IN Bar Multistate Essay 5

Question 1

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

Accepted Answer

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

Answer

Owns at least 50% of outstanding shares

Answer

First files a derivative lawsuit

Answer

Obtains unanimous board consent

Question 2

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:

Accepted Answer

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

Answer

An at-will employee, which eliminates vicarious liability

Answer

Insured personally, which shifts all liability

Answer

Acting intentionally, which is never imputed

Question 3

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

Accepted Answer

A child with a court order for child support

Answer

A credit card company holding a default judgment

Answer

A commercial landlord for unpaid office rent

Answer

An unsecured personal loan lender

Question 4

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:

Accepted Answer

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

Answer

Preserved until trial begins

Answer

Preserved because jurisdiction can never be waived

Answer

Preserved if raised within 21 days of the answer

Question 5

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

Accepted Answer

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

Answer

Ordinary breach of contract by the payee

Answer

Failure of consideration

Answer

Fraud in the inducement

Question 6

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?

Accepted Answer

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

Answer

Any state where the child is physically present

Answer

The new state immediately upon the child's arrival

Answer

Federal district court in either state

Question 7

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:

Accepted Answer

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

Answer

Voids the entire will

Answer

Takes the full gift with no consequence in every state

Answer

Must repay all estate administration costs