A corporation's articles limit director monetary liability to the fullest extent permitted by statute. A shareholder sues directors for an uninformed decision and separately sues one director for secretly taking a vendor...
Citations: Model Business Corporation Act director-liability principles
A limited liability company has members who are citizens of States A, B, and C. The LLC was organized in State D and has its headquarters in State E. What is the LLC's citizenship for diversity purposes? The correct answ...
Citations: Carden v. Arkoma Associates, Section 1332 diversity principles
A teacher tells a public school assistant principal that she saw a student selling vape cartridges in a hallway. The assistant principal calls the student to the office, searches the student's backpack, and finds vape ca...
Citations: U.S. Const. amend. IV, New Jersey v. T.L.O., Safford Unified School District v. Redding
A trust directs Trustee to pay income to Dana for life and distribute principal to Quinn at Dana's death. Trustee is deciding whether to shift the portfolio into high-dividend bonds or growth stocks. The trust instrument...
Citations: Uniform Trust Code section 803
A trust provides income to Parent for life, then principal to Parent's children. Parent has two children when Parent dies, and one child is then entitled to distribution. Absent contrary intent, what rule often determine...
Citations: Common-law class gift principles
In a federal products-liability trial, the jury returns a general verdict for the plaintiff but also answers written questions saying the product was not defective and the defect caused no injury. The parties dispute wha...
Citations: Fed. R. Civ. P. 49
Trustee pays income to Life Beneficiary and will distribute principal to Remainder Beneficiary when Life Beneficiary dies. Remainder Beneficiary asks for recent account statements after learning that trust assets may hav...
Citations: Uniform Trust Code section 813
Two founders want to operate through a limited liability company. When does an LLC generally come into legal existence? The correct answer states the basic statutory formation trigger for an LLC. Revised Uniform Limited...
Citations: Revised Uniform Limited Liability Company Act principles
A consumer filed a federal products-liability action after a battery-powered scooter caught fire. Before suit, the consumer's lawyer sent the manufacturer a letter identifying the scooter model, the fire date, the warran...
Citations: Fed. R. Civ. P. 26(f), Fed. R. Civ. P. 37(e)
...rporation's articles include a provision limiting directors' monetary liability to the fullest extent permitted by the corporation statute. A shareholder alleges that directors made an ordinary negligent business decisio...
Citations: Model Business Corporation Act director-liability limitation principles
A defendant answered a federal complaint by denying liability. The answer did not mention release, payment, statute of limitations, or waiver. Six months later, the defendant sought summary judgment based on a release si...
Citations: Fed. R. Civ. P. 8(c), Fed. R. Civ. P. 15
A plaintiff won a federal jury verdict in a products-liability case. Before trial, the district court denied the defendant's Rule 12(b)(6) motion on a purely legal preemption issue. At trial, the defendant objected to on...
Citations: Fed. R. Civ. P. 46, Fed. R. Civ. P. 51, Fed. R. Civ. P. 61, Fed. R. Evid. 103
A state Good Samaritan statute provides immunity from civil liability for an uncompensated person who provides emergency aid in good faith, but it does not protect willful, reckless, or grossly negligent conduct. A volun...
Citations: NCBE MBE Subject Matter Outline, Torts, Restatement (Second) of Torts
A trust provides income to Child for life, then principal "to my grandchildren who reach age 30." At the settlor's death, there are two living grandchildren, both under age 30. How should the grandchildren's interests ge...
Citations: Common-law future-interest classification principles, Uniform Probate Code construction principles
Corporation is incorporated in State D and has its principal place of business in State E. It sells products nationwide, including in State F. A plaintiff sues Corporation in State F on a claim unrelated to State F. Wher...
Citations: Daimler AG v. Bauman, Goodyear Dunlop Tires Operations, S.A. v. Brown
In a product-liability case, Plaintiff offers Manufacturer's customer-service log. The log entry was made by a call-center employee during work and says, "Caller reported that her Model Q blender smoked and then exploded...
Citations: Fed. R. Evid. 805
In a products-liability action, the forum considers applying State A law to the design-defect standard and State B law to the damages cap because the policies and contacts for those two issues differ. What concept is the...
Citations: Modern conflict-of-laws principles
In a products-liability case claiming that a pressure cooker exploded because its lid lock failed, the plaintiff offers evidence of prior explosions involving the same model and the same lid-lock mechanism. The manufactu...
Citations: NCBE NextGen UBE Content Scope, Evidence, Fed. R. Evid. 401, Fed. R. Evid. 403
In a products-liability case, a factory technician who repaired the machine after the accident will testify that a worn bearing caused the machine to seize. Her conclusion is based on vibration analysis and her specializ...
Citations: Fed. R. Evid. 701, Fed. R. Evid. 702
In a products-liability trial, Plaintiff calls Inspector, who examined a conveyor belt three days after Worker was injured. Inspector testifies that she remembers the inspection but cannot recall the exact measurements...
Citations: Fed. R. Evid. 612, Fed. R. Evid. 611, Fed. R. Evid. 803(5)
...made a secured loan to Green Valley Robotics LLC, a Delaware limited liability company with its chief executive office and factory in State A. The security agreement covered all equipment, inventory, accounts, and gener...
Citations: UCC 9-301, UCC 9-307, UCC 9-310, UCC 9-502, UCC 9-504
RailCo is incorporated in State D and has its principal place of business in State E. It operates tracks, offices, and repair yards in State F and earns 12 percent of its national revenue there. State F requires foreign...
Citations: Daimler AG v. Bauman, Goodyear Dunlop Tires Operations, S.A. v. Brown, Mallory v. Norfolk Southern Railway Co., Bristol-Myers Squibb Co. v. Superior Court
...or creates a trust providing: "Income to my son, Leon, for life, then principal to Leon's children who reach age 25." At Settlor's death, Leon has two children: Anna, age 28, and Blake, age 20. Leon later has a third chi...
Citations: Common-law class gift principles, Uniform Probate Code construction principles
Settlor creates a trust: "Income to Parent for life, then principal to Parent's children." At creation, Parent has two living children and may have more children. How should the children's interest generally be classifie...
Citations: Common-law class gift principles
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