NALA CP Practice Questions (2026) — Free Sample Questions with Answers

Answer: C

A published opinion of the U.S. Court of Appeals for the Fifth Circuit: Persuasive only. The Fifth Circuit's decisions bind the federal courts in its own circuit (Louisiana, Mississippi and Texas), not California.

A California Supreme Court opinion interpreting the federal statute: Persuasive only. On questions of federal law, a state supreme court's reading does not bind federal courts.

A published opinion of the U.S. Court of Appeals for the Ninth Circuit: Correct. California is in the Ninth Circuit, so that court's published decisions (and the U.S. Supreme Court's) bind district courts there.

An opinion from another U.S. district court judge in California: Persuasive only. One district judge's decision does not bind other district judges, even in the same district.

Mandatory authority comes from higher courts in the same jurisdiction; everything else is persuasive.

Answer: C

Yes, because the amount in controversy is more than $75,000: Incorrect. The amount requirement is met, but diversity jurisdiction also requires complete diversity of citizenship.

Yes, because at least one defendant is from another state: Incorrect. Minimal diversity is not enough under 28 U.S.C. 1332(a); every plaintiff must be diverse from every defendant.

No, because the plaintiff and one defendant are from Ohio: Correct. The Ohio plaintiff and Ohio defendant destroy complete diversity, so there is no diversity jurisdiction.

No, because federal courts never hear state-law claims: Incorrect. Federal courts routinely hear state-law claims under diversity or supplemental jurisdiction.

Diversity jurisdiction needs complete diversity (no plaintiff shares citizenship with any defendant) plus more than $75,000 in controversy.

Answer: D

Yes, because Ben agreed to the exact terms Ana offered: Incorrect. By then Ana's offer no longer existed for Ben to accept.

Yes, because an offer stays open for a reasonable time: Incorrect. An offer lapses after a reasonable time only if it is not ended sooner; here it was ended earlier by the counteroffer.

No, because a car sale must always be made in writing: Incorrect. A $5,000 sale of goods falls under the UCC writing rule, but that concerns enforceability; the core problem here is that no acceptance occurred.

No, because Ben's counteroffer ended Ana's offer: Correct. A counteroffer rejects the original offer, so Ben's later "acceptance" is only a new offer, which Ana may refuse.

A counteroffer is a rejection plus a new offer; the original offer cannot then be accepted unless the offeror renews it.

Answer: C

$0: Incorrect. A complete bar applies under traditional contributory negligence, not pure comparative negligence.

$30,000: Incorrect. This awards the plaintiff's own share of the fault instead of the defendant's.

$70,000: Correct. Under pure comparative negligence, damages are reduced by the plaintiff's share of fault: $100,000 x 70% = $70,000.

$100,000: Incorrect. Ignoring the plaintiff's 30% fault would be wrong in any comparative negligence system.

Pure comparative negligence: recovery = damages x defendant's share of fault; modified versions bar recovery at 50% or 51% plaintiff fault.

Answer: B

Firm B must withdraw from the case as soon as he is hired: Incorrect. Under Rule 1.10 cmt. [4] and ABA Informal Op. 88-1526, a conflict from a nonlawyer's prior work can usually be handled by screening, without disqualifying the firm.

Firm B screens him from the case, and he keeps prior secrets: Correct. The paralegal must not use or reveal Firm A's client confidences, and Firm B should screen him from the matter (Model Rules 1.10 cmt. [4], 5.3).

He may work on the case once Firm B's client gives consent: Incorrect. Consent from the new client does nothing to protect the former client's confidences.

He may share what he learned, since nonlawyers aren't bound: Incorrect. Lawyers must ensure nonlawyer staff conduct is compatible with the lawyer's duties, including confidentiality (Model Rule 5.3).

Paralegals who switch firms carry a duty of confidentiality; the new firm screens them from the conflicting matter rather than being automatically disqualified.

Answer: C

Collection is stayed only after the meeting of creditors: Incorrect. The stay begins when the petition is filed, not at the section 341 meeting.

Collection is stayed only once the court grants a motion: Incorrect. The stay is automatic; no motion or order is needed to start it.

Collection is stayed automatically upon the filing: Correct. Under 11 U.S.C. 362(a), filing the petition automatically stays most collection actions, including demands and garnishment.

Collection is stayed only for secured creditors' liens: Incorrect. The automatic stay protects the debtor against unsecured as well as secured creditors.

The automatic stay arises the moment a bankruptcy petition is filed and halts most collection activity against the debtor.