Bar Exam Rule Statements-MOST
TESTED with Accurate Solutions
Character evidence may be offered as circumstantial evidence to prove propensity in
certain limited circumstances:
-Defendant's Character: In criminal cases, a defendant may ALWAYS introduce
evidence of his own character. The prosecution is NOT allowed to present evidence of
the defendant's character to prove propensity UNLESS the defendant first presents
evidence of his own character (defendant "opens the door"). - correct Answer-Character
Evidence: When Allowed to Prove Propensity (Defendant's Character)
Article 9 of the UCC governs any transaction regardless of its form that creates a
security interest, including security interests in personal property, consignments, a sale
of accounts, chattel paper, and promissory notes. - correct Answer-Article 9 of the UCC
Governs Secured Transactions
Under UCC Article 9, a creditor may properly obtain a security interest in collateral as a
means to secure a loan given to a debtor. Enforcing a security interest depends on two
factors: (1) attachment; and (2) perfection.
Attachment secures the creditor's rights in the debtor's collateral, making the security
interest valid and enforceable against the debtor and third parties.
Perfection gives notice of the creditor's rights in the collateral to other parties who may
have claims to the same, and usually determines which party has priority to the
collateral.
A security interest cannot be perfected unless it has first attached. - correct Answer-
Attachment and Perfection
Attachment requires: (1) that the creditor extend value to the debtor; (2) the debtor must
have rights in the collateral; and (3) one of the following:
(a) an authenticated record/security agreement memorializing the security interest that:
(i) reasonably identifies the collateral
(ii) be authenticated by the debtor
(b) the collateral is in the secured party's possession pursuant to a security agreement;
OR
,(c) the secured party has control of certain types of collateral (deposit accounts, etc.)
pursuant to a security agreement - correct Answer-Attachment
Typically, perfection is obtained by the creditor filing a financing statement with the
Secretary of State that identifies the collateral and his security interest in it. Perfection
may also be obtained by taking possession or control of certain types of collateral.
Consumer PMSIs are automatically perfected. - correct Answer-Perfection
Hearsay is an out-of-court statement that is offered to prove the truth of the matter
asserted. Hearsay is only admissible if it falls under an exception. A "statement" means
a person's oral assertion, written assertion, or non-verbal conduct, if the person
intended it as an assertion. - correct Answer-Hearsay
When evidence contains hearsay within hearsay, each level of hearsay must fall within
an exception to be admissible. - correct Answer-Multiple Hearsay
If an out of court statement is offered to prove something other than the truth of the
statement, it is non-hearsay and is admissible.
Common non-hearsay statements include: (1) verbal acts of independent legal
significance; (2) statements offered to show the effect on the listener; (3) a prior
inconsistent statement used to impeach; and (4) circumstantial evidence of the
speaker's state of mind. - correct Answer-Non-Hearsay
A perfected security interest has priority over a conflicting unperfected security interest
in the same collateral.
A creditor's prior knowledge of an unperfected security interest is irrelevant to determine
priority. - correct Answer-Priority: Perfected Interest vs. Unperfected Interest
When there are two competing unperfected security interests, the "first in time, first in
right" rule controls, and the first to attach will prevail. - correct Answer-Priority:
Unperfected Interest vs. Unperfected Interest
When there are two or more perfected secured parties with rights in the same collateral,
the first to file or perfect its security interest has priority. If both security interests are
perfected, then priority dates from the time of filing or perfection, whichever occurs first.
- correct Answer-Priority: Perfected Interest vs. Perfected Interest
A PMSI in consumer goods enjoys automatic perfection, meaning the creditor doesn't
need to file a financing statement to perfect the interest. As such, a PMSI in consumer
goods takes priority over another perfected or unperfected interest. For PMSIs in non-
consumer goods, a financing statement must be filed in order to perfect the interest;
otherwise, the security interest is unperfected. - correct Answer-PMSI vs. Non-PMSI
, A federal court can only hear cases where it has subject matter jurisdiction, because it
is a court of limited jurisdiction. A federal court has SMJ to hear a claim if: (a) there is a
federal question; (b) there is diversity of citizenship among the parties; or (c)
supplemental jurisdiction is present.
Diversity of citizenship jurisdiction exists when: (1) there is complete diversity of
citizenship between all plaintiffs and defendants (no plaintiff can be from the same state
as any defendant); and (2) the amount in controversy exceeds $75,000.
Diversity jurisdiction is determined at the time the action is commenced; a post-filing
change of citizenship is irrelevant absent bad faith. - correct Answer-Subject Matter
Jurisdiction: Diversity of Citizenship
Article 2 of the UCC governs all contracts for the sale of goods. Goods are defined as
all things that are movable at the time of identification to the contract. Under the UCC,
Common Law principles continue to apply, unless the UCC specifically displaces them.
A contract for the same of goods may be made in any manner sufficient to show
agreement, including conduct by both parties which recognizes the existence of such a
contract. - correct Answer-UCC Article 2 Governs Contracts for the Sale of Goods
Relevancy: To be admissible, evidence must be relevant. Evidence is relevant if: (1) it
has any tendency to make a fact more or less probable than it would be without
evidence; and (2) the fact is of consequence in determining the action. Relevant
evidence is admissible unless another rule or exclusion provides otherwise.
Rule 403 Exclusions: Under FRE 403, the court may exclude relevant evidence if its
probative value is substantially outweighed by a danger of: unfair prejudice; confusing
the issues; misleading the jury; undue delay; wasting time; or being needlessly
cumulative. - correct Answer-Probative Value: Relevancy & Rule 403 Exclusions
A principal is bound to contracts entered into by its agent if the agent has actual or
apparent authority.
Actual authority may be express or implied. Express authority occurs when the principal
has explicitly told the agent that he is entitled to act. Implied authority occurs when
either: (a) the agent believes he is entitled to act because the action is necessary to
carry out his express authorized duties; (b) the agent has acted similarly in prior
dealings between the principal and agent; or (c) it is customary for agents int hat
position to act in that way. - correct Answer-Actual Authority
A principal is bound to contracts entered into by its agent if the agent has actual or
apparent authority.
TESTED with Accurate Solutions
Character evidence may be offered as circumstantial evidence to prove propensity in
certain limited circumstances:
-Defendant's Character: In criminal cases, a defendant may ALWAYS introduce
evidence of his own character. The prosecution is NOT allowed to present evidence of
the defendant's character to prove propensity UNLESS the defendant first presents
evidence of his own character (defendant "opens the door"). - correct Answer-Character
Evidence: When Allowed to Prove Propensity (Defendant's Character)
Article 9 of the UCC governs any transaction regardless of its form that creates a
security interest, including security interests in personal property, consignments, a sale
of accounts, chattel paper, and promissory notes. - correct Answer-Article 9 of the UCC
Governs Secured Transactions
Under UCC Article 9, a creditor may properly obtain a security interest in collateral as a
means to secure a loan given to a debtor. Enforcing a security interest depends on two
factors: (1) attachment; and (2) perfection.
Attachment secures the creditor's rights in the debtor's collateral, making the security
interest valid and enforceable against the debtor and third parties.
Perfection gives notice of the creditor's rights in the collateral to other parties who may
have claims to the same, and usually determines which party has priority to the
collateral.
A security interest cannot be perfected unless it has first attached. - correct Answer-
Attachment and Perfection
Attachment requires: (1) that the creditor extend value to the debtor; (2) the debtor must
have rights in the collateral; and (3) one of the following:
(a) an authenticated record/security agreement memorializing the security interest that:
(i) reasonably identifies the collateral
(ii) be authenticated by the debtor
(b) the collateral is in the secured party's possession pursuant to a security agreement;
OR
,(c) the secured party has control of certain types of collateral (deposit accounts, etc.)
pursuant to a security agreement - correct Answer-Attachment
Typically, perfection is obtained by the creditor filing a financing statement with the
Secretary of State that identifies the collateral and his security interest in it. Perfection
may also be obtained by taking possession or control of certain types of collateral.
Consumer PMSIs are automatically perfected. - correct Answer-Perfection
Hearsay is an out-of-court statement that is offered to prove the truth of the matter
asserted. Hearsay is only admissible if it falls under an exception. A "statement" means
a person's oral assertion, written assertion, or non-verbal conduct, if the person
intended it as an assertion. - correct Answer-Hearsay
When evidence contains hearsay within hearsay, each level of hearsay must fall within
an exception to be admissible. - correct Answer-Multiple Hearsay
If an out of court statement is offered to prove something other than the truth of the
statement, it is non-hearsay and is admissible.
Common non-hearsay statements include: (1) verbal acts of independent legal
significance; (2) statements offered to show the effect on the listener; (3) a prior
inconsistent statement used to impeach; and (4) circumstantial evidence of the
speaker's state of mind. - correct Answer-Non-Hearsay
A perfected security interest has priority over a conflicting unperfected security interest
in the same collateral.
A creditor's prior knowledge of an unperfected security interest is irrelevant to determine
priority. - correct Answer-Priority: Perfected Interest vs. Unperfected Interest
When there are two competing unperfected security interests, the "first in time, first in
right" rule controls, and the first to attach will prevail. - correct Answer-Priority:
Unperfected Interest vs. Unperfected Interest
When there are two or more perfected secured parties with rights in the same collateral,
the first to file or perfect its security interest has priority. If both security interests are
perfected, then priority dates from the time of filing or perfection, whichever occurs first.
- correct Answer-Priority: Perfected Interest vs. Perfected Interest
A PMSI in consumer goods enjoys automatic perfection, meaning the creditor doesn't
need to file a financing statement to perfect the interest. As such, a PMSI in consumer
goods takes priority over another perfected or unperfected interest. For PMSIs in non-
consumer goods, a financing statement must be filed in order to perfect the interest;
otherwise, the security interest is unperfected. - correct Answer-PMSI vs. Non-PMSI
, A federal court can only hear cases where it has subject matter jurisdiction, because it
is a court of limited jurisdiction. A federal court has SMJ to hear a claim if: (a) there is a
federal question; (b) there is diversity of citizenship among the parties; or (c)
supplemental jurisdiction is present.
Diversity of citizenship jurisdiction exists when: (1) there is complete diversity of
citizenship between all plaintiffs and defendants (no plaintiff can be from the same state
as any defendant); and (2) the amount in controversy exceeds $75,000.
Diversity jurisdiction is determined at the time the action is commenced; a post-filing
change of citizenship is irrelevant absent bad faith. - correct Answer-Subject Matter
Jurisdiction: Diversity of Citizenship
Article 2 of the UCC governs all contracts for the sale of goods. Goods are defined as
all things that are movable at the time of identification to the contract. Under the UCC,
Common Law principles continue to apply, unless the UCC specifically displaces them.
A contract for the same of goods may be made in any manner sufficient to show
agreement, including conduct by both parties which recognizes the existence of such a
contract. - correct Answer-UCC Article 2 Governs Contracts for the Sale of Goods
Relevancy: To be admissible, evidence must be relevant. Evidence is relevant if: (1) it
has any tendency to make a fact more or less probable than it would be without
evidence; and (2) the fact is of consequence in determining the action. Relevant
evidence is admissible unless another rule or exclusion provides otherwise.
Rule 403 Exclusions: Under FRE 403, the court may exclude relevant evidence if its
probative value is substantially outweighed by a danger of: unfair prejudice; confusing
the issues; misleading the jury; undue delay; wasting time; or being needlessly
cumulative. - correct Answer-Probative Value: Relevancy & Rule 403 Exclusions
A principal is bound to contracts entered into by its agent if the agent has actual or
apparent authority.
Actual authority may be express or implied. Express authority occurs when the principal
has explicitly told the agent that he is entitled to act. Implied authority occurs when
either: (a) the agent believes he is entitled to act because the action is necessary to
carry out his express authorized duties; (b) the agent has acted similarly in prior
dealings between the principal and agent; or (c) it is customary for agents int hat
position to act in that way. - correct Answer-Actual Authority
A principal is bound to contracts entered into by its agent if the agent has actual or
apparent authority.
