CONSTITUTIONAL LAW: OUTLINE OF HISTORYAND DEVELOPMENT

The vast majority of FX trading is essentially unregulated, in striking contrast to the extensive regulations in most equity and bond markets. Governments have learned through experience that dealers will simply move elsewhere if they are regulated. In the 1960s, for example, bond dealers simply moved offshore when the U.S government attempted to regulate the foreign issuance of US dollar denominated bonds in the domestic market.

Some well-known regulations in other asset markets are missing in FX markets. Their absence is not a problem due to unique features of the FX market. Short-sales restrictions, for example, though severe in most developed equity and bond markets, cannot even be defined in this asset class because the sale of one currency is simply the purchase of another. Other practices that are illegal on most organised exchanges are discouraged in FX by market conventions and best practices. For example, front-running of customer orders is widely considered bad practice even though it is not illegal.

Fortunately, the FX market is sufficiently liquid that significant manipulation by any single actor is all but impossible during active trading hours for the major currencies.

Since FX markets are subject to minimal regulation, they are also subject to minimal reporting requirements, which explains the scarcity of aggregate data on FX trading. Though equity trading volume is a staple on the evening news, on any given day no one knows how much was traded in FX markets – not the regulators, not the monetary authorities, not even the major FX dealers.

Advantages of FX

· The forex market is extremely liquid, hence its rapidly growing popularity. Currencies may be converted when bought or sold without causing too much movement in the price and keeping losses to a minimum.

· As there is no central bank, trading can take place anywhere in the world and operates on a 24-hour basis apart from weekends.

· An investor needs only small amounts of capital compared with other investments. Forex trading is outstanding in this regard.

· It is an unregulated market, meaning that there is no trade commission overseeing transactions and there are no restrictions on trade.

· In common with futures, forex is traded using a “good faith deposit” rather than a loan. The interest rate spread is an attractive advantage.

Disadvantages of FX

· The major risk is that one counterparty fails to deliver the currency involved in a very large transaction. In theory at least, such a failure could bring ruin to the forex market as a whole.

· Investors need a lot of capital to make good profits because the profit margins on small-scale trades are very low.

CONSTITUTIONAL LAW: OUTLINE OF HISTORYAND DEVELOPMENT

We may begin by asking the question: «What is constitutional law and what part does it play in our constitution?» One motive for seeking a definition of constitutional law is simply to settle conventional questions of usage within the legal system for purposes of exposition: to mark, for example, the boundaries of constitutional law and administrative law, or public law and private law. Another point of asking this question is to establish the existence of clear distinction between rules of strict law and rules established by political practice or constitutional convention.

So, constitutional law is the law which establishes, empowers and regulates institutions of government. Simple as it may seem, there is a complication because constitution has three meanings. First, it means all the laws regulating government. From this first meaning comes a second meaning where constitution refers to a system of government. Finally,

constitution is used in a narrow sense to mean a document or statute, called

«Constitution» containing basic constitutional rules.

The concept of constitution was first outlined in Aristotle’s classification

of governments identified with constitution. He believed that the best form

of constitution is the combination of monarchy, aristocracy and democracy

so that citizens could realize their rights and carry out the duties for the

benefit of the whole society.

The modern ideological roots of the idea of constitutional law are

connected with the names of Thomas Hobbes, John Locke and other

scholars who claimed the concept of concentration of powers and

separation of powers and developed the notion of social contract.

According to the above-mentioned notion, people in society willingly

give up absolute freedom for sake of security and prevention of rule of

«the law of the jungle» (the principle that only the strongest will

survive).

The works of these philosophers influenced upon the authors of the

US Constitution and the French Declaration of the Rights of Man and the

Citizen.

As the constitution is the framework for government then constitutional

law is the study of foundational laws of nation states. Constitutions may

limit or define the authority and procedure of political bodies to provide

for enforcement of new laws and regulations.

Constitutional law is the body of law governing the implementation

and interpretation of the constitution. It defines the range and application

of the terms of the Constitution and covers fundamental aspects of the

application of government authority in the nation states. It is a field of law

that is both complex and broad. Some constitutional lawyers maintain that

the Constitution purposely remains vague and subject to interpretation so

that it may be adopted to the circumstances of a changing society. Other

constitutional scholars however, maintain that the provisions of the

Constitution should be strictly construed and their provisions applied in a

very literal manner.

Constitution is usually understood as the main formal document of

the state but, of course, dealing with constitutional law the constitutional

lawyer must not only consider constitutional history and political practice

but also conventions of various kinds that are closely linked with the

constitution itself.

1. Make up the plan of the text to outline the general ideas.

2. Answer the questions to check your level of understanding the text:

a. What are the motives for seeking the definition of constitutional law?

b. What form of government was the best possible, according to

Aristotle?

c. Whos e works should we ke ep in mind sp e a king ab out

development of constitutional law?

d. Why is this field of law broad and complex?

e. What two points of view of the constitution are mentioned in

the text?

f. Why does a constitutional lawyer have to take into consideration

the existing conventions and extralegal rules?

3. Translate into Ukrainian:

the boundaries of constitutional law, distinction between rules, political

practice, classification of forms of governments, the notion of social

contract, «the law of the jungle», foundational laws of nation states,

enforcement of new laws and regulations, application of the terms, subject

to interpretation, the main formal document of the state.

4. Referring to the text define the meaning of the word combinations:

Legal provision

Legal system

VOCABULARY STUDY

1. Choose the word on the right that is associated with the word on the left:

Definition – term, exposition, custom Constitution – work, document, tradition Democracy – convention, custom, government Provision – article, subject, influence Enforcement – authority, court, regulation Scholar – school, scientist, circumstances

2. Decide on the right answer choosing among the following words and putting them in the appropriate form: to constitute, constitution, constitutional, unconstitutional, constitutionally, constitutionality

The federation was … in 1949. The UK is a… monarchy.

The right to speak freely is written in the … of the USA. A decision on the proposal’s … still has to be made.

… oppressions were the reason for the international conflict. He was … incapable of dealing with this matter.

3. State the part of speech for the following words and use them in the word combinations of your own:

Constitute, constitution, constitutional, unconstitutional, constitutionally, constitutionality.

4. Read and comment upon the definition of the constitution given below:

Constitution is the fundamental, underlying document which establishes the government of a nation or state. The U.S. Constitution, originally adopted in convention on September 17, 1787, ratified by the states in 1788, and thereafter amended 27 times, is the prime example of such a document. It is the basis for all decisions by the U.S. Supreme Court (and federal and state courts) on constitutionality.

In 1803 the power of the Supreme Court to strike down federal statutes was firmly established. The Supreme C ourt is the final arbiter of constitutional interpretation. The "equal rights" provision of the 14th Amendment established that the rights in the first ten amendments ("Bill of Rights") applied to state governments.

Unfortunately, state constitutions have gathered tremendous amounts of baggage of detail by amendment over the years, and it is more difficult to "fine tune" state constitutions by further amendment than it is to enact statutes (pass new laws). However, state courts are bound by their state's constitution on fundamental issues. The so-called English constitution is an unwritten body of legal customs and rights developed by practice and court decisions from the 11th to the 18th Century.

5. Put in the missing prepositions:

1. These provisions of the Constitution are not subject … amendment.

2. The main sources … English constitutional law are statutes and

judicial precedents.

3. According … the Constitution, the Prime Minister carries … the

domestic policy of the state.

4. The procedure … conducting elections of the President of Ukraine

is established …law.

5. The Verkhovna Rada of Ukraine assembles … its first session no

later than … the thirtieth day… the official announcement … the

election results.

6. Read, translate, memorize these matching combinations and use them in examples of your own:

Constitutionally acceptable eligible proper improper

Constitutional abuse act right bound

Constitution of the country of the court

7. Fill in the blanks using the prompts given below:

(has been suggested, can be used, defines, may influence)

The influence of constitutional differences upon the role of the judiciary in the application of law is the question of utter importance as it …, for example, the extent to which adjudication embodies policy as well as the permissible techniques which … in the interpretation of statutes.

Two constitutional factors the notion … of the judicial role and judicial interpretation. Firstly, the formal relationship between legislature and judiciary may be significantly different in different political systems.

Secondly, there may be structural differences in the modes of operation of legislatures.

It … that these factors lie behind the differences of approach in different governmental systems, the one favouring a conservative, literal, even

«wooden» approach to the interpretation of statutes, the other inclining towards more liberal, flexible attitudes.

SPEAKING

1. Express your ideas as for Aristotle’s belief of the best form of the constitution.

2. How does constitutional meaning shift with other changes in political structure?

3. How does constitutional meaning shift with changes in cultural norms?

4. How mu c h w eig ht sho uld w e gi v e t o t h e hist o r y o f t h e

Constitution?

5. Inwhat ways are rights and freedoms of people embodied in

constitutions?

Choose one of the questions from the previous block as the topic for representation.

Practice 2. Constitution of Ukraine

1. Read the sentences. Three of these sentences are wrong. Find them and say why you have chosen them.

1. Ukraine has no written constitution.

2. The Constitution of Ukraine was adopted in 1996.

3. The form of state government is a presidential republic.

4. The power in Ukraine belongs to people.

5. The Constitution was confirmed by the Verkhovna Rada of

Ukraine.

6. The Constitution can be interpreted only by the Constitutional

Court.

7. Laws and other normative legal ac ts must conform to the

Constitution of Ukraine.

8. The right to amend the Constitution is vested with the Cabinet of

Ministers.

Read the text and work over the terms italicized in the text:

Vocabulary Notes:

To promulgate –

Date: 2014-12-28; view: 1775