IN Bar Multistate Essay 3

Question 1

In a decedents' estates essay, a testator executes a valid will, then writes 'VOID' across every page and signs it, intending revocation. The will is most likely:

Accepted Answer

Revoked by physical act, because cancellation with intent to revoke suffices

Answer

Still valid, because 'VOID' is not a recognized revocation method

Answer

Only partially revoked as to signed pages

Answer

Valid unless the testator also destroys all copies

Question 2

A corporation's board approves a merger in which several directors have a personal financial stake they did not disclose. On the MEE, shareholders challenging the deal will most likely argue the directors breached the duty of:

Accepted Answer

Loyalty, shifting the burden to the directors to prove entire fairness

Answer

Care, protected absolutely by the business judgment rule

Answer

Obedience, for exceeding corporate purposes

Answer

Good faith bargaining under labor law

Question 3

In a UCC Article 9 essay, two creditors have perfected security interests in the same collateral: Creditor A filed first but attached later; Creditor B attached first but filed later. Who has priority?

Accepted Answer

Creditor A, because priority goes to the first to file or perfect

Answer

Creditor B, because attachment always controls priority

Answer

They share pro rata as equal perfected creditors

Answer

Neither; the debtor's trustee takes the collateral

Question 4

A civil procedure essay asks whether a federal court sitting in diversity must apply state law on the burden of proof. Under Erie doctrine principles tested on the MEE, burden of proof is:

Accepted Answer

Substantive, so state law applies

Answer

Procedural, so federal common law applies

Answer

Governed by the law of the forum's neighboring states

Answer

Decided by the jury as a question of fact

Question 5

In a family law essay, a court divides marital property in a divorce. Under equitable distribution principles used in most states including Indiana, property acquired by one spouse's inheritance during the marriage is:

Accepted Answer

Potentially divisible, since Indiana presumptively includes all property in the marital pot subject to rebuttal

Answer

Automatically excluded from division in every state

Answer

Always split 50-50 regardless of source

Answer

Forfeited to the state absent a will

Question 6

A settlor creates a revocable trust and later becomes incapacitated. On the MEE, who may exercise the settlor's power to revoke under the Uniform Trust Code?

Accepted Answer

An agent under a power of attorney if expressly authorized, or a conservator with court approval

Answer

Any adult beneficiary by majority vote

Answer

The trustee, at its sole discretion

Answer

No one; the trust becomes irrevocable permanently

Question 7

In a negotiable instruments essay, a check is payable 'to the order of John Smith.' A thief steals it, forges Smith's indorsement, and cashes it at a bank. As between Smith and the bank, who bears the loss?

Accepted Answer

The bank, because a forged indorsement is ineffective to negotiate order paper

Answer

Smith, because possession of a check transfers title

Answer

Smith, because he should have used electronic payment

Answer

The bank and Smith share the loss equally