Wednesday, May 15, 2002

8:30 a.m. - 11:30 a.m.

3 Hours Professor Westbrook

The examination is in two separate parts.  Part I consists of 10 true-false questions and 30 multiple choice questions.  Part II consists of one essay question.  The examination is 14 pages long.

I probably will assign a total of 200 possible raw points to Part I (5 points for each correct answer) and a total of 100 possible raw points to the essay question if I conclude that this allocation would produce inappropriate results.

Part I will be machine graded.  After you have answered the questions on the examination itself, you must fill out the answer sheet that has been provided, using a number 2 pencil.  If there is any inconsistency, the answer sheet will control.  Place your examination number in the space on the answer sheet for your student number.  Place the course name in the space on the answer sheet for student name.

Write your examination number at the top of this page.

Do not take your copy of the examination outside the examination room.  You must hand in your copy of the examination, the answer sheet and your blue book when you initial your name on the class role.



(One Essay Question)

Cindy Novak, a resident of Kansas, was recruited in Kansas by Mutual of Omaha, a corporation headquartered in Omaha, Nebraska, to sell Mutual's insurance products in Kansas.  Novak was terminated after three years because of insufficient sales.

Novak signed the Mutual of Omaha Agent's Contract when she was employed.  You may assume this contract was made n Nebraska when Mutual accepted the contract.  You may further assume that all of Novak's responsibilities were to be performed in Kansas.

The Agent's contract contained the following provision:

"10.  Limitation of Actions.  Any claim by the Agent under this Contract must be brought within one (1) year of the occurrence of the claim.

* * *

15.  All questions arising on this Contract shall be decided according to the laws of the State of Nebraska."

Novak sued Mutual of Omaha in Kansas.  The trial court granted summary judgment in Mutual's favor because Novak's claim was time barred by paragraph 10 above.  such time limits are valid under Kansas internal law but are invalid under Nebraska internal law.

You may assume that Kansas follows the Restatement, Second, Conflict of Laws.  You may further assume that Nebraska follows the First Restatement of Conflict of Laws.

Novak appeals.  Discuss whether the trial court decision should be reversed, giving reasons for your answer.