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European Community Law
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The sources of Community law are legislation and case-law. The legislation is primary for certain Treaty provisions whereas Regulations, Directives and Decisions of the Council and Commission under Article 189 of the EC Treaty are secondary or delegated legislation. In addition the decisions of the European Court of Justice (ECJ) and the Court of First Instance (CFI) are binding over the national courts of member states.
The direct applicability and direct effectivity of Community law
Britain is bound by the legislation emanating from the Community institutions. This is recognised in European Communities Act 1972 (ECA 1972).
The ECA 1972 provides for the supremacy of Community legislation by providing that Acts of Parliament have effect subject to Community provisions. In addition, English courts must interpret Community legislation using European methods.
A provision of Community law is directly applicable if it becomes part of the law of the member state automatically without needing to be incorporated into national law by direct or indirect national legislation. It is directly effective if it creates rights which are enforceable by the courts of a member state.
Community provisions which are only directly effective can only be enforced by a person against the member state or a state organ, not against other persons. They are therefore considered as having vertical direct effect since the person is enforcing the provision vertically against the state. Provisions have horizontal direct effect where they can be used as the basis of an action by one subject against another.
Legislation
Treaty provisions
The ECJ has established that some treaty provisions are directly applicable and directly effective both horizontally and vertically. Such provisions must: (i) not simply concern inter state relations, (ii) be clear and precise, (iii) be unconditional and unqualified; and (iv) not leave any substantial latitude or discretion to member states.
Regulations
Defined as having ‘general application’ and ‘being binding in [their] entirety and directly applicable in all member states’, regulations are used to introduce major changes in Community law applicable throughout the Community. They bind all member states and take precedence over all national legislation. A person living in a member state can enforce rights guaranteed by a regulation in the national courts of the member state.
Questions.
1) What are the two main branches of law in England?
2) What are the two types of legal personality?
3) How are corporations classified?
4) What are the major sources of English Law?
5) How is a precedent established in case law?
6) What statement of law is binding?
7) What are the sources of European Community law?
Find the following sentences in the text.
1) В Англии основное различие – это различие между уголовным и гражданским правом.
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2) Физическое лицо обычно имеет только одно гражданство, но может иметь двойное гражданство или не иметь гражданства.
3) Самые ранние торговые корпорации были созданы таким способом: Компания Гудзонова Залива, Ост-Индская Компания.
4) Заявление, сделанное судьей при вынесении решения по делу, создает прецедент.
5) Только заявление, создающее основу для вынесения решения, является обязательным.
6) Решения Суда Европейских Сообществ и Суда Первой Инстанции обязательны для государственных судов стран-членов.
7) Английские суды должны толковать законодательство Сообщества, используя Европейские методы.
Recite the main points of the text.
Unit 2. Business Organisations
1. Words to be remembered.
sole trader – единственный владелец, работающий без партнеров
partnership – товарищество
registered company – акционерное общество
loan – заем, ссуда, кредит
security of charges – гарантия оплаты
shares – акции
losses – убытки, потери
borrowing – заем
subsist – существовать
stipulation – обусловленность, договоренность
charitable – благотворительный
tort – правонарушение
incur – подвергаться
sue – иск, подавать иск
binding – обязательный
entity – экономическая единица, субъект экономической
деятельности
defendant – ответчик
promoter – учредитель
plaintiff – истец
mandate – поручение
credit (to) – давать кредит, кредитовать
authorise – наделять правами
repudiate – отказываться, аннулировать
unsound – психически ненормальный
passing-off – ведение дела под чужим именем
injunction – запрет, запретительная норма
illegal – незаконный
by implication – косвенно, подразумеваемым образом
inter alia (лат.) –
dissolution – прекращение, расторжение
winding up – прекращение
assets – активы
lease – арендовать
writ – судебное решение, предписание
judgement – решение суда
deficiency – недостаток, отсутствие
indemnify – гарантировать возмещение ущерба
to be entitled to – иметь право доступа
remuneration – вознаграждение
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expel – исключать
fiduciary – доверительный
undertake – принимать, обязываться, брать на себя
freehold reversion – изменение права собственности, переход к
первоначальному собственнику
estate – собственность
vicariously liable – ответственный без вины за действия другого
common law – общее право
injury – вред, ущерб
bribe – взятка, дать взятку
rival – конкурент
wrongful act – неправомерное действие
legitimate – законный
illegitimate – незаконный
Text for reading.
The basic business organisations in England and Wales are the soletrader, the partnership and the registered company. There are advantages and disadvantages associated with these different forms. The most important point of distinction is that, where persons choose to register a company, the company is a juristic or artificial legal person which, with certain obvious exceptions, enjoys the same rights under the law as a natural person. In the case of the sole trader or the partnership, no separate legal person is created. The main consequence is that the registered company provides the protection of liability for its members.
A. The Sole Trader
The proprietor may, of course, employ other people but the responsibility for the success or failure of the enterprise is in the hands of the sole trader who will usually raise the capital of the business by loans from banks against the security of charges on his private property, such as house, life insurance policy or shares. The proprietor retains all the profits but is liable for all the losses up to the full extent of his private fortune and any legal action in respect of the business will be brought against the proprietor.
The proprietor has great freedom but suffers disadvantages including: (i) limited capital, (ii) limited borrowing, (iii) problems with holidays and sickness, (iv) limited scope for expansion. But these would not necessarily be removed by incorporation.
B. The Partnership
The partnership allows for an increased capital base, improved borrowing and reduces the problems relating to holidays and sickness. The Partnership Act 1890 (PA 1890) defines a partnership as ‘the relation which subsists between persons carrying on a business in common with a view of profit’. There must be at least two persons associating for the purposes of carrying on a common business which includes any ‘trade, profession or occupation’. The stipulation relating to profit means that the form cannot be used for charitable or non-commercial purposes.
The partnership is not a separate legal person under the law, and partners are jointly liable for the debts and obligations of the partnership without limit, and jointly and independently for torts committed by partners and employees of the firm – even for partners who do not play an active part in the management of the business (so-called ‘sleeping partners’). Partnership is not suitable for a person who merely wishes to invest money in a business without incurring any further exposure to risk.
The definition of a partnership establishes the essential criteria required for proving the existence of a partnership. These are: (i) the existence of a business; (ii) carried on in common; (iii) with a view of profit. Thus the firm can sue and be sued in its own name under the Rules of the Supreme Court, but any judgement against the partnership is binding on the partners. In addition, the Insolvent Partnerships Order 1994 allows a partnership to be treated as an entity which can enter arrangements with its creditors in the same way as a limited company.
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