Maritime law and arbitration

This Charter Party shall be governed by and construed in mcordance with English law and any dispute arising out of this Сharter Party shall be referred to arbitration in London in accordance with the Arbitration Acts 1950 and 1979 or any Mintutory modification or reenactment thereof for the time being in force.

Unless the parties agree upon a sole arbitrator, one arbitrator shall be appointed by each party and the arbitrators so appointed shall appoint a third arbitrator, the decision of the three-man ii ibunal thus constituted or any two of them, shall be final. On the receipt by one party of the nomination in writing of the other party's arbitrator, that party shall appoint their arbitrator within fourteen days, failing which the decision of the single arbitrator will be final.

For disputes where the total amount claimed by either party does not exceed the amount stated in Box 25 the arbitration ulutll be conducted in accordance with the Small Claims hoccdure of the London Maritime Arbitrators Association.

(Extract from

Charter «Gencon»).

Tasks and exercises

1. Translate the following terms and notions:

to construe; a sole arbitrator; nomination;

failing (which); small claims.

2. Give synonyms from the text:

to carry out; the sum; single;

to form; debates; acception.

3. Insert the prepositions if necessary:

1) The Chapter shall be construed... accordance with English law.

2) This dispute arises... of the conflict in London.

3) Is this charter still... force?

4) Did the parties agree... a sole arbitrator?

5)... the receipt of the nomination... writing the party appointed its arbitrator.

6) They shall appoint their arbitrator within 14 days.

4. Complete the sentences:

1) If the parties agree upon a sole arbitrator...

2) If the parties appoint their arbitrators...

3) If the three-man tribunal makes a decision...

4) If one party receives the nomination of the other parly's arbitrator...

5) If the other party fails to appoint its arbitrator...

6) If the total amount does not exceed the amount stated in Box 25...

5. Answer the questions:

1) How many arbitrators can be appointed according to Charter «Gencon»?

2) What documents regulate arbitration in case of disputes?

3) Who appoints arbitrators when the parties do not agree upon a sole arbitrator?

4) How many days are given to the party for the appointment of the arbitrator?

6. Combine the elements from A and B:

A B

Small modification

Total arbitrator

Statutory amount

Sole tribunal

Three-man claims

7. Give the word of the same root from the text:

appointment; statement; nominate;
agreement; constitution; modify;
receive; reference; enact.

8. Give the Participle II forms:

to arise; to exceed; to conduct; to claim.

9. Comment on the use ofthe ing-forms in the text.

10. Speak on the procedure of arbitration according to the
Charter «Gencon».

11. Read and insert the words from the frame:

Charterparty

Charterparty is a written contract by which a person called
I lie charterer hires from a shipowner, in return for the payment
of..., the use of his ship or part of it for the... of goods by sea.

The hiring may be either for a specified period (a time
charter) or for a specified... or voyages (a voyage charter).

The chatterer may... the ship for carrying either his own
goods alone or the goods of a number of shippers, who may or
mity not include himself.

A special but now... type of charterparty is the charter by
demise. It is... to a lease of land and gives the charterer full
possession and control ofthe ship.

The normal charterparty is a simple charter, under which
the shipowner retains... and the primary rights of the charterer
and confined to placing goods on board and choosing the ports

of call.

freight; voyage; analogous;

possession; goods; call; hire; carriage; rare

 

12. Answer the questions on the text above:

1) What is a time charter like?

2) What does a voyage charter mean?

5) What special but rare type of charterplay do you know?

4) What are the primary rights ofthe charterer?

5) Whose goods can be carried in case of chartering?

 

Unit 49
OWNERSHIP

Ownership is the exclusive right to use, possess, and dispose
of property.

Ownership may be corporeal, i.e. of a material thing, which
may itself be a movable or an immovable; or it may be incorporeal,
i.e. of something intangible, such as of a copyright or patent.

More than one person can own the same property at the
same time. They may be either joint owners with a single title
to the property; or owners in common, each having a distinct
title in the property that they can dispose of independently.

A person may be both the legal and beneficial owner.

Persons having a nominal title to property that they hold for
the benefit of one or more others, known as the beneficiaries,
are called trustees.

Trustees may be individuals or corporate bodies and can

include such specialists as judicial trustees, custodian trustees;
and the Public Trustees.

A trustee must show a high standard of care towards his
beneficiaries, must not allow his interests to conflict with those

of his beneficiaries, and must not profit from his trust. He is
not usually entitled to remuneration although he may recover
expenses necessarily incurred.

Trustees may refuse their office, retire, or resign, but they
remain liable for acts carried out during their trusteeship. In
the exercise of their duties they are answerable to the court.

Trust as an arrangement in which a settler transfers property
to one or more trustees, who will hold it for the benefit of one
or more persons has been described as the most important
contribution of English equity to jurisprudence.

Tasks and exercises

1. Explain the terms:

1) corporeal ownership;

2) movable and immovable property;

3) copyright;

4) patent;

5) a title;

6) a beneficial owner;

7) a beneficiary;

8) a trustee;

9) judicial trustees;

10) custodian trustees;

11) public trustees;

12) a settlor;

13) equity.

2. Complete the sentences:

1) The right in law to be the only producer, seller or broadcaster of a book, play, film, record, etc. for a fixed period of time is called....

2) A piece of writing from a government office giving the right to make or sell a new invitation for a certain number of years is called....

3) The lawful right to ownership or possession is called....

4) A person who designates the beneficiaries and the terms on which they are to take the property is called....

6) A person who receives money or property left by someone who has died is called....

3, Insert the prepositions, if necessary:

1) A trustee must show a high standard of care... his beneficiaries.

2) The interests of any trustee must not conflict... those of the beneficiaries.

3) A trustee must not profit... his trust.

4) Trustees may refuse... office.

5) Trustees remain liable... acts carried... during their trusteeship.

6) Trustees are answerable... the court... the exercise of their duties.

4. Get opposite pairs of elements from A and B:

A B

Beneficiary corporate bodies

Individuals movable

Immovable trustee

Profits expenses

5. Get the synonymic pairs using the elements from a) and b):

a) intangible; retire; answerable; corporeal.

b) resign; incorporeal; material; liable.

6. Insert the suitable modal verb «must», «may» or «can».

1) Ownership... be corporeal or incorporeal.

2) More than one person... own the same property at the same time.

3) A person... be both the legal and beneficial owner.

4) Trustees... be individuals or corporate bodies.

5) A trustee... show a high standard of care towards his beneficiaries.

6) Trustees... refuse their office, retire or resign.

7) A trustee... not profit from his trust.

7. Answer the questions:

1) What is the difference between corporeal and incorporeal ownership?

2) May trustees be individuals?

3) What are the principal duties of a trustee?

4) Is a trustee entitled to renumeration?

5) What is one of the most important contributions of English equity to jurisprudence?

8. Speak on the system of trusteeship in GB.

9. Read and translate:

Ownership

stock ownership; state ownership; collective ownership; ownership in common;

Property

governmental property; state property;
intellectual property; municipal property;
leasehold property; freehold property;
common property;
10. Match the expressions from A with their equivalents
in B:

A B

— Документ, що надає

право володіння; livery;

— Введення у володіння; title;

— Володіння майном;

- пожиттєве state for life;

володіння земельною

власністю; tale male;

- володіння з правом

передачі тільки по seizen;

чоловічій лінії;

- володіння з правом

передачі тільки по tenure;

жіночій лінії;

- припинення права

володіння; lapse;

- порушення чужого

права володіння; trespass;

- строк володіння tale famale

11. Read the text below and analyse the financial position of Cowperwood.

He (Cowperwood) went over again the list of people whom h«had seen and whom he count on to subscribe, the award of million dollars — he was safe.

He figured to make two percent on the total transaction, or twenty thousand dollars. If he did he was going to buy a house out on Girard Avenue beyond the Butler's, or, better yet, buy a

piece of ground and erect one; mortgaging house and property so to do.

His own business... would yield him ten thousand dollars this year. His street-car investments, aggregating fifty thousand, were paying six percent. His wife's property, represented by this house, some government bonds, and some real estate in West Philadelphia, amounted to forty thousand more. Between them they were rich; but he expected to be much richer. All he needed now was to keep cool. If he succeeded in this bond- issue matter, he could do it again and on a large scale. There would be more issues.

(Dreiser, The Financier)

12. Answer the questions:

1) Was Cowperwood a rich man?

2) Has he got any immovable property?

3) What was the interest he got from his street-car investments?

4) How much did Cowperwood expect to get from his own business?

5) At what sum was his business estimated?

6) What profit did he want to get from the total transaction?

7) What was Cowperwood going to buy in case of the successful transaction?

Unit 50

SOLE PROPRIETORSHIP

A business may be privately owned in three different forms. These forms are the sole proprietorship, the partnership and the corporation. The sole proprietorship is the most common in many western countries. For example, more than 80 per cent of all businesses in the United States are sole proprietorships.

But it is evident that sole proprietorships don't do the greatest volume of business. They account for only 16 per cent of all business receipts, for example, in America.

What kind of business is likely to be a sole proprietorship? First of all, service industries, such as Laundromats, beauty shops, different repair shops, restaurants.

Tasks and exercises

1. Find synonymic pairs:

private; common; account for; receipts; general; own; make up; profits; sole; have.

2. Insert the qualifiers:

... forms;... proprietorship;... receipts;... industries;... shops.

3. Choose the necessary words:

1) There are three forms... private ownership.

2) Sole proprietorships account... only 16 per cent of all business receipts.

3) First... all, we went to the Laundromat, then we went... the repair shop.

4. Form the words of the same root:

proprietor; partner; laundry; account; evidence; west.

5. Complete the sentences:

1) Is this bank owned publicly or...?

2) Service industries include....

3) More than 80 per cent of all businesses in the USA are....

4) Sole proprietorships don't do....

5) The sole proprietorship is....

6. Agree or disagree:

1) A business may be privately owned only in two forms.

2) The sole proprietorships do the greatest volume of business.

3) Laundromats are places where you can wash your clothes yourself.

4) A business may be owned only publicly.

7. Answer the questions:

1) What do they call a place where women are given beauty treatments?

2) What is the opposite of the word «losses»?

3) What is the difference between the words «laundry» and «laundromat»?

4) What meanings of the word «shop» do you know?

8. Learn the dialogue by heart and act it out with your colleagues:

A. You know I've been always good at cooking.

I am thinking of starting my own business — a cafe.

B. It might be a good idea. Are you going into this business alone?

A. Exactly.

B. If you go into business alone, it is called sole proprietorship. It means that you decide on your vacation, hours, salary, hiring and firing.

A. Well, that's not bad.

B. Wait a moment. There is a certain risk involved.

A. What do you mean?

B. The most important risk is that you have unlimited liability. It means that you are responsible for all your business debts.

A. So, if the business fails, I have to declare personal bankruptcy, don't I?

B. Yes, and you may lose your personal assets.

A. Well, it's rather disappointing. What other things should I know?

B. You won't get tax benefits which partnerships or corporations can get. You also have to hire a good book-keeper if you can't do your books yourself.

A. Oh, I have to think it over. Thanks.

9. Be ready to transform the initial sentence using the expressions below (in the written form):

Model: I am thinking of opening a cafe.

I am thinking of starting a car-repair shop.

1) start a car-repair shop;

2) hire an accountant;

3) fire an employee;

4) consult a board of directors;

5) sell one's business;

6) do one's books oneself;

7) consult a lawyer;

8) finance the business;

9) go into a new business.

 

Unit 51

LEASE

A contract under which an owner of property (the landlord or lessor) grants another person (the tenant or lessee) exclusive possession of the property for an agreed period, usually (but not necessarily) in return for rent and sometimes for a capital mini known as a premium is called lease.

A lease may be oral and then it is called a parol lease. A lease may be made by a formal document which is called a deed.

The deed that creates the lease sets out the terms, which Include the parties, the property, the length of the lease, the rent, and other obligations called covenants, particularly concerning repairs, insurance, and parting with possession.

Lessor has no right to derogate from his grant, that is he must not do anything that would make the property unfit for the purpose for which it was let.

In the case of the tenant, the implied covenants are to pay the rent; to pay all ordinary rates and taxes; to do the sort of small maintenance jobs that any reasonable tenant would be expected to do.

The period of the lease may vary from a very short time, such as a week, to a very long period, such as 999 years. The tenant's ownership is also restricted by the terms of the lease.

Special leasehold valuation tribunals hear disputes concerning leasehold.

Tasks and exercises

1. Explain the terms:

a lessor; a lessee; premium; a deed;

a parol lease; covenants.

2. Give the synonyms:

landlord; tenant; oral lease;

obligations; aim; common;

repair(s); to range; limited.

3. Complete the sentences:

1) Lessor has no right...

2) The implied covenants are...

3) The period of the lease may vary...

4) Special tribunals...

5) A formal document of lease is called...

6) The deed sets out...

7) The tenant's ownership is restricted to...

4. Which statements are false?

1) The deed is a document which testifies to the lease.

2) All the Leases are oral contracts.

3) The lessor has right to derogate from the grant.

4) The period of lease in GB is restricted to 100 days.

5) The tenant is expected to do small maintenance jobs.

5. Tell about the system of lease in GB.

Unit 52
STOCK EXCHANGE

The International Stock Exchange of the UK and the Republic of Ireland Ltd. is the body responsible for the issue aiitl marketing of company securities.

Admission to the Listed Market must be sponsored by a member of the Stock Exchange and is available only to shares of large public companies that have published accounts for the three years preceding the application and that have satisfied the listing rules (the Yellow Book). These rules ensure that sufficient information is supplied, both on admission and subsequently, to enable investors to assess the merits of the shares.

Admission to the Alternative Investment Market (AIM) is available to smaller companies who meet the statutory requirements.

Deals in listed shares will usually be arranged through a member ofthe Stock Exchange acting as a market intermediary and taking a commission. Some market intermediaries specialize in particular securities. Intermediaries who arrange deals in these securities are called matching brokers.

Intermediaries who themselves buy or sell the securities are called market makers, and the prices they quote are quotations.

Tasks and exercises

1. Find the words of the same root:

to admit; to apply; ensurance;

subsequent; able; statute;

to require; to make.

2. Explain the difference between matching brokers and market makers.

3. Answer the questions:

1) What are the functions of the Stock Exchange?

2) What requirements must a company meet to get an admission to the UK International Stock Exchange?

3) What does the Yellow Book mean?

4) To what companies is admission to AIM available?

5) What does the word «merits» denote in the sphere under discussion?

4. Insert the preposition missing:

1) Admission... the Listed Market is available only to shares of large public companies.

2) Deals... listed shares will usually be arranged... a member of the Stock Exchange acting as a market intermediary.

5. Read and translate in the written form:

Frank soon picked up all of the technicalities of the situation. A «bull», he learned, was one who bought in anticipation of a higher price to come; and if he was «loaded up» with a «line» of stocks he was said to be «long».

He sold to «realize» his profit, or if his margins were exhausted he was «wiped out».

A «bear» was one who sold stocks which most frequently he did not have, in anticipation of a lower price, at which he could buy and satisfy his previous sales.

He was «short» when he had sold what he did not own, and he «covered» when he bought to satisfy his sales and to realize his profits or to protect himself against further loss in case prices advanced instead of declining.

He was in a «corner» when he found that he could not buy in order to make good the stock he had borrowed for delivery and the return of which had been demanded.

He was then obliged to settle practically at a price fixed by those to whom he and other «shorts» had sold.

(Dreiser,

The Financier)

Unit 53
CRASH TESTING

Nine years ago, on October 19, 1987, the Dow Jones Industrial Average fell 508 points, or 22.61 percent, the biggest single-day slide in points and percentage in the history of the stock market. And October 1929 ushered in the most extended stock-market slump of this century. The Dow, which had peaked tit 381 on September 3, 1929, would eventually fall to 41.

Of course, the market hasn't crashed in most Octobers. The current market rally — which dates back to October 11,1990, when the Dow stood at 2365 — seems unstoppable.

Markets do not collapse when stocks are cheap. Crashes occur when stocks are at their most expensive — and this market In expensive.

Hut what causes a stock market to crash?

It's not impossible to find the big news events that set off I wo great crashes of this century. Tragedies and traumas of every sort — presidential assassinations, the outbreak of wars, major corporate bankruptcies have repeatedly failed to send markets Into a tailspin.

Slock market crashes aren't random events, however. They result from a complex interplay of the mass psychology of investors and the underlying fundamentals of the market.

Precrash periods show common patterns of excessive optimism, a widespread use of borrowed money to buy stocks, mill a gradual but largely unrecognized erosion of the Inundations ofthe market.

(Worth. Financial Intelligence.

October, 1996.)

Tasks and questions

1Give the antonyms from the text:

cheap —►

minor —►

to peak —►

a rally —►

2. Use the correct form of the adjectives and adverbs:

1) Crashes occur when stocks are at their (more; most) expensive.

2) Precrash periods show a (gradual; gradually) but (large; largely) unrecognized erosion of the foundations of the market.

3) Bankruptcies have (repeated; repeatedly) failed to send markets into a tailspin.

4) October 1929 ushered in the (more; most) extended stock-market slump of this century.

5) On October 19, 1987 the Dow Jones fell 508 points, the (bigger; biggest) single-day slide in points in the history of the stock market.

3. Insert prepositions if necessary:

1) This event couldn't set... a great market-crash.

2) The Dow peaked... 381 and then fell... 41.

3) This rally dates... to October.

4) It was the biggest single-day slide... points.

5) October 1929 ushered... the most extended stock- market slump of the century.

6) The outbreak of wars did not send markets... a tailspin.

7) Market crashes result... a complex interplay of factors.

8) Stocks are... their most expensive.

9) The Dow stood... 2365.

10) What caused... a stock market to crash?

4. Extend the sentences using the words in brackets:

1) Market crashes result from an interplay of psychology and fundamentals of the market (underlying; complex)

2) Precrash periods show a gradual but unrecognized erosion of the foundations of the market (largely).

3) The market rally seems unstoppable (current).

4) It was the biggest slide in points and percentage (single- day)

5) The Dow would fall to 41 (eventually).

5. Paraphrase:

1) Stock markets do not collapse unexpectedly.

2) What ushered in the biggest stock-market slump?

3) What gave an impulse to two big market crashes of
the century?

4) Markets do not crash when stocks are cheap.

5) Bankruptcies did not send markets into a tailspin.

6. Answer the questions:

1) When do market crashes usually occur in the USA?

2) Is it a regularity or a random event?

3) Do markets collapse when stocks are cheap?

4) Did presidential assassinations or outbreaks of war
cause any big market crashes in the USA?

5) What do you think about the role of the psychological
factor for (in) market crashes?

7. Read the text and answer the questions below.

... He knew instinctively the principles of «pyramiding» and
"kiting». He could see exactly not only how he could raise and
lower the value of these certificates of loan... but also how
this would give him a credit with the banks, his father's bank
was one of the first to profit by this and to extend him loans.

The various local politicians and bosses seeing the success
of his efforts in this direction, speculated in city loan.

The stock exchange stipulated that all trades were to be

compared the same day and settled before the close of the next;
but this working arrangement with the new city treasurer gave

Cowperwood much more latitude, and now he had always until
the first of the month, or practically thirty days at times, in

which to render an accounting for all deals connected with the
lean issue.

And, moreover, this was not really an accounting.
Since the issue was to be so large, the sum at his disposal
would always be large, and so-called transfers and balancing at
the end of the month would be a mere matter of bookkeeping.

He could use these city loan certificates deposited with him for
manipulative purposes, deposit them at any bank as collateral
for a loan, quite as if they were his own, thus raising seventy
per cent of their actual value in cash, and he did not hesitate to
do so. He could take this cash, which need not be accounted
for until the end of the month, and cover other stock transactions,
on which he could borrow again.

The politicians did not realize what a bonanza he was making
of it all for himself, because they were as yet unaware of the
subtlety of his mind.

(Dreiser,
The Financier)

Questions to the text:

1) What does the principle of «kiting» mean?

2) What kind of «latitude» did Cowperwood get from

the new city treasurer and how did he use it?

3) Did Cowperwood break the law in his stock
transactions and other operations? If so, in which
way? Give the juridical evaluation of his actions.

8. Prove that Cowperwood had what can be called «the
subtlety of mind».

9. Make up a dialogue on the basis of the episode taken
from the novel «The Financier» by Th. Dreiser and act it out
with your colleagues.

10. Translate the text in the written form.

«It's a matter of influence», went on Cowperwood. «And
favoritism. That I know Drexel & Company and Cook &
Company have connects. They have men of their own looking
after their interests. The attorney-general and the State treasurer
are hand in glove with them.

Even if I put in a bid, and can demonstrate that I can handle
the loan, it won't help me to get it. I have to have friends-

influence. <...>

«How much of the loan do you want?»

«Five million».

«Five million!» Butler sat up. «Man, what are you talking about? That's a good deal of money. Where are you going to sell all that?»

«I want to bid for five million», assuaged Cowperwood,

softly. «I only want one million but I want the prestige of

putting in a bona fide bid for five million. It will do me

good on the street.»

Butler sank back somewhat relieved.

«Five million! Prestige! You want one million. Well, now,

that's different. That's not such a bad idea. We ought to be

able to get that».

...A few days later he was introduces to City Treasurer, who promised to introduce him to State Treasurer and to see that his claims to consideration were put before the people. «Of course, you know,» he said to Cowperwood... «this banking crowd is very powerful. They don't want any interference in this bond issue business. You may have trouble right here in Philadelphia after you get it — they're pretty powerful, you know.

Are you sure just where you can place it?» «Ycs, I'm sure», replied Cowperwood. «Well... just put in your bid. State Treasurer, with the governor's approval, will make the award. We can fix the governor, I think.»

(Dreiser,

The Financier.)

11. Explain the words and expressions from the text above g!\ rn m italics.

Unit 54

BANKRUPTCY

Bankruptcy is the state of a person who has been adjudged by a court to be insolvent. The court orders the compulsory

administration of a bankrupt's affairs so that his assets can be fairly distributed among his creditors.

To declare a debtor to be bankrupt a creditor or the debtor himself must make an application known as a bankruptcy petition either to the High Court or to a country court.

If the petition is accepted the court makes a bankruptcy order. Within three weeks of the bankruptcy order, the debtor must usually submit a statement of affairs, which the creditors may inspect. This may be followed by a public examination of the debtor. After the bankruptcy order, the bankrupt's property is placed in the hands of the official receiver. The official receiver must either call a creditor's meeting to appoint a trustee in bankruptcy to manage the bankrupt's affairs, or he becomes trustee himself. The trustee must be a qualified insolvency practitioner. He takes possession of the bankrupt's property and, subject to certain rules, distributes it among the creditors.

Tasks and exercises.

1. Complete the sentences:

1) A bankruptcy petition is....

2) A bankruptcy order is....

3) An official receiver is....

4) A trustee must be....

5) Bankruptcy is the state....

2. Give the words of the same root from the text:

debt; credit; apply; submission; to state;

inspection; to receive; appointment;

practice; to possess; distribution; judge.

3. Translate the phrases:

1) The company went bankrupt because it couldn't sell its products.

2) The bankruptcy of the government's plans became clear when prices rose steeply.

An official appointed to take charge of the property and affairs of a bankrupt, or to administer property in dispute is called an Official Receiver.

4. Make up the sentences using the key words and expressions:

1) to place // the official receiver // the property

2) to take possession of // to distribute // the creditors

3) the court // to accept // the petition

4) three weeks // the debtor // to submit

5) to appoint // the trustee // the receiver.

5. Tell about the system of bankruptcy in GB.

 

Unit 55

MORTGAGE

Mortgage is an interest in property created as a form of security for a loan or payment of a debt and terminated on payment of the loan or debt.

The borrower who offers the security, is the mortgagor. The lender, who provides the money, is the mortgagee. Virtually any property may be mortgaged though land is the most common.

The mortgagee has a right to take possession of the mortgaged property as soon as the mortgage is made.

In face of continued nonpayment ofthe loan, the mortgagee may sell the mortgaged property under a power of sale, appoint a receiver, or obtain a decree of foreclosure.

Foreclosure is a remedy available to a mortgagee when the mortgagor has failed to pay off a mortgage by the contractual date for redemption. The mortgagee is entitled to bring an action in Ihe High Court, seeking an order fixing a date to pay off the debt; if the mortgagor does not pay by that day he will be lon-closed, i.e. he will lose the mortgaged property.

However, the court has discretion to allow the mortgagor to reopen the foreclosure and thereby regain his property.

Power of sale is the right of a mortgagee to sell mortgaged property if the mortgagor has not repaid his loan by the contractual date of redemption.

Receiver is appointed by the court to obtain payment of a debt if the common-law remedy is inadequate.

Tasks and exercises

1. What is the difference between the terms «mortgage» and «pawn (pledge)»?

2. Match the expressions in A with those in B:

 

A B

— застава майна в ломбарді; securities mortgage;

— застава майна; mortgage object;

— застава цінних паперів; chattel mortgage;

— предмет застави; mortgage termination;

— припинення застави; property mortgaging.

3. Complete the definitions of the terms:

Redemption is....

Mortgage is....

Mortgagor is....

Mortgagee is....

Receiver is....

Foreclosure is....

Power of sale is....

4. Paraphrase:

1) The court has authority to allow the mortgagor to regain the property.

2) Foreclosure is a means available to a mortgagee of the debtor does not pay off a mortgage by the fixed date.

3) The mortgagee has the right to bring an action in the High Court.

5. Give the words of the same root from the text:

to receive; allowance; to gain; to pay;

contract; to redeem; appointment;

adequate; to borrow; to secure; creation;

to lend; provision; to possess.

6. Insert preposition if necessary:

1) It is high time to pay... the debt.

2) This mortgage must be repaid... the contractual date.

3)... face of continued nonpayment, the mortgaged property... a power of sale.

4) Who took possession... this mortgaged property?

5) Mortgage, an interest... property, is a form of security... a loan or payment of a debt.

7. Choose the correct modal verb:

1) Virtually, any property (must; may) be mortgaged.

2) In face of continued nonpayment the mortgagee (must; may) sell the mortgaged property.

3) The mortgagee (must; may) bring an action in the High Court.

4) The contractual date is date by which the mortgagor (may; must) pay off his debt.

5) The mortgagor (may; must) ask for the postponement of the payment.

Unit 56

AUCTION

A.

Auction is a method of sale in which parties are invited to make competing offers (bids) to purchase an item.

The auctioneer, who acts as the agent of the seller until fall of Ihe hammer, announces completion of the sale in favour of the highest bidder by striking his desk with a hammer. Until the any bidder may retract his bid and the auctioneer may withdraw the goods.

B.

It was in his thirteenth year that young Cowperwood entered into his first business venture. Walking along Front Street one day, a street of importing and wholesale establishments, he saw an auctioneer's flag hanging out before a whole sale grocery and from the interior came the auctioneer's voice: «What am I bid for this exceptional lot of Java coffee, twenty-two bags all told, which is now selling in the market for seven dollars and thirty-two cents a bag wholesale? What am I bid? What am 1 bid? The whole lot must go as one. What am I bid?

«Eighteen dollars», suggested a trader standing near the door, more to start the bidding than anything else. Frank paused.

«Twenty-two!» called another

«Thirty!» a third. «Thirty-five!» a fourth, and so up to seventy-five, less than half of what it was worth. «I'm bid seventy-five! I'm bid seventy-five!» called the auctioneer, loudly.

«Any other offers? Going once at seventy-five; am I offered eighty? Going twice at seventy-five, and» -— he paused, one hand raised dramatically.

Then he brought it down with a slap in the palm of the other — «sold to Mr. Silas Gregory for seventy-five».

(Dreiser,

The Financier.)

Tasks and questions

1. Define the words on the following:

—person who takes part in the auction to get some goods,

— an offer of a price at an auction sale.

2. Translate the sentences:

1) Will anyone bid Ј 10 for this painting?

2) Ms Black bid Ј 200 for the horse and so I bid £ 250,

3) Is nobody else going to bid?

4) Nick hoped to get the house but Mr. Black was bidding

against him.

5) The politicians are bidding for popular support.

6) The goods were bid up far beyond their real value.

7) Bidding was brisk.

8) Will no one make a higher bid?

9) The firm decided to bid on the new bridge.

10) Soldiers must do as they are bidden.

3. Insert the words missing, if necessary:

1) The auction completed... favour of Mr. Black.

2) The auctioneer at last struck his desk... a hammer.

3)... the fall of the hammer the highest can get an item on sale.

4) Mr. Morney retracted... his bid.

 

Unit 57

STRIKES

Strike is a cessation of work or refusal to work by employees acting together in connection with a trade dispute to secure better terms and conditions of employment for themselves and/ or other workers.

A trade union cannot call its members out on strike unless it has held a secret ballot and the majority agree to the action.

Ubder terms ofthe Employment Plights Act 1996 trade union ballots for industrial action must be fully postal and, if a ballot involves 50 or more members, it must be subject to independent scrutiny. Seven days' notice of the Union's intention to ballot ii members on industrial action must be given to the employer and the union must provide the employer with details ofthe ballot result and give him at least seven days' written notice of those members it intends to call out on strike.

A strike ballot remains effective for four weeks.

 

Tasks and exercises

1. Read the basic text.

2. Give the definition of the term «strike».

3. Insert the words, if necessary:

1) A trade union cannot call its members... on strike unless it has held a secret ballot and the majority agree... the action.

2)... terms of the Employment Rights (1996) Act ballots... industrial action must be fully postal.

3) If a ballot involves 50 or more members, it must be subject... independent scrutiny.

4) The union must provide the employer with details of the ballot result.

4. Read and explain what was wrong in the actions of the strikers?

The Trade union decided to call out a number of workers on strike. It held a secret postal ballot. Then the trade union provided the employer with details of the ballot result. Then the strikers gave the employer a seven days' written notice of those members they intended to call out on strike.

5. Restore the remarks missing:

A. Is strike a cessation of work?

B. Yes, it is, but....

A. A secret ballot? How do they hold it?

B. They hold it....

A. I hear that the strikers must give their employer some notices.

B. Yes....

A. And how long does this strike ballot remain effective?

B. The strike ballot...

6. Read the text and answer the questions below:

Trade Unions

Trade Union is an organization whose members are wholly or mainly workers and whose principal purposes include the

regulation of relations between workers and employers or employers' associations.

Unions' affairs are regulated by the Trade Union and Labour Relations (Consolidation) Act 1992.

This provides that: secret ballots must be held for election nl union's executive committees and before any industrial action burked by the union; union funds cannot be used to indemnify individuals for fines imposed by a court for a criminal offence or contempt of court; and unions' accounting records must be open to inspection by their members, who can challenge any unlawful use of the funds through courts.

1) What is the principal purpose of trade unions?

2) By what Acts are unions' affairs regulated?

3) In which way are unions' executive committees elected?

4) Are secret ballots held before industrial actions, such as strikes?

5) How can rank-and-file members of the trade union control the executive committee?

7. Read the text below attentively.

Picketing

I here is no specific legal right to picket, nor any prohibition on picketing. Pickets have no immunity from prosecution for committing criminal offences and they have no right to compel others to stop or to listen to the pickets' views.

8. Ask your colleagues if:

· there is specific legal right to picket;

· there is prohibition on picketing;

· pickets have immunity from prosecution for committing offences;

· pickets have right to compel others to stop or to listen to their views.

9. Answer the questions:

1) What is provided for by legislation in case of picketing in GB?

2) Do pickets have any right to compel others to join them?

3) Have the pickets any immunity from prosecution?

10. Speak on the labour law problems in Ukraine.

 

Unit 58.

INDUSTRIAL TRIBUNAL (IT)

The Industrial tribunal hears and rules on certain disputes between employers and employees or trade unions relating to statutory terms and conditions of employment. The tribunals hear complaints concerning unfair dismissal, redundancy, equu I pay, maternity rights, and complaints of unlawful deductions from wages.

Tribunals can also hear complaints from trade union members concerning unjustifiable disciplining by their union or unlawful exclusion from a trade union.

Tribunals sit in local centers in public and usually consist of legally qualified chairman and two independent laymen, although chairmen are permitted to sit alone, without lay members, for certain types of case.

An appeal on a point of law arising from any decision on an IT may be heard by the Employment Appeal Tribunal.

Tasks and questions

1. Find all the derivatives of the word «to employ» in I lit text.

2. Give the corresponding nouns:

to relate —►

to complain —►

to deduct —►

to exclude —►

to qualify —►

lo permit —►

to hear —►

to employ —►

lo dismiss —►

3. Match elements from A with those of B to get collocations from the text:

A B

unjustifiable rights

unlawful centers

local members

independent disciplining

lay lay men

unfair exclusion

maternity dismissal

statutory terms

4. Answer the questions:

1) Are chairmen allowed to sit alone?

2) What cases are heard by ITs?

3)Where should one file an appeal if it is a labour dispute case?

 

Unit 59