CIV PRO
What is the rule statement for a cross-claim?
A cross-claim is an offensive claim against a co-party (same side of the "V") and must arise from the same transaction or occurrence. Courts can exercise supplemental jurisdiction over a cross-claim.
What is the rule statement for pre-incorporation promoter liability?
A promoter is a person who acts on behalf of a corporation before it is formed. They are personally liable for pre-incorporation contracts unless (1) there is a subsequent novation, or (2) the contract explicitly provides that there is no promoter liability.
What is the rule statement for ripeness?
A case is ripe for review when the plaintiff has experienced an actual injury or imminent threat thereof. If an ambiguous law has a long history of non-enforcement, a case challenging the law may lack ripeness.
What is the rule statement for tracing?
When separate and community property are commingled, courts may trace back to the source of funds to determine the characterization of the property.
There are two tracing methods:
What is the rule statement for a Merchant’s Firm Offer?
An offer is not revocable if it is made by a merchant. A firm offer is a statement in a signed writing that gives assurances it will be held open for a period stated in the writing or, if no time is stated, for a reasonable time not to exceed three months.
What is the rule statement for specific jurisdiction?
If general jurisdiction does not exist, the court looks to see whether the defendant’s contacts relate to or give rise to the cause of action.
What is the rule statement for the Deep Rock Doctrine?
Under the Deep Rock Doctrine, if a shareholder makes a loan to a corporation that is undercapitalized or mismanaged, their loan will be subordinated to the claims of outside creditors. This prevents shareholders from prioritizing their own financial interests over the legitimate debts of the corporation.
What is the rule statement for field preemption and conflict preemption?
Field preemption occurs when federal law occupies an entire regulatory field, making any state law within that field void. Conflict preemption occurs when a state law conflicts with federal law because compliance with both is physically impossible or because the state law poses an obstacle to Congress’s objectives.
What is the rule statement for stock options?
Stock options earned during marriage are community property to the extent they are compensation for services performed during the marriage. Courts apply the Hug Rule or the Nelson Rule to determine the community propertyportion of stock options.
What is the rule statement for an Options Contract?
An options contract is an agreement where the offeror guarantees the offeree an option to enter into a contract for a specified period of time and promises the offer will be held open during that time. Consideration is required for an options contract. The offer is irrevocable for the stated option period.
What is the rule statement for California subject matter jurisdiction?
California subject matter jurisdiction depends on whether the case is classified as unlimited, limited, or a small claims matter. In unlimited cases, the amount in controversy must be greater than $25,000. In limited cases, the amount must be $25,000 or less. Small claims cases must have an amount in controversy of $10,000 or less.
What is the rule statement for corporate liability for pre-incorporation contracts?
A corporation is not liable for a pre-incorporation contract unless it knows the material terms and accepts the benefits of the contract. If the corporation accepts the benefits, it may adopt the contract, but this does not relieve the promoter of liability—it only provides the creditor with an alternative means of recovery.
What is the rule statement for the Privileges and Immunities Clause of Article IV?
The Privileges and Immunities Clause of Article IV prevents a state or city from intentionally discriminating against non-citizens regarding rights fundamental to national unity. If an action denies an out-of-state person important economic interests or civil liberties, the law is presumptively invalid unless the state has a substantial justification and no less restrictive means.
What is the rule statement for the HugS Rule?
The Hug Rule is used when stock options are awarded as an incentive to attract employees or reward past services. The community property portion is calculated as:
\frac{\text{Years from hire to divorce}}{\text{Years from hire to option exercise}} = \text{Community Property %}
The remaining portion is separate property.
What is the rule statement for the Mailbox Rule?
Under the mailbox rule, acceptance is effective upon proper dispatch. There are two exceptions: (1) when the offer itself provides otherwise, the terms of the offer control, and (2) if both an acceptance and a rejection are sent, the rule depends on which was dispatched first. An option contract is effective upon receipt.
What is the rule statement for permissive joinder?
A plaintiff or defendant may be joined to an existing case if (1) the claims arise from the same transaction or occurrence and (2) raise at least one common question of fact or law. Subject matter jurisdiction must exist. Simply being jointly or severally liable does not deem a party a necessary party.
What is the rule statement for the Ultra Vires Act?
When a corporation acts outside the scope of its articles of incorporation, those acts are deemed Ultra Vires Acts (UVAs). Under common law, UVAs were void and unenforceable. However, under the Revised Model Business Corporation Act (RMBCA), UVAs are generally enforceable if they benefit the corporation. UVAs can be challenged in three ways: (1) by a shareholder suing to enjoin the act, (2) by the corporation suing an officer, or (3) by the state seeking dissolution based on a UVA.
What is the rule statement for substantive due process?
Substantive due process ensures that laws are reasonable and not arbitrary. If a fundamental right is affected, strict scrutiny applies, requiring the law to be necessary to achieve a compelling government interest. If a non-fundamental right is affected, rational basis review applies, requiring the law to be rationally related to a legitimate government interest.
What is the rule statement for the characterization of loans?
The characterization of a loan depends on the intent of the lender:
What terms do the UCC Gap Fillers supply?
The UCC gap fillers provide:
What is the rule statement for compulsory joinder?
A compulsory joinder of a party is the process of joining a necessary party to the claim. A plaintiff must join all interested parties or face dismissal of the lawsuit. The court must ask (1) should the absentee be joined, (2) can the absentee be joined, and (3) if the absentee cannot be joined, can sufficient relief be granted?
What is the rule statement for piercing the corporate veil?
Shareholders, directors, and officers are generally not personally liable for corporate debts. However, a court may pierce the corporate veil and impose personal liability if:
What is the rule statement for a public forum?
A public forum is government property that the government is constitutionally required to make available for speech, such as public parks, sidewalks, and streets. Regulations in a public forum must be content-neutral, narrowly tailored, serve an important government interest, and leave open alternative means of communication.
What is the rule statement for the assignment of debt?
Community debts can be assigned to either spouse based on their ability to pay. However, creditors can reach community property for debts incurred before or during the marriage.
What is the rule statement for Mutual Mistake?
A contract is voidable when both parties are mistaken as to a basic assumption of the contract, which is material to the contract, and the party claiming mistake did not obligate themselves to bear the risk of such a mistake.