Business Law and Ethics: Chapter 24

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Plywood & Particleboard Mill, Inc., does not use filters on its stacks, which consequently pollute the air. Quinn, a Plywood employee, suffers respiratory illness. To succeed in a suit against the company on the ground of negligence, Quinn must show that he suffers from​ a. ​the same harm as that affecting the general public. b. a lesser harm than an injunction would impose on Plywood.​ c. Plywood's failure to use reasonable care to avert herm to Quinn.​ d. ​a distinct harm separate from that affecting the general public.

c. Plywood's failure to use reasonable care to avert herm to Quinn.​

Frank owns GuestHouse Hotel. His ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waste, if he chooses. Frank's ownership interest is a. ​a profit. b. ​the power of eminent domain. c. ​a fee simple absolute. d. ​a life estate.

c. ​a fee simple absolute.

Loaf & Biscuit Company operates a commercial dough making and packaging plant—a "major source"—that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely a. ​not a violation because the plant does not use any equipment. b. ​not a violation because dough is not considered a pollutant. c. ​a violation. d. ​not a violation because the plant is not a mobile source.

c. ​a violation.

Cierra rents an apartment from Damian that floods whenever there is a heavy rain. Damian refuses to fix the problem. Damian has breached a. ​nothing. b. ​the concept of eminent domain. c. ​the implied warranty of habitability. d. ​the covenant of quiet enjoyment.

c. ​the implied warranty of habitability.

Manhattan Developers, Inc., pays Northeast Trust Company to release its claim to a strip of waterfront property. Northeast gives Manhattan a deed that conveys only whatever interest Northeast has in the strip. This deed is a. ​a grant deed. b. ​a special warranty deed. c. ​a warranty deed. d. ​a quitclaim deed.

d. ​a quitclaim deed.

Energy Resources, Inc., operates an oil refinery near Forest River, which flows into Grove Lake. Discharging oil from the refinery into the river can result in an assessment of a. ​damages only. b. ​no cleanup costs or damages. c. ​cleanup costs only. d. ​cleanup costs and damages.

d. ​cleanup costs and damages.

Smelting & Refining Company generates solid waste considered hazardous. The company labels and packages properly all waste to be transported to a disposal site. Under the Resource Conservation and Recovery Act, this is most likely a. ​a violation because Smelting & Refining generates solid waste. b. ​a violation because the waste is considered hazardous. c. ​a violation because the waste is transported off-site. d. ​not a violation.

d. ​not a violation.

Roderick possesses five hundred acres of forested property. Roderick has the right to use the land, including cutting its timber, for life. Roderick also has the right to lease the land for a period not to exceed his life. This ownership interest is a. ​a life estate. b. ​an easement. c. ​a leasehold estate. d. ​a fee simple absolute.

a. ​a life estate.

Kelly leases an office from Land & Building Company (LBC) for a four-year term with the rent payable monthly. At the end of the term, Kelly retains possession of the office with LBC's consent and continues to pay monthly rent. This is a. ​a periodic tenancy. b. ​a tenancy at will. c. ​a fixed-term tenancy. d. ​a tenancy at sufferance.

a. ​a periodic tenancy.

Alexis sells half of her Triple A Ranch land to the Bar B Ranch. On the land is a reservoir. In the deed, Alexis retains the right to remove a limited amount of water per day from the reservoir. This right is a. ​a profit. b. ​a fee simple absolute. c. ​an easement. d. ​a license.

a. ​a profit.

Meadowland Acres, Inc., owns rural property that it leases to various tenants, including Norma. Norma's transfer of her entire interest in the leased property to Odette is a. ​an assignment. b. ​a constructive eviction. c. ​a sublease. d. ​waste.

a. ​an assignment.

Bay City wants to acquire undeveloped land within the city limits to convert into a public park. Bay City brings a judicial proceeding to obtain title to the land. This is​ a. ​the power of eminent domain. b. ​an easement. c. ​adverse possession. d. ​constructive eviction.

a. ​the power of eminent domain.

Tropic Breeze Residences, Inc., owns apartment buildings. Suki leases one of Tropic Breeze's apartments. Suki's transfer of her interest in the lease to Vito for a period shorter than the lease term is a. ​a periodic tenancy. b. ​a sublease. c. ​an assignment. d. ​a violation of the law.

b. ​a sublease.

Grey rents an apartment to Hugh, who retains possession of the apartment after the lease expires without making any payments of rent. This is a. ​a tenancy at will. b. ​a tenancy at sufferance. c. ​a fixed-term tenancy. d. ​a periodic tenancy.

b. ​a tenancy at sufferance.

Investment Properties Corporation conveys an office building to Jim with a deed that makes the greatest number of warranties and provides the most extensive protection against defects of title. This deed is a. ​a quitclaim deed. b. ​a warranty deed. c. ​a special warranty deed. d. ​a grant deed.

b. ​a warranty deed.

Car Wash Company has a right to direct its customers to drive their vehicles across Don's Gas n' Shop property, which is adjacent to Car Wash's facility. This right is a. ​a license. b. ​an easement. c. ​a fee simple absolute. d. ​a profit.

b. ​an easement.

Mia has a periodic tenancy that requires her to pay rent weekly. Mia wishes to terminate her tenancy. Under the common law, she must give her landlord notice of at least​ a. ​thirty days. b. ​one week. c. ​no certain period. d. ​two weeks.

b. ​one week.

BioChemical Disposal Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChemical before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund imposes on ChemCo a. ​liability on a negligence theory. b. ​strict liability. c. ​no liability. d. ​liability under the nuisance doctrine.

b. ​strict liability.


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