1. John found a diamond ring at the local disco. He put it in his pocket thinking he might find the owner but then forgot about it. He was told two days later that the ring belonged to Jane. He rang her to say he had it, but because at the moment she was going off on a business trip, she asked him to keep it for her, saying she would be back in a week. John was short of cash and he pawned the ring hoping to redeem the pledge before Jane returned.

Discuss John's possible liability under the Theft Act.

2. 'A survey of price movements shows clearly that there is a tendency for the price of shares in bid-for companies to rise sharply before the announcement of takeover bids, which is evidence of "inside buying".' On the assumption that the above statement is true, what measures have been introduced by government to alleviate the situation?