July Bar Multistate Bar Examination
(MBE) 2026/2027 Comprehensive
Review Manual: Exam Strategies,
Practice Tests, and Study Guide
Question 1
A plaintiff brings a federal employment-discrimination claim against an employer.
The plaintiff also asserts a state-law emotional-distress claim arising from the same
workplace investigation. The parties are not diverse. Which principle most strongly
supports the federal court’s authority to hear the state-law claim?
A. The state claim independently presents a federal question
B. The state claim and federal claim form part of the same case or controversy
C. The plaintiff may combine any state claim with a federal claim
D. The court must exercise jurisdiction whenever the claims involve the same parties
Correct Answer: B. The state claim and federal claim form part of the same case
or controversy
Rationale: Supplemental jurisdiction generally exists when the court has original
jurisdiction over at least one claim and the additional claim arises from a common
nucleus of operative fact. Here, both claims concern the same investigation. The state
claim need not independently present a federal question. Supplemental jurisdiction is
not available for every claim between the parties, and a court may sometimes decline
to exercise it.
Question 2
A federal court hearing a diversity action must decide whether to apply a state rule
that would likely change the result of the litigation. Refusing to apply the state rule
would also encourage plaintiffs to choose federal court to obtain a more favorable
outcome. What should the court ordinarily do?
A. Apply federal common law because the case is in federal court
B. Apply the state rule under the Erie doctrine
C. Apply whichever rule the judge considers more efficient
D. Dismiss the case because state law controls the claim
Correct Answer: B. Apply the state rule under the Erie doctrine
Rationale: Under Erie, a federal court sitting in diversity applies state substantive law
and federal procedural law. A rule is likely substantive when disregarding it would
materially affect the outcome or promote forum shopping and inequitable
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administration of the laws. Federal common law does not automatically govern
diversity cases. The court retains jurisdiction and applies the appropriate law rather
than dismissing the action.
Question 3
A homeowner sues a general contractor for defective construction. The contractor
alleges that any liability resulted from the roofing subcontractor’s improper work.
Which procedural action may the contractor properly take?
A. Implead the subcontractor because the subcontractor may be liable for part of the
contractor’s liability
B. Add the subcontractor solely because the subcontractor knows relevant facts
C. File a crossclaim against the subcontractor even though the subcontractor is not a
party
D. Require the homeowner to amend the complaint to name the subcontractor
Correct Answer: A. Implead the subcontractor because the subcontractor may
be liable for part of the contractor’s liability
Rationale: Impleader permits a defending party to bring in a nonparty who is or may
be derivatively liable for all or part of the defendant’s liability to the plaintiff.
Indemnity and contribution are common examples. Relevant knowledge alone is
insufficient. A crossclaim applies only between existing coparties, and the original
plaintiff cannot ordinarily be compelled to amend the complaint.
Question 4
A plaintiff sues a manufacturer for injuries caused by a machine. The manufacturer
impleads a maintenance company, alleging contractual indemnity. The maintenance
company believes the plaintiff negligently operated the machine. Which statement is
most accurate?
A. The maintenance company cannot defend against the plaintiff’s claim
B. The maintenance company may assert defenses that the manufacturer could assert
against the plaintiff
C. The maintenance company may assert only jurisdictional defenses
D. The maintenance company automatically becomes the plaintiff’s direct defendant
for every possible claim
Correct Answer: B. The maintenance company may assert defenses that the
manufacturer could assert against the plaintiff
Rationale: A third-party defendant may assert against the plaintiff defenses that the
third-party plaintiff could raise. It may also assert qualifying claims against the
plaintiff arising from the same transaction or occurrence. Its defenses are not limited
to jurisdictional matters. Impleader does not automatically make the third-party
defendant liable to the plaintiff on unrelated claims; the applicable pleading and
jurisdictional rules must still be satisfied.
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Question 5
A defendant is properly served with a complaint but fails to answer or otherwise
defend within the required time. The plaintiff submits an affidavit establishing the
failure. What is the appropriate initial procedural step?
A. The clerk enters the defendant’s default
B. The judge immediately conducts a jury trial on liability
C. The plaintiff automatically receives the damages demanded
D. The complaint is dismissed for failure to prosecute
Correct Answer: A. The clerk enters the defendant’s default
Rationale: Entry of default is the formal notation that a party failed to plead or
otherwise defend. It ordinarily precedes a default judgment. Default generally
establishes the well-pleaded allegations concerning liability, but it does not
automatically establish uncertain damages. A jury trial is not immediately required,
and the plaintiff’s prosecution of the action is not deficient merely because the
defendant failed to respond.
Question 6
A defendant has never appeared in an action. The plaintiff’s complaint seeks
repayment of a promissory note for a fixed principal amount supported by
documentation. After entry of default, who may enter the default judgment under the
federal rules?
A. Only a jury
B. The clerk, if the claim is for a sum certain and the other requirements are satisfied
C. The clerk in every default case
D. The judge only after providing the nonappearing defendant seven days’ notice
Correct Answer: B. The clerk, if the claim is for a sum certain and the other
requirements are satisfied
Rationale: The clerk may enter a default judgment when the claim is for a sum certain,
the defendant failed to appear, and additional limitations—such as those involving
minors or incompetent persons—do not apply. A judge handles cases involving
uncertain damages or other necessary determinations. Seven days’ notice is
generally required when the defaulting party has appeared, not when the party has
never appeared.
Question 7
A private citizen seeks monetary damages from a state in federal court for an alleged
violation of state law. The state has not consented to suit, and Congress has not
validly abrogated immunity. What is the most likely result?
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A. The suit proceeds because federal courts have diversity jurisdiction
B. The suit is barred by state sovereign immunity
C. The suit proceeds if the damages are less than $75,000
D. The Eleventh Amendment applies only to suits brought by another state
Correct Answer: B. The suit is barred by state sovereign immunity
Rationale: State sovereign immunity generally prevents private parties from suing an
unconsenting state for damages in federal court. Diversity jurisdiction does not
overcome that immunity, and the amount in controversy is irrelevant. Important
exceptions include valid congressional abrogation, state consent, certain suits by the
federal government or other states, and prospective injunctive relief against state
officers under the Ex parte Young doctrine.
Question 8
A state safety law applies equally to in-state and out-of-state trucking companies. The
law provides substantial local safety benefits but causes minor additional costs for
interstate carriers. How should the law generally be evaluated under the dormant
Commerce Clause?
A. It is automatically invalid because it affects interstate commerce
B. It is valid unless its incidental burden is clearly excessive compared with its local
benefits
C. It must satisfy strict scrutiny
D. It is valid only if Congress expressly approved it beforehand
Correct Answer: B. It is valid unless its incidental burden is clearly excessive
compared with its local benefits
Rationale: A nondiscriminatory state law affecting interstate commerce is ordinarily
evaluated under a balancing approach. It will generally be upheld unless the burden
imposed on interstate commerce is clearly excessive relative to the law’s legitimate
local benefits. Strict scrutiny-like review is more appropriate for discriminatory
regulations. States do not need advance congressional approval for every
nondiscriminatory law affecting commerce.
Question 9
A state requires applicants for positions involving formulation of public policy to be
United States citizens. A lawful permanent resident challenges the requirement under
equal protection. Which standard is most likely to apply?
A. Strict scrutiny because every alienage classification is suspect
B. Rational basis review under the governmental-function exception
C. Intermediate scrutiny because alienage is quasi-suspect
D. No constitutional review because public employment is a privilege