NY Bar Exam: All NY Subjects
Questions and Answers
"$1000 to X from my checking account". Promissory note or draft? - ANSWER-Draft.
draft is a command, not a promise.
"I order my bank to pay to the order of X $1000 subject to X's performance in
accordance with our painting contract" What type of negotiable instrument is this? -
ANSWER-NOT a negotiable instrument, since its conditional. It is a contract.
"I promise to pay to the order of X $1000, if X loses 10 pounds". What type of negotiable
instrument is this? - ANSWER-NOT a negotiable instrument since its conditional. It is a
contract, Article III does not apply.
"Payable to order of X, $1000". Y finds it, and cashes it. Is Y holder? - ANSWER-no,
invalid transfer.
50 people died on February 1st when the Staten Island Ferry crashed. On March 15th,
Bob, a licensed attorney, sends a brochure to the victim's families advertising his firm's
success and expertise in personal injury litigation against the city of NY. What result? -
ANSWER-Permissible. Unsolicited communications are permissible after 30 days from
a personal injury or wrongful death incident.
A and B sign a contract for A to sell 100 widgets per year for 3 years to B on Jan 1,
2000. Two years into the agreement, A breaches, and does not manufacture the
widgets. B does not institute a suit until Jan 15, 2005. Is B's claim proper? - ANSWER-
Yes. The relevant start date for SoL is "the time the cause of action accrues", ie the
breach. Here, the breach occurred sometime in the year 2002.
For a UCC sale of goods, the relevant time period is 4 years. Thus the claim in 2005 is
proper, as it is within 4 years of 2002. It does not matter that the contract was signed in
2000.
A batters B in a bar in Albany, NY. A owns property in NY and has family in NY, but A
takes a 3 month vacation to Toronto. B's process server serves litigation papers in
Toronto. Is A subject to PJ in NY? - ANSWER-Yes. a NY domicilliary is always subject
to PJ.
A buys a new television from Best Buy, with Best Buy loaning the purchase price of
$1,000. The purchase contract states that Best Buy has a collateral security interest in
the television. Best Buy does not file any document in the public records. Later, A takes
,out a loan from Bank for $500 with the TV as specified collateral. The Bank files notice
of the security interest in the public records.
A declares bankruptcy. Who gets the TV? - ANSWER-Best Buy. There is automatic
perfection for purchase money security interests in consumer goods.
A catholic priest rapes a 12 year old boy on Jan 1, 1990. No one believes the boy, and
the priest is acquitted of criminal charges on Mar 1, 1990. The boy brings suit for a civil
claim of battery on August 1, 2000. Proper? - ANSWER-No. A rape victim generally
gets 5 years from the date of the incident OR the date criminal trial is resolved (even
acquittal). However, neither of these timelines would work for the boy here, as that
would take him only to 03/01/95.
HOWEVER, the boy was a minor so the SoL is tolled until he is 18. Then the boy gets 3
additional years from that date. Thus the boy may bring suit up until his 21rd birthday. In
2000, he would be 22, so the suit is beyond the SoL period and the claim fails.
A client approaches Bob and asks about the consequences of lying on IRS tax forms.
Bob tells the client about several strategies for defrauding the IRS. result? - ANSWER-
Impermissible. Bob must not tell the client "how to break the law and get away with it".
A contracts with B for B to paint A's house. B does so. B then gratuitously signs a
release that A will not have to pay. Valid? - ANSWER-Multistate: No. no consideration
NY: Yes, as long as its a written instrument.
A fraduluently sells B a fake antique. B pays with a $5,000 check. A then sells the check
to C after proper indorsement for $5,000 cash. C does not know about the fraud. Can C
be a holder in due course? - ANSWER-Yes. voidable transfer between A and B. But C
is a holder in due course.
A gives B a loan for $50,000, with B's Television as collateral. A takes possession of the
TV. No contract is signed. Valid attachment? Valid perfection? - ANSWER-Yes. The ucc
article 9 applies (consumer goods). And there is VCR: A gave the loan, possession
substitutes for "Contract", and A owned the TV. Thus there is attachment.
Further, taking possession also constitutes perfection.
A group of antitrust lawyers in NYC decide that they should really get together and
make a new organization that will certify attorneys as experts in Antitrust law through a
"Certificate of Antitrust Expertise". They create a mini "antitrust bar exam", require 3
years of Antitrust practice, and allow anyone to apply for a fee of $300. The group
members then start listing "Certificate of Antitrust Expertise" on their biography pages.
What result? - ANSWER-Not allowed, unless the certification (1) has been approved for
that purpose by the ABA, (2) the certifying organization is identified,(3) and the lawyer
states the org has no affiliation with the government, the certification is not necessary
,for practicing that area of law, and that the certificate does not necessarily indicate
greater competence of certified lawyers in that practice area.
A hires B as his attorney in a battery claim. The trial begins on December 1, 2004. On
December 5, 2004, B shows up completely intoxicated when he is supposed to question
a key witness. His questioning is terrible, and causes A to lose the case. The trial ends
on January 1, 2005.
A few years later, A decides to give B a Christmas present, and files process for a legal
malpractice claim on December 21, 2007 and has his attorney serve process on
Monday, December 25th, 2007. What result? - ANSWER-A professional malpractice
claim accrues "when the work is completed." Here, although the injury occurred on
12/5/04, the trial was not done until 01/01/05. Thus, the malpractice claim is properly
within the 3 year time period.
A is a director of closely held corporation ABC Inc. A buys a luxury auto for himself,
paying with a check addressed to "ABC inc.". The car dealer asks if A is authorized to
do the transaction, and A says yes. A is not authorized. Is car dealer holder in due
course? - ANSWER-Yes. subjective standard, as long as storeowner does not
subjectively have actual knowledge, HDC.
A lawyer finds out his corporate client is violating SEC rules. He reports it to the CLO
and to the entire board. No one does anything. What are his duties at this point? -
ANSWER-He "may" report the pertinent confidential information to the SEC. It is not a
must.
A lawyer licensed in NY and Connecticut undertakes conduct in Connecticut with a
predominant effect in New York that complies with the disciplinary rules of Connecticut
but violates the disciplinary rules of New York. What result? - ANSWER-If the lawyer is
licensed only in NY, the New York RPC applies. If the lawyer is licensed to practice in
more than one state, the RPC of the state in which the lawyer "principally" practices
applies, unless the conduct clearly has a "predominant effect" in another state where he
is licensed.
Here, since the lawyer's conduct had a "predominant effect" in NY, NY rules apply and
the lawyer is subject to discipline in NY.
A loans B $10,000, collateral specified as B's automobile. A shows up at B's property
with a tow truck, and hooks up B's auto to the tow truck. A says "hey, please don't take
that car away". B takes it anyway. May A sue B? - ANSWER-Yes. this is a breach of the
peace. ANY PROTEST by B is sufficient.
A loans X $50,000 with X's car as collateral. X goes bankrupt. A takes X's car, and sells
to his brother for $5,000. X's car is worth $30,000 on the free market. What is the proper
deficiency amount? - ANSWER-$20,000. If the secured party sells to an "insider buyer",
the price is set to the FMV rather than the actual sale price.
, A NY plaintiff purchases a ticket and then boards an aircraft from NY to MA. The plane
crashed in Massachusetts. The plaintiff's family brings a wrongful death action.
NY has an unlimited recovery for wrongful death
MA has a $15,000 damages cap for wrongful death
What law applies? - ANSWER-Here, while the vested rights approach would point to
MA law as the situs of the injury, this approach is no longer followed in NY.
NY would apply interest analysis governed by Neumeier principles.
Here, while MA arguably has an interest, NY also has a legitimate interest in ensuring
its domicilliaries can get a substantial wrongful death recovery. Therefore NY law
applies
A orally contracts with B that A will visit B once a month for the remainder of B's life for a
price of $50/week. Within statute of frauds? - ANSWER-Multistate: Yes. This could
hypothetically be performed within one year, if B dies within one year.
NY: No. "Lifetime" is presumed greater than one year
A personal injury happens in New Jersey. The statute of limitations in NJ is 2 years.
Two and a half years later, plaintiff brings a cause of action in NY with appropriate
jurisdiction. Time barred? - ANSWER-The general rule is that the worst-case statute of
limitations applies. However, a NY resident plaintiff can obtain the benefit of a longer NY
Statute of Limitations period.
If the plaintiff is a NJ or other state resident, the worst case SoL applies. Here, that
would be the two year SoL. Thus claim is time barred
If the plaintiff is a NY resident, the NY SoL automatically applies. Therefore, P gets the
benefit of 3 year SoL and the action is timely.
A signs a check payable to the order of B in the amount of $1000 and gives to B for
value. B signs and gives to C for value. Can C sue A? - ANSWER-Yes.
A sues ABC Inc. for negligence on 01/01/2000 when a crane drops the ball on him while
strolling down the street. The trial lasts for 1.5 years, and ends on 06/01/2001 with a
judgment of $100,000 for A. ABC Inc. pays the judgment on 06/15/2001. The crane was
sold by XYZ Inc. to ABC Inc. on 01/01/1990.
On 06/10/2007, ABC Inc. realizes it was actually the negligence of XYZ Inc., the seller
of the crane, that caused the injury, and promptly files an indemnity claim on the same
day.
(1) Indemnity claim proper?
Questions and Answers
"$1000 to X from my checking account". Promissory note or draft? - ANSWER-Draft.
draft is a command, not a promise.
"I order my bank to pay to the order of X $1000 subject to X's performance in
accordance with our painting contract" What type of negotiable instrument is this? -
ANSWER-NOT a negotiable instrument, since its conditional. It is a contract.
"I promise to pay to the order of X $1000, if X loses 10 pounds". What type of negotiable
instrument is this? - ANSWER-NOT a negotiable instrument since its conditional. It is a
contract, Article III does not apply.
"Payable to order of X, $1000". Y finds it, and cashes it. Is Y holder? - ANSWER-no,
invalid transfer.
50 people died on February 1st when the Staten Island Ferry crashed. On March 15th,
Bob, a licensed attorney, sends a brochure to the victim's families advertising his firm's
success and expertise in personal injury litigation against the city of NY. What result? -
ANSWER-Permissible. Unsolicited communications are permissible after 30 days from
a personal injury or wrongful death incident.
A and B sign a contract for A to sell 100 widgets per year for 3 years to B on Jan 1,
2000. Two years into the agreement, A breaches, and does not manufacture the
widgets. B does not institute a suit until Jan 15, 2005. Is B's claim proper? - ANSWER-
Yes. The relevant start date for SoL is "the time the cause of action accrues", ie the
breach. Here, the breach occurred sometime in the year 2002.
For a UCC sale of goods, the relevant time period is 4 years. Thus the claim in 2005 is
proper, as it is within 4 years of 2002. It does not matter that the contract was signed in
2000.
A batters B in a bar in Albany, NY. A owns property in NY and has family in NY, but A
takes a 3 month vacation to Toronto. B's process server serves litigation papers in
Toronto. Is A subject to PJ in NY? - ANSWER-Yes. a NY domicilliary is always subject
to PJ.
A buys a new television from Best Buy, with Best Buy loaning the purchase price of
$1,000. The purchase contract states that Best Buy has a collateral security interest in
the television. Best Buy does not file any document in the public records. Later, A takes
,out a loan from Bank for $500 with the TV as specified collateral. The Bank files notice
of the security interest in the public records.
A declares bankruptcy. Who gets the TV? - ANSWER-Best Buy. There is automatic
perfection for purchase money security interests in consumer goods.
A catholic priest rapes a 12 year old boy on Jan 1, 1990. No one believes the boy, and
the priest is acquitted of criminal charges on Mar 1, 1990. The boy brings suit for a civil
claim of battery on August 1, 2000. Proper? - ANSWER-No. A rape victim generally
gets 5 years from the date of the incident OR the date criminal trial is resolved (even
acquittal). However, neither of these timelines would work for the boy here, as that
would take him only to 03/01/95.
HOWEVER, the boy was a minor so the SoL is tolled until he is 18. Then the boy gets 3
additional years from that date. Thus the boy may bring suit up until his 21rd birthday. In
2000, he would be 22, so the suit is beyond the SoL period and the claim fails.
A client approaches Bob and asks about the consequences of lying on IRS tax forms.
Bob tells the client about several strategies for defrauding the IRS. result? - ANSWER-
Impermissible. Bob must not tell the client "how to break the law and get away with it".
A contracts with B for B to paint A's house. B does so. B then gratuitously signs a
release that A will not have to pay. Valid? - ANSWER-Multistate: No. no consideration
NY: Yes, as long as its a written instrument.
A fraduluently sells B a fake antique. B pays with a $5,000 check. A then sells the check
to C after proper indorsement for $5,000 cash. C does not know about the fraud. Can C
be a holder in due course? - ANSWER-Yes. voidable transfer between A and B. But C
is a holder in due course.
A gives B a loan for $50,000, with B's Television as collateral. A takes possession of the
TV. No contract is signed. Valid attachment? Valid perfection? - ANSWER-Yes. The ucc
article 9 applies (consumer goods). And there is VCR: A gave the loan, possession
substitutes for "Contract", and A owned the TV. Thus there is attachment.
Further, taking possession also constitutes perfection.
A group of antitrust lawyers in NYC decide that they should really get together and
make a new organization that will certify attorneys as experts in Antitrust law through a
"Certificate of Antitrust Expertise". They create a mini "antitrust bar exam", require 3
years of Antitrust practice, and allow anyone to apply for a fee of $300. The group
members then start listing "Certificate of Antitrust Expertise" on their biography pages.
What result? - ANSWER-Not allowed, unless the certification (1) has been approved for
that purpose by the ABA, (2) the certifying organization is identified,(3) and the lawyer
states the org has no affiliation with the government, the certification is not necessary
,for practicing that area of law, and that the certificate does not necessarily indicate
greater competence of certified lawyers in that practice area.
A hires B as his attorney in a battery claim. The trial begins on December 1, 2004. On
December 5, 2004, B shows up completely intoxicated when he is supposed to question
a key witness. His questioning is terrible, and causes A to lose the case. The trial ends
on January 1, 2005.
A few years later, A decides to give B a Christmas present, and files process for a legal
malpractice claim on December 21, 2007 and has his attorney serve process on
Monday, December 25th, 2007. What result? - ANSWER-A professional malpractice
claim accrues "when the work is completed." Here, although the injury occurred on
12/5/04, the trial was not done until 01/01/05. Thus, the malpractice claim is properly
within the 3 year time period.
A is a director of closely held corporation ABC Inc. A buys a luxury auto for himself,
paying with a check addressed to "ABC inc.". The car dealer asks if A is authorized to
do the transaction, and A says yes. A is not authorized. Is car dealer holder in due
course? - ANSWER-Yes. subjective standard, as long as storeowner does not
subjectively have actual knowledge, HDC.
A lawyer finds out his corporate client is violating SEC rules. He reports it to the CLO
and to the entire board. No one does anything. What are his duties at this point? -
ANSWER-He "may" report the pertinent confidential information to the SEC. It is not a
must.
A lawyer licensed in NY and Connecticut undertakes conduct in Connecticut with a
predominant effect in New York that complies with the disciplinary rules of Connecticut
but violates the disciplinary rules of New York. What result? - ANSWER-If the lawyer is
licensed only in NY, the New York RPC applies. If the lawyer is licensed to practice in
more than one state, the RPC of the state in which the lawyer "principally" practices
applies, unless the conduct clearly has a "predominant effect" in another state where he
is licensed.
Here, since the lawyer's conduct had a "predominant effect" in NY, NY rules apply and
the lawyer is subject to discipline in NY.
A loans B $10,000, collateral specified as B's automobile. A shows up at B's property
with a tow truck, and hooks up B's auto to the tow truck. A says "hey, please don't take
that car away". B takes it anyway. May A sue B? - ANSWER-Yes. this is a breach of the
peace. ANY PROTEST by B is sufficient.
A loans X $50,000 with X's car as collateral. X goes bankrupt. A takes X's car, and sells
to his brother for $5,000. X's car is worth $30,000 on the free market. What is the proper
deficiency amount? - ANSWER-$20,000. If the secured party sells to an "insider buyer",
the price is set to the FMV rather than the actual sale price.
, A NY plaintiff purchases a ticket and then boards an aircraft from NY to MA. The plane
crashed in Massachusetts. The plaintiff's family brings a wrongful death action.
NY has an unlimited recovery for wrongful death
MA has a $15,000 damages cap for wrongful death
What law applies? - ANSWER-Here, while the vested rights approach would point to
MA law as the situs of the injury, this approach is no longer followed in NY.
NY would apply interest analysis governed by Neumeier principles.
Here, while MA arguably has an interest, NY also has a legitimate interest in ensuring
its domicilliaries can get a substantial wrongful death recovery. Therefore NY law
applies
A orally contracts with B that A will visit B once a month for the remainder of B's life for a
price of $50/week. Within statute of frauds? - ANSWER-Multistate: Yes. This could
hypothetically be performed within one year, if B dies within one year.
NY: No. "Lifetime" is presumed greater than one year
A personal injury happens in New Jersey. The statute of limitations in NJ is 2 years.
Two and a half years later, plaintiff brings a cause of action in NY with appropriate
jurisdiction. Time barred? - ANSWER-The general rule is that the worst-case statute of
limitations applies. However, a NY resident plaintiff can obtain the benefit of a longer NY
Statute of Limitations period.
If the plaintiff is a NJ or other state resident, the worst case SoL applies. Here, that
would be the two year SoL. Thus claim is time barred
If the plaintiff is a NY resident, the NY SoL automatically applies. Therefore, P gets the
benefit of 3 year SoL and the action is timely.
A signs a check payable to the order of B in the amount of $1000 and gives to B for
value. B signs and gives to C for value. Can C sue A? - ANSWER-Yes.
A sues ABC Inc. for negligence on 01/01/2000 when a crane drops the ball on him while
strolling down the street. The trial lasts for 1.5 years, and ends on 06/01/2001 with a
judgment of $100,000 for A. ABC Inc. pays the judgment on 06/15/2001. The crane was
sold by XYZ Inc. to ABC Inc. on 01/01/1990.
On 06/10/2007, ABC Inc. realizes it was actually the negligence of XYZ Inc., the seller
of the crane, that caused the injury, and promptly files an indemnity claim on the same
day.
(1) Indemnity claim proper?
