MEE Flash Cards
(358 cards)
What type of remainder interest is transferable?
A vested remainder interest not subject to any condition is transferable.
Who is responsible for carrying expenses, including property taxes, for a life estate?
Generally, a life tenant is responsible for all carrying expenses of real estate, including property taxes.
What future interest follows a fee simple determinable?
A possibility of reverter is a future interest in the grantor that follows a fee simple determinable.
Is a possibility of reverter subject to the Rule Against Perpetuities?
No, a possibility of reverter vests upon creation and is not subject to the Rule Against Perpetuities.
Fee simple determinable
A determinable estate terminates automatically on the occurrence of a named future event.
What are the major categories of charitable purposes for a charitable trust?
The major categories are relief of poverty, education, religion, health, government purposes, or other community benefits.
Does a charitable trust need an ascertainable beneficiary?
No, a charitable trust is not required to have an ascertainable beneficiary and is not subject to the Rule Against Perpetuities.
What is an honorary trust and how long can it last?
An honorary trust lacks definite beneficiaries but can be enforced for up to 21 years under the Uniform Trust Code.
Under the Uniform Probate Code (UPC), who inherits if a person dies intestate without a spouse, descendants, or parents?
The estate will pass to the descendants of their parents under the UPC.
What three elements must exist for a security interest to attach?
(1) Value is given, (2) the debtor has rights in the collateral, and (3) the debtor authenticates a security agreement sufficiently describing the collateral.
What is a sufficient description of collateral in a security agreement under the UCC?
A description of collateral is sufficient if it describes the collateral by UCC type.
What is a purchase-money security interest (PMSI)?
A security interest in goods is a PMSI if it pertains to goods that are purchase-money collateral.
When does a perfected PMSI in goods other than inventory take priority over other security interests?
A perfected PMSI prevails if it is perfected when the debtor receives possession of the collateral or within 20 days thereafter.
How is priority determined between two perfected security interests?
The first-in-time, first-in-right rule applies, giving priority to the interest that was perfected first.
Under the MBCA, what are the requirements for a shareholder to inspect corporate records?
The demand must be made in good faith, be particular in its request, and be relevant to the shareholder’s interest.
What is the difference between a valid and invalid shareholder resolution?
A valid resolution is a recommendation or request to the board, while an invalid resolution attempts to bind the corporation’s board.
Does the First Amendment protect corporate speech the same way as speech by natural persons?
Yes, the Supreme Court has ruled that corporate spending on speech merits the same First Amendment protection.
Does the First Amendment apply to shareholder resolutions restricting corporate political activities?
No, the First Amendment applies only to state action, not private action such as shareholder resolutions.
What are the requirements for diversity jurisdiction in federal courts?
Diversity jurisdiction requires (1) complete diversity between all plaintiffs and defendants and (2) an amount in controversy exceeding $75,000.
What is the exception to complete diversity for class actions?
If a class action contains over 100 persons and the amount in controversy exceeds $5,000,000, only minimal diversity is required.
Under the Erie Doctrine, when does federal procedural law apply?
Federal procedural law applies in federal courts, even in diversity cases, if the issue is procedural rather than substantive.
What are the three elements required for standing in federal court?
A plaintiff must show (1) injury-in-fact, (2) causation, and (3) redressability.
When is joinder of a party mandatory under Rule 19?
Joinder is mandatory if complete relief cannot be provided without the party, or their absence risks inconsistent obligations or impairs their interest.
What is the effect of joining a non-diverse party in federal court?
If joining a party destroys complete diversity, the federal court lacks subject-matter jurisdiction and must dismiss the case.