SD Bar Multistate Essay 3

Question 1

A debtor files for Chapter 7 bankruptcy. A creditor held a perfected security interest in the debtor's inventory. Under § 544 of the Bankruptcy Code, the trustee may avoid the security interest if:

Accepted Answer

The security interest was unperfected at the time of the bankruptcy filing

Answer

Under Bankruptcy Code § 544, the trustee has the status of a hypothetical lien creditor and may avoid security interests that were unperfected at the time of filing.

Question 2

On an MEE Torts question, a driver rear-ends another car because she was distracted by a passenger. The injured driver sues both. The passenger is liable for negligence if:

Accepted Answer

The passenger actively distracted the driver in a manner a reasonable person would recognize as dangerous

Answer

A passenger is not ordinarily liable for a driver's negligence but may be liable if the passenger's own affirmative conduct (active distraction) creates an unreasonable risk of harm.

Question 3

A landlord leases an apartment to a tenant for one year. The tenant sublets to a subtenant without the landlord's consent. The lease prohibits subletting without consent. The landlord's best remedy is:

Accepted Answer

Terminate the lease for breach of the anti-subletting covenant

Answer

An anti-subletting covenant is an enforceable lease condition; the landlord may terminate the lease if the tenant breaches it by subletting without consent.

Question 4

Under the Confrontation Clause analysis after Crawford v. Washington, a co-defendant's out-of-court statement implicating the defendant is inadmissible against the defendant at a joint trial if the statement is:

Accepted Answer

Testimonial and the co-defendant does not testify

Answer

Crawford held that the Confrontation Clause bars admission of testimonial hearsay unless the declarant is unavailable and the defendant had a prior opportunity to cross-examine.

Question 5

A corporation's board of directors approves a self-dealing transaction in which the CEO buys corporate property at below-market value. Shareholders challenge the transaction. Under the duty of loyalty, the transaction will be upheld only if:

Accepted Answer

It was fair to the corporation or was approved by disinterested directors after full disclosure

Answer

Interested director transactions survive duty-of-loyalty scrutiny if the transaction was fair to the corporation or was approved by a majority of disinterested directors with full disclosure.

(SD Bar) South Dakota Bar Exam Practice Test

(SD Bar) South Dakota Bar Exam Practice Test

SD Bar Multistate Essay 3