Hot Big Law Girlie
The business judgement rule does not apply to the breach of this fiduciary duty
Duty of Loyalty
What is the order for abatement?
(1) property passing by intestacy; (2) residuary estate; (3) general legacies; (4) demonstrative legacies; (5) specific bequests and devises
This type of trust precludes the beneficiary from voluntarily or involuntarily transferring their interest
Spendthrift Trusts
What factor may the court consider in alimony orders but generally not in property division?
Marital Fault
In the case of commingled cash proceeds, the identifiable proceeds can be traced with which rule?
Lowest Intermediate Balance Rule- rule states that (1) you look at the bank account starting at the time the proceeds are deposited and ending at the time the rule is applied and (2) take the lowest balance during that time period (3) so long as it does not exceed the value of the cash proceeds originally deposited
What are the requirements for a derivative suit?
(1) standing; (2) demand; (3) corporation joined as a defendant
When will a No-Contest Clause be held invalid?
In UPC if there was probable cause for bringing the contest
When is a trust valid?
(1) settlor with capacity; (2) settlor present intent to create a trust; (3) trustee; (4) definite beneficiary; (5) identifiable corpus; (6) proper purpose
Every child is the lawful child of his mother, but is the lawful child of his unwed father only if...
(1) the parents marry after the child's birth; (2) the father holds the child out as his biological child; (3) father consents to be named on birth certificate; (4) father acknowledges paternity; or (5) court established paternity
When does a PMSI in goods (other than inventory and livestock) take priority over a prior perfected securtiy interest?
What is the difference of a shareholder voting requirement for voting in the ordinary course of business versus a fundamental corporate change?
Fundamental Corporate Change vote requires majority shareholders entitled to vote whereas Ordinary Course of Business vote requires majority shareholders present to vote
This type of law saves a gift to a predeceasing beneficiary so long as they were in a specified degree of relationship to the testator and left descendants who survives the testator
Anti-Lapse Statutes
When the trust property is less than $50,000, amount is insufficient to justify the cost of administration, and the trustee provides the beneficiaries with notice
In an adoption case, the court considers this one factor higher than the rest
Consent/wish of the child (older than 12 years old)
How long does a secured party have to file a new financing statement when the debtor moves to a new state?
4 months (and one year if the collateral was transferred to a new owner in a new state)
When may an principal be liable for their independent contractor's torts?
if (1) the activity involved was inherently dangerous; (2) the duty was nondelegable; or (3) the principal knowingly selected an incompetent independent contractor
What contesting mechanism to a will will a court generally not grant relief for?
Mistake in Inducement- the testator is mistaken as to some extrinsic fact and makes their will based on that erroneous fact
When may a trustee who breaches their duty of loyalty not be held liable?
(1) a court/terms of the trust approved it; (2) beneficiary failed to bring suit in prescribed time period; (3) the beneficiary gave their consent/ratification/release; or (4) involves a contract/claim arising before the trustee became trustee
When can another state court alter an issuing courts child custody decree?
If no child or parent continues to reside in the state or the child no longer has a significant connection with the issuing state
A buyer in a consumer-to-consumer transaction takes free of a security interest if what elements are met?
(1) buys without knowledge of the security interest; (2) for value; (3) for the buyer's own personal purposes; and (4) before a financing statement covering the goods has been filed
A partnership is liable for all contracts entered into by a partner in what
within the scope of the partnership business/ ordinary course of the partnership business
A purging statute has what effect on a will's validity?
Make signing witnesses who have an interested stake in the will considered incompetent
A beneficiary or successor trustee can set aside transactions that are breaches of trust if the property is not in the hands of who?
A bona fide purchaser
What court has jurisdiction in a divorce proceeding?
Any state in which one of the parties is domiciled (if it involves remedies beyond divorcee decree like alimony or property divorce than the court also needs PJ over the parties)
A nonconsumer deposit account may only be perfected by control in three ways. What are these three ways in order of their priority?
1. Put deposit account in the secured party's name
2. The bank where the account is maintained has the control over the account
3. A control agreement