Mixed Deck — All NYLE Topics Flashcards

Under New York law, which of the following best describes 'loss of consortium'?

Answer: A derivative claim by a spouse for loss of companionship, services, and society due to the other spouse's injuries

Loss of consortium is a derivative claim by a spouse for deprivation of companionship, services, and society caused by the tortfeasor's negligent injury to the other spouse.

Under New York SCPA 1001, who has priority to serve as administrator of an intestate estate?

Answer: The surviving spouse, then children, then grandchildren, then parents, then siblings

SCPA 1001 establishes a priority list for appointment as administrator: surviving spouse, children, grandchildren, father/mother, siblings, and other eligible persons.

The board of directors of a New York corporation decided to invest in a new, unproven technology that ultimately failed, causing a significant financial loss. A shareholder sued the directors for breaching their duty of care. The directors' decision was made in good faith and with adequate information. Which legal principle will most likely protect the directors from liability?

Answer: The business judgment rule.

The business judgment rule shields corporate directors from liability for decisions made in good faith, with due care, and in the best interests of the corporation. Courts in New York will not second-guess a board's business decisions, even if they turn out poorly in hindsight, as long as the decision-making process was sound and there was no self-dealing or bad faith.

Under the doctrine of frustration of purpose, a contract may be discharged when:

Answer: The principal purpose of the contract is substantially frustrated by an unforeseen event

Frustration of purpose (Restatement §265) excuses performance when an unforeseen event substantially destroys the value of the contract to the non-breaching party.

Under New York's Limited Liability Company Law, absent any provision to the contrary in the operating agreement, how are profits and losses allocated among LLC members by default?

Answer: In proportion to each member's capital contribution to the LLC

NY LLC Law § 503 provides that, in the absence of a governing provision in the operating agreement, profits and losses are shared in proportion to the agreed value of each member's contribution to the LLC. This default rule ties economic benefit to economic investment rather than awarding equal shares.

A New York attorney's client is also a close personal friend. The client asks the attorney to prepare a will that leaves a substantial bequest to the attorney. Under NY RPC 1.8(c), this is:

Answer: Prohibited for the attorney to draft it, unless the attorney (or the recipient) is related to the client

NY RPC 1.8(c) bars a lawyer from soliciting a gift from a client, and from preparing an instrument giving the lawyer or a person related to the lawyer a substantial gift, unless the lawyer or other recipient is related to the client (spouse, child, grandchild, parent, grandparent, other relative, or an individual with a close familial relationship). A friend is not a relative, so the attorney may not draft the will; the client should use a different, independent lawyer.

Under New York's intestacy statute (EPTL § 4-1.1), if a decedent is survived by a spouse and two children, what does the surviving spouse receive?

Answer: $50,000 plus one-half of the residue

Under EPTL 4-1.1(a)(1), when the decedent leaves a spouse and children, the surviving spouse receives $50,000 plus one-half of the residue; the children share the other half.

Under New York law, which type of deed provides the LEAST protection to the grantee?

Answer: Quitclaim deed

A quitclaim deed conveys only whatever interest the grantor has, if any, with no warranties or covenants of title.

Under New York's attorney disciplinary system, which body has the authority to impose sanctions on attorneys for professional misconduct?

Answer: The Appellate Division of the Supreme Court in the department where the attorney is admitted

Attorney discipline in New York is administered by the Appellate Division of the Supreme Court in each of the four judicial departments.

An experienced skier is injured at a resort in the Adirondacks when she loses control on an icy patch on an expert-level trail. She sues the ski resort, alleging it was negligent in its grooming of the trail. Which doctrine will be the resort's strongest defense?

Answer: Primary Assumption of Risk

The doctrine of primary assumption of risk provides that a voluntary participant in a sporting or recreational activity consents to those commonly appreciated risks which are inherent in and arise out of the nature of the sport. Icy patches are an inherent risk of skiing. As long as the ski resort's conduct did not unreasonably increase the inherent risks of the activity, the doctrine will likely bar the plaintiff's claim.

How does New York law legally classify a mortgage given by a property owner to a lender?

Answer: As a lien on the property that serves as security for a debt, while the borrower retains legal title.

New York is a 'lien theory' state. This means the mortgage instrument does not convey title to the lender. Instead, it creates a lien on the property to secure the debt, while the borrower (mortgagor) retains both legal and equitable title to the property unless and until a successful foreclosure action.

Under New York EPTL 7-1.12, a 'supplemental needs trust' (SNT) is primarily designed to:

Answer: Provide for a disabled beneficiary without disqualifying them from government benefits

A supplemental needs trust preserves a disabled beneficiary's eligibility for Medicaid and SSI by holding assets that supplement, rather than replace, government benefits.

Under New York law, a person is guilty of robbery in the first degree when they forcibly steal property and:

Answer: They use or threaten immediate use of a dangerous instrument

First-degree robbery under PL § 160.15 is elevated when the defendant uses or threatens immediate use of a dangerous instrument during the theft.

An attorney, newly admitted to the New York bar, is asked by a close family friend to handle a complex international trade dispute. The attorney has no prior experience in this area of law. According to the New York Rules of Professional Conduct, which of the following is the most appropriate course of action for the attorney?

Answer: Accept the representation, but only if they can achieve competence through diligent study and preparation before any critical deadlines.

New York Rule of Professional Conduct 1.1(a) requires a lawyer to provide competent representation. However, Comment [2] to Rule 1.1 clarifies that a newly admitted lawyer can be as competent as an experienced practitioner. Comment [4] further states that a lawyer may accept representation if the necessary level of competence can be achieved through adequate preparation. Rule 1.1(b) also permits a lawyer to handle a matter they are not competent in if they associate with a lawyer who is competent. Therefore, simply declining is not the only option, and accepting with the commitment to become competent through study is a permissible course of action.

Under EPTL 4-1.1, how is property distributed when a New York resident dies intestate (without a will)?

Answer: If survived by a spouse and children, the spouse receives $50,000 plus half the residue and the children share the remainder equally

EPTL 4-1.1(a)(1) provides that if the decedent is survived by a spouse and issue (descendants), the spouse receives $50,000 plus one-half of the residue, and the issue take the balance per stirpes.

A New York court is determining a post-divorce maintenance award for a spouse after a long-term marriage. Which of the following factors is the court LEAST likely to consider as a primary determinant under the Domestic Relations Law?

Answer: The marital fault of either party leading to the divorce.

While New York law allows for fault-based divorces, marital fault is generally not a factor in determining the amount or duration of post-divorce maintenance, unless the conduct is so egregious that it shocks the conscience of the court. The statutory factors listed in DRL § 236(B)(6)(a) focus on economic considerations, such as the parties' age, health, earning capacity, and the established standard of living, to ensure a fair economic outcome.

Under New York's dram shop liability (General Obligations Law § 11-101), who may be held liable for injuries caused by an intoxicated person?

Answer: Any person who unlawfully sells or assists in procuring alcohol for a visibly intoxicated person

NY GOL § 11-101 imposes liability on anyone who unlawfully sells or assists in procuring alcohol for a visibly intoxicated person who then causes injury.

Which of the following situations describes a non-consentable conflict of interest under New York's Rules of Professional Conduct?

Answer: A lawyer representing one client in the assertion of a claim against another client who is represented by the same lawyer in the same litigation.

New York Rule of Professional Conduct 1.7(b)(3) explicitly states that a conflict is non-consentable if the representation involves the assertion of a claim by one client against another client represented by the lawyer in the same litigation or other proceeding before a tribunal. While the other scenarios present potential conflicts of interest, they may be consentable if the lawyer reasonably believes they can provide competent and diligent representation to each affected client and each client gives informed consent, confirmed in writing.

In New York, a contract clause that fixes damages in the event of breach is enforceable only if:

Answer: Actual damages would be difficult to estimate and the amount is a reasonable forecast of harm

New York enforces liquidated damages clauses only when actual damages are difficult to ascertain and the stipulated amount is a reasonable pre-estimate of harm.

In New York, a limited liability company (LLC) is formed by filing what document with the Department of State?

Answer: Articles of Organization

Under NY LLC Law § 203, an LLC is formed by filing Articles of Organization with the Secretary of State.