Multistate Essay Flashcards

In a corporations essay, a shareholder demands to inspect corporate books to investigate suspected mismanagement. The corporation must allow inspection if the shareholder:

Answer: Makes a written demand stating a proper purpose reasonably related to her interest as a shareholder

Shareholders have a statutory right to inspect books and records upon written demand for a proper purpose related to their shareholder interest, and investigating mismanagement qualifies.

In an agency essay, an employer is sued for an employee delivery driver's negligent driving during a personal errand far off the assigned route. The employer's best defense is that the driver was:

Answer: On a frolic, a substantial deviation outside the scope of employment

A substantial personal deviation, or frolic, takes the employee outside the scope of employment and defeats respondeat superior liability.

A trusts essay involves a spendthrift trust. Which creditor can typically reach the beneficiary's interest despite the spendthrift clause?

Answer: A child with a court order for child support

Most states and the UTC allow exception creditors, including claimants for child support and alimony, to reach a beneficiary's interest despite a spendthrift provision.

In a civil procedure essay, a defendant fails to raise lack of personal jurisdiction in its pre-answer Rule 12 motion asserting improper venue. The personal jurisdiction defense is:

Answer: Waived, because it was omitted from the initial Rule 12 motion

Under Rule 12(g) and 12(h), personal jurisdiction is waived if omitted from a pre-answer motion raising other Rule 12(b) defenses.

In a negotiable instruments essay, a holder in due course takes a note subject to which of the following defenses?

Answer: Real defenses such as infancy, duress voiding the obligation, and fraud in the factum

A holder in due course takes free of personal defenses but remains subject to real defenses like infancy, void duress, discharge in bankruptcy, and fraud in the factum.

In a family law essay, a state court entered a child custody order, and the child and one parent later moved to another state. Under the UCCJEA, which court may modify the order?

Answer: The original state, as long as it retains exclusive continuing jurisdiction

The UCCJEA gives the decree-issuing state exclusive continuing jurisdiction to modify custody until that state determines significant connections have ended or everyone has left the state.

A decedents' estates essay involves a will beneficiary who also served as one of the two attesting witnesses. In a state with a purging statute, the interested witness typically:

Answer: Loses the excess benefit over her intestate share, but the will remains valid

Purging statutes preserve the will's validity but strip an interested witness of any benefit exceeding what she would take by intestacy.