King's Inns Diploma practice questions

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Question 1Diploma in Legal Studies

Under Irish constitutional law, which article of Bunreacht na hÉireann contains the guarantee of equality before the law?

Article 34.1
Article 28.4
Article 40.1 Correct answer.
Article 15.2

Explanation

Article 40.1 of the Constitution provides that all citizens shall, as human persons, be held equal before the law, subject to the express qualifications about differences of capacity and social function. It is the principal equality guarantee and has been litigated in cases concerning discrimination and legislative classification. The other articles listed deal with the courts, the Oireachtas and the Government rather than equality.

Question 2Diploma in Legal Studies

A client asks how a Bill that has passed both Houses of the Oireachtas but is alleged to be repugnant to the Constitution may be challenged before it is signed. Which procedure applies?

A petition to the Court of Appeal under Article 34.4
An application for judicial review in the High Court by any affected citizen
A motion in Seanad Éireann requesting a second vote
A referral to the Supreme Court by the President under Article 26 Correct answer.

Explanation

Article 26 permits the President, after consultation with the Council of State, to refer a Bill to the Supreme Court for a decision on its constitutionality before signing it. The Supreme Court's decision binds the President and prevents the Bill becoming law if it is found repugnant. Challenges to enacted legislation are a different matter, brought before the courts in the ordinary way.

Question 3Diploma in Legal Studies

In Irish criminal law, which mental element must the prosecution prove for a conviction of murder?

Malice aforethought in the common-law sense of ill will
Recklessness as to death only
Negligence amounting to a serious breach of duty
Intention to kill or cause serious injury Correct answer.

Explanation

Murder requires proof that the accused intended to kill or intended to cause serious injury, as confirmed in the leading Irish authorities. Recklessness as to death supports manslaughter but not murder. The old common-law language of malice aforethought has been replaced by this statutory intention test in the Criminal Justice Act 1964.

Question 4Diploma in Legal Studies

A defendant is charged with theft under the Criminal Justice (Theft and Fraud Offences) Act 2001. Which element must the prosecution establish regarding the property taken?

That the property belonged to another and was taken without consent Correct answer.
That the property was physically carried away from the owner's premises
That the property was worth more than €500
That the owner had insured the property against loss

Explanation

Section 4 of the 2001 Act defines theft as dishonestly appropriating property without the owner's consent with the intention of depriving the owner of it. The property must belong to another, and appropriation may occur without any physical removal. Value thresholds and insurance arrangements are irrelevant to the offence.

Question 5Diploma in Legal Studies

In the law of tort, which test is applied in Ireland to determine whether a defendant owed a duty of care in a novel situation?

The threefold test of proximity, foreseeability and policy alone
The 'but for' test of factual causation
The reasonable person test of professional competence
The incremental approach developed from established categories of duty Correct answer.

Explanation

Irish courts have favoured an incremental approach, extending recognised categories of duty by analogy rather than applying a single universal formula. The threefold proximity, foreseeability and policy considerations inform that analysis but do not alone create a duty. The 'but for' test belongs to causation, and the professional competence standard concerns breach.

Question 6Diploma in Legal Studies

A shopkeeper displays a defective ladder for sale. A customer is injured when it collapses during inspection. In a negligence claim, which element is most likely to be contested?

Whether the customer had paid for the ladder
Whether the shopkeeper owned the premises
Whether the shopkeeper owed the customer a duty of care Correct answer.
Whether the ladder was displayed for sale

Explanation

In a negligence action the claimant must establish duty, breach, causation and damage. Where a defective product causes injury to a person inspecting it, the contested issue is typically whether a duty of care was owed and breached rather than the commercial arrangements. Payment and ownership of the premises are not elements of the tort.

Question 7Diploma in Legal Studies

Which of the following is an essential characteristic of a valid contract under Irish law?

Registration with the Companies Registration Office
A witness to the agreement
A written document signed by both parties
Consideration moving from the promisee Correct answer.

Explanation

Irish contract law requires offer, acceptance, consideration and intention to create legal relations. Consideration must move from the promisee, although it need not be adequate. Writing, registration and witnesses are required only for particular categories of contract, such as those governed by statute.

Question 8Diploma in Legal Studies

A party to a contract discovers that the other party made a false statement of fact that induced the agreement. Which remedy is available if the misrepresentation was made fraudulently?

Specific performance only
Rectification of the written contract
Rescission and damages in the tort of deceit Correct answer.
An order for account of profits

Explanation

Fraudulent misrepresentation entitles the innocent party to rescind the contract and to claim damages in the tort of deceit. Rescission restores the parties to their pre-contract positions where restitutio in integrum is possible. Specific performance, rectification and accounts of profits address different claims.

Question 9Diploma in Legal Studies

In the Irish law of equity, which maxim explains why a person who seeks equitable relief must come with clean hands?

He who comes to equity must come with clean hands Correct answer.
Equity will not suffer a wrong to be without a remedy
Equity looks to the intent rather than the form
Delay defeats equity

Explanation

The clean hands maxim bars equitable relief where the claimant's own conduct in the matter has been improper. It reflects the discretionary nature of equitable remedies. The other maxims address formality, delay (laches) and the availability of a remedy, respectively.

Question 10Diploma in Legal Studies

A trustee secretly purchases trust property for his own benefit at an undervalue. What is the primary equitable consequence?

The purchase is voidable by the beneficiaries and the trustee holds any profit on constructive trust Correct answer.
The purchase is valid if approved by the settlor's family
The purchase is voidable only if the beneficiaries suffer financial loss
The purchase is valid because the trustee paid consideration

Explanation

A trustee may not purchase trust property without the informed consent of the beneficiaries or the sanction of the court. Such a self-dealing transaction is voidable, and any profit is held on constructive trust for the beneficiaries. The rule is prophylactic and does not require proof of actual loss.

Question 11Diploma in Legal Studies

Under the Succession Act 1965, what share of a deceased person's estate is a surviving spouse entitled to where there is a valid will that leaves the spouse nothing?

One-third of the estate in all cases
Nothing, because testamentary freedom is absolute
One-half of the estate, subject to the legal right Correct answer.
The entire estate as next of kin

Explanation

Section 111 of the Succession Act 1965 gives a surviving spouse a legal right to one-half of the estate where there are no children and one-third where there are children, subject to certain conditions. This legal right operates independently of the will. It is an absolute entitlement that can be claimed against the estate.

Question 12Diploma in Legal Studies

A testator makes a will leaving everything to one child and nothing to the other. On what basis may the disinherited child apply to court under the Succession Act 1965?

That the testator was over 65 years of age
That the testator failed in his moral duty to make proper provision Correct answer.
That the estate exceeds the threshold for probate
That the will was not witnessed by two persons

Explanation

Section 117 allows a child to apply where the testator has failed in his moral duty to make proper provision for the child in accordance with his means. The court assesses the application in light of the testator's means and the child's circumstances. The other grounds listed go to formal validity or administration rather than provision.

Question 13Diploma in Legal Studies

In Irish company law, what is the effect of incorporation on a company's liability for its own debts?

Members are personally liable for all company debts
The company is liable to the extent of its assets, and members' liability is generally limited to unpaid share capital Correct answer.
The company has no separate legal personality
Directors are personally liable for all company debts

Explanation

Incorporation confers separate legal personality, so the company contracts and is sued in its own name and is liable to the extent of its assets. Members' liability is generally limited to any amount unpaid on their shares. Directors are not personally liable for company debts merely by virtue of office.

Question 14Diploma in Legal Studies

A director of an Irish company continues to trade while the company is insolvent, incurring further debts. Which statutory consequence is most relevant?

Criminal liability of the company's auditors
Restriction or disqualification and personal liability for reckless trading Correct answer.
Automatic transfer of the company's assets to the creditors
Automatic dissolution of the company

Explanation

The Companies Act 2014 allows the court to restrict or disqualify directors and to hold them personally liable for debts incurred through reckless trading. The liquidator must apply for restriction unless the director meets the statutory test. Auditors and automatic dissolution are not the consequences of reckless trading.

Question 15Diploma in Legal Studies

In Irish employment law, what is the principal statutory source of the minimum notice period an employer must give to terminate a contract of employment?

The Minimum Notice and Terms of Employment Act 1973 Correct answer.
The Unfair Dismissals Act 1977
The Organisation of Working Time Act 1997
The Payment of Wages Act 1991

Explanation

The Minimum Notice and Terms of Employment Act 1973 sets minimum notice periods calculated by reference to length of service. The Unfair Dismissals Act 1977 governs the fairness of dismissals rather than notice. The 1997 and 1991 Acts concern working time and wage payment respectively.

Question 16Diploma in Legal Studies

An employee is dismissed without any stated reason after six months' service. Which statutory route is most appropriate to challenge the fairness of the dismissal?

A complaint to the Workplace Relations Commission under the Unfair Dismissals Act 1977 Correct answer.
A complaint to the Data Protection Commission
A prosecution of the employer for breach of the Organisation of Working Time Act 1997
An application to the High Court for judicial review of the employer's decision

Explanation

The Unfair Dismissals Act 1977 requires an employer to show substantial grounds justifying dismissal, and a complaint is made to the Workplace Relations Commission in the first instance. Judicial review is a public law remedy and generally inappropriate for a private employment dispute. The 1997 and data protection statutes are irrelevant to dismissal fairness.

Question 17Diploma in Legal Studies

In Irish land law, which statutory provision governs the creation and transfer of a legal interest in land by deed?

Section 51 of the Land and Conveyancing Law Reform Act 2009 Correct answer.
Section 3 of the Registration of Title Act 1964
Section 12 of the Statute of Frauds 1695
Section 31 of the Family Law Act 1995

Explanation

Section 51 of the Land and Conveyancing Law Reform Act 2009 provides that a legal interest in land may be created or transferred only by deed, subject to limited statutory exceptions. The Registration of Title Act 1964 deals with registration of title. The other provisions concern family property and historic formalities.

Question 18Diploma in Legal Studies

A purchaser of registered land discovers a right of way used openly by a neighbour for many years. What is the effect of registration of the purchaser's title?

The right may bind the purchaser if it is registered or otherwise protected on the folio Correct answer.
The right is extinguished automatically on registration
The right binds only if the neighbour's use began after registration
The right binds only if the neighbour pays compensation

Explanation

Under the registration system, burdens affecting registered land bind a purchaser where they are entered on the folio or otherwise protected under the Registration of Title Act 1964. Registration does not automatically extinguish existing rights. Compensation and the timing of user are not the governing criteria.

Question 19Diploma in Legal Studies

In the Irish adversarial trial system, what is the role of the judge in relation to the presentation of evidence?

To examine witnesses on behalf of the prosecution
To investigate the facts independently before trial
To act as an impartial umpire while the parties present their cases Correct answer.
To determine the charges before the trial begins

Explanation

In an adversarial system the parties, through their legal representatives, present the evidence and arguments, and the judge acts as an impartial arbiter ruling on law and procedure. The judge does not ordinarily investigate the facts or examine witnesses for one side. Determining charges is a function of the prosecution and the courts at earlier stages.

Question 20Diploma in Legal Studies

A plaintiff wishes to commence proceedings in the High Court for a claim exceeding the Circuit Court jurisdiction. Which document ordinarily initiates the proceedings?

A plenary summons Correct answer.
An originating notice of motion
A civil bill
A notice of motion

Explanation

High Court proceedings are ordinarily commenced by a plenary summons where the claim requires pleadings and a trial on the merits. A civil bill initiates Circuit Court proceedings, while motions are used for interlocutory or summary applications. The choice of originating document depends on the nature of the claim.

Question 21Diploma in Legal Studies

In Irish evidence law, what is the general rule regarding the admissibility of hearsay evidence in a criminal trial?

It is inadmissible save where a statutory or common-law exception applies Correct answer.
It is admissible only if both parties agree
It is admissible if it is recorded in writing
It is admissible if the witness is unavailable for any reason

Explanation

Hearsay, an out-of-court statement adduced to prove the truth of its contents, is generally inadmissible in Irish criminal trials. Statutory exceptions exist, notably under the Criminal Justice Act 2006 for unavailable witnesses, and various common-law exceptions apply. Party agreement or written form does not by itself make hearsay admissible.

Question 22Diploma in Legal Studies

A suspect is detained in a Garda station and makes an oral confession before being cautioned. What is the principal effect on the admissibility of the confession?

It is automatically admissible because it was voluntary in tone
It is inadmissible in all circumstances without exception
It is admissible only if recorded on video
It may be excluded as involuntary or obtained in breach of constitutional rights Correct answer.

Explanation

A confession must be voluntary to be admissible; statements obtained by inducement, oppression or in breach of constitutional rights may be excluded at the trial judge's discretion. The absence of a caution is a significant factor going to voluntariness and fairness. There is no automatic rule of admissibility or absolute exclusion.

Question 23Diploma in Legal Studies

Which court in Ireland has jurisdiction to determine the constitutionality of a statute at first instance?

The Court of Appeal
The Circuit Court
The High Court Correct answer.
The District Court

Explanation

Under Article 34 of the Constitution, the High Court has full original jurisdiction to determine questions of the validity of laws having regard to the Constitution. The District and Circuit Courts cannot determine constitutional validity and must refer such questions. The Court of Appeal hears appeals from the High Court.

Question 24Diploma in Legal Studies

In the Irish legal system, what is the status of a decision of the Supreme Court on a point of law?

It is merely persuasive on the High Court
It binds only the parties to the case
It has no precedential effect in Ireland
It is binding on all lower courts unless overruled by the Supreme Court itself or displaced by legislation Correct answer.

Explanation

Ireland follows the doctrine of stare decisis, so Supreme Court decisions on points of law bind lower courts. The Supreme Court may depart from its own previous decisions where warranted, and legislation can displace judge-made rules. The other options understate the precedential force of its rulings.

Question 25Diploma in Legal Studies

A solicitor receives confidential information from a client about a pending matter and is later asked to act for the opposing party in the same matter. What is the primary professional obligation?

To accept the retainer but disclose the information to the court
To accept the retainer if the client consents to disclosure
To accept the retainer and rely on the duty of confidentiality to the new client
To decline the retainer because of the conflict of interest and duty of confidentiality Correct answer.

Explanation

A solicitor owes a continuing duty of confidentiality to former clients and must avoid acting where there is a real risk of a conflict of interest. Acting for the opposing party in the same matter would compromise that duty, and client consent to disclosure does not cure the conflict. The proper course is to decline the retainer.

Question 26Diploma in Legal Studies

Under the Constitution of Ireland, which Article contains the guarantee of equality before the law?

Article 28
Article 40.1 Correct answer.
Article 34
Article 43

Explanation

Article 40.1 of the Constitution provides that all citizens shall, as human persons, be held equal before the law, subject to distinctions based on capacity and social function. It is the principal constitutional source of the equality guarantee and has been applied in cases concerning discrimination. Article 34 concerns the courts and Article 43 concerns private property.

Question 27Diploma in Legal Studies

In Irish constitutional law, which doctrine permits courts to strike down a statute that conflicts with the Constitution?

Parliamentary sovereignty
Stare decisis
Judicial review Correct answer.
Ultra vires

Explanation

Judicial review allows the High Court and Supreme Court to examine legislation and invalidate it where it is repugnant to the Constitution. This power flows from Articles 34 and 40 and reflects the supremacy of the Constitution over ordinary statute. Parliamentary sovereignty is a different, English constitutional principle.

Question 28Diploma in Legal Studies

Which body in Ireland is responsible for the professional regulation of solicitors?

The Courts Service
The Law Society of Ireland Correct answer.
The Judicial Council
The Bar Council

Explanation

The Law Society of Ireland is the statutory regulator and representative body for solicitors, operating under the Solicitors Acts. It administers education, admission and professional conduct regulation for solicitors. The Bar Council regulates barristers rather than solicitors.

Question 29Diploma in Legal Studies

In the Irish court structure, which court hears appeals from the Circuit Court in civil matters?

The Court of Appeal Correct answer.
The District Court
The High Court
The Supreme Court

Explanation

The Court of Appeal, established under the Court of Appeal Act 2014, hears appeals from the High Court and, in many civil matters, from the Circuit Court. It sits below the Supreme Court in the appellate hierarchy. The District Court is a court of first instance with limited jurisdiction.

Question 30Diploma in Legal Studies

In the law of tort, which element must a plaintiff establish in an action for negligence?

That a written contract existed between the parties
That the defendant acted in the course of employment
That the defendant owed the plaintiff a duty of care Correct answer.
That the defendant intended to cause harm

Explanation

Negligence requires the plaintiff to show that the defendant owed a duty of care, that the duty was breached, and that damage resulted. Intention is not required for negligence, which is concerned with unreasonable conduct rather than deliberate harm. A contract is not a precondition of a negligence claim.

Question 31Diploma in Legal Studies

In the Irish law of contract, which of the following is generally required for an acceptance to be effective?

It must be witnessed by a third party
It must be made in writing
It must be communicated to the offeror Correct answer.
It must be supported by consideration from the offeror

Explanation

Acceptance must generally be communicated to the offeror, since the offeror cannot be bound without knowledge of the assent. The postal rule is a recognised exception where acceptance by post is contemplated. Writing and witnesses are required only for particular contracts, not for acceptance generally.

Question 32Diploma in Legal Studies

In Irish criminal law, what is the standard of proof the prosecution must meet in a criminal trial?

Beyond reasonable doubt Correct answer.
On the balance of probabilities
On a prima facie basis
By clear and convincing evidence

Explanation

The prosecution bears the burden of proving guilt beyond reasonable doubt, reflecting the presumption of innocence. This standard is higher than the civil standard of the balance of probabilities. Clear and convincing evidence is a standard used in some other jurisdictions, not the Irish criminal standard.

Question 33Diploma in Legal Studies

Which piece of Irish legislation is the principal statute governing the sale of goods?

The Consumer Protection Act 2007
The Land and Conveyancing Law Reform Act 2009
The Companies Act 2014
The Sale of Goods Act 1893 Correct answer.

Explanation

The Sale of Goods Act 1893, as amended, remains the principal statute governing contracts for the sale of goods in Ireland. It sets out implied terms such as title, description, fitness and merchantability. The Consumer Protection Act 2007 supplements it in consumer transactions but does not replace it as the core sale of goods statute.

Question 34Diploma in Legal Studies

A client instructs a solicitor to draft a will leaving property to a person who is the solicitor's own spouse. Which principle most directly governs the solicitor's position?

The doctrine of frustration
The rule against perpetuities
The doctrine of privity of contract
The conflict of interest rule Correct answer.

Explanation

A solicitor must avoid situations where a personal interest conflicts with the client's interest, and drafting a will benefiting the solicitor's own family raises a clear conflict. The conflict of interest rule requires disclosure and often refusal of the retainer. Privity and frustration are contract doctrines unrelated to fiduciary duties.

Question 35Diploma in Legal Studies

A tenant has occupied a commercial premises under a lease for twenty years and claims a right to renew. Which statutory framework is most relevant to that claim?

The Registration of Title Act 1964
The Planning and Development Act 2000
The Landlord and Tenant (Amendment) Act 1980 Correct answer.
The Residential Tenancies Act 2004

Explanation

The Landlord and Tenant (Amendment) Act 1980, as amended, governs the entitlement of business tenants to a new tenancy where statutory conditions are met. It sets out the requirement of long occupation and the grounds on which a new tenancy may be refused. The Residential Tenancies Act 2004 applies to residential, not commercial, tenancies.

Question 36Diploma in Legal Studies

A director of an Irish company wishes to enter into a contract in which she has a material personal interest. Under the Companies Act 2014, what must she generally do?

Disclose the nature of her interest to the board Correct answer.
Obtain the consent of the Revenue Commissioners
Resign her directorship before the meeting
Register the interest with the Companies Registration Office

Explanation

The Companies Act 2014 requires a director with a material interest in a transaction to disclose the nature of that interest to the board of directors. This allows the board to assess the transaction and, where necessary, take appropriate steps. Resignation is not a statutory prerequisite, and Revenue consent is not required.

Question 37Diploma in Legal Studies

An employer wishes to dismiss an employee for misconduct but has not followed fair procedures. Which principle of Irish employment law is most directly engaged?

The doctrine of consideration
The doctrine of part performance
The rule in Rylands v Fletcher
The right to fair procedures and natural justice Correct answer.

Explanation

Irish employment law, informed by constitutional justice and the Unfair Dismissals Acts, requires fair procedures before dismissal for misconduct. The employee should generally be informed of the allegations and given an opportunity to respond. Consideration, Rylands v Fletcher and part performance belong to contract, tort and land law respectively.

Question 38Diploma in Legal Studies

A person dies intestate leaving a spouse and children. Under the Succession Act 1965, how is the estate distributed?

The spouse takes two-thirds and the children one-third
The spouse takes the entire estate Correct answer.
The spouse takes one-half and the children one-half
The children take the entire estate

Explanation

Where an intestate deceased leaves a spouse and children, the spouse takes the entire estate under section 67 of the Succession Act 1965. Children have no automatic entitlement in that situation. This rule reflects the statutory preference for the surviving spouse.

Question 39Diploma in Legal Studies

A plaintiff sues in negligence and the defendant argues that the plaintiff freely accepted the risk of injury. Which defence is the defendant invoking?

Act of God
Inevitable accident
Volenti non fit injuria Correct answer.
Contributory negligence

Explanation

Volenti non fit injuria is a complete defence where the plaintiff voluntarily and knowingly accepted the risk of harm. It differs from contributory negligence, which reduces damages rather than defeating the claim. Inevitable accident and act of God concern events outside the defendant's control.

Question 40Diploma in Legal Studies

In Irish evidence law, which rule governs the admissibility of evidence obtained in breach of constitutional rights?

Such evidence is always inadmissible
Such evidence is admissible only with the consent of the accused
Such evidence is always admissible
Such evidence may be excluded where its admission would be unfair Correct answer.

Explanation

Irish courts apply a balancing test, often associated with the exclusionary rule developed in cases such as People (DPP) v Kenny and later refined, under which evidence obtained in breach of constitutional rights may be excluded where admission would be unfair. The rule is not absolute in either direction. Consent of the accused is not the governing criterion.

Question 41Diploma in Legal Studies

A solicitor is instructed by two clients whose interests conflict in the same transaction. What is the solicitor's primary professional obligation?

To act for both clients and keep both informed
To decline to act for both where a conflict exists Correct answer.
To refer the matter to the Law Society for approval
To act for the client who instructed first

Explanation

A solicitor must not act for two clients where their interests conflict, because the duty of loyalty and confidentiality cannot be discharged to both. The proper course is generally to decline the joint retainer or cease acting. Acting for the first client is not a principled solution, and Law Society approval is not the standard route.

Question 42Diploma in Legal Studies

In Irish constitutional law, which test is applied to determine whether a statutory restriction on a personal right is permissible?

The reasonable person test
The best interests test
The proportionality test Correct answer.
The but-for test

Explanation

Where legislation restricts a constitutional right, the courts apply a proportionality analysis, asking whether the restriction pursues a legitimate aim and is proportionate to that aim. This reflects the hierarchy of constitutional rights. The reasonable person and but-for tests belong to tort and causation, and the best interests test to family and child law.

Question 43Diploma in Legal Studies

A consumer buys a faulty appliance from a retailer. Which statutory remedy is most directly available under the Consumer Protection Act 2007?

A claim for breach of statutory duty in respect of the defective product Correct answer.
A claim for adverse possession of the appliance
A claim for specific performance of the sale
A claim for breach of the implied term of quiet enjoyment

Explanation

The Consumer Protection Act 2007 imposes statutory duties on traders regarding the safety and quality of products, and breach may give rise to a civil claim for breach of statutory duty. The Act operates alongside the Sale of Goods Acts. Quiet enjoyment and adverse possession are land law concepts, and specific performance is an equitable remedy not typical here.

Question 44Diploma in Legal Studies

In the Irish law of equity, which remedy is discretionary and requires the plaintiff to show that damages would be inadequate?

Specific performance Correct answer.
Damages
Restitution
Debt

Explanation

Specific performance is an equitable remedy that compels a party to perform a contract, and it is granted only where damages would be inadequate and the remedy would be fair. Equitable remedies are discretionary and subject to maxims such as he who seeks equity must do equity. Damages are a common law remedy available as of right.

Question 45Diploma in Legal Studies

A person is charged with an offence and wishes to challenge the constitutionality of the statute creating it. In which court should the challenge ordinarily be brought at first instance?

The District Court
The Circuit Court
The High Court Correct answer.
The Supreme Court

Explanation

Challenges to the constitutionality of legislation are ordinarily brought in the High Court, which has full original jurisdiction under Article 34. The Supreme Court hears appeals on constitutional issues and does not generally decide them at first instance. The District and Circuit Courts cannot determine the constitutionality of statutes.

Question 46Diploma in Legal Studies

In Irish company law, what is the significance of the separate legal personality of a company?

Directors are personally liable for all company debts
Shareholders must personally guarantee company contracts
The company is treated as a partnership for tax purposes
The company is liable for its own debts and can sue and be sued in its own name Correct answer.

Explanation

Separate legal personality, established in Salomon v Salomon and recognised in Irish law, means the company is a distinct legal person that owns its assets, bears its own liabilities and may sue and be sued. Shareholders' liability is generally limited to unpaid amounts on their shares. Directors are not personally liable for company debts merely by virtue of office.

Question 47Diploma in Legal Studies

In the Irish law of tort, which test is used to determine whether a duty of care exists in a novel situation?

The doctrine of consideration
The neighbourhood principle of reasonable foreseeability Correct answer.
The postal rule
The rule in Foss v Harbottle

Explanation

In novel situations, Irish courts apply the neighbourhood principle associated with Donoghue v Stevenson, asking whether harm to the plaintiff was reasonably foreseeable and whether a relationship of proximity exists. Policy considerations may also be weighed. The postal rule concerns contract acceptance, and Foss v Harbottle concerns company litigation.

Question 48Diploma in Legal Studies

A testator executes a will without complying with the formal requirements of the Succession Act 1965. Which outcome most likely follows?

The will is valid if witnessed by a solicitor
The will is valid if the testator's intention is clear
The will is invalid because the statutory formalities are mandatory Correct answer.
The will is invalid unless a court exercises its discretion to admit it

Explanation

Section 78 of the Succession Act 1965 sets out mandatory formalities, including writing, signature and attestation by witnesses. A will that fails these requirements is generally invalid, since clear intention cannot cure a formal defect. Witnessing by a solicitor alone does not satisfy the statutory scheme unless all requirements are met.

Question 49Diploma in Legal Studies

In Irish administrative law, which ground of review is engaged where a decision-maker has regard to irrelevant considerations?

Error of law
Breach of natural justice
Improper purpose or irrelevant considerations Correct answer.
Unreasonableness

Explanation

Judicial review of administrative decisions may be granted where the decision-maker took into account irrelevant considerations or acted for an improper purpose. This is distinct from breach of natural justice, which concerns fair procedures and bias. Unreasonableness concerns decisions so lacking in rationale that no reasonable decision-maker could have reached them.

Question 50Diploma in Legal Studies

A company director continues to trade while the company is insolvent and incurs further debts. Which statutory consequence is most directly engaged under the Companies Act 2014?

Dissolution of the company without winding up
Criminal liability of the company's auditors
Personal liability for the director where reckless trading is established Correct answer.
Automatic discharge of the company's debts

Explanation

The Companies Act 2014 provides for restriction and disqualification of directors and, in certain circumstances, personal liability where a director is found to have traded recklessly. These provisions are designed to protect creditors. The company's debts are not automatically discharged, and auditors are not criminally liable for the director's conduct.