PA Essay Flashcards
BJR + Minority SH suit
Pennsylvania law allows a board of directors to move to dismiss a derivative action filed by a minority group of shareholders if the directors are independent, not interested in the subject of the business judgment, and act on an informed basis, in good faith and with the honest belief that their action is in the best interests of the corporation, i.e., in accordance with the business judgment rule.
BJR
The business judgment rule insulates an officer or director of a corporation from liability for a business decision made in good faith if he is not interested in the subject of the business judgment, is informed with respect to the subject of the business judgment to the extent he reasonably believes to be appropriate under the circumstances, and rationally believes that the business judgment is in the best interests of the corporation
Pennsylvania’s basis for business law?
the Pennsylvania Business Corporation Law of 1988
Record keeping
When may a SH request record?
Section 1508 of the Pennsylvania Business Corporation Law of 1988 (the “BCL”) requires Pe
nnsylvania business corporations to keep complete and accurate books and records of account, minutes of the proceedings of the incorporators, shareholders and directors and a share register giving the names and addresses of all shareholders and the shares owned by each.
When related to her interest as a SH
the name of PA UCC?
Article II of the Pennsylvania Uniform Commercial Code on Sales
Implied warranty
The implied warranty of merchantability arises when a merchant sells a good that was not “merchantable”, thus causing damages to the buyer.
Implied warranty of fintessfor particular purpose
The implied warranty of fitness for particular purpose arises if the seller knew of the buyer’s particular purpose for buying the good, knew that the buyer was relying upon the seller’s expertise in selecting an appropriate good to meet the buyer’s needs,
Requirements for excluding warranty
The language must be in writing & conspicuous
Relevant estate statute of PA
the Pennsylvania Probate Estates and Fiduciaries Code
Existence of a contract concerning succession under the Probate, Estates, and Fiduciaries Code.
(a) Establishment of contract. –
A contract to die intestate or to make or not to revoke a will or testamentary provision or an obligation dischargeable only at or after death can be established in support of a claim against the estate of a decedent only by:
(1) provisions of a will of the decedent stating material provisions of the contract;
(2) an express reference in a will of the decedent to a contract and extrinsic evidence proving the terms of the contract; or
(3) a writing signed by the decedent evidencing the contract.
Power of appointment
A power of appointment is defined as follows:
[A] power created or reserved by a person (the donor) having property subject to his disposition enabling the donee of the power to designate, within such limits as the donor may prescribe, the transferees of the property or the shares in which it shall be received.
Power of appointment - what kind?
A power of appointment may be general or special; with a general power authorizing the donee to distribute to anyone.
A special power restricts distributions in some way and may limit distribution to a class of individuals designated by the donor.
Special power of appointment
A special power restricts distributions in some way and may limit distribution to a class of individuals designated by the donor.
special power of appointment may be either “exclusive,” which allows the donee to choose among the class members, or “non-exclusive,” under which the power must be exercised in favor of all the class members.
Taxability of life insurance proceeds
The general rule for the inclusion of life insurance proceeds in gross income is that such proceeds are not gross income if such amounts are paid by reason of the death of the insured.
In the case of a transfer for a valuable consideration, by assignment or otherwise, of a life insurance contract or any interest therein, the amount excluded from gross income by paragraph (1) shall not exceed an amount equal to the sum of the actual value of such consideration and the premiums and other amounts subsequently paid by the transferee.
the amount of the proceeds attributable to such policy or interest which is excludable from the transferee’s gross income is generally limited to the sum of (i) the actual value of the consideration for such transfer, and (ii) the premiums and other amounts subsequently paid by the transferee
When lawyer’s disclosure of the client info permitted
Rule 1.6 of the Pennsylvania Rules of Professional Conduct provides, in relevant part, the following:
(a) A lawyer shall not reveal information relating to representation of a client unless the client gives informed consent, except for disclosures that are impliedly authorized in order to carry out the representation, and except as stated in paragraphs (b) and (c).
Trust law PA
Uniform Trust Act
Elements of a valid trust
Beneficiary Trustee Trust proeprty purpose intent
Trust + intent requirement in PA
Writing
Trust + Precatory language in PA
No creation of trust (wish/hope)
Pour over trust
Pour over provision in a will directs the distribution of the testator’s property to a trust
Cy Pres Doctrine
The cy-près doctrine is a legal doctrine which allows a court to amend a legal document to enforce it “as near as possible” to the original intent of the instrument, in situations where it becomes impossible, impracticable, or illegal to enforce it under its original terms.
4 types of asset protection trusts
Pour over trusts
Support trusts
Discretionary Trusts
Spendthrift trusts
The purpose of spendthrift trust in PA
PA presumes a spendthrift clause is an unfulfilled material purpose of the trust, as it reflect’s settlor’s intent
PA revocation of trust by will
PA prohibits a trust from being prematurely revoked by will
PA trustee power
All powers reasonably necessary to administer the trust
PA trustee duty of loyalty exception
Can advance his own personal funds to the trust
PA trustee duty rule regarding investment decision
Prudent Investor Rule
Child support PA
Generally, the duty to support a child ceases when the child reaches 18 or when the child graduates from high school, whichever comes later. Pennsylvania courts have recognized a duty on parents to support a child who has a physical or mental condition, which exists at the time a child reaches majority, that prevents the child from being self-supporting.
Search of the property. co-owner right
Search warrant generally required.
· Consent exception to warrant requirement.
· Consent by one in authority over property.
· Physically present co-owner may object.
Factors re: child support
In determining whether a child is emancipated, the Court will look at a number of factors including the child’s age, marital status, ability to support himself and live independently of a parent.
Lay witness testimony
Lay testimony permitted if based on witness’s perception, helps the finder of fact and is not based upon scientific or specialized knowledge.
Partial/Complete integration inquiry standard
This is answered by comparing the earlier terms and determining whether parties, situated as the parties to this contract, would naturally and normally include the term in the final contract
Duty of a life tenant
It is the duty of a life tenant to keep the property subject to the life estate in repair so as to preserve the property and prevent decay or waste.
The general rule is that while a life tenant is responsible for repairs and maintenance, she is not responsible for improvements. The rationale behind the rule is that a life tenant should not be allowed to improve a remainderman out of his estate.
Tenant right re: fixture
The right to possession of chattels that are attached to leased real estate is determined by the application of the law of fixtures. Clayton v. Lienhard, 312 Pa. 433, 167 A. 321, 322 (1933). A fixture is an article in the nature of personal property “which has been so annexed to the realty that it is regarded as part and parcel of the land.” Lehmann v. Keller, 454 Pa. Super. 42, 684 A.2d 618, 621 (1996). As a general rule, items classified as fixtures may not be removed by a tenant during or at the termination of the lease.
There is an exception to the general rule regarding the removability of fixtures for those items that are classified as trade fixtures. The well-settled rule is that where a tenant attaches to real estate fixtures and equipment necessary for the operation of its business, such items become trade fixtures and a presumption arises that the tenant is entitled to remove them during or at the termination of the lease.
PA intestacy calculation. Which method?
Per capita with representation