Bar Exam (Next Generation) Quiz: Limited Admissibility

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Limited AdmissibilityQuestion 1 of 11

In a products liability trial, an engineer testifies for the plaintiff that a power tool's design was defective. The engineer says that, in forming his opinion, he relied on a memo from a former employee of the tool company stating that the tool's safety switch failed during internal testing. The memo has not been admitted. The plaintiff asks the engineer to describe the memo's contents. The defendant objects.

Which issue is most directly raised by the plaintiff's request?

Whether the memo is barred by the attorney work-product doctrine because it was prepared by a company employee in anticipation of litigation.

Whether the engineer may testify about the memo before the plaintiff authenticates it as a business record made in the regular course of business.

Whether the memo is inadmissible hearsay because it was prepared by a person who is not testifying and has never been subject to cross-examination.

Whether the memo may be described to the jury only to explain the basis for the engineer's opinion and not as proof that the safety switch actually failed.

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Bar Exam (Next Generation) Quiz

Bar Exam (Next Generation) Quiz: Limited Admissibility

Practice Limited Admissibility in Bar Exam (Next Generation) with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

What this quiz covers

This quiz focuses on Limited Admissibility, giving you a quick way to practice the rules, question types, and explanations that matter most for Bar Exam (Next Generation).

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

All questions

Question 1

Which issue is most directly raised by the plaintiff's request?

Whether the memo is barred by the attorney work-product doctrine because it was prepared by a company employee in anticipation of litigation.
Whether the engineer may testify about the memo before the plaintiff authenticates it as a business record made in the regular course of business.
Whether the memo is inadmissible hearsay because it was prepared by a person who is not testifying and has never been subject to cross-examination.
Whether the memo may be described to the jury only to explain the basis for the engineer's opinion and not as proof that the safety switch actually failed. (correct answer)

Explanation: Whenever you see an expert testifying about material he relied on, separate two roles: basis for opinion versus substantive evidence of the fact. Here, the engineer may use the memo to explain why he concluded the design was defective. Under the rules governing expert testimony, an expert can rely on facts or data that are not admitted, if experts in the field reasonably rely on them. But if the memo is otherwise inadmissible hearsay, the jury may hear about it only to evaluate the engineer's reasoning—not to prove the safety switch actually failed. The defendant's objection, therefore, most directly raises that limiting-purpose issue: may the engineer describe the memo to the jury solely as the basis for his opinion, with an instruction that it is not proof of the underlying fact? The work-product doctrine is off target because that doctrine protects attorney litigation strategy, not internal engineering documents, and there is no indication the memo was prepared by an attorney or at attorney direction in anticipation of litigation. The business-record authentication issue misses the point because the engineer is not offering the memo itself into evidence; he is using it as a learned basis, so no business-record foundation is required. And while it is true that the memo would be hearsay if offered for the truth of its contents, that is not the most directly raised issue—the request is to describe it as the foundation for expert opinion, not to admit it as substantive proof. Remember this pattern: "basis, not truth" is the key. When an expert references inadmissible material, ask whether the disclosure is needed to explain the opinion and whether a limiting instruction can protect the defendant.

Question 2

In a criminal fraud prosecution, the government introduces the defendant's signed written statement, which reads: 'I took the client's money. But I intended to repay it after the investment closed.' The government offers the first sentence as an opposing party's statement. The defendant invokes Rule 106 to require the court to admit the second sentence as well, so the jury can understand the statement in context. The court admits the second sentence 'for context only' and instructs the jury that it may not consider the second sentence as evidence that the defendant actually intended to repay the money. The defendant objects, arguing that because the statement is his own, the jury should be allowed to consider the second sentence for its truth.

Federal Rule of Evidence 106 provides: 'If a party introduces all or part of a writing or recorded statement, an adverse party may require the introduction, at that time, of any other part—or any other writing or recorded statement—that in fairness ought to be considered at the same time.'

In United States v. Delgado, the court held: 'Evidence admitted under Rule 106 is admitted only to provide context for the portion already introduced. It is not substantive evidence of the truth of the matter asserted in the remainder.'

Was the court's ruling proper?

No, because Rule 106 permits the adverse party to require introduction of the remainder, and once introduced the remainder is substantive evidence.
No, because the defendant is the opposing party and his own statement is an opposing party's statement that may be considered for its truth.
Yes, because the second sentence was admitted only for context, and the court properly limited the jury's consideration of it. (correct answer)
Yes, but only because the defendant, not the government, asked for the second sentence to be admitted; if the government had introduced it, it would be substantive evidence.

Explanation: Rule 106 is a completeness doctrine: when a party introduces part of a writing, the adverse party may demand any other part that in fairness belongs in the same presentation. But the key limit, confirmed in Delgado, is that evidence admitted under Rule 106 comes in for context only—not as substantive evidence of the truth of what the remainder asserts. So when the defendant's first sentence was admitted as an opposing party's statement, the court properly admitted the second sentence to let the jury understand that he claimed an intent to repay, while instructing them not to treat that claim as proof he actually intended to repay. The court's ruling was therefore proper. The choice saying the second sentence was admitted only for context and the jury was properly limited is correct. The choice claiming that once the remainder is introduced under Rule 106 it becomes substantive evidence misstates the rule—completeness does not create a hearsay exception. The choice relying on the defendant being an opposing party misses the point: the defendant himself offered the second sentence, not the government, so the party-opponent exception does not apply to make it substantive. And the choice saying the result depends on which party requested admission is wrong because Rule 106's context-only limitation applies whenever the rule is invoked; if the government later offered the sentence under Rule 801(d)(2)(A), that would be a different basis for admission. Remember: Rule 106 is about fairness and context, not truth. Always separate "admitted for context" from "admitted for its substance."

Question 3

Marisol, a nurse, is on trial for obtaining a controlled substance by fraud. The prosecution wants to introduce evidence that, two years earlier, Marisol was fired from a different hospital after medication discrepancies. Marisol's lawyer objects. The prosecutor argues that the earlier termination is relevant to whether Marisol knew the prescription scheme was illegal.

Which issue is most directly presented by the prosecutor's offer?

Whether the earlier termination must be excluded because it occurred at a different hospital and was not the subject of a criminal charge.
Whether the earlier termination can be considered only for the limited purpose of showing knowledge and not as evidence of Marisol's character. (correct answer)
Whether the earlier termination must be excluded because its probative value is substantially outweighed by the danger of unfair prejudice.
Whether the court must conduct a hearing outside the jury's presence before ruling on the admissibility of the prior termination.

Explanation: Whenever you see evidence of a prior bad act, start with one question: what purpose is the prosecutor offering it for? Under Federal Rule of Evidence 404(b), evidence of a prior act is not admissible to show that Marisol has a bad character or acted in conformity with it. But it may be admissible for another purpose, such as knowledge, intent, or plan. Here, the prosecutor expressly offers the earlier termination to show that Marisol knew the prescription scheme was illegal. That directly raises the issue of whether the evidence can be admitted only for that limited non-character purpose, with a limiting instruction telling the jury not to use it as proof of bad character. That is the central issue. The choice saying the termination must be excluded because it happened at a different hospital and was not charged is wrong: prior acts need not be from the same workplace or result in criminal charges. The choice about unfair prejudice under Rule 403 is also not the most direct issue—while 403 balancing could matter, the prosecutor's specific argument is about knowledge, so the 404(b) limited-purpose question comes first. Finally, no rule automatically requires a hearing outside the jury's presence for every prior-act ruling; that depends on the circumstances and the court's discretion. Study tip: on evidence questions, separate "character propensity" from "non-character purpose." If the prosecutor says "knowledge" or "intent," think 404(b) and limiting instructions.

Question 4

A customer slipped and fell on a wet floor near the entrance of a grocery store. The customer sued the store for negligence. In its answer, the store asserted that it did not own or control the entrance area; the landlord did. Two days after the fall, the store's manager had non-slip mats installed at the entrance. At trial, the customer offered evidence of the mat installation to prove both that the entrance was dangerous and that the store controlled the entrance. The store objected.

Which of the following is the most significant legal issue the judge must decide?

Whether evidence of the mat installation may be admitted to show the store's control of the entrance even if the jury may not consider it as proof that the entrance was dangerous. (correct answer)
Whether the customer must prove that the store had actual notice of the wet floor before the fall to make the mat installation relevant.
Whether the store's manager had apparent authority to install the mats so that the installation can be treated as an admission by the store.
Whether the mat installation is an out-of-court statement that must satisfy the hearsay rule before it can be admitted.

Explanation: This question tests evidence law, specifically Rule 407 on subsequent remedial measures and the idea of limited admissibility. Whenever you see evidence that a party repaired or improved a condition after an injury, ask: what is the evidence being offered to prove? Rule 407 bars later safety measures to prove negligence, a defect, or the need for a warning, but it does not bar them when offered for another purpose, such as proving ownership or control—especially when the defendant disputes that fact. Here, the store denied owning or controlling the entrance, so the manager's installation of non-slip mats is relevant to show control. The judge must decide whether the jury may hear that evidence for that limited purpose only, while being instructed not to use it as proof that the entrance was dangerous. That is the most significant issue. The choice about actual notice is wrong because notice is a separate question; the mat installation goes to control, not whether the store knew about the wet floor, and constructive notice can sometimes satisfy that element. The choice about the manager's apparent authority is also not the central issue—even if the manager had authority, the court still must apply Rule 407 and limit the evidence's use. Finally, the hearsay choice misses the point: installing mats is nonassertive conduct, not an out-of-court statement, so Rule 407, not hearsay, governs. Study tip: when you see post-accident repairs, immediately ask what purpose the evidence is offered for—negligence or defect is barred, but control or impeachment may be allowed.

Question 5

In a bench trial on a fraud claim against two individual defendants, Ames and Boyd, the creditor offers an email from Ames stating, 'I guaranteed the loan, and Boyd knew about it.' The email is admissible against Ames as an opposing party's statement but is hearsay as to Boyd. Boyd's attorney requests a limiting instruction under Rule 105. The judge says: 'I am admitting this email only against Ames. As the trier of fact, I will not consider it against Boyd, and I do not need to give myself an instruction.' Boyd's attorney objects.

In In re Gorman, the court held: 'Rule 105's requirement of a limiting instruction is directed to trials in which the jury is the trier of fact. In a bench trial, the judge satisfies the rule by stating on the record that the evidence is received for a limited purpose and by confining his or her consideration accordingly. No formal instruction is required.'

Was the judge's ruling proper?

No, because Rule 105 says the court 'must' instruct the jury, and the judge must give the instruction even when sitting as the trier of fact.
No, because the judge's statement that he will not consider the email against Boyd is an unsworn assurance and cannot cure the hearsay problem.
Yes, because Rule 105's instruction requirement applies only when a jury is present, and the judge's on-the-record limitation satisfies the rule in a bench trial. (correct answer)
Yes, but only because Boyd's attorney requested the instruction; if no request had been made, the judge could have considered the email against Boyd.

Explanation: This question tests the intersection of hearsay, multiple-party admissibility, and Rule 105 limiting instructions. The key is recognizing that Rule 105's text refers to instructing "the jury," so its formal instruction requirement is tied to jury trials. Here, the email is a statement by Ames, a party opponent, so it is not hearsay as to Ames. But its assertion that Boyd knew about the guarantee is hearsay as to Boyd. The judge may admit it against Ames only. As trier of fact in a bench trial, the judge satisfies Rule 105 by stating on the record that the evidence is received for a limited purpose and by actually confining consideration accordingly; no formal self-instruction is needed. In re Gorman confirms this. Thus, the ruling was proper. The answer claiming the judge must give the instruction even when sitting as trier of fact is wrong because Rule 105 does not require a judge to deliver formal instructions to himself. Likewise, the objection that the judge's statement is an "unsworn assurance" that cannot cure the hearsay problem misses the point: the email was not admitted against Boyd, so the hearsay problem as to Boyd is avoided, not "cured." The judge's on-the-record limitation is exactly what the rule contemplates in a bench trial. And the answer saying the ruling was proper only because Boyd's attorney requested an instruction is also wrong: a timely request triggers the court's obligation to restrict evidence, but it does not make otherwise inadmissible hearsay admissible against Boyd. Without a request, the judge still could not properly use the email as proof of Boyd's knowledge. When you see a limiting-instruction question, remember: in a bench trial, a judge's clear on-record limitation plus actual confinement suffices. Rule 105 says "instruct the jury," not"instruct yourself."

Question 6

At a personal-injury trial, the plaintiff calls an eyewitness, Rivera, who testifies that the defendant ran a red light and struck the plaintiff's car. On cross-examination, the defendant offers a prior statement Rivera made to an investigator in which Rivera said, 'I never saw the light.' The court admits the prior statement only to impeach Rivera's credibility, not as substantive evidence that the light was not red. The defendant requests a limiting instruction, and the court tells the jury: 'This prior statement may be considered only in evaluating Rivera's credibility. It is not evidence about the color of the light.' After the jury begins deliberating, it asks to see the investigator's report containing the prior statement. The court sends the report to the jury room without repeating the limiting instruction. The defendant objects, and the court responds, 'The instruction I gave when the report was admitted is sufficient.'

In People v. Asher, the appellate court held: 'When an exhibit admitted for a limited purpose is later sent to the jury room, the court must take reasonable steps to ensure the jury applies the limitation while examining the exhibit. A limiting instruction given only when the exhibit was first admitted may be insufficient if the jury is later given the exhibit without any reminder of the limitation.'

Was the court's response correct?

Yes, because the limiting instruction was properly given when the report was admitted and need not be repeated.
Yes, because the defendant's objection came after the report had already been sent to the jury room and was therefore untimely.
No, because evidence admitted solely for impeachment may never be sent to the jury room.
No, because the court was required to take reasonable steps, such as repeating the limiting instruction, to ensure the jury applied the limitation when considering the report. (correct answer)

Explanation: Whenever you see a question about a limiting instruction, remember that the trial court's duty does not end when the evidence is admitted. The key concept here is that the jury's focus shifts during deliberations, and the court must take proactive steps to ensure that a limited-purpose exhibit—like this impeachment report—is not misused once it leaves the courtroom. The court's response was incorrect. Under the rule in People v. Asher, when an exhibit admitted for a limited purpose is later sent to the jury room, the court must take reasonable steps to ensure the jury applies the limitation while examining it. Here, the court gave the instruction at admission but then sent the report to the jury room without repeating it or adding any cautionary note. That failure to remind the jury at the moment of deliberation is precisely what makes the response insufficient. The choice that says the limiting instruction was properly given and need not be repeated is a trap—it ignores the Asher holding that a prior instruction "may be insufficient." The choice claiming the objection was untimely is also wrong: the error occurred when the court sent the report without a reminder, and the defendant objected immediately after, which is timely. Finally, the assertion that impeachment evidence may never be sent to the jury room is an overstatement—it can be sent, provided the court takes steps to protect against misuse. For your exam, remember: when a limited-purpose exhibit goes to the jury room, look for whether the court took a fresh, reasonable step to remind the jury—a bare prior instruction is rarely enough.

Question 7

Consumers sued a manufacturer and its former sales director for fraudulent misrepresentation. Two years after leaving the company, the sales director told a reporter, 'I knew the product was defective, and I kept that information from consumers.' At trial, the consumers offer the statement against both defendants. The manufacturer objects.

Which issue is most directly raised by the manufacturer's objection?

Whether the statement may be considered only against the sales director and not as evidence against the manufacturer. (correct answer)
Whether the statement is admissible against the manufacturer because the sales director had knowledge about the product's defects.
Whether the sales director's statement to a reporter is barred by the hearsay rule even as to the sales director.
Whether the news reporter must be called to testify before the statement can be used against either defendant.

Explanation: Whenever an out-of-court statement is offered against multiple defendants, think about hearsay exceptions and limited admissibility. The sales director's statement is an admission of a party-opponent as to himself: he is a defendant, the statement is his own, and admissions are simply not hearsay. But as to the manufacturer, the analysis changes. The manufacturer did not make the statement, and because the sales director had left the company two years earlier, his statement was not made within any ongoing agency relationship that could bind the manufacturer. So the statement may be considered against the sales director only, and the judge should give a limiting instruction—exactly what the manufacturer's objection raises. The argument that the statement is admissible against the manufacturer because the sales director had knowledge about the product's defects confuses relevance with admissibility. His knowledge makes the statement damaging, but it does not attribute that statement to the manufacturer. Likewise, the statement is not barred by the hearsay rule even as to the sales director: a party's own statement qualifies as an opposing party's statement regardless of when it was made or to whom. Finally, the reporter does not have to testify before the statement can be used in either capacity; anyone who heard the statement can authentically report it, so the reporter's presence is an authentication issue, not a hearsay issue. The key takeaway: when a statement is offered against multiple parties, ask separately whether it is an admission as to each party. If it is only the declarant's admission, its use against others is limited, not automatic.

Question 8

After a car accident, a pedestrian sued the driver. A passenger in the driver's car was also injured and later settled his own claim against the driver. At trial, the passenger testifies for the driver that the pedestrian stepped into the street without looking. The pedestrian's lawyer asks the court for permission to question the passenger about the settlement. The driver objects.

Which issue is most directly raised by the pedestrian's request?

Whether the passenger's testimony is barred by the parol evidence rule because it contradicts the written settlement agreement.
Whether the passenger's settlement with the driver must be excluded because the passenger was involved in the accident and had a claim of his own.
Whether the settlement may be used to show the passenger's bias in favor of the driver even though it may not be used to prove the driver's negligence. (correct answer)
Whether the pedestrian must first show that the passenger knew the settlement amount before asking about it.

Explanation: Whenever settlement evidence appears in a trial, your first instinct should be to think of the rule that settlements are generally inadmissible to prove liability or damages—but they can be admitted for another purpose, such as showing a witness's bias. That is exactly what is happening here: the passenger settled his own claim against the driver, and the pedestrian wants to bring that out to show the passenger is testifying favorably toward the driver because of the settlement. The key is that the evidence is not being offered to prove the driver caused the accident; it is being offered to impeach the passenger's credibility and expose a motive to help the driver. The fact that it also happens to involve a settlement does not make it automatically barred, because the bias exception to the settlement exclusion rule is well established. The "parol evidence rule" choice is a trap: that rule governs contradictions of written contracts, not witness testimony about an accident. The idea that the settlement must be excluded because the passenger had his own claim is also wrong—having a claim is precisely what creates the potential bias. And there is no requirement that the pedestrian first show the passenger knew the settlement amount; the relevant point is that a settlement existed, not that the passenger remembered its precise terms. On exam day, when you see a settlement plus a witness, ask: is the evidence offered to prove fault, or to prove the witness is biased? If it's bias, it's admissible.

Question 9

In a premises-liability action, the plaintiff slipped on an unlighted stairway in a building the defendant managed. The defendant denies that it controlled the stairway. To prove control, the plaintiff offers evidence that, ten days after the fall, the defendant installed a light fixture on the stairway.

Rule 407 provides: 'When measures are taken that would have made an earlier injury or harm less likely to occur, evidence of the subsequent measures is not admissible to prove negligence, culpable conduct, a defect in a product or its design, or a need for warning or instruction. But the court may admit this evidence for another purpose, such as impeachment or—if disputed—proving ownership, control, or the feasibility of precautionary measures.'

The defendant's attorney does not request a limiting instruction when the evidence is offered. After both sides rest, the defendant asks the court to instruct the jury that the light-fixture evidence may be considered only on control and not on negligence. The court denies the request as untimely.

In State v. Halbrook, the appellate court held: 'A request for a limiting instruction under Rule 105 is timely only if made when the evidence is offered, or as soon as the party has actual knowledge that the evidence is being offered for an impermissible purpose. A party may not wait until the close of evidence to request an instruction when the ground for the request was apparent when the evidence was admitted.'

Was the trial court's ruling correct?

No, because Rule 407 expressly makes evidence of subsequent remedial measures admissible to prove control, so the defendant was entitled to have the jury told not to use it for negligence.
No, because a request for a limiting instruction is timely if made before the case is submitted to the jury, regardless of when the evidence was admitted.
Yes, because the evidence was admissible only for control, so no limiting instruction was necessary to protect the defendant.
Yes, because the defendant knew at the time the evidence was admitted that it was offered for control and could have requested the limiting instruction then, but did not. (correct answer)

Explanation: Whenever you see a subsequent remedial measure offered to prove control or feasibility, remember Rule 407 makes it admissible for those purposes, but not for negligence. That creates a need for a limiting instruction under Rule 105—and the critical issue here is the timing of that request. The trial court was correct. The defendant knew at the time the evidence was admitted that it was offered for control and could have requested the limiting instruction then, but did not. Under Halbrook, a request is timely only if made when the evidence is offered, or as soon as the party has actual knowledge of the impermissible purpose. Waiting until after both sides rested was untimely, so the court properly denied it. Now examine the wrong answers. The choice claiming the defendant was "entitled to have the jury told not to use it for negligence" misses the point—he was entitled, but he forfeited that right by not asking at the right time. The choice saying a request is timely "if made before the case is submitted to the jury" directly contradicts Halbrook, which rejects waiting until the close of evidence. Finally, the choice stating "no limiting instruction was necessary to protect the defendant" is a trap. The evidence is admissible only for control, but the jury could easily misuse it for negligence. The instruction was necessary; the defendant just waived his right to it by waiting. For the bar, remember: when evidence has dual admissibility, request a limiting instruction the moment it is admitted. Do not wait—the court will not save you later.

Question 10

At a civil trial, the plaintiff sues two defendants, Carl and Dana, for injuries from a car collision. The plaintiff offers a written statement Carl gave to police after the accident: 'I ran the red light.' The statement is admissible against Carl as an opposing party's statement. It is not offered against Dana, and it would be hearsay if offered against her. The court admits the statement, stating, 'This is admitted only against Carl.' The court gives no limiting instruction because Dana's attorney never requested one. At the end of the case, the court instructs the jury generally on the law; it does not mention Carl's statement or instruct the jury how to use it. Dana appeals, arguing that the trial court violated Federal Rule of Evidence 105 by allowing the jury to consider Carl's statement against her.

Federal Rule of Evidence 105 provides: 'If the court admits evidence that is admissible against a party or for a purpose—but not against another party or for another purpose—the court, on timely request, must restrict the evidence to its proper scope and instruct the jury accordingly.'

Which of the following is the best analysis of Dana's argument?

Dana is not entitled to relief because Rule 105 required her to make a timely request for a limiting instruction, and she did not do so. (correct answer)
Dana is entitled to a new trial because Rule 105 imposes a mandatory duty on the court to give a limiting instruction once it admits evidence for a limited purpose.
Dana is entitled to a new trial because the court admitted evidence that was hearsay as to her and the final instruction did not restrict its use.
Dana is not entitled to relief because Rule 105 applies only to evidence admitted for one purpose, not to evidence admitted against one party but not another.

Explanation: When you see a question about Federal Rule of Evidence 105, remember that limiting instructions are request-driven, not automatic. The rule says the court "on timely request" must restrict evidence and instruct the jury. Without a request, the court has no obligation—even if the evidence is admissible only against one party. Here, Carl's statement was properly admitted against Carl. The court even said it was "admitted only against Carl," but that statement was directed at the parties, not the jury. Dana's attorney never asked for a limiting instruction, so the trial court did not violate Rule 105. Dana cannot complain on appeal because she failed to preserve the issue. That makes the correct analysis: Dana is not entitled to relief because Rule 105 required her to make a timely request, and she did not do so. Why the others fail: The choice saying the court had a mandatory duty to instruct once it admits evidence for a limited purpose misreads the rule—the duty is conditional on a request. The choice claiming Dana gets a new trial because the final instruction didn't restrict use similarly ignores the lack of request. And the choice that Rule 105 applies only to "one purpose" not "one party" is wrong because the rule explicitly says "against a party or for a purpose"—it covers both situations. Study tip: On the bar exam, any time a question involves limiting instructions, immediately ask: "Did the party make a timely request?" If not, the answer is almost always "no relief." Also distinguish the judge's statement to counsel from a jury instruction—only the latter satisfies Rule 105.

Question 11

In a criminal prosecution for wire fraud, the government offers evidence that the defendant previously engaged in a nearly identical scheme to defraud investors. The government says the evidence is admissible to prove the defendant's knowledge and intent, not to show that he has a propensity to commit fraud. The defendant objects under Rule 403 and alternatively asks that, if the evidence is admitted, the court instruct the jury under Rule 105 that it may consider the prior scheme only on knowledge and intent. The court finds that the prior scheme is probative of knowledge and intent but that its prejudicial effect is substantial. The court also finds that a limiting instruction would not prevent the jury from using the evidence as propensity. The court excludes the evidence. The government appeals.

Federal Rule of Evidence 403 provides: 'The court may exclude relevant evidence if its probative value is substantially outweighed by a danger of one or more of the following: unfair prejudice, confusing the issues, misleading the jury, undue delay, wasting time, or needlessly presenting cumulative evidence.'

Was the court's exclusion of the prior-scheme evidence proper?

Yes, because Rule 403 permits exclusion when probative value is substantially outweighed by unfair prejudice, and Rule 105 does not require admission. (correct answer)
No, because the government's willingness to accept a limiting instruction eliminates the danger of unfair prejudice for purposes of Rule 403.
No, because once evidence is found admissible for a non-propensity purpose, Rule 105 requires the court to admit it with a limiting instruction.
Yes, because Rule 105 requires a limiting instruction only when evidence is admitted against one party but not another, not when evidence is admitted for one purpose but not another.

Explanation: Whenever you see prior bad acts evidence offered for a non-propensity purpose, remember the two-step path: Rule 404(b) may let the evidence in for knowledge or intent, but Rule 403 still gives the judge independent power to exclude it. The judge here did exactly that—he found the prior scheme was probative, but also found substantial unfair prejudice and doubted a limiting instruction would work. That makes exclusion proper. Rule 403 permits exclusion when probative value is substantially outweighed by unfair prejudice. Rule 105 is not an admission-forcing rule; it only says that if evidence is admitted for a limited purpose, the court must give a limiting instruction on timely request. It never overrides Rule 403 or requires the judge to admit evidence he has already found too prejudicial. The "government's willingness to accept a limiting instruction" does not eliminate unfair prejudice—the court found the instruction would not stop the jury from using the evidence as propensity, and that finding is entitled to deference. The "once evidence is admissible for a non-propensity purpose" argument also misreads Rule 105: admissibility under one rule does not guarantee admissibility overall. Finally, the answer saying Rule 105 applies only to parties, not purposes, is contradicted by the rule's plain text: it covers evidence admissible against one party or for one purpose but not another. Study tip: on evidence questions, distinguish admissibility from scope. Rule 105 governs scope after admission; it does not compel admission.