The “global economic crisis” has reached the July 2009 Michigan Bar Exam. Through this debacle, Michigan’s people and industries have been some of the most impacted in the country. Given this, the Michigan State Board of Law Examiners was wise to make financial problems prominent on this summer’s bar exam.
Over a quarter of the essay questions on the written portion of the July 2009 exam directly dealt with financial problems. Here is a summary of directly recession-related topics on the essay portion of the July 2009 Michigan Bar Examination, by topic:
#8 Workman’s Compensation. An auto worker is injured, and his employer – a component supplier – gave him a “[non]meaningful” replacement job. As the recession deepened, the component supplier terminated the worker’s meaningless job, assuring him that he would receive unemployment compensation, rather than workman’s comp. weekly wage loss benefits.
#10 Professional Responsibility. A partner in a law firm set up a real estate investment entity on behalf of a managing investor. The partner left, taking his client. The real estate investment company did not turn out to be that profitable, as evidenced by the fact that the non-managing investors decided to sue the managing investors (including the former partner’s client. They retained the partner’s former law firm, creating a conflict of interest.
#12 Corporations. Stockholder derivative suit. A mortgage lender issued the stock as the foreclosure crisis began. Soon, the company’s stock value was decimated. Thus, stockholder sued mortgage lender for the issuance of stock to management employees, arguing violation of the directors’ fiduciary duties.
#15 Real Estate. The appropriate grand finale. Mortgage priority dispute between a purchase money mortgage lender and a second mortgage lender.
On a side note, I, personally, think I passed the exam. It will take until November, however, to find out.