Free MEE Practice Questions

Question 1

Grayson Supply discharged its purchasing manager on a Monday. The company did not notify Ridgeline Fabricators, a supplier from which the manager had ordered on Grayson's behalf for six years. On Wednesday the former manager used a Grayson purchase order form to place a $60,000 order with Ridgeline, which shipped the goods in reliance on the order. Is Grayson bound to pay?

Accepted Answer

Yes, because apparent authority persists until the third party is notified

Answer

No, because the manager's actual authority ended when he was discharged

Answer

Yes, but only if Grayson had given the manager written authority to bind it

Answer

No, unless Grayson accepted the goods and thereby ratified the order

Question 2

Halvorsen contributed $180,000 and Iyer contributed $20,000 to a general partnership. Their written agreement addresses management and dissolution but says nothing about the division of profits. The partnership earns $100,000 in its first year. How are those profits allocated?

Accepted Answer

$50,000 to each partner, regardless of the amount each contributed

Answer

$90,000 to Halvorsen and $10,000 to Iyer, in proportion to contributions

Answer

Each partner receives a return of capital before any profit is divided

Answer

The allocation is set by the partners' relative management responsibilities

Question 3

Before Calder Robotics was incorporated, its promoter signed a two-year equipment lease with Vantage Leasing 'on behalf of Calder Robotics, Inc., a corporation to be formed.' After incorporation, Calder's board formally adopted the lease and made payments for six months before defaulting. Vantage sues the promoter personally for the unpaid rent. Is the promoter liable?

Accepted Answer

Yes, unless Vantage agreed to substitute the corporation for the promoter

Answer

No, because the corporation's adoption of the lease released the promoter

Answer

No, because the promoter disclosed that the corporation did not yet exist

Answer

Yes, but only for rent that accrued before the corporation adopted the lease

Question 4

Meridian Analytics LLC is organized under Delaware law and maintains its only office in Ohio. Its three members are citizens of Ohio, Nevada, and Texas. Meridian sues a Texas citizen in federal court for $2 million, invoking diversity jurisdiction alone. Should the court dismiss for lack of subject matter jurisdiction?

Accepted Answer

Yes, because Meridian shares Texas citizenship through one of its members

Answer

No, because an LLC is a citizen of its state of organization and its principal place of business

Answer

No, because the amount in controversy plainly exceeds $75,000

Answer

Yes, because an unincorporated association can never invoke diversity jurisdiction

Question 5

A defendant served with a federal complaint files a Rule 12(b)(6) motion to dismiss for failure to state a claim. The motion says nothing about personal jurisdiction. After the court denies the motion, the defendant files an answer asserting lack of personal jurisdiction as its first affirmative defense. How should the court treat that defense?

Accepted Answer

It is waived, because it was omitted from the earlier Rule 12 motion

Answer

It is preserved, because it was raised in the first responsive pleading

Answer

It is preserved, because objections to jurisdiction may be raised at any time

Answer

It is waived only if the plaintiff shows prejudice from the delay

Question 6

A plaintiff's federal complaint is dismissed under Rule 12(b)(6). Final judgment is entered and the plaintiff does not appeal. The plaintiff then files a new action in a different federal district against the same defendant, asserting the same claim with more detailed factual allegations. The defendant moves to dismiss on claim preclusion grounds. How should the court rule?

Accepted Answer

Grant, because a Rule 12(b)(6) dismissal is an adjudication on the merits

Answer

Grant, but only if the two districts sit within the same circuit

Answer

Deny, because the first dismissal never reached the substance of the dispute

Answer

Deny, because the second complaint pleads facts that the first one omitted

Question 7

A city council opens each of its monthly public meetings with an invocation delivered by a rotating group of local clergy. A resident sues, contending the practice violates the Establishment Clause. In deciding the case, the court should:

Accepted Answer

Examine whether the practice fits within historical practices and understandings of the Establishment Clause

Answer

Apply the three-part test asking whether the practice has a secular purpose, a primarily secular effect, and avoids excessive entanglement

Answer

Ask whether a reasonable observer would perceive the practice as a government endorsement of religion

Answer

Apply strict scrutiny, because the practice is an explicit government reference to religion

Question 8

A state statute requires that any company awarded a contract on a state-funded highway project fill at least 60 percent of the project's jobs with state residents. An out-of-state contractor challenges the statute solely under the dormant Commerce Clause. The statute will most likely be:

Accepted Answer

Upheld, because the state is acting as a market participant, not a regulator

Answer

Struck down, because it facially discriminates against out-of-state commerce without adequate justification

Answer

Struck down, unless the state shows no reasonable nondiscriminatory alternative is available

Answer

Upheld, because the burden on interstate commerce is not clearly excessive relative to local benefits

Question 9

A restaurant contracts with a seafood distributor for weekly deliveries of oysters at a fixed price for one year. Four months in, a harvest shortage sharply raises the distributor's costs, and it requests a 15 percent price increase. The restaurant, wanting to keep its supplier, agrees in a signed writing. The restaurant later refuses to pay the increase, arguing the distributor gave nothing in return. The modification is:

Accepted Answer

Enforceable, because a modification of a contract for goods needs no consideration

Answer

Unenforceable, because a promise to perform a pre-existing duty is not consideration

Answer

Unenforceable, unless the distributor proves the shortage was genuinely unforeseeable

Answer

Enforceable, because the restaurant waived the consideration requirement in writing

Question 10

Two commercial nurseries orally agree that one will sell the other 4,000 ornamental shrubs for $28,000. The next day the seller mails a signed letter confirming the quantity, price, and delivery date. The buyer reads the letter, files it, and never responds. Three weeks later the buyer refuses delivery and raises the Statute of Frauds. The buyer's defense will:

Accepted Answer

Fail, because the buyer did not object within ten days of receipt

Answer

Fail, because the oral agreement was fully definite as to quantity and price

Answer

Succeed, because the buyer never signed a writing evidencing the agreement

Answer

Succeed, because a written confirmation binds only the party who signed it

Free MEE Practice Questions

Domain 1: Business Associations (Agency and Partnership; Corporations and Limited Liability Companies)

Question 1

Question 2

Question 3

Domain 2: Civil Procedure

Question 4

Question 5

Question 6

Domain 3: Constitutional Law

Question 7

Question 8

Domain 4: Contracts (including Article 2 [Sales] of the Uniform Commercial Code)

Question 9

Question 10

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