explain the position to the client. Say that you will try to get hold of your supervisor and check whether it is ok to send him the advice. Then ring your supervisor on her mobile, follow her instructions and ring the client back and update him.
D) Explain the position to the client. Say that you will try to get hold of your supervisor and check whether it is ok to send him the advice. Then ring your supervisor on her mobile, follow her instructions and ring the client back and update him.
(Correct. This course of action would be the best. You should not send the advice out without your supervisor’s approval. There may be points that she wants to change. In getting your supervisor to check the work first and, at the same time, keeping your client informed of what is going on, you are providing a competent service to your client in a timely manner in accordance with CCS 3.2)
Which paragraph of the SRA Code of Conduct for Solicitors, RELs and RFLs (‘CCS’) contains the provision that you must not seek to influence the substance of evidence, including generating false evidence or persuading witnesses to change their evidence?
A) CCS 2.2
B) CCS 2.1
C) CCS 1.4
A) CCS 2.2
(Correct. CCS 2.1 states that you must not misuse or tamper with evidence, and CCS 1.4 contains the rule that you must not mislead your clients, the court or other people)
You are a solicitor in the residential conveyancing department. Your client, the seller, is due to complete on a sale today. You received part of the completion monies (£450,000) from the buyer’s solicitors yesterday, which you undertook to hold to the order of the buyer’s solicitors pending completion.
You have just received an email from the buyer’s solicitors advising you that their clients have instructed them not to proceed with the completion today as their mortgage advance will not be available for another four days. The buyer’s solicitors have instructed you to return the £450,000 immediately. You have (correctly) explained to your client that by failing to complete today, the buyer is now in breach of contract.
Your client is aware that you hold the £450,000 and has instructed you to send him the money immediately.
Which ONE of the following statements CORRECTLY states what you should do next?
A) You should not return the money to the buyer’s solicitors because the buyer is in breach of contract. You should not forward the money to your client because you would be breaching your undertaking to the buyer’s solicitors. You should therefore keep the money in your firm’s account until the buyer has sufficient funds to complete the transaction.
B) You must return the £450,000 to the buyer’s solicitors immediately, even though their client is in breach of contract. If you fail to do so you will have breached your undertaking to the buyer’s solicitors.
C) You should forward the £450,000 to your client, as part payment of the balance due to your client.
B) You must return the £450,000 to the buyer’s solicitors immediately, even though their client is in breach of contract. If you fail to do so you will have breached your undertaking to the buyer’s solicitors.
(Correct. You undertook to hold the £450,000 to the order of the buyer’s solicitors. This means that you cannot send the money to your client without the agreement of the buyer’s solicitors. The money does not belong to you or to your client. If you fail to return the money, you will be in breach of CCS 1.3.)
Which ONE of the following statements completes the following sentence CORRECTLY?
“Section 56(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (‘LASPO’) prohibits …
A) … solicitors from referring or receiving referrals in respect of a claimant’s claim for damages in respect of personal injury or death to each other in consideration for a referral fee.
B) … solicitors from referring or receiving referrals in respect of claims which are subject to legal restrictions imposed in the interests of national security
C) … solicitors from referring or receiving referrals in respect of a clients who are the subject of criminal proceedings.
A) … solicitors from referring or receiving referrals in respect of a claimant’s claim for damages in respect of personal injury or death to each other in consideration for a referral fee
(Correct. This is a prohibited referral fee. Solicitors are not permitted to pay or receive a fee for referring or receiving referrals for these types of claims)
Which provision of CCS states:
“you ensure that any publicity in relation to your practice is accurate and not misleading, including that relating to your charges and the circumstances in which interest is payable by or to clients.”
A) CCS 8.7
B) CCS 8.8
C) CCS 8.9
B) CCS 8.8
(CCS 8.9 contains the requirement that you do not make unsolicited approaches to members of the public in order to advertise legal services.
CCS 8.7 states that you must ensure that clients receive the best possible information about how their matter will be priced and, both at the time of engagement and when appropriate as their matter progresses, about the likely overall cost of the matter and any costs incurred)
Easy Property Selling Limited (‘EPS’) is a firm of estate agents. It has agreed to introduce property sellers and buyers to Price Prior’s residential property department. Price Prior has agreed to pay EPS £200 plus VAT in respect of each such introduction.
Which ONE of the following statements is CORRECT
A) This arrangement is an introduction and Price Prior will need to comply with CCS 5.1
B) This arrangement is not an introduction or a referral because the arrangement is not with a lawyer, so CCS 5.1 does not apply.
C) This arrangement relates to a referral fee which will not be permitted under CCS 5.2.
A) This arrangement is an introduction and Price Prior will need to comply with CCS 5.1
(Correct. This arrangement is an introduction. Price Prior is
making a payment to a third party (either within your firm or outside) for introducing the client;
the payment is a fixed fee or calculated with reference to the amount being charged to the client as a percentage of your gross or net fees; and
the third party may be another lawyer, but not necessarily so.
Here the third party is not a lawyer, but this does not stop the arrangement being caught by CCS 5.1)
Which ONE of the following statements is CORRECT about the following data protection principle:
‘personal data must be handled in a way that ensures appropriate security, including protection against unlawful or unauthorised processing, access, loss, destruction or damage’.
A) It applies only to law firms.
B) It applies only to partners and managers in an organisation.
C) It applies to you and everyone in your workplace.
C) It applies to you and everyone in your workplace.
(Correct. This principle is something everyone needs to be concerned with. Accidental disclosure / human error is the most common cause of breach of the data protection legislation. You must comply with your employer’s IT / data protection policy. For example, not disclose your password etc)
Which ONE of the following statements is CORRECT?
A) Personal data does not include information about a person that is public knowledge.
B) Information about someone’s professional life cannot be personal data for the purposes of the Data Protection Act.
C) Personal data’ does not include truly anonymous information. However, if you could still identify someone from the details, or by combining it with other information, it will count as personal data.
C) Personal data’ does not include truly anonymous information. However, if you could still identify someone from the details, or by combining it with other information, it will count as personal data.
You are making amendments to a witness statement you and your supervisor are finalising ready to serve at court and on the other side in a few days’ time. You receive a call from a friend who is working at the firm acting for the other side. The friend asks if you can send her the witness statement that evening so that her supervisor can read it and prepare for the hearing.
Which one of the following correctly states what you should do and why?
A) Anonymise the witness statement to remove any personal information about your client, and send it to your friend. You will be serving it on the other side soon, and a few days’ advance notice is unlikely to cause your client any harm, and at least you will be complying with the Data Protection Act.
B) Refuse your friend’s request because you would be breaching your duty of confidentiality to your client if you disclosed this information to your friend.
C) Email the draft witness statement to your friend that evening. You will be serving it on the other side soon, and a few days’ advance notice is unlikely to cause your client any harm. In addition, your friend might help you out on another matter should the occasion arise.
B) Refuse your friend’s request because you would be breaching your duty of confidentiality to your client if you disclosed this information to your friend.
(Correct. The witness statement contains information which is confidential to your client. You would be breaching your duty of confidentiality to your client under CCS 6.3 if you disclosed this information to any person, let alone the other side, without your client’s consent or being required to do so by law.)
Which ONE of the following statements is CORRECT
A) The duty of disclosure under CCS 6.4 does not apply where you have reason to believe that serious physical or mental injury will be caused to your client or another if the information is disclosed.
B) The duty of disclosure under CCS 6.4 does not apply where you are satisfied it is reasonable in all the circumstances for you not to disclose information to the client.
C) The duty of disclosure under CCS 6.4 does not apply where the Compliance Officer for Legal Practice consents to you not disclosing the information to the client.
A) The duty of disclosure under CCS 6.4 does not apply where you have reason to believe that serious physical or mental injury will be caused to your client or another if the information is disclosed
(Correct. This is an exception to the rule in CCS 6.4, as set out in CCS 6.4(c ).
Under CCS and CCF, the decision as to whether or not you should disclose information that is material to your client’s matter does not rest with your Compliance Officer for Legal Practice or with what you consider to be reasonable)
In which ONE of the following circumstances will there not have been a breach of the duty of confidentiality?
A) Disclosing information about your deceased client’s estate to a beneficiary without the consent of the deceased’s personal representatives.
B) Disclosing information about your client (A) from the firm you used to work for, which is material to the litigation matter on which you are advising your client (B) at your new firm.
C) Providing information to the court in compliance with a court order.
C) Providing information to the court in compliance with a court order.
(Correct. Complying with a court order falls within the exception “unless disclosure is required…by law” under CCS 6.3)
Which provision of the Code of Conduct for Solicitors, RELs and RFLs (‘CCS’) contains the duty of confidentiality:
“You keep the affairs of current and former clients confidential unless disclosure is required or permitted by law or the client consents”
A) CCS 6.2
B) CCS 6.3
C) CCS 6.4
B) CCS 6.3
(CCS 6.2 contains the principle that you do not act if you have a conflict of interest or a significant risk of a conflict of interest.
CCS 6.4 contains the principle that where you are acting for a client on a matter, you make the client aware of all information material to the matter of which you have knowledge (the duty of disclosure))
