Bus Law 25-33, 48, 49, 51

A hotel owner is not liable for loss or damage to its guests' personal property under any circumstances.

False

A principal is not normally liable for the tort of an agent committed within the scope of the agency or employment.

False

A quitclaim deed offers the most protection against defects in the title.

False

A special indorsement does not specify a particular indorsee.

False

A special power of attorney permits an agent to transact all business for a principal.

False

A will cannot appoint a guardian for minor children.

False

An agent's implied authority cannot be implied by custom.

False

An instrument can only be transferred by negotiation.

False

Bankruptcy proceedings are held in state courts.​

False

In the majority of states, debtors may use only federal, not state, exemptions to exempt certain property from the bankruptcy.

False

Real property can not be turned into personal property by any method

False

A will is a final declaration of how a person desires to have his or her property disposed of after their death.

True

Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer belongs to the employer.

True

Before filing for bankruptcy, a consumer-debtor must receive credit counseling.

True

Generally, a finder of lost property can claim title to the property against the whole world-except the true owner.

True

Independent contractors control the details of their work performance.

True

Personal property may become real property by attaching it to real property.

True

The equal dignity rule requires that if a contract entered into by an agent must be in writing, the agent's authority with the principal must also be in writing.

True

The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor.

True

Under the covenant of quiet enjoyment, a landlord promises that a tenant's use and enjoyment of the property will not be disturbed by someone with superior title.

True

Under the law of agency, notice to the agent is notice to the principal.

True

Who is the party of a trust that manages the trust property?

Trustee

Barry draws a check payable to "Cash" and presents it to Dollars & Sense store for payment. This instrument is

a bearer instrument

Avril receives a payroll check from Business Solutions, Inc., and indorses it by signing her name on the back of the check. This is

a blank indorsement.

Laura writes on a piece of paper, "I owe you $400," signs it, and gives it to Max. This instrument is

not negotiable, because it does not include an express promise to pay.

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when

​a debtor's creditors force the debtor into bankruptcy proceedings.

Rollo deeds a plot of timberland to Scholars University as a gift. The university pays nothing for the property. Rollo has given the university

​a fee simple absolute.

To adjust debt and institute a repayment plan, Diana—who is not a corporation, a partnership, or a family farmer or fisherman—may file a petition in bankruptcy for relief through

​a repayment plan.

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 sublease.

Patty files a petition in bankruptcy. At the moment of filing

​an automatic stay goes into effect.

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

​an easement.

Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to hosts of banquets, corporate meetings, concerts, weddings, and other events. In this capacity, Rosario is

​an independent contractor.

Ben manages a warehouse and its inventory for Coffee Shops, Inc. To operate this part of the business, Ben's authority can be inferred

​from the position Ben occupies.

Carly files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to

​provide a fresh start, free from creditors' claims.

Dakota Energy Company employs Evan to negotiate the purchase of mineral rights for future mining projects. Evan secretly buys some of the property and sells it to Dakota at a profit. Evan has breached

​the agent's duty of loyalty.

To widen a highway, the state of Ohio obtains, through a judicial proceeding, title to the individual lots in a residential neighborhood. A subsequent proceeding will determine​

​the fair value of the property.

A restrictive indorsement does not destroy negotiability.

True

A gift is a voluntary transfer of property ownership for which consideration is given.

False

Farmer John is plowing a field on his tractor. He gets into a terrible accident and flips his tractor over and is losing blood at an alarming rate. Although he is pinned to the ground by the tractor, he finds a rock and starts to write out his will in the fender of the tractor. He actually writes out his entire will and signs it at the end. All of his assets are to go to his child, Macdonald. A probate court would

Approve of this will because it is a holographic will

The Easter Bunny made a will to give all of his real property to The Elf on a Shelf. This type of gift is called a

Devise

Dona owns factory machinery and the tools to service it, as well as office furniture, including computers. Emily owns patents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property includes items owned by

Dona and Emily

Barlow owns the surface rights for Canyon Ranch, but does not own the subsurface rights. Dusty owns the subsurface rights. Canyon Ranch includes a house, a bunkhouse, and two barns, which are damaged when Dusty is excavating for minerals under the surface. Most likely liable for the damage is

Dusty

Santa Clause was too busy to make a will and passed away. This is called

Dying Intestate

A debtor must be insolvent to file for bankruptcy relief.

False

Flo, an agent for Grover, enters into a contract on Grover's behalf with Hong that must be in writing to be enforceable under the Statute of Frauds. Failure to comply with the equal dignity rule, with respect to this contract, can make the contract voidable at the option of

Grover

Which of the following is the best and most accurate statement of a Durable Power of Attorney?

It allows a person to act on behalf of another. It is valid when someone becomes incapacitated.

Mandel works for Amazon. While driving his employer's vehicle to a call on a customer, Mandel decides to stop at a 7/11 to get a soda and Takis Fuego for himself because he was hungry and thirsty. The store is about 3 blocks off his route. As Mandel approaches the store, he negligently runs into a parked vehicle owned by Chan. Who is liable for the damage that Mandel caused to Chan's vehicle?

Mandel and Amazon

Sumner Redstone was about 90 years old and worth about 3 billion dollars. He was suffering for the initial stages of Alzheimer disease (which is a loss of memory). He had two children, Mutt and Jeff. They lived on the other side of the country but visited when they could and had a good relationship with their father. The original will gave the entire estate to Mutt and Jeff to share it equally. When Sumner was about 99 years old he met Sally Golddigger. Sally was 25 years old. Sally told Sumner how important he was to her. Sally also visited him every day and provided companionship. Sumner changed his will to give all of his assets to Sally. Sumner died at the age of 90. Which of the following is the most accurate?

Mutt and Jeff can have the probate court void the will based upon Undue Influence

A person does not need contractual capacity to be an agent.

True

A principal has the right to control an agent's conduct in matters entrusted to the agent.

True

A probate court's function is to administer any legal problems surrounding a will.

True

The Old Lady Who Lived In A Shoe had so many children. It was actually 20. She was also married to Humpty Dumpty. When she passed away all of children and her spouse were alive. She died without a will. How is her separate property divided?

One third goes to the surviving spouse and two thirds are divided equally among the children.

Rob steals a damaged, broken bike that is parked, unlocked, in a bike rack. He repairs, paints, and replaces parts on the bike until it is like new. The original owner, Sue, then claims it. The bike belongs to

Sue because Rob stole it.

Rhett works at Scarlett's Service Station. After work, in the station's restroom, Rhett finds a diamond ring lost by Thalia. Title to the ring belongs to

Thalia

Charles Kane was making a will. He had his attorney, Johnnie Cochran type out the will and he signed it. No one else signed the will. Mr. Kane dies with his last words being "Rosebud." Mr. Kane has a wife named Anne Nicole Smith. However, he also has a child named Tori Spelling from a previous marriage. The will states that Tori gets everything and Anne Nicole Smith gets nothing. Which of the following is the most accurate?

Tori and Anne Nichole Smith will each get their intestate share because the will is invalid.

A bearer instrument can be converted into an order instrument through indorsement.

True

A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's behalf.

True

A fixed-term tenancy is created when property is leased for a specified period of time.

True

A holder cannot become an HDC if he or she has notice of any claim to the instrument or defense against it.

True

A joint tenant's sale of his or her interest terminates the joint tenancy.

True

Allie signs a check payable to Bess, who indorses the back, gives it to County Credit Union (CCU), and receives cash. The transfer of the check from Bess to CCU is

a negotiation.

Jill, in good faith and for value, gets from Kiley a negotiable bearer instrument. Jill does not know that Kiley stole the instrument. Jill is

an HDC.​

Emery is a corporate officer of Frakking Mining Corporation. With respect to binding Frakking Mining to contracts, Emery is

an agent and has the authority.

High Plains Distribution Inc. hires Inez to work on its shipping dock, accepting deliveries, dispatching trucks, and dealing with customers and other companies' drivers. With respect to High Plains, Inez is most likely

an agent.

Fact Pattern 25-1 Erin draws a check payable to "Foodland" to buy groceries. Refer to Fact Pattern 25-1. Erin's check is most likely

an order to pay

To obtain office supplies for Doctors Medical Clinic, Emma executes a draft in favor of Floyd. A draft is

an unconditional written order to pay money.

Roland files for Chapter 7 bankruptcy. After all his assets have been sold and the proceeds distributed among his creditors, Roland's remaining debts, subject to certain exceptions

are discharged.

Ester sells stock in Fast Food Inc. to Gayle. Ester does not hand the stock certificates to Gayle, but gives her the key to a safety-deposit box in Heartland Bank in which the certificates are locked. This is

constructive delivery

Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is likely

negotiable

Jane signs an instrument using a "J" with a swirl around it. With this mark for a signature, the instrument is

negotiable

Gary tells his daughter Heidi that she can have his restored 1932 Ford Coupé when he dies, but he does not add that to his will. This is

not a gift

Camille signs an instrument in favor of Donald that states it is "subject to a certain agreement between Camille and Enzo." This instrument is

not negotiable, because it is made subject to a separate agreement

On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is

not negotiable, because soda is not a medium of exchange authorized or adopted by a government as currency.

Ben signs a promissory note for $1,500 in favor of Community College. The note is undated but specifies that it is "payable one month after date." This note is

not negotiable, because the maturity date cannot be determined from the face of the instrument.

Beth acquires a negotiable instrument from Ellen by promising to pay its face value as soon as her income tax refund comes in. Beth acquires the status of an HDC when she

pays the face value due on the instrument.

Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining Inc. Once the oil in the rock is removed, it will be considered

personal property

On the back of a check payable to Nero, he writes "Pay to Odell, without recourse" and signs it. This

relieves Nero of liability on the check.

Fact Pattern 25-1 Erin draws a check payable to "Foodland" to buy groceries. Refer to Fact Pattern 25-1. With respect to Erin's check, Foodland is

the payee.

Bud approves on behalf of Cody—but without authorization—a contract with Dick to build a new silo. Cody does not ratify the contract. Later, Dick tries to enforce the deal against Cody. This attempt will be

totally unsuccessful.

Lorena is appointed as an agent for Milled Grains, Inc. The agency agreement is silent as to the level of sales that Lorena is expected to achieve. She must

use reasonable diligence and skill in selling.

Lima, an agent for Mindwonder Games LLC, executes an unauthorized contract with NOW Marketing Inc. The deal is highly advantageous to Mindwonder, and the company ratifies the contract. The contract is​

valid