MEE RULES

Question 1

Duty of Loyalty in Agency Relationship

Answer 1

An agent it was a principal a duty of loyalty, including a duty not to compete with the principal, not to usurp opportunities, no self-dealing, and no secret profits.

Question 2

When is an agent personally liable on a contract?

Answer 2

When the principal is partially or fully undisclosed.

Question 3

Intentional torts of an agent

Answer 3

A principal will generally not be held liable for the intentional torts of an agent unless the tort occurred during an attempt to serve the principal’s interest.

Question 4

Law governing the validity of a marriage

Answer 4

The validity of a marriage is generally governed by the law of the state where the ceremony took place, unless another state has the most significant relationship with the marriage (the domicile of the parties) and a marriage violates a strong public policy of the other state.

Question 5

Which state law governs in a contracts case

Answer 5

Absent a choice of law provision, courts will generally use the most significant relationship approach: the forum that has the most meaningful relationships to the issues and the parties involved in the case.

Question 6

Which state law governs in a tort action

Answer 6

Many states apply the law of the place where the tort was committed.

Question 7

Piercing the corporate veil (definition)

Answer 7

Courts disregard the separate entity of the corporation and hold the shareholders liable on the corporation’s obligations

Question 8

Business Judgment Rule

Answer 8

There is a rebuttable presumption, that shields directors from liability and insulates their decisions from review, that directors are honest, well-meaning, and acting through decisions that are informed and rationally undertaken in good faith.

Question 9

Shareholder’s right to inspection

Answer 9

To exercise a right to inspect the corporate books, the shareholder must submit a written request to the secretary of the corporation to inspect the books, stating the purpose of the inspection.

Question 10

Factors courts look to in Piercing the corporate veil

Answer 10

Alter ego, Inadequate Capitalization, Failure to comply with corporate formalities.

Question 11

Cumulative votes vs Straight votes

Answer 11

Cumulative votes: each share has as many votes as there are directors to be elected.
Straight: each share has one vote for each director.

Question 12

10-b5 Insider Trading

Answer 12

An insider who learns of material, non-public information cannot use that information to earn secret profits by trading on it prior to public disclosure.

Question 13

Divorce proceedings jurisdiction

Answer 13

The Constitution requires domicile of one of the parties as the basis for a state court to exercise divorce jurisdiction. Subject matter jurisdiction is established over the marital status by virtue of the domicile of one of the parties within the state at the time of filing the action.

Question 14

Rule for Custody (and change in custody)

Answer 14

Custody and visitation will be determined according to the bus interests of the child. The prevailing view is that a court may modify a custody order upon proof of a material and substantial change in the circumstances such that a change in custody will be conducive to the best interests of the child.

Question 15

Premarital agreements (definition & enforceability)

Answer 15

Premarital agreements are contracts made by the parties in contemplation of marriage, generally attempting to alter or extinguish the property and support rights. Premarital agreement will be enforceable if the basic contract formation rules have been satisfied (voluntary), there was procedural fairness (adequate financial disclosure), in the terms of the agreement are substantively fair.

Question 16

Requirements for common law marriage

Answer 16

Expression of intent, cohabitation, holding out, capacity

Question 17

Putative Marriage

Answer 17

A court grants divorce like remedies to a putative spouse at the dissolution of their relationship even though the marriage is void because of a flaw in the marriage formation process.

Question 18

Separate property states

Answer 18

In separate property states the spouse with the legal title to property is the legal owner. Neither spouse has a vested interest in property over which they do not have formal title. During the ongoing marriage there is no marital property.

Question 19

Liability of General Partners

Answer 19

Generally, all partners are liable for the debts of the partnership incurred by any partner in the ordinary course of business

Question 20

Prima Facie evidence of a partnership

Answer 20

Receiving a share of the profits is prima facie evidence that someone is a partner. However, if they do not participate in control of the business, they are likely an agent.

Question 21

A security interest attaches when…

Answer 21

1. value is given, 2. debtor has rights in the collateral, 3. Security agreement that adequately describes the collateral is authenticated by the debtor.

Question 22

A security agreement must include…

Answer 22

1. granting language, 2. description of the collateral, 3. authenticated by the debtor. *must be in writing

Question 23

Perfection in proceeds continues for twenty days unless

Answer 23

1. there is a filed financing statement and the proceeds are collateral which can be perfected by filing, and are not acquired by cash proceeds.
2. the proceeds are identifiable cash proceeds
3. the security interest is otherwise perfected when the SI attaches to the proceeds.

Question 24

Buyer in the ordinary course of business

Answer 24

1. buys in good faith
2. buys without knowledge
3. buys in the ordinary course of business from a person selling goods of that kind

Question 25

Right to redeem must occur before

Answer 25

1. the collateral has been collected
2. the SP has disposed of the collateral, or
3. the secured party has accepted the collateral as satisfaction

Question 26

Spendthrift provision (trusts)

Answer 26

precludes a beneficiary from voluntarily transferring his interest in the trust and creditors from reaching that interest

Question 27

Prudent investor rule

Answer 27

trustee shall invest and manage the trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust, while exercising reasonable care, skill, and caution

Question 28

A Totten trust

Answer 28

a bank account held with a named beneficiary who will receive the contents on the owner’s death

Question 29

The trustee of a constructive trust has only one duty…

Answer 29

to convey the property to the beneficiary

Question 30

Intent to create a trust

Answer 30

the settlor must give instructions that must be followed

Question 31

elements necessary to create a trust

Answer 31

1. a settlor with express present intent to create a trust
2. delivery of specified trust property
3. an ascertainable beneficiary
4. active duties imposed on the trustee
5. a proper trust purpose
6. a trustee

Question 32

Testamentory Capacity

Answer 32

1. the document being signed is a will
2. know the nature and extent of the property subject to distribution
3. know the natural objects of the testator’s bounty

Question 33

Elective share

Answer 33

when a spouse is disinherited or inheriting very little, they can take an elective share instead of the amount given under the will

Question 34

Capacity to make a will

Answer 34

must be competent, 18 years of age or older, and intend to make a will

Question 35

Incorporation by reference

Answer 35

the UPC recognizes the common law doctrine of incorporation by reference: permits the inclusion by reference of unattested documents to the will if 1. they were in existence at the time of execution, 2. the language of the will manifests intent to include

Question 36

Simultaneous death

Answer 36

under the UPC, a person who cannot be established by clear and convincing evidence to have survived the decedent by 120 hours is deemed to have predeceased the decedent.

Question 37

Lapse in will

Answer 37

Under the common law, a lapse occurs when a disposition fails because the beneficiary predeceases the testator. It will pass to the residuary unless there is an anti-lapse statute

Question 38

Proving undue influence in the creation of a will requires:

Answer 38

1. the donor was susceptible to undue influence
2. the alleged wrongdoer had an opportunity to exert
3. the wrongdoer had a disposition to exert, and
4. there was a result appearing to be the effect of undue influence