Bar Exam Rule Statements – 2026 – Study Guide and
Practice Material
Admin
Fed Formal Adjudication - correct answer ✔✔ Agency must give notice in a reasonable time
containing time, place, and nature of the hearing, the legal authority and jurisdiction for the
hearing, and the matters of fact and law asserted. (+ admissibility of evidence, right to cross
examine, unbiased decisionmaker). Final order must be in writing with enough sufficient
findings to permit review by the courts.
Admin
Oregon Rulemaking - correct answer ✔✔ Agency must give notice of the proposed rule by
publishing it in the Sec State's bulletin at least 21 days before the effective date. It must include
(1) subject matter and purpose of the intended rule, (2) time, place, and manner to comment,
(3) statutory authority, (4) statement of need, and (5) fiscal impact statement. Public comment
is accepted in writing unless 10 or more people request oral hearing.
Admin
Federal Informal Rulemaking - correct answer ✔✔ Agency must give notice published in the
Federal Register 30 days before the effective date of the rule. Notice must include (1) subject
matter and purpose of the proposed rule, (2) time, place, and nature of the proceeding; and (3)
reference to the legal authority. Public has the right to comment in writing only. Final rule must
be published in the Federal Register with a concise statement of the basis for the rule and its
purpose.
Admin/Con Law
Procedural Due Process - correct answer ✔✔ The Due Process Clause of the 14th Amendment
provides that states may not deprive a person's life, liberty, or property without due process of
law. . . In determining the amount of process due in a deprivation of a property interest, the
court must apply Matthews v. Eldridge balancing test by weighing the interest of the individual
and the risk of erroneous deprivation against the governmental interest of fiscal and
,administrative efficiency. Goldberg v. Kelly states that a pre-deprivation hearing may be required
if the interest at issue is fundamental to survival.
Agency
Definition of Agency - correct answer ✔✔ Agency is a consensual fiduciary relationship created
when two parties manifest the intent that the agent will act on the principal's behalf and
subject to the principal's control.
Agency
Duties of the agent - correct answer ✔✔ The agent has duties as stated in the contract and
implied by law. Agent has a duty to perform, using reasonable care, diligence, and skill, for the
benefit of the principal. He must obey all reasonable directions and notify the principal of all
matters. An agent also has a fiduciary duty of loyalty such as avoiding secret profits and conflicts
of interest.
Agency
Apparent Authority - correct answer ✔✔ Apparent authority is the authority that principal
allows the agent to assume, or holds the agent out as possessing. Apparent authority exists
when an agent makes an agreement which appears to be within the scope of his authority.
Agency
Partnership: Definition/Rule - correct answer ✔✔ A partnership is an association of 2 or more
persons to carry on as co-owners of a business for profit. The partnership is a legal entity and
generally treated as distinct from the individual partners. No formalities are required to form a
partnership. In the absence of a formal partnership agreement, the parties' intent determines
whether a partnership has been formed.
Agency
Partners' liability to Partnership - correct answer ✔✔ All partners are jointly and severally liable
to pay partnership obligations. However, if a partner pays more than her pro rata share of any
obligation, she has a right to seek indemnification from the partnership and the other partners.
, Corporation
Shareholder's rights - correct answer ✔✔ Shareholders have voting rights in election and
removal of directors, adoption and modification of bylaws, and fundamental changes to the
corporate structure. They also have right to inspect the corporate books and records. They do
not have the power to run the day to day affairs.
Corporation
Shareholder's duties - correct answer ✔✔ Shareholders generally do not have fiduciary duty to
the corporation or to the other shareholders and can vote or sell their stock for their own
personal benefit. Majority shareholders, however, cannot use their power to oppress the
interests of minority shareholders.
Corporation
Directors' duties - correct answer ✔✔ Directors' duties include the fiduciary duties of loyalty
and due care. Duty of care requires the exercise of reasonable business judgment such as would
be used by a prudent investor to manage his own affairs. Duty of loyalty requires directors to
avoid conflicts of interest, undue influence, and personal gain at the expense of the corporation.
Corporation
Business Judgment Rule - correct answer ✔✔ There is a presumption that in making business
decisions, directors of a corporation acted in the best interests of the corporation. P must
overcome the presumption to prevail.
Corporation
Piercing the corporate veil - correct answer ✔✔ Piercing may be proper when (1) the
corporation is the alter ego of one of the shareholders; (2) corporation is undercapitalized at its
inception; (3) corporation was formed to commit fraud; or (4) corporation failed to follow
required formalities.
Civil Procedure
Practice Material
Admin
Fed Formal Adjudication - correct answer ✔✔ Agency must give notice in a reasonable time
containing time, place, and nature of the hearing, the legal authority and jurisdiction for the
hearing, and the matters of fact and law asserted. (+ admissibility of evidence, right to cross
examine, unbiased decisionmaker). Final order must be in writing with enough sufficient
findings to permit review by the courts.
Admin
Oregon Rulemaking - correct answer ✔✔ Agency must give notice of the proposed rule by
publishing it in the Sec State's bulletin at least 21 days before the effective date. It must include
(1) subject matter and purpose of the intended rule, (2) time, place, and manner to comment,
(3) statutory authority, (4) statement of need, and (5) fiscal impact statement. Public comment
is accepted in writing unless 10 or more people request oral hearing.
Admin
Federal Informal Rulemaking - correct answer ✔✔ Agency must give notice published in the
Federal Register 30 days before the effective date of the rule. Notice must include (1) subject
matter and purpose of the proposed rule, (2) time, place, and nature of the proceeding; and (3)
reference to the legal authority. Public has the right to comment in writing only. Final rule must
be published in the Federal Register with a concise statement of the basis for the rule and its
purpose.
Admin/Con Law
Procedural Due Process - correct answer ✔✔ The Due Process Clause of the 14th Amendment
provides that states may not deprive a person's life, liberty, or property without due process of
law. . . In determining the amount of process due in a deprivation of a property interest, the
court must apply Matthews v. Eldridge balancing test by weighing the interest of the individual
and the risk of erroneous deprivation against the governmental interest of fiscal and
,administrative efficiency. Goldberg v. Kelly states that a pre-deprivation hearing may be required
if the interest at issue is fundamental to survival.
Agency
Definition of Agency - correct answer ✔✔ Agency is a consensual fiduciary relationship created
when two parties manifest the intent that the agent will act on the principal's behalf and
subject to the principal's control.
Agency
Duties of the agent - correct answer ✔✔ The agent has duties as stated in the contract and
implied by law. Agent has a duty to perform, using reasonable care, diligence, and skill, for the
benefit of the principal. He must obey all reasonable directions and notify the principal of all
matters. An agent also has a fiduciary duty of loyalty such as avoiding secret profits and conflicts
of interest.
Agency
Apparent Authority - correct answer ✔✔ Apparent authority is the authority that principal
allows the agent to assume, or holds the agent out as possessing. Apparent authority exists
when an agent makes an agreement which appears to be within the scope of his authority.
Agency
Partnership: Definition/Rule - correct answer ✔✔ A partnership is an association of 2 or more
persons to carry on as co-owners of a business for profit. The partnership is a legal entity and
generally treated as distinct from the individual partners. No formalities are required to form a
partnership. In the absence of a formal partnership agreement, the parties' intent determines
whether a partnership has been formed.
Agency
Partners' liability to Partnership - correct answer ✔✔ All partners are jointly and severally liable
to pay partnership obligations. However, if a partner pays more than her pro rata share of any
obligation, she has a right to seek indemnification from the partnership and the other partners.
, Corporation
Shareholder's rights - correct answer ✔✔ Shareholders have voting rights in election and
removal of directors, adoption and modification of bylaws, and fundamental changes to the
corporate structure. They also have right to inspect the corporate books and records. They do
not have the power to run the day to day affairs.
Corporation
Shareholder's duties - correct answer ✔✔ Shareholders generally do not have fiduciary duty to
the corporation or to the other shareholders and can vote or sell their stock for their own
personal benefit. Majority shareholders, however, cannot use their power to oppress the
interests of minority shareholders.
Corporation
Directors' duties - correct answer ✔✔ Directors' duties include the fiduciary duties of loyalty
and due care. Duty of care requires the exercise of reasonable business judgment such as would
be used by a prudent investor to manage his own affairs. Duty of loyalty requires directors to
avoid conflicts of interest, undue influence, and personal gain at the expense of the corporation.
Corporation
Business Judgment Rule - correct answer ✔✔ There is a presumption that in making business
decisions, directors of a corporation acted in the best interests of the corporation. P must
overcome the presumption to prevail.
Corporation
Piercing the corporate veil - correct answer ✔✔ Piercing may be proper when (1) the
corporation is the alter ego of one of the shareholders; (2) corporation is undercapitalized at its
inception; (3) corporation was formed to commit fraud; or (4) corporation failed to follow
required formalities.
Civil Procedure
