EXAM QUESTIONS & ANSWERS | 100 MCQS WITH
DETAILED RATIONALES | COMPLETE BAR EXAM
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1. Alice owns Blackacre in fee simple. She conveys Blackacre "to Ben for life,
then to Carol if Carol survives Ben, but if Carol does not survive Ben, then to
David and his heirs." Ben is alive, as are Carol and David.
Who holds the future interest immediately after the conveyance?
A. Carol has a vested remainder subject to divestment, and David has no interest.
B. Carol has a contingent remainder, and David has a contingent remainder.
C. Carol has a contingent remainder, and David has an alternative contingent
remainder.
D. David has a vested remainder subject to complete defeasance.
Rationale: Carol's remainder is contingent because it depends on surviving Ben.
David's interest is also contingent because it takes effect only if Carol fails to
satisfy the condition. These are alternative contingent remainders.
2. A seller agreed in writing to sell a commercial building to a buyer for
$750,000. Closing was scheduled for June 1. Before closing, lightning struck
the building, causing substantial damage through no fault of either party.
The contract did not allocate the risk of loss.
Under the majority rule, who bears the risk of loss?
A. The buyer, because equitable title passes upon execution of the contract.
B. The seller, because legal title had not yet transferred.
C. Both parties equally.
,D. The insurance company, regardless of policy terms.
Rationale: Under the doctrine of equitable conversion, the buyer generally bears
the risk of accidental loss once a specifically enforceable contract is executed
unless modified by statute or contract.
3. Police officers lawfully arrested a suspect for burglary. At the station, before
administering Miranda warnings, an officer asked, "Where did you hide the
stolen jewelry?" The suspect answered immediately.
At trial, the prosecution seeks to introduce the statement during its case-in-chief.
A. The statement is admissible because the arrest was lawful.
B. The statement is admissible because it was voluntary.
C. The statement is inadmissible because it resulted from custodial interrogation
without Miranda warnings.
D. The statement is admissible because burglary is a felony.
Rationale: Custodial interrogation requires Miranda warnings. A statement
obtained through questioning before warnings generally may not be used during
the prosecution's case-in-chief.
4. A corporation's board approved a merger without disclosing that several
directors would receive substantial personal bonuses if the transaction
closed. Shareholders later sued.
Under the duty of loyalty, the strongest claim is that the directors:
A. Violated the duty of care only.
B. Violated the duty of loyalty by failing to disclose a material conflict of interest.
C. Are protected automatically by the business judgment rule.
D. Cannot be liable because the merger was profitable.
, Rationale: Directors must disclose material conflicts of interest. Failure to do so
may constitute a breach of the duty of loyalty.
5. A homeowner negligently left a large hole uncovered in the front yard. A
delivery driver, while exercising reasonable care, stepped into the hole and
suffered injuries.
The homeowner is most likely liable because:
A. The homeowner intentionally injured the driver.
B. The driver assumed the risk.
C. The homeowner owed no duty to business visitors.
D. The homeowner breached the duty to maintain the premises in a reasonably
safe condition for invitees.
Rationale: Delivery drivers are invitees. Landowners owe invitees a duty to inspect
for, discover, and either repair or warn of dangerous conditions.
6. A merchant received an offer to purchase 500 laptops for $400 each. The
offer stated it would remain open for 30 days and was signed by the
merchant. No consideration was given to keep the offer open.
Under the UCC, the offer:
A. Is revocable immediately because no consideration was paid.
B. Is irrevocable for only 10 days.
C. Is irrevocable for up to three months as a valid firm offer.
D. Is invalid because consideration is required.
Rationale: A signed written firm offer by a merchant assuring that it will remain
open is irrevocable for the stated time, up to a maximum of three months.