MEE Study Test Questions & Answers
2024/2025
Procedural Due Process - ANSWERSIn determining whether procedural due process were violated, the
court will apply a balancing test weighing the interest of the individual and the risk of erroneous
deprivation against the government's interest in efficiency. If the interest at issue is fundamental to
survival, a pre-deprivation hearing may be required.
Agency Definition - ANSWERSAn agency relationship exists when two parties manifest assent that the
agent will act under the control of the principal for the benefit of the principal.
Duties - Agent - ANSWERSAn agent has the fiduciary duty of loyalty, as well as a duty to perform with
reasonable care and skill for the benefit of the principal while obeying all reasonable directions from the
Principal.
Apparent Authority - ANSWERSApparent authority exists when a third party has reason to believe an
agent is acting on behalf of a principal due to the principal's manifestations
Partnership Definition - ANSWERSA partnership is formed when two or more parties agree to carry on as
co-owners of a business for profit. No formalities are required; the intent of the parties controls.
Partners' Liability to Partnership - ANSWERSAll partners in a general partnership are jointly and severally
liable for the partnership's debts and obligations. If a partner pays more of her pro rata share, she may
seek indemnification from the other partners.
Shareholders' Rights - ANSWERSShareholders have the right to vote on the following matters: (i) election
and removal of directors, (ii) adoption and modification of bylaws, and (iii) fundamental changes to the
corporate structure. Shareholders also have the right to inspect the books and records of the
corporation.
Shareholders' Duties - ANSWERSShareholders generally do not owe a duty to the corporation or other
shareholders. Majority/controlling shareholders cannot use their power to oppress minority
, shareholders. Parent companies may become implicated by the duty of loyalty if they usurp business
opportunities or engage in self-dealing.
Directors' Duties - ANSWERSDirectors owe the corporation a duty of loyalty and a duty of care. The duty
of loyalty requires the director to exercise the judgment of a reasonably prudent investor managing his
own affairs. The duty of care requires directors to avoid conflicts of interest, undue influence, and
personal gain at the corporation's expense.
Business Judgment Rule - ANSWERSAbsent a case of self-dealing, the business judgment rule establishes
a presumption that the director acted with the best interests of the corporation in mind. The plaintiff has
the burden of rebutting this presumption.
Piercing the Corporate Veil - ANSWERSThe court may pierce the corporate veil to hold a shareholder
personally liable if: (i) the corporation is the alter ego of the shareholder, (ii) the corporation was
undercapitalized at its formation, (iii) the corporation was formed to commit fraud, or (iv) the
corporation fails to follow required formalities (annual shareholder meeting, votes, keeping minutes,
etc.)
SMJ - ANSWERSA court may exercise original jurisdiction under federal question jurisdiction or under
diversity jurisdiction. Federal question jurisdiction exists when the claim arises out of federal law or turns
on a question of federal law. Diversity jurisdiction exists when there is complete diversity between the
parties and the amount in controversy exceeds $75,000
Statutory PJ - ANSWERSState courts may exercise personal jurisdiction when state law grants the power
and the law is constitutional
Constitutional PJ - ANSWERSCourts may exercise specific or general personal jurisdiction over a
defendant. General jurisdiction arises when the defendant is a resident of the state, or, if a nonresident,
the defendant maintains substantial, continuous, systemic contacts with the forum state, even if the
claim does not arise out of those contacts. A court may exercise specific personal jurisdiction over a
nonresident when the defendant has (i) purposesly availed himself to the benefits and protections of the
forum state through minimum contacts, (ii) the claim arose out of those contacts, and (iii) the exercise of
personal jurisdiction is consistent with the concepts of fair play and substantial justice
Supplemental Jurisdiction - ANSWERSCourt may exercise supplemental jurisdiction over claims where
the court does not have original jurisdiction. Supplemental jurisdiction exists when the claim is part of
the same case or controversy and arises out of a common nucleus of operative fact. Courts may not
2024/2025
Procedural Due Process - ANSWERSIn determining whether procedural due process were violated, the
court will apply a balancing test weighing the interest of the individual and the risk of erroneous
deprivation against the government's interest in efficiency. If the interest at issue is fundamental to
survival, a pre-deprivation hearing may be required.
Agency Definition - ANSWERSAn agency relationship exists when two parties manifest assent that the
agent will act under the control of the principal for the benefit of the principal.
Duties - Agent - ANSWERSAn agent has the fiduciary duty of loyalty, as well as a duty to perform with
reasonable care and skill for the benefit of the principal while obeying all reasonable directions from the
Principal.
Apparent Authority - ANSWERSApparent authority exists when a third party has reason to believe an
agent is acting on behalf of a principal due to the principal's manifestations
Partnership Definition - ANSWERSA partnership is formed when two or more parties agree to carry on as
co-owners of a business for profit. No formalities are required; the intent of the parties controls.
Partners' Liability to Partnership - ANSWERSAll partners in a general partnership are jointly and severally
liable for the partnership's debts and obligations. If a partner pays more of her pro rata share, she may
seek indemnification from the other partners.
Shareholders' Rights - ANSWERSShareholders have the right to vote on the following matters: (i) election
and removal of directors, (ii) adoption and modification of bylaws, and (iii) fundamental changes to the
corporate structure. Shareholders also have the right to inspect the books and records of the
corporation.
Shareholders' Duties - ANSWERSShareholders generally do not owe a duty to the corporation or other
shareholders. Majority/controlling shareholders cannot use their power to oppress minority
, shareholders. Parent companies may become implicated by the duty of loyalty if they usurp business
opportunities or engage in self-dealing.
Directors' Duties - ANSWERSDirectors owe the corporation a duty of loyalty and a duty of care. The duty
of loyalty requires the director to exercise the judgment of a reasonably prudent investor managing his
own affairs. The duty of care requires directors to avoid conflicts of interest, undue influence, and
personal gain at the corporation's expense.
Business Judgment Rule - ANSWERSAbsent a case of self-dealing, the business judgment rule establishes
a presumption that the director acted with the best interests of the corporation in mind. The plaintiff has
the burden of rebutting this presumption.
Piercing the Corporate Veil - ANSWERSThe court may pierce the corporate veil to hold a shareholder
personally liable if: (i) the corporation is the alter ego of the shareholder, (ii) the corporation was
undercapitalized at its formation, (iii) the corporation was formed to commit fraud, or (iv) the
corporation fails to follow required formalities (annual shareholder meeting, votes, keeping minutes,
etc.)
SMJ - ANSWERSA court may exercise original jurisdiction under federal question jurisdiction or under
diversity jurisdiction. Federal question jurisdiction exists when the claim arises out of federal law or turns
on a question of federal law. Diversity jurisdiction exists when there is complete diversity between the
parties and the amount in controversy exceeds $75,000
Statutory PJ - ANSWERSState courts may exercise personal jurisdiction when state law grants the power
and the law is constitutional
Constitutional PJ - ANSWERSCourts may exercise specific or general personal jurisdiction over a
defendant. General jurisdiction arises when the defendant is a resident of the state, or, if a nonresident,
the defendant maintains substantial, continuous, systemic contacts with the forum state, even if the
claim does not arise out of those contacts. A court may exercise specific personal jurisdiction over a
nonresident when the defendant has (i) purposesly availed himself to the benefits and protections of the
forum state through minimum contacts, (ii) the claim arose out of those contacts, and (iii) the exercise of
personal jurisdiction is consistent with the concepts of fair play and substantial justice
Supplemental Jurisdiction - ANSWERSCourt may exercise supplemental jurisdiction over claims where
the court does not have original jurisdiction. Supplemental jurisdiction exists when the claim is part of
the same case or controversy and arises out of a common nucleus of operative fact. Courts may not
