ACCT 324 quizlet (CH48-51)

Ryan had taken a commercial property for rent for a period of five years. However, after completing two years and two months, Ryan permanently left the place without informing the landlord and made no further payment of rent. Which of the following would best describe this behavior? - Surrender - Eviction - Abandonment - Forfeiture

- Abandonment

Which of the following statements is true about insurable interest? - Insurable interest cannot exist in a person. - The insurable interest in life need not exist at the time of taking the policy. - An individual has an insurable interest in property whenever that person derives a financial benefit from its continued use. - In the case of general insurance, a person can collect the beneficiary payment as no insurable interest exists at the time of the loss.

- An individual has an insurable interest in property whenever that person derives a financial benefit from its continued use.

Which of the following is an example of tangible personal property? - Land - Fixtures - Insurance policies - Cars

- Cars

Which of the following is an example of a trade fixture? - Central air conditioners built-in at a business premises that is rented - A piece of land given on rent to a cattle-rearing business - A car given to a friend to be used until the owner returns from a long holiday - Computers given to a business tenant at full consideration

- Computers given to a business tenant at full consideration

Which of the following is a characteristic of a personal property? - It is movable. - It is attached to a piece of land. - It is initially movable but later gets fixed onto a piece of land. - It behaves as realty.

- It is movable.

What does the covenant of quiet enjoyment mean? - It means that the tenant cannot bring an action for possession against the landlord. - It means that the tenant cannot invite guests to stay at the leasehold property. - It means that the landlord has the right to sue the tenant if the tenant is found playing loud music at the leasehold estate. - It means that the landlord promises not to interfere with the tenant's use and enjoyment of the property.

- It means that the landlord promises not to interfere with the tenant's use and enjoyment of the property.

Ronnie and Ted, two artists, were given the job of painting a mural for which they were offered $250 by Jack. Since Ronnie and Ted were not very experienced at painting murals, Ted approached his friend Nikita to help them out and promised to pay her $150 for the mural. In this case, who is the true owner of the property? - Ted - Ted and Ronnie - Nikita - Jack

- Jack

Tulip is Ron's tenant. She has taken the ground floor of the property to open a restaurant. Ron resides on the second floor of the property. Meg, a customer at Tulip's restaurant, slipped and fell on a wet floor inside the restaurant after entering a room that said "Employees only." Who would be responsible for Meg's injury? - Tulip - Ron - Meg - The employees at the restaurant

- Meg

_____ can be defined as the compensation paid to the landlord for the tenant's right to possession and exclusive use of the premises. - Rent - Lease - Lien - Price

- Rent

_____ is a mutual agreement between a landlord and a tenant to terminate a lease. - Eviction - Surrender - Forfeiture - Condemnation

- Surrender

Which of the following statements is true of the landlord-tenant relationship? - The actual agreement between a landlord and a tenant is called bailment. - The landlord retains control of and access to the property named in a lease. - The tenant obtains the title to the land given on lease. - The tenant has the right to exclusive possession of the property named in a lease.

- The tenant has the right to exclusive possession of the property named in a lease.

When is a landlord liable for injuries on the premises? - When the injuries occur in the common areas like elevators - Only when the tenant stays in that part of the premises where the accident occurred - When the injury has occurred in the presence of the landlord - After the tenant has completed one year of stay

- When the injuries occur in the common areas like elevators

Which of the following commonly restricts the type of use to which land may be put, such as residential, commercial, industrial, or agricultural? - Adverse possession - A variance - A lien - Zoning

- Zoning

When property that is initially movable becomes attached to land, it is known as: - a bailment. - real property. - a fixture. - tangible property.

- a fixture.

Caveat emptor means that: - a buyer can return damaged goods directly to a seller. - a seller has no obligation to tell a buyer about any problems. - a buyer need not check a product before accepting the same. - a seller is duty-bound to point out the defects in a product, if any, to a buyer before a sale.

- a seller has no obligation to tell a buyer about any problems.

A property that the original owner has discarded is _____ property. - secondary - wrecked - conditional - abandoned

- abandoned

Johnny forgot to pay the monthly premium for his life insurance policy. However, he found out that his insurance policy was not cancelled by the insurer and was, in fact, given a grace period to make the overdue payment. This was due to the existence of the _____ clause in the policy. - incontestability - appraisal - escalation - antilapse

- antilapse

Leaving one's car in a hotel for valet parking at a price is an example of a(n): - bailment. - pledge. - unenforceable gift. - inter vivos gift.

- bailment.

For a gift causa mortis, it must: - lack a donative intent. - be a fixture. - be accepted before the death of the donor. - be tangible in nature.

- be accepted before the death of the donor.

Genelia buys a life insurance policy from American Family Insurance. Her son, Mart, is liable to receive the proceeds of the insurance policy in the event of injury. In this case, Mart is the: - insurer. - underwriter. - insured party. - beneficiary.

- beneficiary.

A(n) _____ is an agreement that gives temporary insurance to a company until the company decides to accept or reject an insurance application. - insurance policy - binder - bailment - mortgage

- binder

If the insured fails to fulfill his or her duty to provide all material information on the insurance contract, the insurer: - is not left with any defenses for nonpayment. - can argue that the insured has breached the contract. - is required to pay on a claim before suing the insured. - can file a lawsuit only if the insurance is a personal one.

- can argue that the insured has breached the contract.

For the construction of a flyover, which was necessary to ease the traffic, the government had to take away Tilia's land. However, she was compensated by the government in full at the ongoing rate of land in that particular area. This acquisition best exemplifies: - condemnation. - adverse possession. - a mortgage. - a bailment.

- condemnation.

The insured has a duty to: - pay compensatory damages to the insurer. - disclose all material information on the application. - provide an attorney to defend the insurer in case of an injury. - defend the insurer from claims for which the insurer is liable.

- disclose all material information on the application.

Three elements necessary for a valid gift are delivery, acceptance, and: - tax benefits. - donative intent. - consideration. - enforceability.

- donative intent.

When a gas company runs gas lines across someone's property, it is a(n): - trade fixture. - appurtenant easement. - appurtenant profit. - easement in gross.

- easement in gross.

Tony allows Zena to run a ditch through his property for drainage purposes that could be used by both of them to prevent flooding. This is an example of a(n): - life estate. - easement. - affiliate. - conditional estate.

- easement.

Lily's landlord, Kiara, had changed the locks on her apartment and refused to give the new set of keys to Lily. This is an example of: - mortgage. - adverse possession. - eviction. - condemnation.

- eviction.

Jonathan was in his last stages of lung cancer. In contemplation of his death, he gave away his Mercedes to his best friend as a gift. The gift is an example of a(n) _____. - inter vivos gift - gift causa mortis - fixture - premium

- gift causa mortis

The _____ clause prevents the insurance company from challenging any statements made in an application after the existence of the insurance policy for a period of more than two years. - incontestability - escalation - antilapse - appraisal

- incontestability

Tia has bought a life insurance policy from American Family Insurance and has named her daughter, Ria, as the beneficiary. The insurance contract is for a total amount of $100,000, and Tia is supposed to make monthly payments of $250 to American Family Insurance for a period of 20 years. In this case, Tia is the: - insurer. - underwriter. - insured party. - bailee.

- insured party.

A holder of a _____ estate has a possessory but not an ownership interest. - fee simple absolute - life - conditional - leasehold

- leasehold

In the landlord-tenant relationship, the owner of the property is known as the: - lessee. - lessor. - bailee. - bailor.

- lessor.

Tony wanted to purchase a house but did not have the funds. He decided to take a loan of $150,000 from the Bank of New York to purchase the house. In exchange for the loan it provided, the bank received a security interest in the property allowing it to sell the property if Tony failed to repay the loan in the stated time of 10 years. This security interest is an example of a: - bailment. - lease. - mortgage. - lien.

- mortgage.

The most common use of restrictive covenants today is in urban developments, sometimes called: - limited partnership. - planned communities. - trusts. - real properties.

- planned communities.

When Tara takes out an insurance policy to cover the risk of theft at her residence, it can be said that she is taking _____ insurance. - property - casualty - group - commercial

- property

In case of a bailment, it is the bailor's duty to: - return the bailed property in same condition at the end of the bailment. - use the bailed property only as stipulated in the bailment agreement. - provide the bailee with any agreed-on compensation for the bailment. - retain the bailed property till the bailee wishes him to.

- provide the bailee with any agreed-on compensation for the bailment.

A life estate: is granted only for a period of 30 years to an individual. - typically passes to the heirs when the life holder dies. - typically goes to another party, designated by the original grantor, on the occasion of the life holder's death. - possesses the same interest as the owner of a fee simple absolute, but the future holder cannot claim any damages from the life holder.

- typically goes to another party, designated by the original grantor, on the occasion of the life holder's death.

Jagan buys a life insurance from HSBC and names his wife as the beneficiary. In this case, HSBC is the: - underwriter. - insured party. - beneficiary. - bailee.

- underwriter.

Rudolf, a tenant, used the garden area of the landlord, Rhea, to park his car without her permission, which led to damage of the grass and other plants. Rudolf has committed: - full eviction. - partial eviction. - waste. - felony.

- waste.