Each part is worth half of the grade. You may consult your Rules Supplement during the exam. No other materials are to be used during the exam. Please take a few moments to organize your answer before you begin writing.
Space is provided after each question for an outline.
Please write on every other line of your exam book. PART ONE Pearl Gray is an attorney at a medium-sized firm in Monroe, Massachusetts. One of her clients is Cheap Earl's Audio, Inc., a corporation that owns 50 stores selling stereos and other consumer electronics at a discount. The Chief Executive Officer, Walt Frazier, has called on Pearl from time to time for advice about litigation, as well as general corporate matters. One day, Frazier calls Pearl and tells her that he believes someone in the company is embezzling.