Uniform Bar Exam Questions and
Answers Graded A+
Define. Actual Agent Authority - ANSWER-An agent has actual authority if the agent
reasonably believes, based on the principal's manifestations to the agent, that the
principal wishes the agent to act in that manner on the principal's behalf.
Define. Apparent Agent Authority - ANSWER-An agent has apparent authority if, based
on the principal's words and conduct, a third party reasonably believes that the agent
has actual authority to take a particular action.
Define. Conflicting Interest Transactions - ANSWER-A conflicting-interest transaction is
one in which a fiduciary has a meaningful incentive to act contrary to the business's best
interests. More specifically, a conflicting-interest transaction is one in which the
business is a party and: the fiduciary, individually, is also a party; the fiduciary knows of
the transaction and knows that he has a material financial interest in it; or the fiduciary
knows that a related person either is a party or has a material interest in the transaction.
Define. Corporation - ANSWER-A corporation is a legal person that can be liable in its
own name for its own obligations. A corporation is owned by its shareholders and
managed by its directors and officers. Ownership of a corporation is divided into shares
of stock. A corporation raises capital by issuing and selling shares of stock.
Define. Disclosed Principal - ANSWER-A principal is disclosed if a third party dealing
with the agent knows or has reason to know of the agency relationship and the
principal's identity.
Define. Dissolution - ANSWER-The change in the relation of the partners caused by any
partner ceasing to be associated with the carrying on as distinguished from the winding
up of the business.
Define. Duty of Loyalty - ANSWER-The duty of loyalty requires fiduciaries to discharge
their responsibilities in a way that places the interests of the business and its owners
ahead of: (1) the fiduciary's own personal interest, and (2) the interest of any single
owner, group of owners, or third party. In particular, the duty of loyalty prohibits a
fiduciary from improperly personally benefiting in the conduct of the business's activities.
A fiduciary who receives an improper benefit may not keep it but should instead account
for it and hold it as trustee for the business.
Define. General Partner Personal Liability - ANSWER-A general partner is personally,
jointly, and severally liable for the partnership's obligations unless the claimant agrees,
or the law otherwise provides.
Answers Graded A+
Define. Actual Agent Authority - ANSWER-An agent has actual authority if the agent
reasonably believes, based on the principal's manifestations to the agent, that the
principal wishes the agent to act in that manner on the principal's behalf.
Define. Apparent Agent Authority - ANSWER-An agent has apparent authority if, based
on the principal's words and conduct, a third party reasonably believes that the agent
has actual authority to take a particular action.
Define. Conflicting Interest Transactions - ANSWER-A conflicting-interest transaction is
one in which a fiduciary has a meaningful incentive to act contrary to the business's best
interests. More specifically, a conflicting-interest transaction is one in which the
business is a party and: the fiduciary, individually, is also a party; the fiduciary knows of
the transaction and knows that he has a material financial interest in it; or the fiduciary
knows that a related person either is a party or has a material interest in the transaction.
Define. Corporation - ANSWER-A corporation is a legal person that can be liable in its
own name for its own obligations. A corporation is owned by its shareholders and
managed by its directors and officers. Ownership of a corporation is divided into shares
of stock. A corporation raises capital by issuing and selling shares of stock.
Define. Disclosed Principal - ANSWER-A principal is disclosed if a third party dealing
with the agent knows or has reason to know of the agency relationship and the
principal's identity.
Define. Dissolution - ANSWER-The change in the relation of the partners caused by any
partner ceasing to be associated with the carrying on as distinguished from the winding
up of the business.
Define. Duty of Loyalty - ANSWER-The duty of loyalty requires fiduciaries to discharge
their responsibilities in a way that places the interests of the business and its owners
ahead of: (1) the fiduciary's own personal interest, and (2) the interest of any single
owner, group of owners, or third party. In particular, the duty of loyalty prohibits a
fiduciary from improperly personally benefiting in the conduct of the business's activities.
A fiduciary who receives an improper benefit may not keep it but should instead account
for it and hold it as trustee for the business.
Define. General Partner Personal Liability - ANSWER-A general partner is personally,
jointly, and severally liable for the partnership's obligations unless the claimant agrees,
or the law otherwise provides.
