Вы находитесь на странице: 1из 144

МИНИСТЕРСТВО ОБРАЗОВАНИЯ И НАУКИ

ДОНЕЦКОЙ НАРОДНОЙ РЕСПУБЛИКИ


ГОУ ВПО «Донецкий национальный университет»

Кафедра английского языка для экономических специальностей

И.С. Красько

BUSINESS LAW

УЧЕБНОЕ ПОСОБИЕ
по английскому языку для аудиторной и самостоятельной работы студентов
1-2 курсов специальности «Юриспруденция» (40.04.01)

Донецк 2019
УДК 811.111:81’373:34(075)
ББК Ш12=432.1*9*34:Х.я73
К784

Рекомендовано к изданию Ученым советом факультета иностранных языков


ГОУ ВПО «Донецкий национальный университет» (протокол № 6 от 19.06.2019)

Красько И.С. Business Law: учебное пособие по английскому языку для аудиторной и
самостоятельной работы студентов 1-2 курсов специальности «Юриспруденция» (40.04.01). –
Донецк: ДонНУ, 2019. – 144 с.

Рецензенты:
Брагина Э.Р., кандидат филологических наук, доцент, ГОУ ВПО «Донецкий
национальный университет»;
Жданова Н.А., кандидат филологических наук, доцент, ГОУ ВПО «Донецкий
национальный университет».

Предлагаемое учебное пособие предназначено для усовершенствования


коммуникативных и языковых навыков в сфере профессиональной подготовки студентов 1-2
курсов специальности 40.04.01 «Юриспруденция» (ОУ «Магистр») очной и заочной форм
обучения. Данные материалы можно использовать для аудиторных занятий и самостоятельной
работы студентов.
Пособие состоит из десяти уроков по теме «Business Law», каждый из которых включает
профессионально-ориентированные тексты для расширения знаний и отработки навыков и
умений работы с юридической литературой, различные упражнения к текстам, проверочные
тесты и необходимый лексический минимум по темам.

УДК 811.111:81’373:34(075)
ББК Ш12=432.1*9*34:Х.я73

© Красько И.С., 2019


2
CONTENTS

Introduction ……………………………………………………………………. 4
Unit 1. Land Ownership ……………………………………………………….. 6
Unit 2. Fraud …………………………………………...……………………… 15
Unit 3. Telephone Crime ……………………………….……………………… 24
Unit 4. Money Laundering ……………………………..……………………… 39
Unit 5. Cyberspace Fraud ……………………………………………………… 50
Unit 6. Arbitration ……………………………………...……………………… 61
Unit 7. Discrimination ………………………………….……………………… 72
Unit 8. Competition …………………………………….……………………… 82
Unit 9. Brand Names …………………………………...……………………… 90
Unit 10. Patents and Intellectual Property ……………...……………………… 99
Check Test 1 …………………………………………………………………… 113
Check Test 2 …………………………………………………………………… 117
Appendix 1. Words and Word Combinations to Know ..……………………… 120
References ……………………………………………...……………………… 143

3
Introduction

This textbook is a pre-intermediate to upper-intermediate level course for learners who


need to be able to use English in the legal profession. It is suitable for both self-study and
classroom use. However, the textbook should only be used for the purpose of learning
legal English and should not be relied upon for legal advice or assistance in the practice
of law.

The textbook consists of 10 units. They are as follows: Land Ownership, Fraud,
Telephone Crime, Money Laundering, Cyberspace Fraud, Arbitration, Discrimination,
Competition, Brand Names, Patents and Intellectual Property. Each unit begins with a
reading text which provides you with an overview of the topic area in question. These
overview texts introduce crucial legal concepts while presenting a variety of relevant
vocabulary in the topic area. In the main body of each unit, there are various types of
authentic text material of the kind commonly encountered by practising lawyers in their
work. These texts are accompanied by a wide range of tasks, all designed to build the core
skills of reading, writing and speaking. At the back of the textbook, you will find the key
vocabulary.

The aims and goals of the textbook are:


o to improve students’ ability to read and understand legal texts, such as legal
periodicals, business legislation and other business law documents;
o to increase learners’ comprehension of spoken English when it is used to speak
about legal topics in meetings, presentations, interviews, discussions, etc.;
o to strengthen speaking skills and to enable students to engage more effectively in
a range of speaking situations typical of legal practice;
o to introduce students to some of the language-related aspects of the work of a
lawyer.
To achieve these aims, the textbook focuses on several aspects of legal English at the
same time. These aspects include the analysis and production of authentic legal texts,
4
language functions common to legal texts and vocabulary learning that goes beyond mere
terminology acquisition, and which takes larger chunks of language into account.

The textbook aims to help learners develop their legal English vocabulary. It presents
vocabulary in the context of the legal systems in the UK and the USA. Some tasks
encourage students to think about how far their own system shares the same legal
concepts or procedures.

While a selection of legal terminology in each legal topic area is presented in every unit,
mastering legal English requires more than simply improving your knowledge of
specialized vocabulary. For this reason, every unit includes exercises that focus on larger
chunks of language, common phrases and word combinations that are not specialised
legal terms, but which are necessary for successful communication.

5
UNIT 1
LAND OWNERSHIP

1 Read the text about a case of land ownership, translate and summarize it.

Australian Aborigines plan protest over uranium ruling


Aboriginal groups and environmentalists are planning protests across Australia after
failing to block the development of a uranium mine on traditional Aboriginal land in the
Northern Territory. Australia’s federal court ruled last week that the territory’s
government had the right to grant a mining lease at Jabiluka, which lies inside a World
Heritage-listed national park, to Energy Resources of Australia (ERA). The company is
one of Australia’s two uranium producers.

The ruling virtually exhausted the legal options for the Mirrar Aboriginal people in their
20-year-old campaign to block uranium mining on their traditional land at Jabiluka, which
contains one of the world’s largest undeveloped uranium deposits. An appeal to the High
Court, Australia’s supreme judicial authority, is possible but unlikely, considering the
weight attached to decisions by the federal court’s full bench, analysts said.

The Mirrar group was granted custody of the land under the 1976 Land Rights Act. In
recent years, it has tried to overturn an earlier agreement between one of its former
leaders, now dead, and mining interests. The group says that approval to mine at Jabiluka
was given ‘under duress’.

After the judgment, environmentalist groups, including Greenpeace and the Wilderness
Society, said they would step up their protests, both at Jabiluka and in Australia’s main
cities, to try to halt development of the mine.

6
The managing director of North, a diversified mining company and majority owner of
ERA, last week described the stand-off as a ‘totemic issue’. ‘As far as we can see, Jabiluka
will stay on track and on timetable and there is no reason that legal challenges would hold
it up,’ he said.
Financial Times

2 Answer the following questions.

1. Who are the main protesters in Australia against ERA?


2. What are the protesters trying to achieve?
3. Who owns the land where the uranium is?
4. For how many years have the Aboriginal people tried to ban the mine?
5. What is the highest court in Australia?
6. What rights do the Aboriginal people claim they have dating from 1976?
7. Which company owns ERA?
8. What does the word stand-off mean in this context?
9. When will mining operations begin?

3 Mark these statements true (T) or false (F) according to the information in the text.
Find the correct information in the text.

1. A mining lease is an official document that permits free use of land to the owner.
2. ERA is a private company.
3. The Aboriginal and environmental groups have succeeded in stopping the mine.
4. The High Court is the highest court in Australia.
5. Australia has four main uranium producers.
6. The federal court operates at local, state level.
7. The Aboriginal people have ownership of the land.
8. If an agreement is made when one party under duress, it is not lawful.

7
4 Use an appropriate word or phrase from the box to complete the sentences.

ban, block, stand-off, stand in the way of, overturned, held up

1. There is a government …ban… on selling uranium to foreigners.


2. The socialist government ……………… a previous decision taken by the
conservative government relating to uranium mining in Jabiluka.
3. The company has tried to ………………… attempts to stop it developing the
mine.
4. When two parties prevent each other from acting and no one can proceed, it is a
………………… .
5. Greenpeace and the Wilderness Society hope to …………………. ERA’s
commercial exploitation of traditional Aboriginal lands.
6. The mining company sees no reason why work should be ………………. for legal
reasons.

5 Word families. Complete the table.

verb noun adjective


rule ruling ……………………………
regulate …………………………… ……………………………
…………………………… judgment ……………………………
decide …………………………… ……………………………
…………………………… approval ……………………………
permit …………………………… ……………………………
…………………………… operation ……………………………
develop …………………………… ……………………………
…………………………… government ……………………………
agree …………………………… ……………………………

8
6 Read the text below about a diamond mine in Canada and answer these questions.

1. When did BHP start to develop the mine?


2. Where is the mine located within Canada?
3. What does the mine in Canada extract?
4. Which groups did the company have to negotiate with?

BHP Makes a Pipe Dream Come True


The Ekati diamond mine sits alongside an important caribou migration route in Canada’s
desolate Northwest Territories. Grizzly bears and other wild animals are known to pass
by occasionally, but the region was rarely visited by man until Broken Hill Proprietary,
the Australian group, began developing the site almost two years ago.

The logistical challenges of establishing a mine in the remote region around Lac de Gras,
some 300 km north of Yellowknife, were compounded by an inhospitable climate that
can send temperatures plummeting to minus 50 degrees Celsius. The mine site was far
from ideal and many sceptics believed hopes of extracting diamonds from the Canadian
tundra were a pipe dream.

Territorial officials and native leaders acknowledge that BHP was quick to understand
that for the project to succeed, the interests of the local population would have to be taken
into account. The company spent several years negotiating with the territorial government
and four native groups that claimed rights to the territory on which the diamond-bearing
pipes were discovered.

Native and territorial leaders were very concerned about protecting the environment and
demanded that the company divert waterways, safeguard against environmental damage
and maintain the purity of small lakes at the mine site. In possibly the most contentious
issue, government leaders demanded that BHP build a sorting and evaluation centre in

9
Yellowknife and sell 10% of the mine’s output to buyers within the territory. Native
Indians have received training and jobs at the mine as well as financial compensation.
Financial Times

   Talking points!

7 Compare and contrast the two mines from the point of view of: (a) the local
people; (b) the mining companies; and (c) the legal position. Quote exactly from
the two articles to support your ideas. Use some of the following phrases to
introduce quoted evidence:

According to...
Government leaders said...
Native groups argued ...
A spokesman for... said ...

8 Imagine that you want to buy a property. Below are the different stages that you
will normally (and ideally) go through. Complete the gaps with words and
expressions from the list.

 alterations  appoint  asking  authority  balance  bound 


boundaries  clauses  completion  confirmation  contract  covenants
 deposit  disclose  disputes  fees  offer  ownership  planning
permission  plans  possession  preservation  Registry  restrictions 
signing  stamp  structural  survey  surveyor  title deed 

1. You make an ………………… on the ………………… price (the price that the
seller is asking for the house), which is accepted by the seller.
2. You ………………….. a solicitor to help you make your purchase.

10
3. Your solicitor receives ……………….. of your accepted offer, and also any
necessary details from the estate agent.
4. The seller’s solicitor sends your solicitor a draft ………………… . This is
checked to make sure there are no unusual ……………….. .
5. At the same time, the seller’s solicitor sends your solicitor the seller’s
…………….. . This is carefully checked for any ………………… that might
apply to ……………… of the property. At the same time, the seller should make
your solicitor aware of any problems with the property (for example, …………….
with his / her neighbours, any approved or unapproved ………………….. that he
/ she has made to the property, relevant information on ……………….. adjoining
other properties and public land, ………………… or ………………… orders that
may restrict development of the property, whether you will need to get
………………… before making changes to the property, etc).
6. If the contract is approved, copies of it are prepared for ……………….. by both
you and the seller.
7. Before you do this, however, your solicitor should ask the local ………………..
(for example, the local town council) to ………………. any information it has on
………………….. for the area around the property you are buying (for example,
there may be plans to build an airport at the end of your back garden, or a
motorway across your lawn at the front).
8. At the same time, you should ask for a ………………….. of the property by a
chartered ……………………… . He / she will tell you if there are any problems
with the property (for example, rising damp, dry rot, unsound …………………….
features, etc).
9. If you are happy with everything, you now sign the contract: you are now legally
……………………. to buy the property (you cannot pull out of the agreement,
unless further checks by your solicitor produce unfavourable information that has
been kept secret from you; for example, he / she may discover that the property
details the seller has provided are not accurate).

11
10. Your solicitor arranges a ………………….. date with the seller’s solicitor – this
is the date when you will take official ……………………. of the property – and
both you and the seller exchange contracts through your solicitors. Your title deeds
are prepared.
11. You pay your solicitor his ……………………., the money for the property
(assuming you have already paid a …………………. on the property, you will
now need to pay the outstanding …………………….), the relevant
…………………….. duty and Land ……………….. fees.
12. You get your copy of the deeds and the key to the front door. Congratulations, and
welcome to your new home!

9 Test your knowledge with this quiz.

1. Rearrange the letters in bold to make a word: the absolute right to hold land or
property for an unlimited time without paying rent is called: rofedleh.
2. What is the difference between the answer to number 1 above, and the word
‘leasehold’?
3. True or false: the way in which a piece of land is held (as in 1 and 2 above) is
called ‘land tenure’.
4. Choose the correct word in bold to complete this definition: a person or company
which rents a house, flat or office in which to live or work is called a tender /
tenure / tenement / tenant / tentacle.
5. In Britain, a person who arranges for the sale of property is called an ‘estate agent’.
What is the American equivalent of this expression?
6. True or false: the transferring of property from one person to another is called
‘conversion’.
7. When you buy a house, why is it important to get the title deeds and keep them
safe?

12
8. Imagine that you are buying a house with the help of a mortgage from the bank.
The national interest rate looks likely to rise rapidly over the next year or so.
Should you consider getting a fixed-rate mortgage or a variable-rate mortgage?
9. If you take out a mortgage to buy a house, and you use the house as security, the
mortgage-lender might repossess (= take back) your house if you are unable to
pay back the money. What is this called? Is it:
(a) disclosure (b) exposure (c) foreclosure
10. A married couple buy a house as joint tenants. Who actually owns the house? Is
it:
(a) the husband;
(b) the wife;
(с) they both own it equally;
(d) it depends how much each person paid towards the house.
11. The new owner of a house discovers that there is a right of way in his garden.
What does this mean?
(a) He can build another house in the garden if he wants.
(b) He must sell part of the garden after a fixed period of time.
(c) Other people can walk through his garden to get from one place to another.
(d) Farmers can let their cows and sheep use his garden.
12. A woman is buying a house. She makes a price offer, which is accepted by the
seller. She is then gazumped. Would she be happy or unhappy about this?
13. Choose the correct word in bold to complete this definition: a liability such as a
mortgage or charge which is often attached to a property or piece of land is called
an enforcement / encumbrance / endowment / engrossment / encroachment.
14. In Britain, house buyers must pay tax on the documents that record the purchase
of the house (if the house costs more than a certain amount). What do we call this
tax? Is it:
(a) excise duty
(b) customs duty

13
(c) active duty
(d) double duty
(c) stamp duty

14
UNIT 2
FRAUD

1 Read the text about a gold mine fraud.

Bre-X Minerals drama continues in the courts


More than three years have passed since Bre-X Minerals’ purported 71m ounce gold
deposit in Indonesia was unmasked as nothing more than an elaborate hoax.

When the dust settled, the Canadian company’s C$6bn (US$4.2bn) market capitalization
had been wiped out and Bre-X’s worthless shares were de-listed.

The drama, which unfolded first in the jungles of Borneo and later on in stock markets in
North America, is now being played out in courtrooms in Toronto and in a remote corner
of Texas, where lawyers have launched lawsuits seeking billions of dollars in damages.

While there is little doubt that Bre-X perpetrated a massive scam, lawyers representing
some 2,000 investors say the company and its directors are not the only ones to be held
accountable. The lawsuits also allege that several brokerage firms issued false and
misleading reports about the Busang deposit and profited from their association with the
company. The plaintiffs’ arguments, if they are successful, could set a chilling precedent
for the entire brokerage industry.

In Canada, the efforts of investors to seek redress took a significant step forward in March
when a judge ruled that plaintiffs could proceed with a lawsuit against Bre-X, its officials,
engineering firms and brokerage houses. The defendants have said they will appeal the
ruling.

15
The legal actions pit small investors against nine of the top brokerage houses in North
America. The case alleges that brokerages were negligent in issuing misleading
statements proclaiming the company’s Busang gold deposits as the largest in the world,
and that they also participated in ‘a fraud on the market’, a procedural doctrine under US
law.

However, a renowned securities law expert in the US has said that extending
responsibility for fraud to ‘aiders and abettors’ − in this case the brokerages that
recommended Bre-X stock would prove difficult. The US lawsuit also alleges that
Barrick, the Canadian gold producer that tried to negotiate a partnership with Bre-X,
disseminated false statements or concealed materially adverse facts. Barrick claim it was
prevented from disclosing the results of its due diligence because it signed a
confidentiality agreement.

It is far from clear that plaintiff attorneys will succeed in their attempts to hold brokerages
liable for the Bre-X fiasco. If they succeed, it would be the first time legislation against
false advertising was applied to securities. Many observers say they have little choice
other than to sue deep-pocketed brokerages that promoted the stock, because Bre-X itself
is bankrupt and company insiders who profited from the fraud could not cover billions of
dollars in claims.
Financial Times

2 Answer the following questions.

1. How much gold did Bre-X say they had found in Indonesia back in February 1996?
2. What was the market capitalization of Bre-X before the scandal?
3. Where are the courtroom dramas being played out?
4. How many investors are being represented by lawyers against Bre-X?
5. Who do the prosecuting lawyers think should be held accountable for the fiasco?

16
6. Which firms are accused of being involved in the fraud?
7. What is the Canadian gold producer Barrick accused of doing?
8. Why don’t the cheated investors sue Bre-X?

3 Match the terms relating to fraud with their definitions.

1 purpoted a said to be true, but really false


2 unmasked b people in a company with access to privileged
information
3 elaborate c crime of deception and deceit
4 perpetrate a scam d say something is true
5 false and misleading reports e complicated
6 proclaiming f disaster, a failure
7 fraud g announcing publicly
8 claim h revealed as false
9 fiasco i carry out a dishonest scheme to make money
10 insiders j inaccurate statements

4 Find a word or phrase in the text that has a similar meaning.

1 take a bankrupt company’s shares off the stock exchange


…de-list………
2 firms that buy and sell shares on behalf of clients
b……………………….
3 people who have only modest amounts of money to spend on shares
s……………….. i………………..
4 when a company deliberately misleads the public
p………………….. in a f…………………. on the m…………………….
5 people who help each other to commit a crime

17
a…………………… and a………………….
6 government bonds, holdings, stocks and shares
s……………………..

5 Match these terms with their definitions.

1 damages a people who bring a case to court


2 accountable b financial compensation
3 precedent c people accused of a crime in a court case
4 seek redress d case that sets rules
5 plaintiffs e sue to regain losses
6 defendants f promise to keep something secret
7 negligent g having to explain and justify
8 due diligence h legally responsible
9 confidentiality agreement i thorough check
10 liable j not do a job professionally

6 Read the text about fraud and answer the questions after it.

What is fraud?
PROBLEM: When Milliken sold a used car to Camacho, he told her that the car
had been driven only 50,000 miles, had never been in accident, and had the
original paint. In fact, Milliken had stolen the car, set back the odometer from
90,000 miles, and repainted the exterior in the original color. Moreover, Milliken
had stood between Camacho and the right rear end of the car. He did this so that
she would not see a crudely repaired fender, which had been damaged in an
accident. After Camacho learns the truth and if she can find Milliken, can she
avoid the contract?

18
The basis of fraud is false representation or concealment of a material fact. However, not
every misrepresentation or concealment is a fraud. All of the following elements must be
present for fraud to exist:
1. The false representation or concealment of a present or past fact must be
deliberate.
Fraud results from deliberate lies. It also results from deliberate concealment of
unfavorable facts which otherwise could be noticed by a reasonable person. Generally
neither seller nor buyer is obliged to reveal all good or bad facts about the subject matter
of the contract. Courts would have trouble trying to define what must be known and
disclosed in every case. Moreover, buyers are free to ask questions as they investigate
before they buy. The seller must answer questions honestly. If the seller refuses to answer
a question, the buyer need not enter the contract. In addition, the seller must not give false
information or act to prevent the other party from learning important facts.

Answer to the problem: Milliken was a criminal who acted fraudulently. He lied
about the car and actively concealed the damaged rear fender. Accordingly, if
Camacho could find Milliken, she could avoid the contract and sue for damages
for the tort of fraud. Milliken should be prosecuted as a criminal, and the car
should be returned to its true owner.

To constitute fraud, the misrepresentation or concealment must be deliberate. Normally


silence is not blameworthy. But sometimes fraud arises when the party has a duty to speak
yet does not. For example, honesty requires a seller to tell about a concealed defect not
readily discoverable by a buyer.

If a seller innocently misrepresents a material fact, the buyer may avoid the contract or
collect compensatory damages for the injury suffered. However, no tort has been
committed, so the buyer is not entitled to punitive damages. On the other hand, one may
not claim fraud when the means were available for determining the truth, as by simply
reading a paper before signing.
19
The false representation or concealment must be of a present or past fact. This does not
include opinions of value or predictions. For example, if someone tells you that a certain
article “will pay for itself”, “is a bargain”, “is the best on the market”, or “is a super
value”, you have no legal right to rely upon such remarks. They are usually no more than
statements of personal opinion (personal belief or judgment), not statements of fact.
Opinions, which prove to be wrong, normally do not constitute fraud.

2. The misrepresented or concealed fact must be material.


To be fraudulent, a statement must be a false representation or concealment of a present
or a past material fact. A fact is material, regardless of its apparent importance, if it
influences the other person’s decision to enter into agreement. Misrepresentation or
concealment of such a fact usually means that the person who was misled would not have
entered into the contract if he or she had known the truth.

3. The person who makes the false representation must know it to be false or make
it recklessly without regard to its truth.

PROBLEM: Dimmer was a new sales agent for Proto Metal Supply Co. Stein was
the purchasing agent for Space-Age Specialties Corporation. Eager to make a
sale, Dimmer told Stein that certain steel sheets and rods had a high chromium
content and would not rust. Actually, she did not know the chemical content but
said what her prospect wanted to hear. Stein believed her and ordered a carload
shipment. When the facts were discovered after many Space-Age customers had
complained, Space-Age sued Proto Metal and Dimmer for fraud. Should Space-
Age win the suit?

Fraud clearly exists when a person deliberately makes a false statement or conceals a
material fact. Fraud also exists if a person makes a statement of fact rashly, without
determining its truth or falsity. This is especially true if that person should know the facts.
20
Answer to the problem: Dimmer, acting as agent for Proto Metal, made the
statements about the steel products with reckless disregard of the truth. Hence,
Space-Age was justified in claiming fraud and should win the suit against Proto
Metal and Dimmer.

4. The misrepresentation must be made with the intention of influencing the other
person to act upon it.

PROBLEM: Benson was deep in debt and needed more credit to keep his business
going. He gave Central Credit Controls (CCC) false information which showed
his financial condition to be good. Grant subsequently obtained a credit report on
Benson from CCC. Relying on the report, Grant sold a computer and expensive
software to Benson on account. Within a month, Benson became insolvent (unable
to pay debts) and failed to make a payment. Grant then learned the truth about
Benson’s financial condition. Claiming fraud, Grant sued to repossess the
equipment. Should he succeed?

For a statement to be fraudulent, the person making the statement must intend that it be
relied upon and acted upon. Generally the false statement is made directly to the intended
victim. However, this is not essential. A person may tell someone something with the
intent that the statement will be passed on to another, whose conduct is to be influenced,
as did Benson in the problem.

Answer to the problem: Grant will be allowed to repossess the equipment.

1. What is the basis of fraud?


2. What does fraud result from?
3. What elements must be present for fraud to exist?

21
4. What is a material fact?

7 Read through the article below quickly and answer these questions.

1. What is the profession of the appellant?


2. Which crime was he found guilty of?
3. What did he know about the company in question?
4. How much profit did the appellant make on the sale of the shares?

FSA fines auditor for market abuse


The Financial Services and Markets Tribunal has upheld a Financial Services Authority
(FSA) case against Mr Arif Mohammed, a former Pricewaterhouse Coopers (PwC) audit
manager, who was fined $10,000 for committing market abuse. This is the first time the
market abuse provisions in the Financial Services and Markets Act 2000 (FSMA) have
been the subject of a Tribunal decision. Mr Mohammed bought shares in Delta plc, a
London Stock Exchange listed electrical and engineering company, based on his
knowledge that the company intended to sell its electrical division. Mr Mohammed
became aware of this confidential information because Delta’s electrical division was an
audit client of PwC, and Mr Mohammed worked on the company’s audit. In July 2002,
Mr Mohammed first became aware of the proposed sale of Delta’s electrical division. He
was told that this information was confidential and not to be discussed with company
officials. Although Mr Mohammed began handing over the responsibility for elements of
Delta’s audit in September 2002, he remained on the audit team assigned to Delta
throughout the period leading up to the disposal announcement. In particular, Mr
Mohammed remained responsible for planning staff to work on Delta and had reason to
know about the sale’s progress because of its impact on resource planning. At the end of
November 2002, Mr Mohammed was aware that the sale process was ongoing and was
getting close to agreement. Based on this information he purchased 15,000 shares in Delta
on 29 November 2002 at 80p each. Delta announced the disposal on 9 December 2002,

22
and Mr Mohammed sold his shares the following day at 105p each, making a profit of
$3750.
The Tribunal held that the information Mr Mohammed had about the proposed deal was
sufficient and precise enough to be considered as relevant information according to the
market abuse provisions.

8 Read the article again and decide whether these statements are true (T) or false
(F). If a statement is false, correct it.

1. The case was heard before the European Court of Justice.


2. Mr Mohammed was sentenced to imprisonment for his crime.
3. The defendant was not at all responsible for the audit of the company.
4. He knew about the progress of the planned sale.

9 Find words in the text that mean the same as these words.

1. secret information
2. to buy shares
3. suggested deal
4. the Tribunal decided
5. market abuse laws

23
UNIT 3
TELEPHONE CRIME

1 Read the text about telephone fraud.

BT launches fresh attack on phone crime


British Telecommunications (ВТ) is mounting a new offensive against the barons of
organised telephone crime who are costing it hundreds of millions of pounds annually.
Its chief weapon is a new technology that can cut the time to detect and prove fraud from
− in some cases − years to minutes. Developed with BT’s former partner, MCI of the US,
the system has already been tested by BT’s calling card division, where it has doubled the
number of frauds spotted and halved the financial losses. Now it is being deployed across
BT’s business services.

The level of UK phone crime is hard to assess, but it is costing operators a minimum of
£200m ($334m) a year. Trade organisations put the figure at 55,000 crimes reported, with
a similar number of unreported fraudulent calls. And forget youngsters and amateurs:
telephone fraud is big-time crime. Some of the UK’s best-known villains are defrauding
the operators to fund activities ranging from drugs to terrorism, according to Dennis
Gotts, head of BT’s investigations unit. ‘This is more than stealing 10р from a call box,’
he says. ‘Notorious individuals in the criminal fraternity are involved. They know BT’s
network and they know what they are doing.’

Telephone crime can be absurdly easy. Opening an account in a false name and selling
calls to international destinations before disappearing when the bill is due is one of the
simplest. In one case earlier this year, a gang of Tamil sympathisers siphoned off or
diverted some £2m from 400,000 fraudulent calls to Sri Lanka before they were arrested,
convicted and imprisoned.
24
It took BT’s investigators two years to collect the evidence to put the gang on trial. The
new system, called ‘Sheriff’, will be able to do the job in minutes. Detection involves
analysis of hundreds of millions of call records looking for unusual patterns: an
unexpectedly large number of calls to a particular number or destination, for example, or
calls made at unusual hours or from unusual locations.

BT’s fraud strategy manager said the company’s services were already protected, but by
individual systems. The need was for a single system so fraud alert data could be shared
across product lines.

Sheriff uses artificial intelligence for analysis and an advanced ‘object-orientated’ data-
base from Versant, a US company, to provide the speed and reliability needed to sort
through a minimum of 120m calls a day on BT’s network. The system ‘learns’ from its
experiences, so improving its ability to detect future frauds.

ВТ is considering offering a tailored fraud-detection service to its large corporate


customers.
Financial Times

2 Answer these questions.

1. What do the following figures refer to in the text?


1) $334m
2) 55,000
3) £2m
4) 120m
2. Who pays the bills when there is telephone crime?
3. How much does telephone crime cost operators a year?

25
4. Is telephone crime mainly committed by professional criminals or bored
youngsters?
5. How many fraudulent calls are made each year according to trade organisations?
6. What is the simplest example of telephone crime mentioned in the text?
7. How does BT plan to protect itself from fraud?

3 Match these definitions with the words or phrases in the text.

1. making or selling fraudulent calls to international destinations (without paying the


operator)
2. the crime of gaining money by deceit or trickery
3. to reduce
4. to make twice as large
5. to recognize (fraud)
6. to reduce something to half its previous size or amount
7. the way in which something happens or develops
8. specifically designed for each customer

4 Rewrite the description of a telephone crime below translating the Russian parts
into English.

1. According to statistics data, (около 100 миллионов мошенничеств, связанных


с оплатой телефонных разговоров) are made every year.
2. (Число преступлений, связанных с неоплаченными телефонными
разговорами, возрастает) because telephone crime can be very easy.
3. A criminal opens (расчетный счет на подставное имя).
4. Then he makes contact with people who need (неоднократно пользоваться
услугами междугородней связи).

26
5. These people agree (вручить преступнику плату за телефонные разговоры
наличными) because they don’t have to pay (междугородные звонки по их
реальной стоимости).
6. The criminal then sells (сотни междугородных звонков).
7. At the end of the month, (когда приходит счет за услуги телефонной
компании), the criminal disappears.
8. It may take years (чтобы обнаружить мошенника, собрать доказательства его
вины и задержать его).

5 Use an appropriate word or phrase from the box to complete the sentences.

detect, prove, barons of organized crime, fraud, false name,


evidence, arrested, convicted, imprisoned

1. It is one thing to …………. fraud; it is quite another to ………………….. it.


2. Telephone ………………… is said to be in the hands of …………………… .
3. The police cannot prosecute a criminal without ………………………… .
4. One gang managed to steal millions before they were …………………. ,
………………. and ……………………… .
5. Opening an account in a ……………………… seems to be very simple.

6 Match the terms with their definitions.

1 siphon off and divert a hold someone at a police station


2 arrest b implement a serious campaign against an
enemy
3 convict c move part of something without the owner
knowing about it
4 imprison d put someone in prison

27
5 mount an offensive e find someone guilty of a crime

7 Read the text to answer the questions below.

1. What ideas were the earliest criminological theories based on?


2. How did the biological theory develop?
3. What was Montesquieu’s approach to the causes of crime?
4. What views on crime predominated in the 19th century?
5. How did criminological theories develop in the 20th century?
6. What is the relationship between the mental and emotional state of a person and
his or her inclinations to crime?
7. What are the latest views on the causes of crime?
8. How does enforcement affect the crime according to criminologists of the 19th
century?
9. Who invented the biological theory?

Why crimes occur


No one knows why crime occurs. The oldest theory, based on theology and ethics, is that
criminals are perverse persons who deliberately commit crimes or who do so at the
instigation of the devil or other evil spirits. Although this idea has been discarded by
modern criminologists, it persists among uninformed people and provides the rationale
for the harsh punishments still meted out to criminals in many parts of the world.

Since the 18th century, various scientific theories have been advanced to explain crime.
One of the first efforts to explain crime on scientific, rather than theological, grounds was
made at the end of the 18th century by the German physician and anatomist Franz Joseph
Gall, who tried to establish relationships between skull structure and criminal proclivities.
This theory, popular during the19th century, is now discredited and has been abandoned.
A more sophisticated theory – a biological one – was developed late in the 19th century

28
by the Italian criminologist Cesare Lombroso, who asserted that crimes were committed
by persons who are born with certain recognizable hereditary physical traits. Lombroso’s
theory was disproved early in the 20th century by the British criminologist Charles Goring.
Goring’s comparative study of jailed criminals and law-abiding persons established that
so-called criminal types, with innate dispositions to crime, do not exist. Recent scientific
studies have tended to confirm Goring’s findings. Some investigators still hold, however,
that specific abnormalities of the brain and of the endocrine system contribute to a
person’s inclination toward criminal activity.

Another approach to an explanation of crime was initiated by the French political


philosopher Montesquieu, who attempted to relate criminal behavior to natural, or
physical environment. His successors have gathered evidence tending to show that crimes
against person, such as homicide, are relatively more numerous in warm climates,
whereas crimes against property, such as theft, are more frequent in colder regions. Other
studies seem to indicate that the incidence of crime declines in direct ratio to drops in
barometric pressure, to increased humidity, and to higher temperature.

Many prominent criminologists of the 19th century, particularly those associated with the
Socialist movement, attributed crime mainly to the influence of poverty. They pointed
out that persons who are unable to provide adequately for themselves and their families
through normal legal channels are frequently driven to theft, burglary, prostitution, and
other offences. The incidence of crime especially tends to rise in times of widespread
unemployment. Present-day criminologists take a broader and deeper view; they place
the blame for most crimes on the whole range of environmental conditions associated
with poverty. The living conditions of the poor, particularly of those in slums, are
characterized by overcrowding, lack of privacy, inadequate play space and recreational
facilities, and poor sanitation. Such conditions engender feelings of deprivation and
hopelessness and are conducive to crime as a means of escape. The feeling is encouraged
by the example set by those who have escaped to what appears to be the better way of life
made possible by crime.
29
Some theorists relate the incidence of crime to the general state of a culture, especially
the impact of economic crises, wars, and revolutions and the general sense of insecurity
and up rootedness to which these forces give rise. As a society becomes more unsettled
and its people more restless and fearful of the future, the crime rate tends to rise. This is
particularly true of juvenile crime, as the experience of the United States since World
War II has made evident.

The final major group of theories is psychological and psychiatric. Studies by such 20th
century investigators as the American criminologist Bernard Glueck and the British
psychiatrist William Healy indicated that about one-fourth of a typical convict population
is psychotic, neurotic, or emotionally unstable and another one-fourth is mentally
deficient. These emotional and mental conditions do not automatically make people
criminals, but do, it is believed, make them more prone to criminality. Recent studies of
criminals have thrown further light on the kinds of emotional disturbances that may lead
to criminal behavior.

Since the mid-20th century, the notion that crime can be explained by any single theory
has fallen into disfavour among investigators. Instead, experts incline to so-called
multiple factor, or multiple causation theories. They reason that crime springs from a
multiplicity of conflicting and converging influences – biological, psychological, cultural,
economic and political. The multiple causation explanations seem more credible than the
earlier, simpler theories. An understanding of the causes of crime is still elusive, however,
because the interrelationship of causes is difficult to determine.

8 Match the words from the left column with their definitions from the right column.

1 crime a done in a way that was planned, not by chance

2 burglary b the scientific study of crime and criminals

30
3 deliberately c unable to stay still or be happy where you are,
because you are bored or need a change

4 to explain d activities that involve breaking the law


5 criminology e connected with studying things to find out how
similar or different they are

6 investigator f to tell somebody about something in a way that


makes it easy to understand

7 restless g the process of one event causing or producing


another event

8 comparative h the crime of entering a building illegally and stealing


things from it

9 causation i a person who examines a situation such as an


accident or a crime to find out the truth

9 Choose the correct word to make the sentence complete.

1. Since the 18th century, various scientific theories have been advanced / achieved /
expanded to explain crime.
2. The oldest fairy tale / story / theory, based on theology and ethics, is that criminals
are perverse persons who deliberately commit crimes or who do so at the
instigation of the devil or other evil spirits.
3. Some investigators still hold, however, that specific abnormalities of the brain and
of the endocrine system help to / contribute to / brought to a person’s inclination
toward criminal activity.

31
4. An understanding of the way / the causes / the method of crime is still elusive,
however, because the interrelationship of causes is difficult to determine.
5. Experts incline / sure / doubt to so-called multiple factor, or multiple causation
theories.

10 Decide which sentences are true (T) and which are false (F). Make the false
sentences true.

1. Everyone knows why crime occurs.


2. The oldest theory, based on theology and ethics, is that criminals are perverse
persons who deliberately commit crimes or who do so at the instigation of the devil
or other evil spirits.
3. One of the first efforts to explain crime on scientific, rather than theological,
grounds was made at the end of the 16th century by the French physician and
anatomist Franz Joseph Gall, who tried to establish relationships between skull
structure and criminal proclivities.
4. Goring’s comparative study of jailed criminals and law-abiding persons
established that so-called criminal types, with innate dispositions to crime, exist.
5. Some investigators still hold, however, that specific abnormalities of the brain and
of the endocrine system contribute to a person’s inclination toward criminal
activity.
6. All prominent criminologists of the 19th century attributed crime mainly to the
influence of poverty.
7. Good living conditions engender feelings of deprivation and hopelessness and are
conducive to crime as a means of escape.
8. Some theorists do not relate the incidence of crime to the impact of economic
crises, wars, and revolutions and the general sense of insecurity and up rootedness
to which these forces give rise.

32
9. An understanding of the causes of crime is still elusive, however, because the
interrelationship of causes is easy to determine.

11 Look at the list of crimes in the box, then look at the categories below. Decide
which category each one comes under, and write the crime in the appropriate
space in the table. Some crimes can be listed under more than one category.
One of the words / expressions in the list is not a crime.

1. abduction 2. actual bodily harm 3. aiding and abetting (= assisting) an offender


4. arson 5. assault 6. battery 7. being equipped to steal 8. bigamy
9. blackmail 10. breach of the Official Secrets Act 11. breaking and entering
12. bribery 13. burglary 14. careless or reckless driving 15. committing a breach of
the peace 16. conspiracy 17. contempt of court 18. criminal damage (vandalism,
and sometimes also hooliganism) 19. deception or fraud in order to obtain property,
services or pecuniary advantage 20. driving without a licence or insurance
21. drug dealing 22. drunk in charge / drink driving 23. embezzlement
24. espionage 25. forgery 26. grievous bodily harm 27. handling stolen goods
28. indecency 29. indecent assault 30. infanticide 31. manslaughter
32. misuse of drugs 33. money laundering 34. murder 35. obscenity
36. obstruction of the police 37. paedophilia 38. perjury 39. perverting the course of
justice 40. piracy 41. possessing something with intent to damage or destroy
property 42. possessing weapons 43. racial abuse 44. rape 45. robbery
46. sedition 47. suicide 48. terrorism 49. theft 50. treason
51. unlawful assembly 52. wounding

Crimes against the person

33
Crimes against property

Public order offences

Road traffic offences

Sexual offences

Political offences

Offences against justice

12 Look at these situations, then decide which crime has been, or is being, committed
in each case. These crimes can all be found in the previous exercise, but try to do
this exercise first without referring back. In some cases, more than one option is
possible. (Note that you do not need to use all of the crimes).

1. TV Newsreader: Police believe the fire was started deliberately at around 2 o’clock
this morning when burning paper was pushed through the letterbox. They are
appealing for witnesses to the event.

2. Crown Prosecutor: Tell us in your own words exactly what happened.

34
Witness: We were in the bar when a man walked up to the victim, pointed a gun
at his head and said ‘You’re a dead man.’ Then he pulled the trigger three times.

3. Police constable: You were going in excess of 60, and this is a 30 zone.
Man in car: I think you’re mistaken, constable. I was well within the speed limit.

4. Woman: When I got home, I discovered that my back door had been broken open.
Police officer: Had anything been stolen?
Woman: Yes, my new laptop, £200 in cash and my pet parrot.

5. Police officer: I’m sorry sir, but I have to report your actions to the proper
authorities.
Man: Look, officer, here’s £50. Let’s just pretend this didn’t happen, eh?

6. Extract from a newspaper article: The two men were arrested and detained after
police checks revealed that they had been distributing pornographic material over
the Internet.

7. Interviewing detective: All right, Dagsy. We know you didn’t do the Cornmarket
Street bank job yourself, but we know that you were involved somehow.
Police suspect: I was just driving the car Mr Regan, honest. And I didn’t know
what the others were up to until they came back with bags of cash.

8. TV newsreader: The car bomb went off in a busy marketplace, injuring several
shoppers.

9. Radio newsreader: The police raided a house in New Street this morning and
recovered 250 illegal copies of the latest Harry Potter film, along with professional
film copying equipment.

35
10. Man reading newspaper: I don’t believe it. The Foreign Minister has been caught
giving government secrets to another country!

11. Political agitator: Now is the time to rise up and overthrow the running dogs that
call themselves our government. Death to the Prime Minister and his cronies!
Death to the Royal Family! Death to the system that bleeds us dry and abandons
us!
Unwashed anarchist hordes: Hooray!

12. Shop assistant: I can’t accept this £20 note, madam. It’s a fake.
Customer: What? You mean it’s counterfeit?
Shop assistant: I’m afraid so. Do you have any other means of payment?

13. Extract from a newspaper article: The investigation into the rail accident
confirmed that it occurred because the rail company had failed to maintain the
tracks properly over a five-year period. Eight people died when the train left the
tracks and hit an embankment.

14. Police officer: Take your time and tell me what happened, dear.
Pensioner: The man who came to my door said he had come to read the electric
meter, so I let him in. I went to the kitchen to make him a cup of tea. When I
returned he had gone, and so had my television.
15. TV newsreader: A journalist working in the city disappeared this morning. Police
later received a note from a militant faction claiming that they had taken him and
were holding him hostage.

16. Woman: The graffiti around here is getting really bad. Last week somebody wrote
‘Chelsea are rubbish’ on our garden wall.
Man: That’s not good. It should say ‘Chelsea are complete rubbish’.

36
17. Man: Look at this note, Cheri. It arrived in the post today. It says ‘Leave £10,000
in cash in the bin by the bus stop, or I’ll tell everyone your dirty secret’.
Woman: Don’t worry about it, Tony. It’s probably another little joke from him
next door.

18. Prosecuting lawyer: Tell us again what happened on the night of the incident, Mr
Williams. And let me remind you that you are still under oath.
Defendant: Like I told you, I was at home asleep, so I have no idea what happened.
Prosecuting lawyer: Don’t lie, Mr Williams. We have video evidence that you
were in the nightclub until 3 a.m. And you were seen by several witnesses.

19. Defendant: I don’t recognize this court. This trial shouldn’t be taking place.
Judge: Sit down, Mr Dowling. You are out of order.
Defendant: Oh shut up, you silly old woman. Go back home and do some washing
up or something.

20. Accountant: We’ve audited these accounts very carefully, and they just don’t add
up.
Office manager: What exactly are you saying?
Accountant: I’m saying that someone in your office has been secretly helping
themselves to company money.
21. TV presenter: Jimmy Bond, a former government intelligence agent, has just
published a book about the Intelligence Service called ‘Lifting the Lid’. In it, he
gives us a revealing insight into the life of a secret agent. The government have
strongly condemned the book, claiming it contains classified information that
should not be in the public domain.

22. Magistrate: Constable, could you explain what happened?

37
Police constable: I was proceeding down Newland Street at approximately 8
o’clock last night when I heard a lot of shouting coming from The Newlands Inn
public house. On entering, I saw the accused in a state of undress and dancing on
a table.
Magistrate: You mean he was naked?
Police constable: Yes. As the day he was born.

23. Radio newsreader: The judge in the trial of notorious gangster Joe ‘Pinko’ Pallino
adjourned the court today after it was revealed that several members of the jury
had been offered bribes and other incentives to pass a verdict of ‘not guilty’ on Mr
Pallino.

24. TV presenter: A bank account was opened in a false name in the Bahamas, and the
cash deposited there. The funds were then sent by telegraphic transfer to another
account in Switzerland, and the Bahamas account was closed. It was at this stage
that the Metropolitan Police called in Interpol.

   Talking points!

13 In small groups, discuss the following issue:


 What can be done to stop telephone fraud?

38
UNIT 4
MONEY LAUNDERING

1 Read the text about how organized crime uses the international banking system to
hide its money and answer these questions.

1. What was Operation Casablanca designed to?


2. How was it prepared and carried out?
3. Where did the police arrest the Mexican money launderers?
4. How many people were arrested?
5. How much drug money was recovered from bank accounts?
6. How did the Operation Casablanca affect Mexican banks?
7. According to the UN Drugs report, how much money is thought to be laundered
worldwide every year?
8. How effective are anti-laundering measures?
9. What banking operations are used for money laundering?
10. How do criminals hide their financial transactions from officials?
11. What is meant by a walking account?
12. What are the legitimate reasons for bank secrecy?
13. What must a bank have in order to be established, in certain places?
14. What is the favourite way of transporting illegal bulk cash to offshore banks?
15. Why are casinos so popular for money laundering?

World Banking System Is a ‘Money Launderers’ Dream’


It was the biggest money laundering investigation in US history. Evidence had been
gathered secretly over many months by undercover officers risking their lives. The
suspects were lured to Las Vegas for a conference on money laundering. Then the police
struck, arresting 22 banking officials from Mexico’s largest financial institution, plus 14

39
alleged members of Mexican and Colombian drug cartels and another 70 linked to them.
Seizure warrants were issued to recover $122m (£73m) from bank accounts in the US and
Italy, to add to $35m seized so far. The operation so damaged confidence in Mexican
banks that their shares fell collectively by 4% in panic selling.

But as Operation Casablanca struck its blow in the Americas, officials of the United
Nations Drug Control Programme in Vienna were editing the final version of a report −
to be released soon − that puts the US triumph into a gloomy perspective.

It says that at least $200bn of drug money is laundered every year, but with the illegal
international drug trade valued at $500bn, this is probably a conservative estimate. In a
good year, up to $500m will be recovered through anti-money laundering measures − an
annual success rate of about a quarter of 1% of laundered funds. Operation Casablanca,
with $157m, will probably make the year a good one, but hardly vintage.

The report has been prepared by a group of experts for a special session of the UN General
Assembly on drugs in New York. With the growth of the international drug trade, more
ill-gotten money is being laundered than ever, partly on the back of electronic banking
and the increasing globalisation and speed of operation of the international financial
system.

Cashless transactions, electronic trading and computerised clearing mean that what the
report calls ‘megabyte money’ can be moved anywhere with speed and ease. With
700,000 wire transfers worth $2,000bn every day, the report says it is ‘a reasonable guess
that 0.05% to 0.1% contain laundered funds to a value of $300m’. And even though half
the total volume of transactions are bank-to-bank transfers of ‘aggregate funds’ for
settlement or loans, the report says the ‘complicity of corrupted bank employees’ ensures
these also contain laundered money. ‘This system is a money launderer’s dream.’

40
The one thing law enforcement officers have on their side is that criminals have to play
by the rules of the system in order to use it. While it is impossible to spot transactions in
progress once money is in the system, criminals have to risk exposure in putting it there.
UN officials want the process made riskier.

At present, criminals reduce their risk by operating through offshore financial havens with
lax financial regulation and poor banking supervision. They also hide behind banking
secrecy, and disguise the ownership of assets by setting up shell companies and offshore
trusts in jurisdictions where no questions are asked about shareholders and beneficiaries.
Many accounts and trusts are known as ‘walking’ ones, where there is a standing
instruction to move the accounts to another jurisdiction at the first sign of inquiry by the
authorities.

UN officials accept that commercial confidentiality, legal tax avoidance and the easing
of capital transfers at low or nil tax rates are legitimate reasons for bank secrecy and
disguising corporate ownership, but they say the system is too lax in some places, no
allowing infiltration for illicit or nefarious purposes. ‘One of the most striking things
about offshore financial centres is the enormous increase that has taken place in the
number of banks,’ says the report. Banks can be set up with relative speed and ease and
a minimum of due diligence investigation, so long as they meet a basic level of funds,
which can vary between one jurisdiction and another.

Exporting bulk cash, usually in $100 bills and sometimes carried under diplomatic cover,
is the favoured method of getting deposits to banks where no questions will be asked.
Casinos in offshore centres are a favourite for converting funds: cash is exchanged for
gambling chips, the launderer plays for a while at the tables then exchanges the chips
back again. Instead of a cheque, some casinos offer immediate electronic transfer of
‘winnings’ to an offshore bank account.
Financial Times

41
2 Find a word in the text to complete these phrases.

1. m…………… laundering
2. seizure w……………….
3. f……………….. version
4. risk e………………
5. e……………….. trading
6. c……………… estimate
7. c………………. transfers
8. o………………. financial centres
9. gambling c……………………
10. f……………….. havens
11. i…………………-g……………… money
12. c…………….. confidentiality
13. cashless t…………………
14. bank a……………….
15. b……………….. secrecy
16. due d……………….

3 Use the definitions in the first column to unscramble the words from the text.

1. washing and ironing unindrelag …laundering….


2. attract or tempt rule ………………………………...
3. supposed to be true, but not proved dgladlee ……………………………
4. get back vecorer …………………………….
5. harm maadge …………………………….
6. depressing moogly ……………………………..
7. identify tops ………………………………..
8. hide something by making it look different guisised ……………………………

42
9. illegal clitili ……………………………….
10. wagering laminbgg …………………………..

4 Rewrite the sentences below translating the Russian parts into English.

1. (Операции на черном рынке), arms smuggling, (продажа краденых


произведений искусства), and drug trafficking bring huge profits.
2. (Один только оборот незаконной торговли наркотиками) is valued at $500
billion.
3. (Незаконно полученные деньги отмываются в разных странах мира) and then
legally invested in economy.
4. (Преступники, занятые отмыванием денег), take advantage of banking secrecy
and (скорость проведения операций) of the international financial system.
5. (При безналичных операциях на электронных торгах) and computerized
clearing (незаконно заработанные деньги) can be moved anywhere with speed
and ease.
6. (Преступники действуют через офшорные финансовые зоны) with lax
financial regulation and poor banking supervision.
7. Unfortunately, the electronic banking system (не защищена от незаконного
проникновения).
8. It is almost impossible (отследить операции, осуществляемые в данный
момент), once money is in the system.
9. In the recent past the US police carried out (самое крупное в истории США
расследование по делу об отмывании денег).
10. (Работающие под прикрытием офицеры полиции) risked their lives, (собирая
свидетельства) of money laundering through Mexican banks.
11. (Подозреваемых по делу заманили) to Las Vegas for a conference on money
laundering.

43
12. The police arrested Mexican banking officials and members of Mexican and
Colombian drug cartels and managed (вернуть в бюджет 122 миллиона
долларов с банковских счетов) in the USA and Italy.

5 Complete the passage by filling in the gaps with the words from the box.

accounts, annual, bribery control, dirty, drug trafficking, ill-gotten,


illicit, influence, investigation, laundering, origin, real estate,
tax evasion, transfers, wealth

Money laundering aims at legalizing 1) ……………….. profits. A huge portion of this


money is earned through 2) ……………….., corruption, black-market activity, 3)
………………., and especially through arms smuggling, the sale of stolen art objects,
and 4) ………………….
It has been established that the 5) ……………….. proceeds from the 6) …………………
sale of narcotics worldwide are between $300 billion and $500 billion. What do the drug
barons do with this fabulous 7) …………………? In the United States, nothing, because
this is 8) ………………….. cash. But it can be laundered abroad and brought back to the
U.S. to buy whole industries, 9) …………………….. and political 10) ………………….
The most common way of 11) ……………….. money is to take it to a foreign country
clandestinely, and place it in bank 12) ……………….. there via repeated international
13) …………………, after which it will be impossible to trace its 14) …………………..
Finally, the ‘clean’ bills are legally invested in the economy but remain under the
underworld’s 15) …………………. .
We do not know the true magnitude of money laundering, but 16) ……………….. by the
Group of Seven industrialized nations is yielding fruit.

6 Read the text ‘How to launder money’ to answer these questions.

44
1. What kinds of money laundering do you know?
2. What is classic money laundering?
3. What is modern money laundering?

How to Launder Money


Money laundering is not a simple concept, because there are two different − in fact, nearly
completely opposite − activities that are called money laundering. Here’s how to do both
of them.

Classic money laundering


The classic money launderer was someone who had illicit income − drug dealer, jewel
thief, conman − and worried that he’d get the Al Capone treatment and be convicted of
tax evasion even if the government couldn’t pin any of the underlying criminal activity
on him.

If the illicit income is small − and especially if you also have a straight job that you do
pay taxes on, there is no need to do any money laundering. For example, suppose you
work in some cube farm that pays most of what you need to live on, but you also turn the
occasional trick to bring in a hundred dollars a week. You probably don’t need to launder
that money. But suppose that illicit income is a bit larger. Once you’ve got more than a
few hundred dollars a week − more than can be conveniently hidden in your ordinary cash
expenses – you’ve got a problem. As soon as you do anything with the money − spend or
invest it − it might well come to the attention of the taxman.

The solution − classic money laundering − is to create a business to ostensibly earn that
money. Any business that brings in a good deal of cash will do. You run the business as
usual during the day. Then, after closing, you feed in your day’s illicit receipts, pretending
that they’d been received by the business. In due course the business pays its taxes and
all the taxman can see is that you’re running an unusually profitable business.

45
Modern Money Laundering
The other thing sometimes called money laundering is when you have some big lump of
cash that you’d rather not have people find out about. Sometimes it’s an effort to keep the
money from the taxman (literally the opposite of classic money laundering), other times
the goal is to keep it from coming to the attention of someone else who might feel like
they have some claim to the money − an ex-spouse, a creditor, the guy who owns the land
where you found the bag of gold coins in the culvert.

In this kind of money laundering, the point is to make the money disappear. This is the
sort of money laundering where you might make use of foreign banks, shell companies,
and so on. There are two parts to these strategies. First, you need to make the money
disappear. Second, you need to make it reappear in some gradual fashion that doesn’t
bring it to the attention of whoever you’re trying to hide it from.

7 Answer the following questions.

1. What are the best known ways of money laundering?


2. Who is considered to be a classic money launderer?
3. What do people usually do if their illicit income is large?
4. What is the classic money laundering solution?
5. What is the goal of a person who has a big lump of cash?
6. In what sort of money laundering is it possible to use foreign banks, shell
companies, and so on?
7. What are the main strategies of modern money laundering?

8 Find the English equivalents for the following words and phrases.

предполагать − незаконный доход −


наркоторговец − попасть в поле зрения −

46
жулик − уклонение от уплаты налогов −
доходный бизнес − незаконная деятельность −
последовательный − случайный −
платить налоги − фирма-однодневка −
иск − налоговый инспектор −
удобно − управлять предприятием / компанией −
появиться вновь/ вернуться − своевременно −

9 Match the words from the left column with their definitions from the right column.

1 cash a a usually flat piece of metal issued by governmental


authority as money; metal money

2 to pretend b a gain or recurrent benefit usually measured in


money that derives from capital or labor

3 coin c to think probable or in keeping with the facts

4 profitable d an action or process of solving a problem

5 tax e yielding advantageous returns or results

6 to suppose f an amount of money that you must pay to the


government according to your income, property,
goods etc. that is used to pay for public purposes

7 income g ready money; money or its equivalent (as a check)


paid for goods or services at the time of purchase or
delivery

47
8 solution h to give a false appearance of being, possessing, or
performing

10 Fill in the gaps using the necessary words from the previous exercise.

1. It seems reasonable to ……………… that such kind of businessman would profit.


2. Any ………………..… from investments must be reported.
3. The …………………….. is simple − you need to spend less money.
4. Does not ………………… to be a lawyer!
5. I have 5 dollars in ................................ .
6. He …………………….. his paycheck at the bank.
7. The defendant was accused of evading ………………….. .
8. Selling real estate on the side turned out to be ……………….. venture for the stay-
at-home mom.

11 Read the text “How to launder money” again to fill in the gaps.

1. The classic money launderer was …………………. .


2. If the illicit income is small − and especially if you also have a straight job that
you do pay taxes on, ………………………. .
3. You probably don’t need to …………………………. .
4. As soon as you do anything with the money − spend or invest it – it might well
………………………. .
5. The solution − classic money laundering − is to create a business to ostensibly
………………………….. .
6. Any business that brings in a good deal of cash ……………………. .
7. The other thing sometimes called money laundering is when you have some big
lump of cash ……………………… .
8. In this kind of money laundering, the point is to make .............................. .

48
9. This is the sort of money laundering where you might make use of ……………. .
10. First, you need to make the money ................................ .
11. Second, you need to make it reappear in some gradual fashion that doesn’t bring
it to ............................ .

   Talking points!

12 Make up short dialogues between:


 a prosecutor and a defendant who is suspected in money laundering;
 a money launderer and a lawyer who defends him;
 a prosecutor and a judge who will sentence the defendant for money
laundering;
 a plaintiff and a judge;
 a witness, a prosecutor and a judge.

49
UNIT 5
CYBERSPACE FRAUD

1 Read the text about Internet fraud, translate and summarize it.

Cyberspace Fraud and Abuse


Unwary investors are in danger today of being taken for a ride on the information
superhighway.

State securities regulators around the US are concerned about the explosion in illicit
investment schemes now flourishing on commercial bulletin board services and the
informal web of computer networks that make up the Internet. Households that already
have access to online services are being exposed to hundreds of fraudulent and abusive
investment schemes including stock manipulations, pyramid scams and Ponzi schemes1.

Cyberspace, as the online world is known, has the potential to educate investors and help
them become better consumers. Any computer and modem is a few keystrokes away from
research data and financial news. However, State securities regulators emphasize that the
problem of illicit and abusive online investment schemes has the potential to spread like
wildfire through the Internet, using increasingly popular commercial bulletin board
services, live discussion groups (chats), e-mail, and information web pages, all of which
can maintain the anonymity of cyberspace. This is exploited to the hilt by those who
promote fraudulent investment schemes.

New frauds are emerging, too. According to Internet Fraud Watch, complaints about fraud
on the Internet have risen 600% since 1997, and online auction complaints were the
number one fraud complaint only one year later, a dramatic rise. The majority of
payments in these fraud cases were made offline, by cheque or money order sent to the

50
company. ‘Requesting cash is a clear sign of fraud. Pay the safest way. If possible, pay
by credit card because you can dispute the charges if there is a problem,’ says the Director
of Internet Fraud Watch. IFW recommends that buyers use escrow services: they take
payment from the buyers and only pass money along to the sellers after verification that
the goods or services were satisfactory. Some auction companies have programmes to
insure transactions.

The top 10 scams were, according to the National Consumer League:


1) Web auctions: items bid for but never delivered by the sellers, the value of items
inflated, shills2 suspected of driving up bids;
2) General merchandise: sales of everything from T-shirts to toys, calendars and
collectibles, goods never delivered or not as advertised;
3) Internet services: charges for services that were supposedly free, payment made
online and Internet services that were never provided or were falsely represented;
4) Hardware or software computer equipment: sales of computer products that were
never delivered or were misrepresented;
5) Business opportunities like multi-level marketing or pyramid schemes, in which
any profits were made from recruiting others, not from sales of goods and services
to end-users;
6) Business opportunities or franchises3: empty promises of big profits with little or
no work by investing in pre-packaged businesses or franchise opportunities;
7) Work-at-home plans: materials and equipment sold with the false promise of
payment for ‘piece work’ performed at home;
8) Advance fee loans: promises of loans contingent on the consumer paying a large
fee in advance. Once the fee is paid, the loans are never disbursed;
9) Credit ‘repair’: fraudulent promises to remove accurate but negative information
from consumer credit reports;
10) Credit card issuing: false promises of credit cards to people with bad credit
histories on payment of up-front fees.
From www.fraud.org, The National Consumer League
51
Notes:
1. buyers are persuaded to invest money in dishonest ‘businesses’ in return for promises of quick profits
2. someone who cooperates in an auction scam by pretending to want to buy goods and so raising the bids
3. a permission to sell a company’s goods or service, that is given or sold to a business person

2 Answer these questions.

1. What are the main types of investment fraud reported in the text?
2. How does the text define ‘cyberspace’?
3. Which organizations could you inform if you were a victim of a scam on the
Internet?
4. Which crime has increased most in the last year or so, according to the text?
5. What does the acronym IFW stand for?
6. How does an escrow service work?
7. How do households get exposed to fraudulent schemes in cyberspace?
8. How can the price of stocks and shares be easily manipulated over the Internet?
9. What are the five most common types of Internet fraud, according to Internet Fraud
Watch?

3 Choose the best explanation for each of these words or phrases from the text.

1. illicit
a) unhealthy
b) legal
c) against the law
2. stock manipulations
a) moving cattle
b) selling securities
c) illegally influencing share prices
3. spread like wildfire

52
a) destroy by fire
b) spread very rapidly
c) lose your temper
4. to the hilt
a) to maximum advantage
b) part time
c) electronically
5. piece work
a) working for the community
b) working in a factory
c) being paid for each item produced
6. contingent to
a) in front of
b) dependent on
c) next to
7. disbursed
a) paid money out
b) collected money
c) advertised
8. up-front fees
a) fees that increase as time passes
b) money paid after receiving goods
c) money paid before receiving goods

4 Match the definitions with the scams.

1 work-at-home plans a charging for Internet services that are


supposed to be free or which fail to appear

53
2 general merchandise b promising loans of large sums of money after
a small fee has been received

3 hardware or software c tempting people to invest in franchise


computer equipment businesses by promising quick profits

4 credit ‘repair’ d getting people involved in schemes that work


by recruiting a network of other salespeople
but not selling any goods

5 credit card issuing e selling materials for making-up at home but


never selling the things which clients have
made

6 web auctions f falsely guaranteeing that bad credit ratings can


be removed from the records

7 Internet services g taking money for falsely promising credit


cards to people with bad-risk ratings

8 business opportunities or h receiving money for all kinds of goods that are
franchises never delivered

9 multi-level marketing i selling computer equipment that fails to arrive


or is not what was ordered

10 advance fee loans j auctioning goods online then not sending the
goods, or sending faulty or overpriced articles

54
5 Match these definitions with words or phrases in the text.

1. not alert of danger or deception


2. slang to deceive or swindle
3. to do or fare well; prosper
4. means to communicate with or make use of
5. money put in the custody of a third party for delivery to a grantee only after
fulfillment of the conditions specified
6. to pay out, as from a fund
7. a confirmation of truth
8. to the limit, completely
9. a fraudulent business scheme

6 Use an appropriate word or phrase from the box to complete each sentence.

in advance, money up-front, regulations, offline payments, misrepresentation,


advance loan fees, false, cheque, money order, escrow fund, credit card,
fraudulent, fines, faulty, rulings, redress, liable, counterfeiting

1 The EC hopes to agree on the …regulations… that will govern the Internet in
Europe.
2. The courts made two important …………………………… on the Internet and
free speech in the US.
3. There must be ways to seek ………………………………… for losses suffered
because of electronic fraud.
4. There will be attempts to prevent …………………………….. trading.
5. When an issuer is found to be in the wrong, they will be ……………..…………….
for some form compensation to the victim.

55
6. In the US, very heavy ………………………………… have been levied on certain
abusers of the Internet.
7. The Commission is also keen to prevent crimes of forgery like
…………………………. .
8. Many victims receive goods which are different from what they expect – the sellers
are guilty of ………………………………. .
9. Other cases are when the goods received are ………………………….. and do not
work.
10. Some credit cards can be issued under a ………………….. name.
11. A sure sign of a fraud is when you are asked to pay for the goods or services
…………………………., that is before you receive them.
12. Can I pay by ……………………….. or …………………………?
13. E-commerce chiefly operates with ………………………………. .
14. ………………………….. is the same as paying in advance, isn’t it?
15. What is the difference between a ……………………………. and a cheque?
16. The safest way to pay for expensive items is to open an ………………………….
17. One scam works by asking for ……………………………… but in the end, no
loan is given.

7 Scan the article about cyber crime by Peter Spiegel.

U.S. Cyber Cops Face Challenge


When the FBI began investigating a computer break-in at New York-based Bloomberg
News earlier this year, they came upon a troubling realization: the hackers were based in
Kazakhstan, a country more known for its occasionally shady oil dealings than
international law enforcement co-operation. But when U.S. lawmen contacted Kazakh
government officials, they were in for another, more pleasant surprise: “The co-operation
we received from the Kazakh authorities was very good,” said the Federal Bureau of

56
Investigation’s Ron Dick. With the help of the Kazakhs, the two culprits were lured to
London and arrested by UK police.

Such is the nature of investigating and stopping cybercrime, a scourge that by one
estimate costs global businesses $1.5 billion annually. Although almost all crimes – from
bank robberies to airplane hijackings – potentially have international links, computer-
based crimes have become almost exclusively global in nature, whether because of
offshore “hop sites” used by criminals to confuse investigators or because computer
security can be more lax in developing countries such as Kazakhtan.

“It’s the nature of the crime,” said Mr Dick, head of computer investigations at the FBI’s
National Infrastructure Protection Center (NIPC), and thus America’s top cyber cop.
“There are only a handful of cases where we’re not addressing things from an
international standpoint.” But the global nature of cybercrime has raised some unique and
troublesome problems for the FBI and its law enforcement partners in individual
countries. At the most basic level, for instance, some developing nations do not have laws
making cybercrime illegal.

When the FBI tracked down the man responsible for the infamous “Love Bug” virus, they
were hampered by the lack of computer crime laws on the books in the Philippines, where
the hacker was based. “The Philippine government was embarrassed,” said Mr Dick.
“Here you have a county that wants to be part of the global economy and e-commerce
and are training their people on these skills, and yet they don’t have laws to deal with
that.”

The Philippines has since passed new computer crime statutes, but having laws on the
books is only a first step. Mr Dick says very few countries around the world have the
technological expertise to deal with the mounting problem. The FBI has tried to help.
Overseas lawmen visit the NIPC on a weekly basis, and the FBI regularly sends its agents

57
to train other law-enforcement agencies at international police academies in Budapest and
Bangkok – but it is an uphill road to travel.
Financial Times

8 Answer the questions below about some cases of computer crime the FBI
investigated.

1. What case involving Bloomberg News did the FBI investigate?


2. Why did U.S. lawmen contact the Kazakh authorities?
3. What did the cooperation of the FBI and the Kazakh authorities result in?
4. According to the article, what losses did global businesses suffer from computer
crime?
5. What problems for lawmen has the global nature of cybercrime raised?
6. Why was the Philippine government embarrassed?
7. In what way does the FBI help overseas lawmen to gain technological expertise to
deal with cyber crime?

9 Find the verbs or verb phrases that connect these expressions (1-6) in the text;
then match the verbs with their definitions on the right (a-f).

1 U.S. lawmen / Kazakh officials a try to find out all the facts about a crime
2 two culprits / UK police b trick smb into doing smth or going
somewhere
3 the FBI / troubling realization c get in touch with
4 the FBI / a computer break-in at d discover
Bloomberg
5 co-operation / Kazakh authorities e detain and charge
6 two culprits / London f get smth given; obtain

58
10 Match these definitions with words or phrases in the text.

1. unauthorized penetration of a computer network


2. one who uses programming skills to gain illegal access to a computer network or
file
3. one guilty of a crime
4. dishonest, illegal, questionable
5. not strict
6. a school for police personnel
7. connection across national boundaries
8. a crime committed by using a computer
9. to attract someone and to cause them go somewhere (with a promise of pleasure
or reward)
10. policemen and other related officials

11 Rewrite the synopsis of the article below translating the Russian parts into
English.

1. The article describes how the FBI investigates (случая несанкционированного


проникновения в компьютерную базу данных нью-йоркского издания
«Блумберг Ньюз»).
2. The hackers who gained (несанкционированное проникновение в
компьютерную сеть) were based in Kazakhstan.
3. (Правоохранительные организации) came upon realization of the need of
(международного сотрудничества).
4. Thanks to the cooperation of the Kazakh authorities, (преступников заманили в
Лондон) and arrested by UK police.
5. (Из-за компьютерных преступлений компании разных стран) lose $1.5 billion
annually.

59
6. There are two factors which are instrumental in (распространении
компьютерных преступлений: использование преступниками) offshore “hop
sites” (и недостаточная система защиты компьютеров от взлома) in
developing countries.
7. (С целью предотвращения компьютерных преступлений) the FBI’s National
Infrastructure Protection Center (NIPC) shares (своими знаниями и опытом
работы с коллегами из зарубежных правоохранительных организаций).

   Talking points!

12 In small groups, discuss the following issues:


 Analyze the top 10 scams mentioned in the text “Cyberspace fraud and
abuse” and decide which of the cyber fraud victims deserve your sympathy
and which don’t.
 If people buy goods through the Internet, how do they pay for the goods
they buy? What guarantee do they have that they would get what they paid
for?

60
UNIT 6
ARBITRATION

1 Read the text about how international disputes between companies are resolved.

Resolution in a neutral forum


You have been in a conference room in your lawyer’s office for the whole day,
negotiating a crucial international contract. Term by term, detail by detail, the lawyers
have argued it out. Someone says: ‘What are we going to put in for dispute resolution?’
When you started the negotiations, you thought that the deal was a certain money-spinner
for both parties, so no disputes could arise. Now you are not so sure. So what do you say?
What do your lawyers advise? Ideally, you might want to be able to have recourse to the
courts in your own country: the other party would probably like to do the same in its home
country. Neither is acceptable to the other, for fear of home-team advantage or even local
bias.

The answer is to opt for arbitration. This is not really a difficult decision, and that is why
arbitration is the recognised way of resolving international commercial disputes. For at
least a century, it has been the dominant force in dispute resolution in areas such as
shipping, commodities and construction. You can opt for a neutral forum and have a panel
of three arbitrators, one chosen by each party, and the third (the chairman) chosen either
by the parties or the two party-appointed arbitrators. In addition, you can keep your
disputes away from the public eye, because arbitration takes place in private, unlike
litigation in the court. The main centres for international arbitration are: Paris, London,
Geneva, Stockholm, New York, Hong Kong and Singapore. Which is used depends on
the background and businesses of the parties. Stockholm, for example, was always the
place for arbitrating east-west trade disputes, London for shipping and commodities.
Singapore looks set for a busy time in the coming months and years after the Asian

61
financial crisis. These locations, and the arbitration centres and lawyers working there,
compete intensely. Arbitration bodies try hard to get their standard arbitration clause put
into people’s contracts, so they have a captive market once disputes arise. They do this
by publicising their activities and their rules.

What they are looking for is ‘name recognition’. In Europe, Paris (home of the
International Chamber of Commerce and its rules) probably has the best name
recognition, followed by London (home of the London Court of International
Arbitration), and Geneva. What people look for in an arbitration is speed, cost
effectiveness, confidentiality and reliability of the arbitrators and hence their decisions.
The choice of venue involves a complex balancing of a number of factors:
o the availability of good experienced arbitrators
o the availability of good experienced arbitration lawyers, and expert witnesses such
as accountants and engineers
o the cost of these people
o the support or otherwise that the local legal system gives to arbitration. (For
example, if the arbitration gets bogged down as a result of delaying tactics by one
party, what powers does the arbitrator, or court, have to speed things up? Will the
courts readily interfere or overturn arbitrators’ decisions?)
o accessibility − basic things like flight access, good facilities (some of the best are
now in the Gulf states), administrative back-up, good telecommunications, IT
support and even climate.

National legislation also has to lend its support to such an important economic activity as
arbitration. England has taken steps to improve English arbitration law in the form of the
Arbitration Act 1996, which came into force at the beginning of 1997.
Financial Times

2 Answer the following questions to the text.

62
1. Why might you prefer not to go to court in the country of your business partner?
2. What are the three main business areas which have traditionally been resolved by
arbitration?
3. What is the main difference between arbitration and litigation, according to the
text?
4. Which are the main arbitration centres?
5. In which city would you choose to arbitrate an east-west trading dispute?
6. Which specific aspects of a contract are named in the text?
7. What do clients look for from an arbitration service?
8. What examples of expert witnesses are given in the text?

3 Mark these statements T (true) or F (false) according to the information in the text.
If the statement is false, find the part of the text that gives the correct information.

1. Disputes only arise in commercial transactions.


2. Commodities are things traders buy and sell, usually raw materials, like coffee,
wool or copper.
3. New York is the only American arbitration venue named in the text.
4. ‘Name recognition’ for arbitration is like ‘brand awareness’ for consumer goods.
5. A neutral forum has a balanced composition to ensure fairness to both parties.
6. The courts of law in each country are less powerful than arbitration panels.

4 Use an appropriate word or phrase from the box to complete each sentence.

resolve, resolution, dispute, settle, arbitrate, arbitration, arbitrator,


agree, disagree, delaying tactics

1. There is a serious problem we must try to …resolve… .


2. He was a distinguished lawyer who was an expert ………………………………

63
3. The …………………….. process took far longer than the parties had expected.
4. This was due to the ………………………. employed by one of the companies
involved.
5. The question is: how are we going to ………………….. this dilemma?
6. When the goods arrived in poor condition, a …………………….. arose over
whose fault this was, and who should bear the cost.
7. The best way is not to go to court, which is public and costly, but to
………………….. an agreement.
8. I believe you are wrong on that point – we ……………………. on the
interpretation.
9. There is always an answer if you try hard to find it: every difficulty has a
…………………….. .
10. You cannot assume he will ……………………. to those terms: you must check
with him first.

5 Complete the following text about arbitration with words from the box.

adjudication, arbitration, decision-maker, dispute, documentation, duration,


expensive, expert, forum, hearing, litigation, needs, submissions

The process is similar to the litigation process as it involves __________________.


However, the parties choose their ___________________ and the manner in which the
_______________ will proceed. For example, if the ________________ is fairly
straightforward and does not involve any factual questions, the parties may agree to waive
a formal _______________ and provide the arbitrator with written _____________ and
only, called a documents only arbitration. However, in other cases the parties may wish
a full hearing. Therefore, the parties create their own adjudicatory _______________
which is tailor-made to the particular ________________ of the parties and the nature of
the dispute.
The advantages of arbitration over court adjudication can include the following:
64
 Expertise of the ________________: The parties can choose an arbitrator who has
_______________ knowledge of the law, business or trade in which the dispute
has arisen.
 Low cost: Arbitration is not _______________ if the process is kept simple.
 Speed: Arbitration can be arranged within days, weeks or months.
 _______________: Arbitration does not take as long as litigation.

6 Match the terms with their definitions.

1 dispute resolution a unfair treatment


2 a money-spinner b accelerate
3 have recourse to the courts c reverse something already decided
4 home-team advantage d settling disagreements
5 local bias e make use of the legal system
6 financial crisis f benefit from being local or on home
ground
7 delaying tactics g meddle or get involved with
8 speed things up h something that makes profits for
everyone
9 interfere i ways of making things take a long time
10 overturn decisions j become operational
11 take steps k serious money problems
12 come into force l institute action

7 In law, it is important to distinguish between the parties involved in a


transaction or an action. Complete the sentences below, using words from the
box. Not all words will be needed.

65
signatories, buyer/seller, borrower/lender, supplier/producer,
wholesalers/retailers, lawyer/client, teacher/student, plaintiff/defendant,
licensee/licensor, franchiser/franchisees, undersigned,
parties to an agreement

1. Everyone promises to obey the treaty – all major countries are …signatories… to
it.
2. The beer can be produced under licence but the …………………….. must fulfil
all the requirements imposed by the ……………………. .
3. Many projects require the cooperation of various partners. If they all agree to work
together, they become ……………………………. .
4. The price was negotiated between the ………………………… and the
………………… of the house, in a private sale.
5. Some clothes companies sell their products on a franchise basis: each country has
a main …………………….., with numerous people working as
……………………. .
6. The bank agreed that the …………………….. should pay 12% on the loan, so the
………………………… made a fair profit!
7. In the civil case, the ……………………. brought an action against the
………………….. for damaging his car on purpose.
8. Manufacturers sell their goods to ……………………., and in turn,
…………………….. buy from them.
9. The relationship between a ……………………. and ……………………… is
bound by confidentiality.
10. A letter was sent to the manager complaining about working conditions. All the
members wrote their names. The letter read: ‘We, the ………………………..,
strongly protest about conditions at work.’

8 Read the following text.

66
Alternative dispute resolution
Anna Chapter heads the Litigation team in a large firm of solicitors. She is talking to a
client about alternative dispute resolution.
‘Alternative dispute resolution, often abbreviated to ADR, is well-established in a number
of jurisdictions, including the USA, Canada and Australia. Over recent years, we’ve seen
the emergence of mediation organizations and dispute resolvers, some on the Internet. In
the UK, ADR is positively promoted for use in a wide range of civil disputes, including
small claims, family matters, construction or building contracts, and complex
international commercial disputes. It’s generally proposed as a cost-effective alternative
to the litigation process and entered into a voluntary basis by disputants, or because of
contractual provisions, that is, the conditions of a contract. Many commercial agreements
now include dispute resolution clauses in which the contracting parties agree the method
to be used if a dispute occurs during the life of the contract. However, parties may also
be referred to ADR by the court during the course of litigation. A Civil Procedure Rule
requires the UK civil courts, as part of the case management process, to encourage and
facilitate parties to use ADR procedure if appropriate. A National Mediation Helpline has
also been set up to provide advice by telephone or online.’

ADR procedures
ADR refers to a number of different procedures used to reach a settlement. Some
frequently used methods are:
 Arbitration – this is more formal and binding process where the dispute is resolved
by the arbitrator nominated by both parties.
 Mediation – possibly the most popular process. An independent third party,
normally with appropriate expertise in the area of contention or dispute, is
appointed by the parties to act as a mediator. The mediation process begins with an
all parties discussion; following this the respective parties separate to discuss the
issues and, with the assistance of the mediator, seek to negotiate a settlement. If
settlement is reached, it can become a legally binding contract.

67
 Med-Arb – the dispute is initially submitted to mediation but if mediated
settlement cannot be reached, then the matter is referred to arbitration.
 Adjudication – the method most commonly used in construction disputes. A quick
decision is made by the adjudicator and a time period is specified during which
either party may give notice to refer the matter to arbitration or litigation. The
adjudicator’s decision is binding upon the parties and must be followed, unless and
until a later decision is made by an arbitrator or the court.

9 Complete the table with the words from the previous text. The first one has been
done for you.

Verb Noun – concept or Noun − person Adjective


object
refer referral
dispute
resolve
contractor

10 Are the following statements true or false?

1. Online mediation is a formal and binding process.


2. The adjudicator passes email responses between parties online.
3. Online mediation is commonly used to resolve construction disputes.
4. The defendant and the claimant are independent third parties.

11 Commercial and business disputes (= arguments / disagreements between two or


more parties) do not necessarily have to be settled in an imposed court case.
Mediation – an attempt by a third party to make two sides in an argument agree –
is often quicker, cheaper, more effective and less stressful for the parties involved.

68
Complete the first part of each word in bold in sentences 1 – 18 with the second
part in the box.

___actually ___ain ___artial ___bunal ___cation ___closed ___cus


___dential ___ding ___ficial ___gation ___iator ___int ___itator
___judice ___lements ___lic ___native ___our ___promise ___sent
___sion ___tiations ___tical ___tration ___trator ___ual ___und
___untary ___utions

1. Mediation is one form of what is known as alter____ dispute resolution (ADR for
short).

2. Mediation is generally preferable to liti____ because it is normally quicker and


cheaper.

3. Mediation is vol____, but requires the con____ of all the parties involved before
it can go ahead.

4. Mediation is carried out by a neutral, imp____ third party called a med____.

5. This third party is also sometimes known as a facil____.

6. He / she spends time with all the parties involved in jo___ ses____ and also in
private meetings (known as ‘cau___’).

7. Any information that the parties provide is confi___ and cannot be dis____ to the
other parties.

69
8. He / she attempts to solve problems and find resol____ that are prac____ and
bene____ to everyone.
9. Unlike a formal court case, nego____ are in private.

10. Resolutions and sett____ are based on com____ and on mut____ agreement and
acceptance.

11. If no agreement is reached, the parties involved will not be legally bo____ by
anything that has been discussed.

12. A mediation process is said to be ‘without pre____’, which means that anything
that was said during the mediation cannot be used if there is no agreement and the
case has to go to court.

13. If an agreement is reached and the parties sign a written agreement, this agreement
becomes bin____, and the parties are obliged to hon____ it. This can then be
enforced contr____ if necessary.

14. Another form of ADR is arbi____.

15. This will involve all parties in the dispute appearing before a tri____.

16. An arbi____ is usually an expert in a particular field, and so this form of dispute
resolution may be preferable in disputes where specialist knowledge is required.

17. However, unlike mediation, this form of resolution involves an adjudi____, which
will probably benefit one side in the dispute more than the other(s).

70
18. This form of dispute resolution is also less private than mediation (each party is
aware of what the other party is saying about it), and information may end up in
the pub____ dom___.

   Talking points!

12 What steps can you take, apart from going to court, to settle a commercial
disagreement?

71
UNIT 7
DISCRIMINATION

1 Read the text about an important case about discrimination against women in the
workplace.

Court to hear key case on discrimination


The US Supreme Court today hears a case which could have a big impact on the size of
damages paid by US employers in employment discrimination lawsuits. The court agreed
to hear the case, Carole Kolstad vs the American Dental Association (ADA), to clarify
what kind of employer conduct will give rise to punitive damages − damages awarded to
punish and deter an offender in lawsuits involving sex discrimination. However, law
employment experts said that the suit was also likely to have a knock-on effect on race,
age and other employment discrimination suits brought under Title VII of the 1991 Civil
Rights Act.

The case involves a female lawyer employed as a lobbyist for the ADA, a professional
trade association. A jury found that Ms Kolstad was denied promotion because of
intentional sex discrimination. The issue before the court is not whether this is so, but
whether such discrimination must be ‘egregious’1 before punitive damages are awarded.

Title VII permits such damages where there was ‘malice or …reckless indifference to the
federally protected rights of an individual’. But in Ms Kolstad’s case an Appeals Court
found that the ADA’s conduct was neither ‘egregious’ nor ‘truly outrageous’ enough to
merit punitive damages.

At the moment there is confusion over the standard of conduct necessary to attract
punitive damages, with the various circuit courts applying differing standards to define

72
‘reckless indifference’. If the Supreme Court upholds the Appeals Court’s decision in
Kolstad − that the conduct did not meet this standard of ‘egregious’ − this would set a
new standard nationwide that could limit the size of both jury awards and pre-trial
settlements.

Conversely, if Ms Kolstad wins, jury awards and settlements could shoot up. Her lawyers
argue in their brief that ‘egregious’ is too high a standard, and that employees need only
show that their employers knew or should have known that their conduct was probably
unlawful in order to have claims for punitive damages put before a jury.

‘If adopted, this standard would subject employers to punitive damages virtually every
time an employee engages in intentional discrimination against another,’ the US Chamber
of Commerce argues in a brief filed to support the ADA. ‘Our concern is that punitive
damages would become the norm, not the exception, whereas the law clearly intends them
to be the exception,’ says Stephen Bokat of the National Chamber Litigation Center,
which has also backed the ADA.

According to Jury Verdict Research, which tracks jury awards, 40% of verdicts in gender
discrimination cases in the last six years have included punitive damages. The law caps
damages at $50,000 − $300,000 per plaintiff, depending on the size of the employer.

A lower court jury awarded Ms Kolstad back pay after a male employee in the same office
was, according to her lawyer’s brief, ‘preselected’ for a promotion for which he was less
qualified than she was.
Financial Times

2 Answer these questions.

1. What is the case about?

73
2. Who brought the appeal − the ADA or Ms Kolstad?
3. Why did Ms Kolstad sue the ADA?
4. Where is the case being heard?
5. What types of discrimination are mentioned in the text?
6. What was the lower Appeals Court’s decision?
7. Which organisation is mentioned that supports the ADA?
8. If the Supreme Court decides in favour of Ms Kolstad, how much may she receive
in damages?

3 Choose the best explanation for each of these words or phrases from the text.

1. brief
a) short letter
b) kind of case
c) legal document
2. malice
a) with bad or cruel intention
b) unintentional
c) friendliness
3. uphold
a) reverse
b) agree with and support
c) set a standard
4. cap
a) is the head
b) interfere
c) set an upper limit
5. knock-on effect
a) entry requirement

74
b) wider consequences
c) blow to the body
6. reckless indifference
a) heartless and cruel
b) not caring about the consequences
c) driving without care

4 Match the opposites.

1 lawful a illegal
2 clarify b female
3 legal c unlawful
4 malice d one-off
5 preselection e confession
6 male f confuse
7 punitive g token
8 knock-on effect h kind intentions
9 discriminate against i fair job promotion procedures
10 denial j act fairly

5 Use an appropriate word or phrase from the box to complete these sentences.

limit, punitive damages, egregious, circuit judge, Act, settlement,


jury, lawsuit, brief, cap, appeal, federal rights

1 The amount of money awarded to a victim has a …limit… .


2. An out-of-court ………………………. is desirable if possible.
3. A barrister cannot work in a court without a ……………………….. from a
solicitor.

75
4. Every court decision may be sent for ……………………… if circumstances
justify it.
5. A special term for very bad behaviour in the US is ………………………..
behaviour.
6. Many people think there should be a specialist ……………………… for complex
fraud cases.
7. There is no ………………………… on the liability of owners in a private
partnership.
8. When Parliament votes to pass a Bill it becomes an …………………….. .
9. The courts are in session at different times during the year in different places, so
that the ……………………… can work in a variety of places.
10. Damages set very high in order to deter others are called …………………….. .
11. Anyone can bring a ……………………… against someone else if they feel they
have suffered a wrong that cannot be settled easily.
12. American citizens should study their …………………… so that they know what
laws protect them from abuse.

6 Sally Pereira has just been made Chief Executive Officer of Grotesko, a big retail
chain. She wants to improve working conditions for women in the company. Match
the features in her policy (1−10) with the descriptions (a−j).

1 Guarantee EQUAL PAY. …….h……………………………


2 Introduce FLEXITIME. ……………………………………
3 Improve MATERNITY LEAVE. ……………………………………
4 Encourage HOMEWORKING. ……………………………………
5 Allow more DAYS OFF. ……………………………………
6 Increase the number of RETURNERS. ……………………………………
7 Introduce JOB SHARING. ……………………………………
8 Provide CRECHE FACILITIES. ……………………………………

76
9 Provide EQUAL OPPORTUNITIES. ……………………………………
10 Break the GLASS CEILING. ……………………………………

a Give employees more chance to stay at home if their children are ill.
b Make it easier for women to move into senior management positions.
c Give women more time away from work when they have babies.
d Give employees computers with an internet connection so they can sometimes
work from home.
e Organize a facility where employees may leave their young children during the
working day.
f Give employees more freedom about the time of day when they start and stop
work.
g Encourage women who left the company to start families to come back to their old
jobs later on.
h Give women the same money as men for doing the same kind of work.
i Give women the same chance to get jobs as men.
j Allow partners or colleagues to share the same position.

7 Below are some key grounds on which bias in employment is specifically outlawed.
Link the ground with its description.

Grounds Description
1 race a Where the job applicant will give birth
in the near future.
2 sex b Where the candidate comes from a
country in the developing world.
3 religion c Where the person is over 40.
4 colour d Where the employee is homosexual.

77
5 national origin e Where the prospective employee is a
woman.
6 physical disability f Where the employee has a young family.
7 age g Where the employee belongs to a lesser
known sect.
8 pregnancy h Where the applicant is dark-skinned.
9 childbirth i Where the employee has been sick as a
result of pregnancy.
10 medical conditions related to j Where the applicant has a bodily
childbirth handicap, but will still be able to perform
the job.
11 sexual orientation k Where the candidate is non-European.

8 Read the article and decide if these sentences are true (T) or false (F):

1. The villagers don’t mind that the refugees are living nearby.
2. Little Hurling was the only place the refugees could do.

Asylum seekers
There was trouble yesterday in the village of Little Hurling in Kent as 150 Kosovar
refugees arrived to stay in the Hurling Business Centre just outside the village. Local
people, upset that no one had spoken to them before sending the refugees there, held a
protest meeting in the village hall.

“We are a tolerant group of people in Little Hurling,” said Major Ronald Smythe, who
has lived in the village for 25 years. “We are happy that the government has offered
assistance to these people and provided accommodation for them. But Little Hurling is
not the place they should be. It would be better if they were in a large town or city.”
Amanda Parker-White, leader of the village committee, said: “There is no entertainment

78
here, no cinema, no library, and only one small village shop. The point is: what are these
people going to do?”

Basil Lloga, a spokesman for the refugees, said: “I am sure the villagers are not
discriminating against these people. Most of them have come here as genuine asylum
seekers. They are afraid that if they return home, they will be killed or persecuted. After
the terrible time they have had in their own country, they need some peace and quiet to
help them recover.”

“Unfortunately, there was no time to talk to the villagers”, said Kim Thompson of the
government’s Refugee Action Group. “We only found out the refugees were arriving this
morning and there was nowhere else for them to go. We very much hope the villagers
will welcome them and accept them into the community.”

9 Read the article again and answer these questions.

1. Why do the villagers think Little Hurling is not a good place for refugees?
2. Why might it be a good place for refugees, according to Basil Lloga?
3. Why did nobody talk to the villagers first?

10 Match the words on the left with the words on the right.

1 asylum a migrants
2 border b immigrants
3 economic c controls
4 illegal d officials
5 immigration e seekers

11 Complete this text with expressions from the exercise above.

79
Following the discovery of fifty (1) …………… ………….. in the back of a lorry at
Calais yesterday, the government has ordered stricter security at (2) ………………
……………………. and has warned (3) …………… ………………. to be vigilant.
“We are very willing to help genuine (4) ………….. …………….., “ said a
government minister, “but these people are just (5) …………….. ……………… We
cannot allow just anyone into the country.”

   Talking points!

12 Work in pairs. To what extent do you agree or disagree with the points of view
below? The following expressions may be helpful.

Yes, I see your point ………


I take your point but ………
I agree up to a point ……..
That’s a good point.
No, you’re missing the point.
I can’t see your point at all.
That’s exactly the point.

1. I don’t see why my taxes 2. We should be proud that 3. I don’t mind the
should support people from so many people would like refugees. They really need
other countries. I’ll never to live in our country. help, but I don’t see why we
get anything from their should let anyone else into
country, will I? the country, though.
4. A lot of these refugees 5. Asylum seekers are 6. There aren’t enough jobs
are Muslims. Wouldn’t it asylum seekers. They are for local people as it is. We
be better if they went to a desperate women, men and can’t have people from
children. You never know –

80
Muslim country where they we could be in their other countries taking our
would feel more at home? situation one day. jobs.
7. We’re already doing 8. We have lots of menial
enough in this country. jobs that no one wants to
Why can’t other countries do. We need immigrants to
do more? come and do this work. Let
them come, I say.

81
UNIT 8
COMPETITION

1 Read the following text, translate and summarize it.

Brussels files suit over bilateral aviation deals


The European Commission is taking eight European countries to the European Court of
Justice over their bilateral aviation deals with the US. The EU’s executive said yesterday
that the deals distorted the EU air market to the detriment1 of European carriers.

Disclosure of the move coincided with confirmation by British Airways (BA) that it was
scaling back plans for a full alliance with American Airlines because of regulatory
difficulties. BA is also pressing the British government to reach an agreement with the
US for a gradual liberalization of the US air market. Talks between Brussels and
Washington on a full open skies policy broke down last month.

The European Commission’s decision to file suit against the UK, Austria, Belgium,
Denmark, Finland, Germany, Luxembourg and Sweden follows a long campaign to win
the approval of EU member states for seeking an EU-wide deal with the US. ‘There need
be no roll-back,’ the Commission said. ‘These individual agreements can be written into
a wider deal.’

The European Transport Commissioner said member states created serious competition
distortions by unilaterally granting US carriers rights while ensuring exclusivity for their
own carriers. EU rules were rendered ineffective2 by the deals, he said. The Commission
warned member states four years ago that bilateral deals with the US would be illegal and
would jeopardise3 the creation of an EU-wide deal with Washington.

82
Most of the bilateral agreements have been signed since then. However, the Commission
held off taking legal action after winning approval from member states for starting ‘open
sky’ talks. It re-activated legal proceedings after EU countries last spring rejected its
request for widening the scope of the talks to include market access and traffic rights −
the rights to fly to and inside another country’s territory − and will not negotiate a deal
unless the terms are widened.

In London, BA said it was still committed to getting a full deal with American Airlines
in the long run. ‘We want an alliance with American because the customer now thinks
and travels globally,’ it said. ‘But the terms put forward by the European Competition
Commissioner are not acceptable to us commercially.’

The Competition Commissioner has demanded that BA and American should give up 267
weekly slots free of charge at London’s Heathrow and Gatwick airports. In the transition
period towards full liberalisation, BA plans to conclude a code-sharing agreement with
American. This would allow them to sell seats on each other’s flights, but they would not
set fares jointly.
Financial Times

Notes:
1. disadvantage
2. made useless
3. put at risk

2 Answer these questions.

1. Which organization is taking eight European countries to court?


2. What aspect of the law has been broken?
3. What does BA hope to do with American Airlines?
4. What does the Competition Commissioner do in the European Commission?
5. When does BA intend to conclude a code-sharing deal with American Airlines?
83
3 Mark these statements T (true) or F (false) according to the information in the text
“Brussels files suit over bilateral aviation deals”. Find the part of the text that
gives the correct information.

1. The European Commission is in Brussels.


2. An alliance is the same as a merger.
3. Washington and Brussels are holding discussions at the moment on an open skies
policy.
4. ‘Open skies policy’ means any airline can fly anywhere.
5. BA and American Airlines agree how much the fares should be on each other’s
flights.

4 Match the following terms with their definitions.

1 bilateral a go to court
2 distort b two sides
3 detriment c extend the limits
4 file suit d negative effect
5 unilateral e made useless
6 rendered ineffective f changed, in a bad way
7 held off g waited to act
8 widen the scope h done by one person or company

5 Choose the best explanation for each of these words and phrases from the text.

1. disclosure
a) keeping a secret
b) telling the public
c) ending a meeting

84
2. roll-back
a) going back on present deals
b) delay
c) limiting the agreements
3. transition period
a) time of no change
b) after change has finished
c) in the middle of change
4. regulatory difficulties
a) problems with the authorities
b) financial disputes
c) rivalry between competitors
5. ensuring exclusivity
a) guaranteeing a deal with only one partner
b) offering deals to several parties
c) paying insurance
6. gradual liberalization
a) rapid change of policy
b) slow relaxation of policy
c) refusal to change policy

6 Use an appropriate word or phrase from the box to complete each sentence.

monopoly, competition, regulation, regulated, deregulated,


free trade, unfair competition, protectionism

1. Tobacco can only be sold at state shops in Spain: it is a …………………………


2. The concept of …………………….. is that of ordering and controlling how
business is conducted.

85
3. When the European Commission issues rules about how firms do business, the
market is said to be ………………………. .
4. When those rules are removed and the market is free, the market is said to be
………………………… .
5. …………………….. is the concept of doing international business with no
barriers or restrictions.
6. When two or more companies want to sell their goods to the same customers, they
are in ………………………. with each other.
7. It is ………………………… when the rules of business do not apply equally to
all participants.
8. If one country tries to keep out foreign competitors so that national industries will
be safe, it is called …………………………. .

7 Read the magazine article about competition between Pepsi and Coca-Cola for
new markets and discuss the following:

1. When do you think the article was written? Why? Do you think there have been
any changes since the article was written?
2. Do you think the market for Coca-Cola and Pepsi’s products has expanded?
3. Do you think that sales of Pepsi have overtaken sales of Coca-Cola?

Afizz with competition


Coca-Cola and Pepsi are fighting around the world to gain supremacy in newly open territory.

COCA-COLA has operated outside the U.S. since 1897, at first with only marginal
competition from Pepsi, and in the process it has become the world’s best-known
trademark. More than any other product – even Levi’s or McDonald’s Big Mac – it is an
American emblem1. It is also, a Harvard Business School study has found, the second
best-known word in the world – after OK.

86
Today Coke outsells Pepsi around 3 to 1 outside the U.S. The domestic race is closer,
with a 41% − 32% ratio in Coca-Cola’s favor. While Pepsi’s parent company makes most
of its profit from its snack-food and restaurant operations, Coca-Cola gains 80% of its
operating profit from its overseas beverage business. Last year’s take in the international
soft-drinks race was $2.5 billion for Coke, vs. $112 million for Pepsi.

In part, Coca-Cola can thank the U.S. government for its success abroad. During World
War II, the U.S. military built more than 60 Coke bottling plants outside the U.S. to supply
American troops. This gave the company a leg up2 in Europe and Asia once the conflict
was over. (In the 1943 North Africa campaign, General Dwight D. Eisenhower
communicated in a military cable3 with Washington: ON EARLY CONVOY REQUEST
SHIPMENT THREE MILLION BOTTLED COCA-COLA, (FILLED) … SHIP
WITHOUT DISPLACING OTHER MILITARY CARGO.

Pepsi got its international marketing break in 1959 when then chairman Donald Kendall
handed Soviet President Nikita Krushchev a bottle as cameras clicked: that gave the
company an entree into Eastern Europe. In 1972 Leonid Brezhnev gave Pepsi exclusive
franchise in the Soviet Union.

Since the collapse of the Berlin Wall in 1989, Coca-Cola has moved swiftly to overcome
Pepsi’s edge in Eastern Europe. Coke claims the lead in Hungary, Poland, the Czech
Republic, Slovakia, Romania, Bulgaria and the former Yugoslavia. Pepsi is fighting
especially hard in the former Soviet Union where it claims to retain the lead. Coke,
however, now outsells Pepsi by more than 13 to 1 in eastern Germany.

Pepsi’s strongest recent showing has been in Mexico where the company reports its
market share has jumped from 28% to 33% during the past two years. “They’re fighting
over every extra case4,” says consultant Daniel Caraco of Arthur D. Little Mexicana. With
its $750 million investment Pepsi intends to double plant5 capacity by 1998.
87
However the Coke-Pepsi battle turns out, people the world over will probably drink more
of the beverages. “Both companies are going to make their products more available.
They’re also going to lower prices. That means more consumers buying more soft drinks,”
says Joseph Doyle, who follows the industry for Smith Barney in New York City. The
average American consumes 720L of soft drinks a year – more soft drinks in fact than
water. Non-Americans have a long way to go before they reach that level – and that would
translate into booming business for the two giants.
Time magazine

Notes:
1. symbol
2. some extra help
3. cables were used to communicate before telex or fax
4. container
5. factory

8 The text contains a lot of dates and figures. What do these dates refer to?
a. 1897 b. 1943 c. 1959 d. 1972 e. 1989
What do these figures refer to?
a. 3:1 b. 41% - 32% ratio c. 80% d. $2.5 billion e. $112 million
f. 60 g. 28% - 33% h. $750 million i. 720

9 Choose the best word to fill in each gap.

1. We are well known in America, but now we want to ………………………… the


European market.
A. compete B. entrance C. penetrate
2. The world’s soft drinks market is ……………………. by Pepsi and Coca-Cola.
A. dominated B. segmented C. shared
3. We were ……………………… out of business by the large supermarket chains.
A. left B. driven C. abandoned

88
4. We bought out our only competitor so we could ………………………. the market
in coffee.
A. corner B. front C. edge
5. Our most important market …………………….. is men aged from 18 to 30.
A. place B. share C. segment
6. Competition is ………………………… in the fast food business.
A. efficient B. intense C. successful

10 In each numbered line, there is one word which is wrong. Find the mistake and
write the correct word at the end of the line. The first one is an example.

0. Our branding name is recognized throughout ...................brand...........


Europe.
1. We make men’s clothes and our product mixture
includes shirts, trousers …………………………..
2. and jackets. Next year’s product ranger will also
include hats and shoes, …………………………..
3. we have a clear brand identify. Our customers see
our clothes as modern, …………………………..
4. but also well made. Our product depositing is
between the famous fashion …………………………..
5. labels of Italy and the owner-brand products of UK
high street shops, …………………………..
6. to maintain brand aware, we advertise in men’s
lifestyle magazines. …………………………..

89
UNIT 9
BRAND NAMES

1 Read the text about a dispute between two international companies with very
similar brand names.

Can ‘Cannon’ be confused with ‘Canon’?


Canon Kabushiki Kaisha vs Metro-Goldwyn-Meyer Inc.
Case C-39/97
Before the Court of Justice of the European Communities in Luxembourg [Judgment
29 September 1998]

The distinctive character of a trademark, in particular its reputation, had to be taken into
account in determining whether there was sufficient similarity between the goods and
services covered by that and another proposed mark to give rise to the likelihood of
confusion.

The Court of Justice of the European Communities so held, inter alia1, on a reference by
the German Federal Court of Justice for a preliminary ruling under Article 177 of the EC
Treaty re: Article 4(l)b of the Directive of 21 December 1988 relating to trademarks.

MGM applied in Germany for registration of the word trademark ‘Cannon’ to be used for
video film cassettes and film production distribution and projection for cinemas and
television.

Canon Kabushiki Kaisha opposed the application on the ground that it infringed its earlier
world trademark ‘Canon’ registered in Germany in respect of, inter alia, still and motion

90
picture cameras, and projectors, and television filming, recording, transmission, receiving
and reproduction devices, including tape and disc devices.

In the course of the proceedings, it was held, inter alia, that the mark ‘Canon’ had a
reputation, but no importance was to be attached to that fact in deciding whether the marks
were relevantly similar.

Article 4(1) of Directive 89/104 provides: ‘A trademark shall not be registered or, if
registered, shall be liable to be declared invalid, if because of its identity with or similarity
to, the earlier trademark and the identity or similarity of the goods or services covered by
the trademarks, there exists a likelihood of confusion on the part of the public, which
includes the likelihood of association with the earlier trademark.’

In its judgment the Court of Justice held:


The first question was whether the distinctive character of the earlier mark, and in
particular its reputation, were to be taken into account in determining the issue of
similarity.

Furthermore, according to the case law of the Court, the more distinctive the earlier mark,
the greater the risk of confusion: since protection of a trademark depended, in accordance
with Article 4(l) b of the Directive, on there being a likelihood of confusion; marks with
a highly distinctive character, either per se2 or because of the reputation they possessed
on the market, enjoyed broader protection than marks with a less distinctive character.

It followed that, for the purposes of Article 4(l)b, registration of a trademark might have
to be refused, despite a lesser degree of similarity between the goods and services
covered, where the marks were very similar and the earlier mark, in particular its
reputation, was highly distinctive.

91
The second question was whether there could be a likelihood of confusion within the
meaning of Article 4(l)b where the public perception was that the goods or services had
different places of origin. There was such likelihood of confusion where the public could
be mistaken as to the origin of the goods or services. The essential function of the
trademark was to guarantee the identity of the origin of the marked product to the
consumer or end user by enabling him, without any possibility of confusion, to distinguish
the product or service from others which had another origin.

For the trademark to be able to fulfill its essential role in the system of undistorted
competition which the Treaty sought to establish, it had to offer a guarantee that all the
goods or services bearing it had originated under the control of a single undertaking which
was responsible for their quality. Accordingly, the risk that the public might believe that
the goods or services in question came from the same undertaking or economically linked
undertakings constituted a likelihood of confusion within the meaning of Article 4(l)b.

Consequently, in order to demonstrate that there was no likelihood of confusion, it was


not sufficient to show simply that there was no likelihood of the public being confused as
to the place of production of the goods or services.

On those grounds the Court of Justice ruled:


There could be likelihood of confusion within the meaning of Article 4(l)b even where
the public perception was that the goods or services had different places of production.
By contrast, there could be no such likelihood where it did not appear that the public
could believe that goods or services came from the same undertaking or from
economically linked undertakings.
The Times: Law Report

Notes:
1. among other things (Latin)
2. in itself (Latin)

92
2 Read the following questions and choose the best alternative to answer them.

1. What characteristics of a trademark must be taken into account in this dispute?


a) distinctive character and reputation
b) famous trademark
2. What products are made by the two companies in the text?
a) clothes
b) video film cassettes and film distribution, filming, recording, receiving and
reproduction devices
3. Why did Canon oppose the German registration of Cannon?
a) they believed it infringed their world trademark
b) they were afraid that the public may be confused
4. Which company used the trademark first − the Japanese company (Canon) or the
US one (MGM)?
a) the Japanese company
b) the US company
5. What is the essential function of a trademark?
a) it guarantees the identity of the origin of the product
b) it gives the rise to the likelihood of confusion
6. What confusion must the public be protected against?
a) mistaking one brand for another
b) mistaking companies
7. What kind of competition does the Treaty aim to establish?
a) unfair competition
b) fair competition

3 Match these words as they occur in the text “Can ‘Cannon’ be confused with
‘Canon’?”. Then use an appropriate phrase to complete the sentences below.

93
1 public a of confusion
2 goods b perception
3 world c competition
4 course d trademark
5 take e or services
6 likelihood f into account
7 undistorted g of proceedings

1. The court has to …………………….. the reputation of the trademark.


2. What businesses do is to provide ……………………….. for consumers and
customers.
3. The judge held, during the ………………………….., that the company was a
monopoly.
4. ………………………………. is what the court thinks people generally think.
5. In the case of similar trademarks, there is a strong ………………………….. .

4 Complete these sentences with an appropriate preposition.

1. A similar trademark could give rise …to… the likelihood …of… confusion.
2. The name was registered …….. respect ………, cameras and films.
3. The law depends ……… the interpretation …….. certain Articles.
4. Canon was originally registered ……. Germany …….. a Japanese company.
5. A trademark may be invalid because of its identification ……… or similarity …….
an earlier trademark.
6. The Federal Court ……. Justice …….. Germany asked ……….. a preliminary
ruling ……….. Article 177 of the EC Treaty.
7. …………. the meaning of the same Article, there was the second question relating
……….. the place ……… origin.

94
8. The trademark should clearly guarantee that goods bearing it had originated ……..
the control ……… a single company.

5 Read the text about intellectual property and then answer the questions.

Trademark
According to the United Kingdom government, the first trademark legislation was
enacted in the late 19th century. In the United States, the first federal trademark legislation
was enacted in 1870. A trademark is a word, phrase, symbol, design or combination of
words, phrases, symbols. A trademark identifies the source of service rather than a
product. A trademark appears on the product or on its packaging, while a service mark
appears on advertising for the services. Marks can be divided into several categories:
arbitrary or whimsical, suggestive, descriptive. Arbitrary and whimsical marks have no
obvious association with particular goods or services. Suggestive marks require the
consumer to think over to understand the association between the mark and the product.
Descriptive marks describe a product or service through use of a surname or a
geographical word. It may be difficult to register. Trademarks may be granted in titles
that identify books or movies. Trademarks are not granted in generic words, phrases,
symbols or designs, amoral or scandalous words, phrases, symbols or designs; false,
misleading or misdescriptive words, phrases, symbols, designs. Trademarks are not
granted in a domain name. The domain name is considered only an address. The use of
domain names including trade or service marks is trademark infringement, just like the
use of trademark without a license. You may apply for registration of a trade or service
mark after you use a mark. You may register your company’s intention to use a mark
prior to its use and the complete application with a sample of its use in commerce.
National registration protects your trademark rights, giving your company a legal
presumption of first use of the mark in association with particular goods or services. When
you apply for registration of a mark, you must submit an application form, drawing of the

95
mark and sample of the mark as you have used it to identify your company’s product or
service. Receiving full registration of a mark usually takes several years.

1 What is a trademark?
2. When can you get a trademark?
3. What is necessary to get a trademark?
4. Which marks are easily registered?
5. What must you do when you apply for registration of a mark?
6. What do descriptive marks mean?
7. What categories do the following trademarks fall under:
a. Yahoo!
b. Creyhound Buses
c. Smith’s plumbing
d. Napa Vally Chardonnay

6 Find the English equivalents for the following words and phrases.

слово − символ −
фраза − дизайн −
знак обслуживания − несколько категорий −
трудно зарегистрировать − название −
торговля − защищать −
образец произвольный −
представить на рассмотрение − законное предположение −
ассоциация − дарить −
источник − скандальный −

7 Match the words from the left column with their definitions from the
right column.

96
1 trademark a without moral standards or principles

2 whimsical b a legal document giving official permission


to do something

3 amoral c words, names, symbols or devices, or any


combination of these, used to identify the
goods of a business and to distinguish these
goods from the goods of others

4 domain name d something useful that is made in a factory,


grown, or taken from nature

5 product e the act of enrolling

6 license f a set of letters and numbers that are used to


name organizations and computers and
addresses on the Internet

7 registration g full of, or characterized by, whims; actuated


by a whim; having peculiar notions; strange;
freakish

8 Read the text again to fill in the gaps.

1. In the United States, the first federal trademark legislation was enacted in ………...
2. A trademark appears on the product or on its …………. , while a service mark
appears on advertising for the services.
3. ……………………. marks describe a product or service.

97
4. Trademarks may be granted in titles that identify books or ………………………
5. When you apply for registration of a mark, you must submit an ………………. ,
drawing of the mark and sample of the mark as you have used it to identify your
company’s product or service.

   Talking points!

9 Imagine that you are the owner of the company. What name of the company would
you like to choose and why? Use the following clichés:

Actually…
As a matter of fact…
As regards….
Speaking of…
The point is…
Moreover…
In addition…

98
UNIT 10
PATENTS AND INTELLECTUAL PROPERTY

1 Read the following text.

Our bodies patently lack protection


The marriage of intellectual property (IP) and life sciences creates one of those niche
practices of law that most solicitors like to avoid. But two events recently brought home
the importance of this area of law.

First, the recommendation by the UK Human Fertilization and Embryology Authority to


permit human cloning for ‘spare parts’ is likely to create a huge wave of research leading
to a flood of patent registrations and subsequent litigation. Penny Gilbert, of the IP firm
Bristows, says that though the European Commission Biotechnology Directive specifical-
ly excludes human cloning processes from patentability, it does not apply to such parts of
the human body as tissue. ‘There are’, she says, ‘potentially valuable patents in this field
and litigation between rival researchers is almost inevitable.’

Elsewhere in the market, the pharmaceutical companies Zeneca and Astra were deep in
talks about a merger. Both face the imminent end of the patent on several drugs, and need
more resources to plug the gaps. Patents are probably these companies’ most important
single resource and the big pharmaceutical companies and life sciences firms jealously
guard them. Larger law firms such as Cameron McKenna and Herbert Smith are often
engaged in litigation to protect rights that may have been infringed.

Smaller research-based companies are not always so alert to the dangers and opportunities
of patent law. A recent report, commissioned by Taylor Joynsen Garrett from the London
Business School, says: ‘There is evidence of a surprising lack of recognition of the

99
importance of IP protection.’ Almost a third of companies think their investors
‘understand little’ or ‘not at all’ the nature of their IP rights. Only two-thirds of companies
said that when it came to IP, due diligence1 had been undertaken by their investors where
it was relevant before financing their most recent investment.

Just over half the smaller companies have a programme in place to ensure that all IP rights
produced by their research development are adequately protected. And many that have an
IP protection programme do not produce a complete set of contractual documentation to
cover dealings in IP rights, even though this is potentially the most critical component of
all.

The report is a wake-up call to smaller research-based companies to take the legal
implications of their work seriously. While there are bound to be ethical debates about
the right to make money out of this kind of activity, there is no question that larger
companies will have little hesitation in capitalizing on discoveries not properly protected.
Ms Gilbert believes that we are only starting to scratch the surface of developments in
this field. How it turns out will be shaped as much by the application of the law as by the
inventiveness of scientists. And though the Biotechnology Directive excludes human
cloning processes from patentability, commercial companies will not stop doing the work,
nor stop generating complex and puzzling legal issues.
The Times

Notes:
1. the opposite of negligence; used by auditors and lawyers to show they have checked very carefully all the
available documents in order to determine if a fact or figure is correct, or who is the current and legal
owner of land, property or ideas

2 Answer these questions.

100
1. How many official bodies are named that deal with cloning and genetics? What
are they?
2. What do the firms need to produce if they want complete IP protection?
3. What kind of effect should this report have on the small research-based
companies?
4. What kind of discussions are there likely to be about making money out of
scientific research?
5. Which phrase in the last paragraph means the same as ‘see only the tip of the
iceberg’?
6. What kind of legal issues does the cloning debate cause?

3 Mark these statements Т (true) or F (false) according to the information in the text.
Find the part of the text that gives the correct information.

1. Solicitors like very technical and specialised areas of law.


2. Patent law is well understood by most small research companies in the UK.
3. It is legal to clone humans for spare parts at present in the UK.
4. The most critical part of an Intellectual Property protection programme is a
complete set of contractual documentation.
5. Patents protect the formulae of drugs for ever.
6. The inventiveness of scientists will have to be matched by the changes in the law.

4 Match the following terms with their definitions.

1 permit a competing
2 exclude b creativity
3 tissue c allow
4 rival d safeguard
5 protect e aware

101
6 alert f skin and flesh
7 investors g leave out
8 inventiveness h people risking money

5 Match the following words and expressions with their definitions.

1 patentability a thorough investigation


2 infringe b taking advantage of a commercial opportunity
3 litigation c allowing an invention to be registered
4 proper safeguarding d complete set of details about IP rights dealings
5 scratch the surface e bringing a lawsuit against someone
6 capitalizing f specialized areas of expertise
7 due diligence g break a law or regulation
8 niche practices h application for the sole rights of ownership
9 contractual documentation i adequate protection

10 patent registration j begin to understand something

6 Use an appropriate metaphor from the box to complete each sentence.

wave of research, flood of patent registrations, stop the leak, plug the gap,
scratch the surface, gone up in smoke, avalanche of complaints, landmark case,
cast a shadow over, dawned on

1. The law about intellectual property is very complex but essential to the success of
the company. It finally ……………………………… the Managing Director that
he should consult a legal expert.
2. The tragic accident …………………………….. an otherwise happy event.
3. Information about the new drug was given to the press by a laboratory technician.
The manager decided to sack him in order to …………………………………… .

102
4. The judges’ decision was so important that it changed the way the law was to be
interpreted. It was a …………………………………………… .
5. The major drugs companies need a way to replace the money they earn from
patents that are expiring. They need new patents to …………………………… .
6. Our rivals have copied our work. All our hopes have ………………………… .
7. This problem is bigger than you think. We have only just begun to
…………………………… .
8. Permission from the European Courts to allow cloning will bring a
………………………………. which will lead to a …………………………….. .
9. The drug caused severe headaches and vomiting. There was an
………………………… from doctors and patients.

7 Choose the correct alternative to complete the sentences. The first has been done
for you.

1. The protection of something so that it can be made or sold by one person only is
by means of a …patent…… .
A. patent B. right C. rule
2. The protection of books, plays, films, records etc is by means of a ………………...
A. patent B. microfiche C. copyright
3. Most countries have laws to prevent the breaking of patent protection. Breaking
these laws is …………………………. .
A. piracy B. burglary C. felony
4. This protection, by patent or copyright, is the protection of the rights of
…………………….. .
A. property B. ownership C. justice
5. If employees discover or create something in the course of their work, the patent
or copyright belongs to the ………………….. .
A. employees B. State C. company

103
6. The right to manufacture copies of a protected work is given by a ………………..
A. grant B. licence C. permit
7. Under some conditions, the protection in work can be ………………………….. .
A. waived B. withdrawn C. conceded
8. The period for which protection exists is the …………………….. of the copyright
or patent.
A. term B. length C. date
9. The laws which prevent copyright of protected material are the
……………………. laws.
A. licensing B. conspiracy C. antipiracy
10. Photocopying is a ………………………. of copyright or patent protection.
A. breach B. contradiction C. fraud

8 In each numbered line, there is one word which is wrong. Find the mistake and
write the correct word at the end of the line. The first one is an example.

0. Our branding name is recognized throughout ...................brand...........


Europe.
1. We make men’s clothes and our product mixture
includes shirts, trousers …………………………..
2. and jackets. Next year’s product ranger will also
include hats and shoes, …………………………..
3. we have a clear brand identify. Our customers see
our clothes as modern, …………………………..
4. but also well made. Our product depositing is
between the famous fashion …………………………..
5. labels of Italy and the owner-brand products of UK
high street shops, …………………………..

104
6. to maintain brand aware, we advertise in men’s
lifestyle magazines. …………………………..

9 Read the text about intellectual property and then answer the questions.

Intellectual Property
Intellectual property (IP) is the information and original expressions of creative individual
inventions, literary and artistic works, symbols, images, names and designs used in
commerce. Intellectual property is an asset that can be bought, sold, licensed, or given
away at no cost. Intellectual property is the group of legal right things that people create
or invent. Countries have laws to protect intellectual property for two reasons. One is to
give statutory expression to the moral and economic rights of the public in access to those
creations. The second is to promote creativity, dissemination and application of its results
and to encourage fair trading which would contribute to economic and social
development.

Intellectual property law aims at safeguarding creators and producers of intellectual goods
and services by granting them certain time-limited rights to control the use made of those
productions. Those rights do not apply to the physical object in which the creation may
be embodied but instead to the intellectual creation. The basic forms of intellectual
property are copyrights, patents, trademarks, and trade secrets. The copyright exists to
protect original works of authorship, such as books, movies, sound recordings and
computer programs.

Copyright
Copyright is a legal term of the economic rights given to creators of literary and artistic
works, including the right to reproduce the work, to make copies, and to perform or
display the work publicly. Copyrights offer the protection for music, films, novels,
poems, architecture, and other works of cultural value.

105
Patent
A patent gives an inventor the exclusive right to prevent others from making, using, and
selling a patented invention for a fixed period of time. A patent protects the development
and distribution of new technologies.

Trade secrets
A trade secret is any information used in the operation of business that is valuable to
afford an actual or potential economic advantage such as a database of customers,
advertising strategies, distribution processes.

Trademarks
A trademark is a word, phrase, symbol or design; or combination of words, phrases,
symbols or designs; that identifies and distinguishes the source of goods or services. A
service mark is the same as a trademark except that it identifies and distinguishes the
source of a service rather than a product. Normally, a trademark appears on the product
or on its packaging, while a service mark appears on advertising for the services.

Other forms of intellectual property


Some countries protect geographical indications for goods (French cognac, Scotch
whiskey). Geographical indications identify geographical origin of goods, where a given
quality, reputation is essential attribute to geographic origin. The new forms of
intellectual property sometimes arise. Multimedia productions come within the notion of
creations in the literary, scientific and artistic domain. Internet addresses, domain names
indicate unique locations in “cyberspace”. The combination of sound, text and images in
a digital format which is made by a computer program.

1. What does the intellectual property mean?


2. Which reasons for protecting intellectual property do different countries have?
3. What does intellectual property law protect?

106
4. What is a copyright?
5. What right does the patent give to an inventor?
6. What are other forms of intellectual property?
7. What is a trademark?
8. What is a trade secret?

10 Translate the following words and word combinations from English into Russian.

Patent, original expression, creative individual, trademark, intellectual property, asset,


legal rights, statutory expression, dissemination, application, physical object, legal term,
to reproduce, protection, inventor, exclusive right, to prevent, patented invention,
distribution, trade secret, geographical indications, to identify, essential attribute,
multimedia productions, scientific.

11 Find the English equivalents for the following words and phrases.

Имущество, интеллектуальная собственность, изобретение, пространство


Интернета, распространение, собственность, представлять, использование,
заключать в себе, цифровой, рекламная деятельность, символ, изобретать,
культурная ценность, защищать, развитие, торговый знак, за исключением,
научный.

12 Match the words from the left column with their definitions from the right column.

1 access a something produced; product

2 production b have real being whether material or spiritual

107
3 exclusive c a device, contrivance, or process originated
after study and experiment

4 patent d a device pointing distinctly to the origin or


ownership of merchandise to which it is
applied and legally reserved to the exclusive
use of the owner as maker or seller

5 invention e protected by a trademark or a brand name so


as to establish proprietary rights analogous to
those conveyed by letters patent or a patent

6 copyright f − excluding or having power to exclude;


− limiting or limited to possession, control,
or use by a single individual or group

7 trademark g the exclusive legal right to reproduce,


publish, sell, or distribute the matter and
form of something (as a literary, musical, or
artistic work)

8 to exist h permission, liberty, or ability to enter,


approach, or pass to and from a place or to
approach or communicate with a person or
thing

13 Fill in the gaps using the necessary words from the previous exercise.

1. They were sued for …………………………….. infringement.

108
2. “Procter and Gamble” is a registered …………………………. .
3. He took part in the …………………………….. of a new product.
4. He belongs to an …………………………… club.
5. His family still holds the …………………………… to his songs.
6. They have Internet ………………………….. at the library.
7. He mentioned the rise in oil ……………………………. during the meeting.
8. He believes that ghosts really …………………………………………… .

14 Decide which sentences are true (T) and which are false (F). Make the false
sentences true.

1. Intellectual property refers to creations of mind.


2. The key forms of intellectual property are copyright, patent, trademarks,
geographical indications.
3. A trade secret is any information used in the operation of business that is valuable
to afford an actual or potential economic advantage such as a database of
customers, advertising strategies, distribution processes.
4. The terms “trademark” and “mark” are commonly used to refer to both trademarks
and service marks.
5. Intellectual property cannot be bought, sold or given away to another people.
6. The new forms of intellectual property hardly ever arise.
7. Copyright is a legal term of the economic rights given to creators of literary and
some other types of works.
8. A trademark rarely appears on the product or on its packaging.
9. A service mark is the same as a trademark except that it identifies and distinguishes
the source of a service rather than a product.

15 Read the text “Intellectual property” again to fill in the gaps.

109
1. …………………… is an asset that can be bought, sold, licensed, or given away
at no cost.
2. Intellectual property law aims at ……………………. and producers of intellectual
goods and services by granting them certain time-limited rights to control the use
made ……………………….. .
3. The basic forms of intellectual property are …………………………. .
4. ………………………….. the economic rights given to creators of literary and
artistic works, including the right to reproduce the work, to make copies, and to
perform or display the work publicly.
5. A trade secret is ……………………….. that is valuable to afford an actual or
potential economic advantage such as a database ................................ , distribution
processes.
6. ………………………….. symbol or design; or combination of words, phrases,
symbols or designs; that identifies and distinguishes the source of goods or
services.
7. ………………………….. is the same as a trademark except that it identifies and
…………………………… a service rather than product.
8. Geographical indications identify ……………….., where a given quality,
………………………. attribute to geographic origin.

16 The crossword on the following page contains the key words from the Intellectual
Property Law.

110
Across:
1. New.
3. Wrongful.
7. For a _______________ period of time, i.e. fixed.

111
10. Person who creates something new.
12. Permitted only to authorized people.
15. Writer.
16. The protection granted to authors.
17. Permitted.

Down:
2. Not existing before.
4. What the person wishing to protect their interest applies for.
5. A breach of copyright, etc.
6. To find out something new.
8. What you must do if you want your intellectual property to be protected.
9. Distinctive symbol, picture or word.
11. What an author produces.
13. The right given to an inventor.
14. The law aims to _______________ authors, patent holders, etc.

112
CHECK TEST 1

A Choose the best answer: a, b, c or d.

1. When you legally responsible for something, you are said to be …………… .
a) lawful b) legal c) leasehold d) liable
2. The robber tried to terrify the shopkeeper by threatening him with a ………… gun.
a) false b) forged c) fraud d) fake
3. It looked like my signature on the cheque but it was not – someone had
…………… it.
a) forged b) cheated c) framed d) reproduced
4. The authorities found that she had given them a ……………. name and address.
a) forged b) false c) infamous d) fraud
5. Working in the accounts department gave her a wonderful opportunity to
…………….. the company of thousands of pounds.
a) defraud b) embarrass c) embrace d) embroil
6. Did you say he could borrow the car? Or did he just take it without your
……………. .
a) consort b) consent c) know-how d) service
7. In Great Britain, you are assumed to be innocent until shown by a court otherwise
– the prosecution has to prove your …………….. .
a) charge b) accusation c) guile d) guilt
8. When she lost her credit card, the first thing she did was to call the bank and
……………… it.
a) confess b) condemn c) cancel d) conceal
9. The penalties for causing environmental …………… are considered to be too
lenient.
a) breakdown b) spoilage c) depravity d) pollution
10. Wrongs done against people or property in civil law are called ………………. .

113
a) torture b) torts c) litigants d) plaints
11. A QC is a lawyer in the UK who may speak in the High Court. QC stands for
……….…. .
a) Queen’s b) Queen’s c) Queen’s d) Queen’s
Courtier Consort Counsellor Council
12. The Lord Chancellor is responsible for the appointment of ………… in the UK.
a) justice b) juries c) wigs d) judges
13. She was the main ……………. of the rich man’s will and received most of the
estate.
a) beneficiary b) benefited c) testament d) benefactor
14. The scientist was able to betray secrets to another country and so committed
………………. .
a) treason b) trickery c) perjury d) forgery
15. The drug dealers ………………. their money from one bank account to another
in an attempt to conceal where it had come from.
a) took b) transferred c) withdrew d) deposited
16. …………….. is the part of the legal profession having the right of audience in
court.
a) Arbitration b) Accounting c) Advocacy d) Assessing
17. The most powerful criminals are sometimes known as the …………….. of
organized crime.
a) baronets b) warlords c) barons d) gangs
18. Signing someone else’s name is a ……………… act.
a) fraudulent b) fraud c) defrauded d) forgery
19. Criminals, gangsters and mobsters are all ………………. .
a) villains b) villagers c) vassals d) victims
20. Being famous for something bad is being ………………. .
a) known b) unknown c) noted d) notorious
21. After being convicted of a serious crime, a criminal is ………………. .

114
a) prosecuted b) imposed c) imprisoned d) confiscated
22. Samples of blood, items of clothing and written documents are all forms of
……………. .
a) examples b) deposition c) case d) evidence
23. Like clothing, money that needs to be ‘cleaned up’ is subject to ……………… .
a) soaking b) laundering c) pressing d) rinsing
24. The detectives operated secretly as gang members – they worked …………….. .
a) underground b) underage c) undercover d) underpaid
25. The police issued …………….. for their arrest.
a) warrants b) guarantees c) warnings d) instructions

B Complete the sentence with the correct word. The first letter of the word is given.

1. Only with the c……………… of the bank employees could the criminal launder
his money.
2. They d……………… their appearance so that no one would recognize them.
3. Another word for illegal and wrong is i…………………. .
4. Selling and promoting goods over the phone is called t……………… .
5. Let me give you some practical advice and some helpful t…………. on how to
succeed.
6. The business was very successful – it was a f…………….. concern.
7. Fraudulent schemes are often called s…………………. .
8. Traditional, non-electronic payments are made o……………….. .
9. When you open a bank account, you may be asked to show your passport or birth
certificate as v………………….. that you are who you say you are.
10. The result was c……………. on the agreement and cooperation of the others.
11. The normal c……………. arrangements will apply: both parties must sign, with a
witness.
12. As a reward for your excellent trading results, you have been awarded a ………….

115
13. Very technical vocabulary used by experts is known as j…………….. .
14. All the a…………….. of the company must appear on the balance sheet.

116
CHECK TEST 2

A Choose the best answer: a, b, c or d.

1. Someone who assists others to reach an agreement after a dispute is an …………


a) aide b) accomplice c) arbitrator d) assistant
2. She was ………….. of stealing documents from the office.
a) discovered b) accused c) charged d) found
3. Both parties in the civil case agreed to …………….. out of court.
a) sue b) sign c) settle d) submit
4. People who sing a contract are known as ……………… to the agreement.
a) parties b) signers c) partials d) signatures
5. Name ……………… is important to establish a centre for arbitration.
a) recognition b) dropping c) changes d) awareness
6. A famous name may not be used by anyone else if it has been registered – a world
trader must not be ………………. .
a) hijacked b) appeared c) directed d) infringed
7. The technical name in English law for legal disputes that go to court is ………….
a) legal match b) court scene c) attack d) litigation
8. The factory near my house makes fashion clothing under …………………. .
a) licence b) invention c) claimant d) citation
9. A …………….. is the owner of a business such as a shop or restaurant.
a) private b) peer c) proprietor d) parson
10. The person who brings a complaint in a civil case is called the …………….. .
a) petitioner b) plaintiff c) complainer d) civilian
11. Someone who shows ……………… does not act fairly and treats one party
preferentially.
a) deception b) bias c) perjury d) treachery

117
12. ……………… damages are designed to deter others from committing the same
crime.
a) punishment b) compensation c) capital d) punitive
13. A jury will bring in ………………. of guilty when there is no reasonable doubt.
a) a verdict b) a decree c) a decision d) an edict
14. When someone goes to court in a civil matter, they file a …………………. .
a) suiting b) pursuance c) pursuit d) suit
15. The decision will have a serious ……………… effect for the whole industry.
a) side b) impact c) knock-on d) damage
16. When someone suffers …………….. they are treated unfairly due to gender or
colour.
a) assault b) ambush c) discrimination d) derogation
17. In US legal terms, showing disgraceful disrespect is called ……………….
behaviour.
a) contemptuous b) discourteous c) egregious d) discounted
18. A ………………… ruling is not the final decision of the court.
a) partial b) purposeful c) preliminary d) particular
19. The fear of going to prison ………………. potential criminals from committing
crimes.
a) deters b) defers c) incites d) distracts
20. The …………….. sentences the defendant after the jurors have brought in a guilty
verdict.
a) jurist b) jury c) foreman d) judge
21. The solicitor prepared a ………………….. for the barrister.
a) brief b) trap c) breeze d) briefcase
22. The legal processes of taking someone to court is called a ………………. .
a) lawyer b) lawsuit c) jurisdiction d) litigant
23. That is an exception – it is not the ……………….. .
a) normal b) normality c) norm d) nominal

118
24. When farmers get permission to use someone’s land, they are granted a ………….
a) letting b) lease c) licence d) landmark

B Complete the sentence with the correct word. The first letter of the word is given.

1. Something which is very important is c……………………… .


2. In law abiding countries, all citizens have r…………………. to justice.
3. Coffee, gold and precious metals are called c………………… .
4. The right place to discuss important issues is a f…………………… .
5. When two companies decide to join together, it is called a m………………. .
6. When you promise to keep something a secret you are promising to respect
c…………………… .
7. Good employers promise men and women e………………….. at work.
8. Another word for agreement is s…………………….. .
9. When two parties agree to do something, the agreement is b………………. .
10. Changing the intended meaning of a law slightly is to d………………… it.
11. If you buy shares in a company you are an i…………………. .
12. Companies can register t………………. which then only they may use.
13. A new discovery must be protected by a p………………….. .
14. Fashion-conscious people like to wear clothes that have famous b……………
n……………. .
15. Inaccurate and false information may be described as m………………….. .

119
APPENDIX 1
WORDS AND WORD COMBINATIONS TO KNOW

Unit 1. Land ownership

alteration (n) – перепланировка (здания, квартиры и т.п.)


ban (v, n) – запрещать; запрет
chartered surveyor – сертифицированный эксперт в области недвижимости
claim one’s rights – заявлять о своих правах
conveyancing (n) – передача права собственности на недвижимость; купля-
продажа
covenants – договорные обязательства
desolate (adj) – безлюдный; заброшенный; пустынный
disclose (v) – раскрывать; разоблачать
encumbrance (n) – залоговое обязательство
fixed-rate mortgage – ипотека с фиксированной процентной ставкой
foreclosure (n) – изъятие банком заложенного под ипотечный кредит имущества;
лишение права выкупа заложенного имущества
full bench – коллегиальное заседание суда
gazump (v) – требовать больше денег; вымогать дополнительную плату
grant a lease – предоставлять в аренду; передать в лизинг
joint tenancy – совместная собственность
land ownership – земельная собственность
Land Registry – земельный кадастр
legal challenge – иск; обжалование в суде; юридическая проблема
mining lease – аренда на разработку месторождения
outstanding balance – неоплаченная сумма; непогашенный остаток
overturn (v) – аннулировать; отменять

120
pipe dream – несбыточная мечта
planning permission – разрешение на строительство; задание на проектирование
preservation order – распоряжение об обеспечении сохранности объекта
pull out of – отказываться от; выйти из
rule (v) – выносить судебное решение; постановить
sit alongside – соседствовать
stamp duty – государственная пошлина; гербовый сбор
stand in the way of – препятствовать; встать на пути; мешать
stand-off (n) – тупик; безвыходное положение; бездействие
stay on track and on timetable – не выбиться из графика
step up (phr v) − усиливать
survey of property – экспертиза недвижимости
tenants-in-common – владелец на праве общей долевой собственности
title deed – документ, устанавливающий право собственности
under duress – под давлением
virtually (adv) – фактически; в действительности

121
Unit 2. Fraud

accountable (adj) – ответственный; отвечающий


aiders and abettors − пособники и подстрекатели
apparent (adj) – очевидный; явный
be entitled to – быть вправе; иметь право на
be held accountable − понести ответственность
blameworthy (adj) – заслуживающий порицания
bonds − облигации
brokerage firm − брокерская фирма
chilling (adj) − крайне негативный; внушающий беспокойство; пугающий
concealment (n) − сокрытие
confidentiality agreement − соглашение о неразглашении конфиденциальной
информации
damages − материальная компенсация; денежное возмещение
deep-pocketed (adj) − состоятельный; при деньгах; толстосум
defrauded (adj) − обманутый
deliberate (adj) – преднамеренный; умышленный
de-list shares − снимать акции с котировки (на бирже)
disposal (n) − продажа; реализация
disregard (n) – пренебрежение; игнорирование
due diligence − аудит (компании); комплексная финансово-юридическая
экспертиза
elaborate (adj) − сложный; усложненный
falsity (n) – ложность; недостоверность
fraud (n) − мошенничество; махинация
fraudulent (adj) – обманный; мошеннический
hoax (n) − обман; ложь; фальсификация; фейк

122
hold liable for − признавать ответственным; привлекать к ответственности (за
что-л.)
holdings − авуары (т.е. различные активы)
induce (v) – побуждать; склонять
innocently (adv) – невинно; невиновно; нечаянно
insider (n) − инсайдер; лицо, имеющее доступ к конфиденциальной информации
insolvent (adj) – неплатежеспособный; погрязший в долгах
launch a lawsuit − подать в суд исковое заявление
learn the truth – узнать правду
market abuse – рыночные махинации
market capitalization − инвестиционная привлекательность; рыночная
капитализация
material fact – существенный факт
mislead (v) – вводить в заблуждение; обманывать
misleading (adj) − недостоверный; обманчивый; заведомо ложный
misrepresentation (n) – искажение; неправильное представление
negligent (adj) − халатный; небрежный
perpetrate a scam − совершить аферу; пойти на мошенничество
personal opinion – личное мнение
pit against − противопоставлять; стравливать (кого-л. с кем-л.)
proclaiming (adj) – объявляющий; провозглашающий
prospect (n) – потенциальный клиент
provisions – положения, нормы (документа, закона и т.п.)
punitive damages – штрафные убытки; возмещение убытков в виде наказания
reckless (adj) – опрометчивый; неосмотрительный
repossess (v) – восстановить в правах; конфисковать за долги
securities − ценные бумаги
seek redress − требовать в суде возмещения
sentence to imprisonment – приговаривать к тюремному заключению

123
set a precedent − создавать прецедент
succeed (n) – добиться; удаваться; достигнуть цели
unmask (v) − выявлять; изобличать; разоблачать
wipe out (phr v) − разрушать; уничтожать

124
Unit 3. Telephone crime

abandon (v) – отказываться; отменять


abduction (n) – похищение человека (с целью выкупа)
abnormality (n) – нарушение; отклонение
arson (n) − поджог
assassination (n) − политическое убийство
assault (n) – нападение; словесное оскорбление
assert (v) – утверждать
battery (n) – избиение; нанесение побоев
bigamy (n) − двоебрачие; бигамия
big-time (adj) − пользующийся успехом; известный
blackmail (n) − шантаж; вымогательство
bribery (n) – взяточничество
call destination − адресат вызова
calling card − абонентская карточка
causation (n) – причинно-следственная связь
collect the evidence − собирать доказательства
condemn (v) – осуждать; порицать
conspiracy (n) − преступный сговор; заговор
contempt of court − преступное неуважение к суду
convicted (adj) − осужденный; признанный виновным
counterfeit (n) − подделка; контрафактная продукция
credible (adj) – достоверный; заслуживающий доверия
criminal fraternity − преступное сообщество
criminal proclivity – склонность/ предрасположенность к совершению
преступлений
deceit (n) − обман; надувательство; мошенничество
deception (n) – обман; жульничество

125
deliberately (adv) – преднамеренно, умышленно, сознательно
detain (v) − задерживать; арестовывать
detect (v) − обнаружить; раскрыть
disprove (v) – опровергать; доказывать ложность
divert (n) − перенаправлять (напр., денежные средства)
drunk in charge – вождение в нетрезвом состоянии; в состоянии опьянения при
исполнении служебных обязанностей
embezzlement (n) − хищение; присвоение чужого имущества
false imprisonment − незаконное лишение свободы
false name − подставное, вымышленное имя
forgery (n) – подделка; подлог
grievous bodily harm − тяжкое телесное повреждение
harsh punishment – суровое наказание
hereditary traits – наследственные черты
hostage (n) − заложник
incentives – материальная мотивация; средства поощрения
indecency (n) – непристойное поведение
infanticide (n) − детоубийство
innate (adj) − врожденный
instigation (n) – подстрекательство
kidnapping (n) – похищение человека с целью выкупа
law-abiding (adj) – законопослушный
lift the lid − выпустить джинна из бутылки
long-distance call − междугородный звонок
manslaughter (n) − непредумышленное убийство
misuse of drugs − злоупотребление наркотиками
money laundering − отмывание денег
mount an offensive − организовать наступление
object-orientated (adj) − объектно-ориентированный; целенаправленный

126
obscenity (n) − непристойная брань; непристойное поведение
open an account in a false name − открывать счет на подставное имя
overthrow (v) − свергать
pay in cash − платить наличными
pecuniary advantage – денежная прибыль
perjury (n) − лжесвидетельство
persist (v) – сохраняться
perverse (adj) – порочный; испорченный
prominent (adj) – выдающийся; известный
prone to – склонный к; предрасположенный к
put on trial − привлечь к суду; отдать под суд
rape (n) − изнасилование
restless (adj) – неспокойный; тревожный
rootedness (n) – укорененность
running dog − лакей
sedition (n) − мятеж; бунт; подстрекательство к мятежу
siphon off (phr v) − вывести (напр., денежные средства); прикарманить
smuggling (n) − контрабанда
sophisticated (adj) – сложный; усложненный; развитый
tailored (adj) − специализированный; сделанный на заказ
treason (n) − государственная измена; предательство
trespass (n) − нарушение границ; нарушение права владения
unlawful assembly − незаконное собрание
unsettled (adj) – нестабильный
various scientific theories – различные научные теории
villain (n) − злодей; преступник
widespread unemployment – массовая безработица
wounding (n) − нанесение ран; ранение

127
Unit 4. Money laundering

a good deal of – много; значительное количество


aggregate (adj) – суммарный; совокупный
alleged (adj) – предполагаемый
assets – активы компании
banking secrecy – тайна банковских операций
beneficiary (n) – бенефициар; получатель
bring to the attention of – доводить до сведения; обращать чье-л. внимание (на
что-л.)
bulk cash – наличные денежные средства (в большом объеме)
cashless transaction – безналичный расчет
claim (n) – требование; заявление; иск
claim to the money – право требования по денежным средствам
complicity (n) – причастность; соучастие
computerised clearing – компьютеризированная система межбанковских
расчетов
conman (n) – жулик, мошенник
conservative estimate – скромный подсчет; заниженная оценка
criminal activity – преступная деятельность
disguise (v) – скрывать
drug cartel – наркокартель; наркосиндикат
drug dealer – наркоторговец
due diligence investigation – экспертиза; анализ финансово-хозяйственной
деятельности
electronic banking – электронные банковские операции
gambling chip – игровая фишка (в казино)
gloomy (adj) – мрачный; угрюмый
good year – благоприятный год

128
ill-gotten (adj) – полученный преступным путем
illicit (adj) − незаконный
illicit income – незаконный доход
infiltration (n) − проникновение
lax financial regulation – слабое финансовое регулирование
legitimate reasons – достаточные основания
loan (n) – кредит; ссуда
lure to − заманивать
money launderer – преступник, занимающийся отмыванием денег
money laundering – отмывание денег
nefarious (adj) – гнусный; нечестный
offshore haven – офшорная зона
ostensibly (adv) – по видимости; якобы
paycheck (n) – чек на заработную плату
pin on – повесить на кого-то вину; «пришить» дело
pretend (v) – притворяться; разыгрывать из себя
real estate − недвижимость
seizure warrant – ордер на выемку (арест)
settlement (n) – расчет (по платежам)
shell company – фирма-однодневка; фиктивная компания
suppose (v) – предполагать; допускать; считать
tax evasion – уклонение от уплаты налогов; незаконное сокрытие доходов,
подлежащих налогообложению
taxman (n) − налоговый инспектор
tempt (v) − заманивать; уговаривать
undercover officer – агент под прикрытием
underlie (v) – лежать в основе; обусловливать
wagering (n) − заключение пари; пари
yield fruit – приносить плоды

129
Unit 5. Cyberspace fraud

a handful of – несколько; пара-тройка


abuse (n) – злоупотребление
abusive (adj) – злоупотребляющий в личных целях
advance fee – аванс; предоплата
advance loan – авансовая ссуда; предварительный заем
be exposed to – подвергаться воздействию
be in the wrong – поступить неправильно; быть виновным
break-in (n) – несанкционированный доступ
charge for – брать плату за
computer security – защита компьютера от взлома
contingent (on) – зависящий от
counterfeiting (n) – подделка; изготовление контрафактной продукции
credit repair – услуги по реструктуризации кредитов
credit report – кредитная история
culprit (n) – преступник; правонарушитель
cyberspace fraud – кибермошенничество; компьютерное преступление
deception (n) – обман; жульничество
disburse a loan – выдавать кредит
escrow (n) – условное депонирование (у третьего лица)
escrow fund – депо-фонд
falsely (adv) – ложно; фальшиво
flourishing (adj) – процветающий
franchise (n) – франчайзинг; право продажи продукции предприятия в
определенном районе на льготных условиях; специальная привилегия
fraudulent (adj) – мошеннический
general merchandise – товары широко потребления
infamous (adj) – пресловутый; небезызвестный

130
inflated (adj) – взвинченный (о ценах)
insure (v) – страховать
law enforcement – правоохранительные органы
misrepresent goods/ services – искажать факты относительно товаров/ услуг
money order – платежное поручение
mounting (adj) – усугубляющийся; нарастающий
on the books – существующий; зарегистрированный
piece work – сдельная работа
Ponzi scheme – пирамида Понци
pyramid scam – финансовая пирамида
reward (n) – вознаграждение; награда
scam (n) – афера, махинация
securities regulator – орган надзора рынка ценных бумаг
shady dealing – сомнительная сделка
shill (n) – подставное лицо, делающее первую покупку или ставку (для
привлечения публики)
stock manipulations – биржевые спекуляции
swindle (v) – обманывать
take for a ride – обманывать; надувать; обвести вокруг пальца
to the hilt – в полную меру; максимально
unwary (adj) – неосмотрительный; излишне доверчивый
up-front fee – разовый комиссионный сбор (за открытие кредитной линии);
предоплата
verification (n) – подтверждение

131
Unit 6. Arbitration

adjudication (n) − судебное или арбитражное решение; вынесение судебного или


арбитражного решения
adjudicatory (adj) – судебный; арбитражный
alternative dispute resolution (ADR) – альтернативные методы разрешения
споров
arbitrate (v) – решать в арбитражном порядке
arbitration (n) – арбитраж; арбитражное разбирательство
bias (n) – заинтересованность в исходе дела; предвзятость
binding upon − обязательный для соблюдения
borrower (n) – заемщик; дебитор
captive market – закрытый рынок; рынок, защищенный от конкуренции
come into force – вступать в силу
consent (n) − согласие; разрешение
crucial (adj) – решающий; определяющий; ключевой
decision-maker (n) − лицо, принимающее решение
defendant (n) – ответчик; подсудимый
delaying tactics – тактика замедления; тактика затягивания процесса
dispute resolution – урегулирование спора
dominant force – доминирующая сила
expertise (n) − специальные знания; компетентность; опыт
facilitate (v) − содействовать; способствовать; помогать
facilitator (n) – посредник; лицо, оказывающее содействие
forum (n) – суд; место урегулирования спора
franchisee (n) – франчайзи (торговое предприятие, пользующееся правом
торговать продуктами промышленного производства на льготных условиях);
франшизополучатель

132
franchiser (n) − франчайзер (лицо или компания, предоставляющая иным лицам
права на продажу её изделий или услуг)
get bogged down – застрять; увязнуть
have recourse to – обращаться к (суду, арбитражам, мерам и т.д.)
hearing (n) − слушание дела
interfere (v) – вмешиваться; препятствовать
lender (n) − кредитор
licensee (n) – лицензиат (получатель лицензии)
licensor (n) – лицензиар (лицо, выдающее лицензию)
Med-Arb − медиационный арбитраж (альтернативный метод разрешения споров,
имеющий признаки как медиации, так и арбитража)
mediation (n) − посредничество / медиация (процедура урегулирования спора с
участием посредника)
money-spinner (n) – прибыльное дело; денежное дело
mutual agreement − обоюдное согласие
opt for – делать выбор в пользу
overturn a decision – отменить решение суда
panel (n) – коллегия арбитров; список арбитров
parties to an agreement – стороны соглашения
plaintiff (n) − истец
public domain – всеобщее достояние
resolve a dispute – разрешать спор
retailer (n) – ритейлер; розничная торговая фирма
settlement (n) – урегулирование (спора, вопроса и т.п.)
signatory (n) – сторона, подвисавшая договор
speed up (phr v) – ускорять
undersigned (adj) − нижеподписавшийся
waive (v) – отказываться; уклоняться
wholesaler (n) – оптовик; субъект оптового рынка

133
Unit 7. Discrimination

asylum (n) – убежище


asylum seeker – лицо, ищущее убежище; претендент на получение политического
убежища
award damages – присуждать возмещение убытков
brief (n) – краткое письменное изложение дела; записка по делу
cap (v) – устанавливать верхний предел; ограничивать максимальные значения
Chamber of Commerce – торговая палата
consequence (n) − последствие
deter (v) – удерживать; отпугивать
egregious (adj) – вопиющий; недопустимый; безобразный; злостный
gender discrimination – дискриминация по половому признаку
glass ceiling – “стеклянный потолок” (система взглядов в обществе, согласно
которым женщины не должны занимать руководящие посты)
hear a case – слушать дело в суде
job sharing − разделение работы (система борьбы с безработицей, когда два или
более работников делят имеющуюся работу)
jury award – решение присяжных
knock-on effect – эффект домино; цепная реакция
lawsuit (n) – иск; судебный процесс
malice (n) – злой умысел; преступное намерение
maternity leave – отпуск по уходу за ребенком
menial job – черная работа; низкооплачиваемая работа
out-of-court (adj) – внесудебный
outrageous (adj) – возмутительный; грубый; оскорбительный; недопустимый
persecute (v) – преследовать; подвергать преследованиям; притеснять
pre-trial settlement – досудебное урегулирование споров
reckless (adj) – опрометчивый; неосторожный; небрежный

134
refugee (n) − беженец
sex discrimination – дискриминация по половому признаку
tax (n) − налог
uphold (v) – поддерживать
vigilant (adj) – бдительный; внимательный

135
Unit 8. Competition

“open skies” policy – политика “открытого неба”


alliance (n) – союз; объединение; альянс
bilateral deal – двусторонняя сделка
booming (adj) – расширяющийся; быстро растущий; преуспевающий
carrier (n) − перевозчик
code-sharing agreement – код-шеринговое соглашение (договор о совместном
использовании рейса)
competition (n) − конкуренция
competition distortion – нарушение правил конкуренции
deregulated (adj) – с ослабленным государственным регулированием
distort a market – нарушать функционирование рынка
file suit – предъявить иск
gradual (adj) – постепенный; поэтапный
hold off (phr v) − задерживать; откладывать
in the long run – в перспективе; в обозримом будущем
jeopardise (v) – подвергать риску; ставить под удар
liberalization (n) − снятие ограничений; смягчение (законов); либерализация
market share − доля на рынке
parent company – материнская компания (которая владеет контрольным пакетом
акций)
penetrate (v) − проникать
protectionism (n) – протекционизм; защита местного производства
ratio (n) – соотношение; коэффициент соотношения
reach an agreement – достичь договоренности
reject (v) – отклонять; отвергать
render ineffective – признать недействительным

136
roll-back (n) – понижение до прежнего уровня; возврат; понижение рыночных
цен
scale back – пересматривать; снижать; сокращать
slot (n) – слот в аэропорту (время, выделенное в аэропорту для рейса
авиакомпании)
swiftly (adv) − быстро; оперативно
to the detriment – в ущерб; во вред интересам
transition period – переходный период
unfair competition – недобросовестная конкуренция
unilateral (adj) – односторонний

137
Unit 9. Brand names

amoral (adj) − безнравственный


arbitrary (adj) – произвольный
confuse (v) – путать; ошибочно связывать с
consumer (n) – потребитель; пользователь
descriptive (adj) – изобразительный; наглядный
distinctive character of a trademark – отличительный характер (черта) торговой
марки
enact (v) – принимать, вводить в действие (закон)
fulfill (v) – выполнять; исполнять
give rise to – приводить к; создавать
in the course of – в ходе проведения; в течение
infringe (v) – нарушать
infringement (n) – нарушение
inter alia – кроме всего прочего
likelihood of confusion – вероятность смешения (субъективный критерий
правомочности товарного знака при наличии сходных товарных знаков на
родственные товары)
misdescriptive (adj) – неправильно обозначенный
misleading (adj) – вводящий в заблуждение
obvious (adj) – явный; очевидный; заметный
origin (n) – происхождение
per se – сам по себе; по сути
presumption (n) – предположение; допущение; основание для предположения
ruling (n) – постановление, решение (суда)
sample (n) – образец; проба; шаблон; модель
submit (v) – представлять на рассмотрение; затребовать
undertaking (n) – предприятие

138
whimsical (adj) – причудливый

139
Unit 10. Patents and intellectual property

alert (v) − уведомлять; предупреждать


artistic work – произведение искусства
asset (n) – актив; имущество
at no cost − бесплатно
authorship (n) − авторство; происхождение
avalanche of − масса (чего-л.)
breach (n) − нарушение
cast a shadow over − негативно сказаться на; бросить тень на
complaint (n) − жалоба; недовольство
concede (v) − предоставлять; допускать
contractual documentation − контрактная документация
contradiction (n) − противоречие; несоответствие
copyright (n) − авторское право
creations of mind − результаты интеллектуальной деятельности
cyberspace (n) − пространство интернета
dawn on (phr v) − осенить; доходить (до ума)
dissemination (n) – распространение; разглашение
due diligence − юридическая экспертиза; аудит; комплексная правовая оценка
объекта инвестирования
embody (v) – изображать; заключать в себе (какую-либо идею)
exclusive right − исключительное право
fair trading − честная торговля; добросовестная конкуренция
flood of – целый ряд; поток; шквал
geographical indication − наименование места происхождения товара
gone up in smoke − сойти на нет; улетучиться
grant rights − давать права
imminent (adj) − неминуемый; неизбежный

140
inevitable (adj) − неизбежный
intellectual property − интеллектуальная собственность
inventiveness (n) − изобретательность
lack (v) – испытывать недостаток; нуждаться
landmark case − прецедентное дело; громкий судебный процесс
leave out (phr v) − исключать; не учесть
legal implications − юридические последствия
letters patent – патентная грамота; письмо-патент
make money − зарабатывать деньги; получать прибыль
managing director − управляющий директор
merger (n) − слияние (одной компании с другой компанией; проводится либо
путём обмена акциями, либо через создание новой хозяйственной единицы)
niche practices – специальная (нишевая) практика; специализированные методы
patent law − патентное право
patent registration – регистрация патента
patentability (n) − патентоспособность
permit (n) − разрешение (письменное); разрешительный документ
plug the gaps − заполнить разрыв; восполнить пробелы
rival (adj) − соперничающий; конкурирующий
sack (v) − увольнять (с работы)
safeguarding (n) − охрана; защита
scratch the surface − начать понимать что-л.; не вдаваться в подробности
statutory (adj) − установленный законом; законный; нормативный
subsequent (adj) − последующий
tissue (n) − ткань
trade secret − коммерческая тайна; секрет производства
waive (v) − отказаться (от права, претензии, иска и т.п.)
wake-up call − предупреждение; тревожный сигнал
withdraw (v) − отнимать; изымать; удалить

141
wrongful (adj) – незаконный; неправомерный; противоправный

142
REFERENCES

1. Bethel G. Test Your Business Vocabulary in Use / G. Bethel, T. Aspinall. − Cambridge


University Press. 2003. − 101 p.
2. Brieger N. Test Your Professional English : Law / N. Brieger. – Longman, 2003. – 104
p.
3. Brown G.D. Professional English in Use. Law / G.D. Brown, S. Rice. – Cambridge
University Press, 2007. – 128 p.
4. Flinders S. Test Your Professional Business English : General / S. Flinders. – Longman,
2002. – 112 p.
5. Krois-Lindner A. International Legal English: A Course for Classroom or Self-Study
Use : Student’s Book / A. Krois-Lindner and TransLegal. − Cambridge University Press,
2011. – 320 p.
6. Krois-Lindner A. Introduction to International Legal English: A Course for Classroom
or Self-Study Use : Student’s Book / A. Krois-Lindner, M. Firth and TransLegal. −
Cambridge University Press, 2008. – 154 p.
7. MacAndrew R. Taboos and Issues / R. MacAndrew, R. Martinez. – Language Teaching
Publications, 2001. – 80 p.
8. Smith T. Market Leader: Business Law / T. Smith. − Pearson Education Limited, 2000.
– 96 p.
9. Wyatt R. Check Your English Vocabulary for Law / R. Wyatt. – 3rd ed. – A&C Black
Publishers Limited, 2006. – 76 p.
10. Агабекян И.П. Практический английский для студентов-юристов / И.П.
Агабекян. – Ростов-на-Дону: Феникс, 2003. – 416 с.
11. Влахова А.С. Английский язык для юристов : учебник для бакалавриата по
направлению «Юриспруденция» / [А.С. Влахова, О.Л. Федотова, А.В. Заикина и
др.]; отв. ред. Н.Ю. Ильина, Т.А. Аганина. − М.: Изд-во Проспект, 2012. – 295 с.

143
12. Гайломазова Е.С. English for Law Students / Е.С. Гайломазова, О.В. Дышекова
// Учеб. пособие для студентов юридических факультетов. – Ростов-на-Дону,
2014. – 211 с.
13. Колесникова Н.А. Английский язык для юристов : учеб. пособие / Н.А.
Колесникова, Л.А. Томашевская. – 2-е изд., стереотип. – М.: Флинта : МПСИ, 2011.
– 240 с.

144

Вам также может понравиться