IN Bar Multistate Essay 2

Question 1

In an MEE business associations essay, a member of a member-managed LLC signs a supply contract in the LLC's name without other members' approval. When is the LLC bound?

Accepted Answer

When the contract is within the ordinary course of the LLC's business

Answer

In a member-managed LLC, each member has apparent authority to bind the LLC for acts in the ordinary course of its business.

Question 2

A testator's will leaves 'my car' to a nephew, but the testator sold that car and bought a new one before dying. Under the ademption doctrine tested on the MEE, what does the nephew most likely receive?

Accepted Answer

Nothing, if the jurisdiction applies traditional ademption by extinction to the specific gift

Answer

Under traditional ademption by extinction, a specific bequest fails if the item is not in the estate at death, though some UPC states create replacement-property exceptions.

Question 3

In a secured transactions essay, a bank perfects a security interest in a debtor's equipment by filing. The debtor then sells the equipment to a buyer who knows nothing of the lien. Who prevails?

Accepted Answer

The bank, because a perfected security interest generally continues in collateral after sale

Answer

Under UCC Article 9, a security interest continues in collateral notwithstanding sale unless the secured party authorized the disposition free of the interest, and the buyer-in-ordinary-course exception does not apply to equipment sold outside inventory sales.

Question 4

A conflict-of-laws MEE question asks which law governs a contract dispute where the contract has no choice-of-law clause. Under the Second Restatement approach, courts apply the law of the state with:

Accepted Answer

The most significant relationship to the transaction and the parties

Answer

The Second Restatement directs courts to apply the law of the state with the most significant relationship, weighing contacts like place of contracting, negotiation, performance, and the parties' domiciles.

Question 5

In a family law essay, a premarital agreement waiving spousal maintenance is challenged. Under the Uniform Premarital Agreement Act, the agreement is unenforceable if the challenging spouse proves:

Accepted Answer

Involuntary execution, or unconscionability at signing plus inadequate financial disclosure

Answer

Under the UPAA, a premarital agreement fails only if executed involuntarily or if it was unconscionable when signed and the challenger lacked fair disclosure, waiver, or knowledge of the other's finances.

(IN Bar) Indiana Bar Exam Practice Test

(IN Bar) Indiana Bar Exam Practice Test

IN Bar Multistate Essay 2