Tort & Business Law Flashcards
6 cards from real SQE1 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Tort & Business Law flashcards as text
What is the legal position regarding a solicitor's duty of confidentiality under the SRA Code of Conduct?
Answer: Solicitors must keep client information confidential unless the client consents, there is a legal duty to disclose, or the law permits or requires disclosure
The SRA Code of Conduct requires solicitors to maintain client confidentiality indefinitely unless the client gives informed consent, there is a legal duty to disclose (e.g., court order), or the law permits disclosure (e.g., money laundering reporting obligations).
Under the Companies Act 2006, a director has a duty to avoid conflicts of interest. Which section governs this?
Answer: Section 175
Section 175 of the Companies Act 2006 imposes a duty on directors to avoid situations in which they have, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the company.
What is the primary test used in English negligence law to determine whether a defendant has breached their duty of care?
Answer: Whether the defendant fell below the standard of the reasonable person (the Bolam test for professionals)
The standard for breach of duty in negligence is the objective reasonable person standard. For professionals, the Bolam test applies: a professional is not negligent if they acted in accordance with a practice accepted as proper by a responsible body of professional opinion.
In the tort of defamation, what is the key distinction between libel and slander?
Answer: Libel is defamation in permanent form (e.g., written/broadcast); slander is defamation in transient form (e.g., spoken)
Libel is defamation in a permanent form (writing, broadcast, film), while slander is in transient form (spoken words, gestures). Libel is actionable per se (without proof of special damage); most slander requires proof of actual damage.
Under English law, what is an 'unfair prejudice petition' under the Companies Act 2006?
Answer: A remedy for minority shareholders who allege the company's affairs have been or are being conducted in a manner unfairly prejudicial to their interests
Under s.994 of the Companies Act 2006, a shareholder may petition the court on the grounds that the company's affairs are being conducted in a manner unfairly prejudicial to their interests. The court may grant a wide range of remedies, most commonly ordering the purchase of the petitioner's shares.
What is 'joint and several liability' in the context of tort law?
Answer: Where multiple defendants are each fully liable for the entire loss, and the claimant can recover in full from any one of them
Joint and several liability means each defendant is fully liable for the entire loss. The claimant can recover the full amount from any one defendant (or combination), leaving the defendants to sort out contribution between themselves.