THE BAR WITH FULLY EXPLAINED
STUDY GUIDE
• Elements of conspiracy - correct answer <<<<<<<<<<<At common law, 2 elements: (1) specific
intent to agree and (2) specific intent commit the target offense (must be unlawful).
Plurality requirement; 2+ parties have a meeting of the minds and agree to commit the crime
Note that most states also usually require some overt act (but no need for crime to be complete). This is
part of the Model Penal Code. We assume that the bar is testing common law unless told otherwise.
At common law, withdrawal is no defense to conspiracy. But it can be a defense to the subsequent
crime.
• marketable title - correct answer <<<<<<<<<<<Absent a provision to the contrary, a contract for
the sale of land contains an implied promise by the seller that she will deliver a marketable title
at the time of closing. This promise imposes on the seller an obligation to deliver a title that is
free from reasonable doubt; i.e., free from questions that might present an unreasonable risk of
litigation. Title is marketable if a reasonably prudent buyer would accept it in the exercise of
ordinary prudence. An inability to establish a record chain of title will generally render the title
unmarketable. If the buyer determines, prior to closing, that the seller's title is unmarketable, he
must notify the seller and allow a reasonable time to cure the defect. If the seller is unable to
acquire title before closing, so that title remains unmarketable, the buyer can rescind, sue for
damages caused by breach, or obtain specific performance with an abatement of the purchase
price.
• Basis (tax) - correct answer <<<<<<<<<<<The value that the property had when you assumed
possession (usually what you paid for it, but can be fair market value).
• A conspirator can be convicted of a crime committed by another conspirator if: - correct answer
<<<<<<<<<<<the crimes were committed in furtherance of the objectives of the conspiracy AND
the crimes were foreseeable.
, • Each member of a conspiracy is liable for the crimes of all other conspirators if: - correct answer
<<<<<<<<<<<(i) the other conspirators' crimes were committed in furtherance of the objectives
of the conspiracy; and
(ii) the other conspirators' crimes were a natural and probable consequence of the conspiracy.
• Simply by doing the act, a jury may infer that the criminal defendant: - correct answer
<<<<<<<<<<<Had general intent. It is not necessary that evidence specifically proving the
general intent be offered by the prosecution. Cannot infer specific intent, but the manner in
which the act was committed can provide circumstantial evidence for the issue of specific
intent.
• In criminal cases, malice is established by: - correct answer <<<<<<<<<<<showing that the
defendant recklessly disregarded an obvious or high risk that a particular harmful result would
occur. Crimes imposing a mens rea of malice generally do not require the proof of intent that
specific intent crimes require. It is sufficient if the defendant recklessly disregarded an obvious
or high risk that the particular harmful result would occur.
• Proceeds (secured transactions) - correct answer <<<<<<<<<<<Include whatever is received
upon the sale, lease, exchange, license, collection, or other disposition of collateral or proceeds.
This can include cash received from a lease of the collateral, an item traded for the collateral,
and money received from an insurance company for damage to the collateral. Funds the
secured party has agreed to loan the debtor in the future are future advances, not proceeds.
• "garage sale" rule (secured transactions) - correct answer <<<<<<<<<<<A purchase money
security interest ("PMSI") in consumer goods is perfected automatically without filing. If the
buyer of consumer goods with PMSI resells the goods to another consumer, the second buyer
takes the consumer goods free of the security interest if he buys without knowledge of it, for
value, and before a financing statement covering the goods has been filed. Basically an
extension of the bona fide purchaser rule.
• A PMSI in inventory has priority over a conflicting security interest in the inventory if: - correct
answer <<<<<<<<<<<(i) The PMSI in inventory is perfected at the time the debtor gets
possession of the inventory (the filing must take place before the inventory is delivered to the
debtor); and (ii) Any secured party who has filed her security interest in the same inventory
receives an authenticated notification of the PMSI before the debtor receives possession of the
inventory, and the notification states that the purchase money party has or expects to take a
, PMSI in inventory of the debtor described by kind or type. Attachment is a necessary
requirement of perfection of a security interest.
• If an instrument states that it is payable with interest but does not state the rate: - correct
answer <<<<<<<<<<<it is payable at the rate on a court judgment.
• Negotiation is defined as: - correct answer <<<<<<<<<<<the voluntary or involuntary transfer of
an instrument by a person other than the issuer to a person who gains possession of the
instrument and has the right to enforce it, i.e., to a holder. If the instrument is payable to
bearer, any person who gains possession becomes the holder. If the instrument is payable to an
identified person, that person must gain possession and indorse the instrument to become the
holder. Accordingly, holder status and requirements of negotiation differ for bearer instruments
and order instruments.
• A written stop payment order is binding on a bank for ____________________, but an oral stop
payment order lapses after ____________________ if it is not confirmed in writing during that
period. - correct answer <<<<<<<<<<<6 mos; 14 days
• re: commercial paper, an alteration is: - correct answer <<<<<<<<<<<an unauthorized change or
addition that purports to modify the obligation of any party in any respect. The effect of an
alteration depends on whether the alterer's intent was fraudulent or nonfraudulent. A
nonfraudulent alteration does not discharge any party, and the instrument may be enforced
according to its original terms. In contrast, a fraudulent alteration generally discharges every
party obligated on the instrument, unless the party assents to or is precluded from asserting the
alteration.
• Collateral is impaired if: - correct answer <<<<<<<<<<<(i) a security interest is not perfected or
otherwise filed; (ii) collateral is released without obtaining substitute collateral; (iii) there is
failure to perform acts required to preserve the collateral's value; or (iv) there is failure to
dispose of collateral as the law requires. The loss, damage, or destruction of collateral does not
constitute impairment of collateral sufficient to discharge a guarantor to the extent of the
impairment. Impairment of collateral securing a party's obligation on an instrument discharges
an indorser or accommodation party having a right of recourse against the obligor to the extent
of the impairment. However, the burden of proving the extent of the impairment is on the party
claiming discharge.
• Inherently dangerous felonies - correct answer <<<<<<<<<<<BARRK:
, Burglary, arson, rape, robbery, kidnapping.
• Inchoate crimes - correct answer <<<<<<<<<<<Solicitation, attempt, and conspiracy
• Property offenses - correct answer <<<<<<<<<<<Larceny
• do you need damages in order to enforce an order of liquidated damages? - correct answer
<<<<<<<<<<<No
• liquidated damages must be an amount that is: - correct answer <<<<<<<<<<<reasonable in
view of the actual or anticipated harm caused by the breach.
• replevin - correct answer <<<<<<<<<<<an action to recover possession of wrongfully withheld
personal property
• Under Article 2, when a seller breaches a contract by refusing to deliver identified goods to the
buyer, the buyer may replevy the goods if: - correct answer <<<<<<<<<<<the buyer, after
reasonable effort, is unable to secure adequate substitute goods.
liquidated damages clauses are enforceable if: - correct answer <<<<<<<<<<<(1) damages for
contractual breach are difficult to estimate or ascertain at the time the contract was formed; and
(2) the amount agreed on was a reasonable forecast of compensatory damages in the case of a breach.
Expectation, consequential, incidental, and reliance damages are all forms of: - correct answer
<<<<<<<<<<<compensatory damages
reliance damages - correct answer <<<<<<<<<<<put the plaintiff in the position she would have been in
had the contract never been formed. can use this if expectation damages are too speculative to
calculate.
incidental damages - correct answer <<<<<<<<<<<include expenses reasonably incurred by the buyer in
inspection, receipt, transportation, care, and custody of goods rightfully rejected and other expenses
STUDY GUIDE
• Elements of conspiracy - correct answer <<<<<<<<<<<At common law, 2 elements: (1) specific
intent to agree and (2) specific intent commit the target offense (must be unlawful).
Plurality requirement; 2+ parties have a meeting of the minds and agree to commit the crime
Note that most states also usually require some overt act (but no need for crime to be complete). This is
part of the Model Penal Code. We assume that the bar is testing common law unless told otherwise.
At common law, withdrawal is no defense to conspiracy. But it can be a defense to the subsequent
crime.
• marketable title - correct answer <<<<<<<<<<<Absent a provision to the contrary, a contract for
the sale of land contains an implied promise by the seller that she will deliver a marketable title
at the time of closing. This promise imposes on the seller an obligation to deliver a title that is
free from reasonable doubt; i.e., free from questions that might present an unreasonable risk of
litigation. Title is marketable if a reasonably prudent buyer would accept it in the exercise of
ordinary prudence. An inability to establish a record chain of title will generally render the title
unmarketable. If the buyer determines, prior to closing, that the seller's title is unmarketable, he
must notify the seller and allow a reasonable time to cure the defect. If the seller is unable to
acquire title before closing, so that title remains unmarketable, the buyer can rescind, sue for
damages caused by breach, or obtain specific performance with an abatement of the purchase
price.
• Basis (tax) - correct answer <<<<<<<<<<<The value that the property had when you assumed
possession (usually what you paid for it, but can be fair market value).
• A conspirator can be convicted of a crime committed by another conspirator if: - correct answer
<<<<<<<<<<<the crimes were committed in furtherance of the objectives of the conspiracy AND
the crimes were foreseeable.
, • Each member of a conspiracy is liable for the crimes of all other conspirators if: - correct answer
<<<<<<<<<<<(i) the other conspirators' crimes were committed in furtherance of the objectives
of the conspiracy; and
(ii) the other conspirators' crimes were a natural and probable consequence of the conspiracy.
• Simply by doing the act, a jury may infer that the criminal defendant: - correct answer
<<<<<<<<<<<Had general intent. It is not necessary that evidence specifically proving the
general intent be offered by the prosecution. Cannot infer specific intent, but the manner in
which the act was committed can provide circumstantial evidence for the issue of specific
intent.
• In criminal cases, malice is established by: - correct answer <<<<<<<<<<<showing that the
defendant recklessly disregarded an obvious or high risk that a particular harmful result would
occur. Crimes imposing a mens rea of malice generally do not require the proof of intent that
specific intent crimes require. It is sufficient if the defendant recklessly disregarded an obvious
or high risk that the particular harmful result would occur.
• Proceeds (secured transactions) - correct answer <<<<<<<<<<<Include whatever is received
upon the sale, lease, exchange, license, collection, or other disposition of collateral or proceeds.
This can include cash received from a lease of the collateral, an item traded for the collateral,
and money received from an insurance company for damage to the collateral. Funds the
secured party has agreed to loan the debtor in the future are future advances, not proceeds.
• "garage sale" rule (secured transactions) - correct answer <<<<<<<<<<<A purchase money
security interest ("PMSI") in consumer goods is perfected automatically without filing. If the
buyer of consumer goods with PMSI resells the goods to another consumer, the second buyer
takes the consumer goods free of the security interest if he buys without knowledge of it, for
value, and before a financing statement covering the goods has been filed. Basically an
extension of the bona fide purchaser rule.
• A PMSI in inventory has priority over a conflicting security interest in the inventory if: - correct
answer <<<<<<<<<<<(i) The PMSI in inventory is perfected at the time the debtor gets
possession of the inventory (the filing must take place before the inventory is delivered to the
debtor); and (ii) Any secured party who has filed her security interest in the same inventory
receives an authenticated notification of the PMSI before the debtor receives possession of the
inventory, and the notification states that the purchase money party has or expects to take a
, PMSI in inventory of the debtor described by kind or type. Attachment is a necessary
requirement of perfection of a security interest.
• If an instrument states that it is payable with interest but does not state the rate: - correct
answer <<<<<<<<<<<it is payable at the rate on a court judgment.
• Negotiation is defined as: - correct answer <<<<<<<<<<<the voluntary or involuntary transfer of
an instrument by a person other than the issuer to a person who gains possession of the
instrument and has the right to enforce it, i.e., to a holder. If the instrument is payable to
bearer, any person who gains possession becomes the holder. If the instrument is payable to an
identified person, that person must gain possession and indorse the instrument to become the
holder. Accordingly, holder status and requirements of negotiation differ for bearer instruments
and order instruments.
• A written stop payment order is binding on a bank for ____________________, but an oral stop
payment order lapses after ____________________ if it is not confirmed in writing during that
period. - correct answer <<<<<<<<<<<6 mos; 14 days
• re: commercial paper, an alteration is: - correct answer <<<<<<<<<<<an unauthorized change or
addition that purports to modify the obligation of any party in any respect. The effect of an
alteration depends on whether the alterer's intent was fraudulent or nonfraudulent. A
nonfraudulent alteration does not discharge any party, and the instrument may be enforced
according to its original terms. In contrast, a fraudulent alteration generally discharges every
party obligated on the instrument, unless the party assents to or is precluded from asserting the
alteration.
• Collateral is impaired if: - correct answer <<<<<<<<<<<(i) a security interest is not perfected or
otherwise filed; (ii) collateral is released without obtaining substitute collateral; (iii) there is
failure to perform acts required to preserve the collateral's value; or (iv) there is failure to
dispose of collateral as the law requires. The loss, damage, or destruction of collateral does not
constitute impairment of collateral sufficient to discharge a guarantor to the extent of the
impairment. Impairment of collateral securing a party's obligation on an instrument discharges
an indorser or accommodation party having a right of recourse against the obligor to the extent
of the impairment. However, the burden of proving the extent of the impairment is on the party
claiming discharge.
• Inherently dangerous felonies - correct answer <<<<<<<<<<<BARRK:
, Burglary, arson, rape, robbery, kidnapping.
• Inchoate crimes - correct answer <<<<<<<<<<<Solicitation, attempt, and conspiracy
• Property offenses - correct answer <<<<<<<<<<<Larceny
• do you need damages in order to enforce an order of liquidated damages? - correct answer
<<<<<<<<<<<No
• liquidated damages must be an amount that is: - correct answer <<<<<<<<<<<reasonable in
view of the actual or anticipated harm caused by the breach.
• replevin - correct answer <<<<<<<<<<<an action to recover possession of wrongfully withheld
personal property
• Under Article 2, when a seller breaches a contract by refusing to deliver identified goods to the
buyer, the buyer may replevy the goods if: - correct answer <<<<<<<<<<<the buyer, after
reasonable effort, is unable to secure adequate substitute goods.
liquidated damages clauses are enforceable if: - correct answer <<<<<<<<<<<(1) damages for
contractual breach are difficult to estimate or ascertain at the time the contract was formed; and
(2) the amount agreed on was a reasonable forecast of compensatory damages in the case of a breach.
Expectation, consequential, incidental, and reliance damages are all forms of: - correct answer
<<<<<<<<<<<compensatory damages
reliance damages - correct answer <<<<<<<<<<<put the plaintiff in the position she would have been in
had the contract never been formed. can use this if expectation damages are too speculative to
calculate.
incidental damages - correct answer <<<<<<<<<<<include expenses reasonably incurred by the buyer in
inspection, receipt, transportation, care, and custody of goods rightfully rejected and other expenses
