CLA/CP Exam Trivia 5

Question 1

Which court generally handles bankruptcy cases in the US federal system?

Accepted Answer

US Bankruptcy Court

Answer

Bankruptcy Courts are specialized federal courts operating as units of the US District Courts, exclusively handling bankruptcy proceedings.

Question 2

What does 'diversity jurisdiction' allow a federal court to do?

Accepted Answer

Hear civil cases between citizens of different states where the amount in controversy exceeds $75,000

Answer

28 U.S.C. § 1332 grants federal courts diversity jurisdiction when parties are from different states and the dispute exceeds $75,000.

Question 3

In tort law, what must a plaintiff prove to establish negligence?

Accepted Answer

Duty, breach, causation, and damages

Answer

Negligence has four elements: the defendant owed a duty of care, breached it, the breach caused the plaintiff's injury, and actual damages resulted.

Question 4

What is 'chain of title' as used in real property law?

Accepted Answer

The historical sequence of ownership transfers for a parcel of land

Answer

Chain of title is the chronological record of all recorded instruments affecting ownership of a specific parcel, used to verify clear title.

Question 5

Which ethical rule requires a paralegal to keep client funds separate from personal and law firm funds?

Accepted Answer

Trust account rules (IOLTA)

Answer

IOLTA (Interest on Lawyers' Trust Accounts) rules require client funds to be held in separate trust accounts, never commingled with firm or personal funds.

CLA/CP Exam Practice Test

CLA/CP Exam Practice Test

CLA/CP Exam Trivia 5