Final Review

Question 1

Torts - Strict Liability

- Who can be sued?

Answer 1

• Commercial = yes

> Occasional sellers and those supplying services (dentist) = No
for negligence only

Question 2

Torts - Strict Liability

- Consumer expectation test

Answer 2

• Design Defects
  > Product is defective = unreasonably dangerous when = more dangerous than contemplated by the ordinary consumer w/ the ordinary knowledge common to the community

Question 3

Torts - Strict Liability

- Danger-utility test

Answer 3

• Design Defects (NOT manufacturing defect)

> It’s defective if danger outweighs its utility to society

Question 4

Torts - Strict Lability

- Waring defect

Answer 4

• Product is so obviously dangerous that a warning is unnecessary
  > Fireworks, knives, etc.

Question 5

Torts - Defamation

- Truth includes

Answer 5

Video of what actually happened / what he saw

Question 6

Torts - Defamation

- Publication

Answer 6

• If they knew someone would hear false statement

Question 7

Torts - misrepresentation

> Damages

Answer 7

Benefit of the Bargain theory

> Bought property worth $500,000 in good condition - but actually worth $400,000 = $100,000 damages

Question 8

Torts - Invasion of Privacy

> Damages

Answer 8

• Compensatory and Punitive

Question 9

Torts - Publication of Picture by news

Recover?

Answer 9

NO - b/c publication was newsworthy.

Question 10

Torts - Slanderous per se

Answer 10

(1) P commission of a crime that involves moral turpitude (2) P has a loathsome disease (3) imputes dishonesty or incompetency in the operation of a business or profession (4) accuses a woman of being unchaste
> damages are presumed

Question 11

Torts - Negligence

1. Husband / Wife
2. Kids vs. Parents

Answer 11

1. Yes = Allowed
   2a. Barred in areas dealing with the exercise of ordinary parental discretion
   2b. Majority of jurisdictions now state parents not immune from suits by
   children - But Parental discretion allowed in making decisions to raise minor children

Question 12

Torts -
> NIID
> Wrongful Death

Answer 12

• Bystander in the Zone of Danger / Physical manifestation ~or ~ Close family member / observes and understands accident / physical manifestation
  > Loss of consortium only available to legally recognized spouse

> Wrongful Death = only family member

Question 13

Family Law - Settlement Agreement

Answer 13

• Generally valid if Voluntary
  > Resulted from fraud, overreaching, or duress may be set aside if substantially unfair
  > Lack of independent counsel for each may be a significant factor

Question 14

Family Law - Fault Based

Answer 14

• Some states have eliminated fault-based divorce
  > Adultery is ground for dissolution in fault
  > Under modern law, fault is eliminated from consideration in property distribution in many states w/ respect to matters not related to the parties’ finances

Question 15

Family Law - Professional Degree : Property distribution

Answer 15

Most states hold that a professional degree or license is not property interest subject to equitable distribution

Question 16

Family Law - Alimony

Answer 16

i. the parties’ respective financial resources and needs;
ii. contributions each has made to the marital relationship, financially or providing care within the home;
iii. the duration of the marriage
> Some state statutes allow consideration of spousal misconduct
> Some consider one spouse’s support for the other’s
education or training and may mandate reimbursement

Question 17

Property - Builder Claim

- poor workmanship

Answer 17

Implied warranty of quality for sale of new or remodeled homes imposed on contractors / developers / commercial vendors
> Covers significant latent defects caused by poor workmanship
> discovered within a “reasonable time”
> Privity w/ builder

Question 18

Property - Mortgage

- silent as to Subject to or Assign

Answer 18

• Stick w/ Subject to

> Not personally liable

Question 19

Property - quitclaim deed

Answer 19

> No warranties that the man can recover upon

Question 20

Property - Gen. Warranties

Answer 20

• Seisin: Seller owns the property described
• Right to Convey: the power to convey the property.
• Covenant against Encumbrances: there are no encumbrances on the property.
• Quiet Enjoyment: will not be disturbed by a third party asserting a valid claim
• Warranty: defend against any third-party claim.
• Further Assurances: do everything reasonably necessary to perfect title

Question 21

Will - Ademption

Answer 21

Real Property in Will - A gift fails because property specifically bequeathed is NOT in Testator’s estate at his death

• General description = “My car” = they get the car
• Specific = they don’t get it

Question 22

Wills - Abatement

Answer 22

If the assets of Testator’s estate are insufficient to satisfy all the bequests - reduced in order 
• Property that would pass via intestacy
• Residuary bequests
• General bequests
• Demonstrative bequests
• Specific bequests

Question 23

Will - Disclaimer

Answer 23

• Disclaims general bequest, bequest passes as if disclaimant had predeceased testator

> Antilapse statutes apply to relatives of testator, if not then back into estate

Question 24

Corp - Inspect Records

Answer 24

1. Good Faith
2. Describe the reason + purpose
3. Directly connected w/ purpose
4. Written notice + allow time

Question 25

Corp - Demand on corp before suit?

Answer 25

No - not an individual suit

Yes - if suit must make demand on corporation to bring derivative suit on behalf of Corp.

Question 26

Corp - Suit to compel payment of dividend

Answer 26

The business judgment rule protects directors from liability for breach of their fiduciary duties
> BJR is presumption that in making business decisions, the directors act on an informed basis, in good faith, and in the honest belief that the action being taken is in the best interests of the corporation
> no inherent right to be paid a dividend
> Must prove that it amounted to fraud, bad faith, or an
abuse of discretion;