Essay Rules

Question 1

default system of representation under UPC

Answer 1

per capita at each generation

pool total amount and split equally for each generation

Question 3

attachment

Question 4

perfection of different types of collateral

Answer 4

normal - UCC financing statement
fixtures - fixture filing
money - possession
deposit accounts - control
certificate of title systems (cars) - notation/lien

Question 5

buyer in the ordinary course of business

Answer 5

a person buying:
-in good faith
-without knowledge that the sale violates another’s rights in the goods
-from a seller who is in the business of selling goods of that kind

Question 6

buyers of consumer goods from consumers

Answer 6

a person buying:
-from a person who used the goods as consumer goods
-without knowledge of the security interest
-for value
-for use as consumer goods for the buyer’s own person, family, or household purposes
-before a financing statement covering the goods is filed

Question 7

Erie Doctrine

Answer 7

Federal court sitting in diversity applies state substantive law and federal procedural law

Question 8

agency by estoppel

Answer 8

principal may be bound if, due to the principal’s failure to exercise reasonable care, a third party:
1) reasonably believes that the purported agent is acting with actual authority, and (2) forseeably, reasonably, and detrimentally changes position in reliance on that belief

Question 9

De facto corporation doctrine

Answer 9

Under the de facto corporation doctrine, courts recognize limited corporate liability if (1) there was a colorable, good-faith attempt to incorporate, and (2) actual use of the corporate form, such as by contracting in the corporate name.