Business Law Quiz 4

The Foster's own a cabin on the south side of Mount Henry. One day, the Foster's told Bennie and Claudia they could live in the cabin and use it as they wished until the Foster's wanted to use it again. Twelve years later, the Foster's informed Bennie and Claudia that they were going to spend the summer at the cabin and that Bennie and Claudia would have to make other arrangements for the summer. Bennie and Claudia claimed that they had acquired title by adverse possession, because they had occupied the property for the period of time required for adverse possession under state law (10 years in that state). Are Bennie and Claudia correct? Yes, Bennie and Claudia were living on the property with exclusive, open possession for a continuous period of time for the required 10 years. Yes, Bennie and Claudia had the Foster's permission, therefore the possession was not illegal. No, there was no warranty deed transferred to Bennie and Claudia. No, Bennie's and Claudia's possession was with the Foster's permission and therefore the claim was not adverse to the Foster's.

No, Bennie's and Claudia's possession was with the Foster's permission and therefore the claim was not adverse to the Foster's.

Ted and Janet were married and owned a piece of jungle property in a tenancy by the entirety. When Janet died, her will left of all her real property to T.J., their adult son. T.J. claims he is the sole owner of the jungle property. Ted objects and files a lawsuit for sole ownership of the jungle property. Ted will lose and forfeit his entire interest in the whole property because a tenancy by the entirety means that one party owns the entire property. Ted will win only a one-half interest in the jungle property. T.J. will own the other one-half interest because Janet had the right to will her half of the property to anyone she chose. Ted will win because property owned in a tenancy by the entirety includes rights of survivorship for the surviving spouse. Ted will get the title to the entire property. T.J. will be required to sell his share in the property to Ted.

Ted will win because property owned in a tenancy by the entirety includes rights of survivorship for the surviving spouse. Ted will get the title to the entire property.

Which of the following types of concurrent ownership does not provide for rights of survivorship? Tenancy in common. Tenancy by the entirety. Joint tenancy. All of these provide for rights of survivorship

Tenancy in common.

Trish takes her car to Clean Carwash to be detailed. Trish takes a seat in the waiting room while her car is being cleaned. Clean Carwash cleans the car but Trish hasn't paid. At this point, The contract is executed as to Clean Carwash and executory as to Trish. The contract is executory as to both Clean Carwash and Trish. The contract is executed as to both Clean Carwash and Trish. The contract is executory as to Clean Carwash and executed as to Trish.

The contract is executed as to Clean Carwash and executory as to Trish.

A fixture is normally included in a sale of land unless the sales contract specifies otherwise. True False

True

Carlie conveys his property "to Noah for life, then to Julia." Noah has a life estate. True False

True

Eminent domain is the condemnation power of government to take land for public use. True False

True

In the tenancy by the entirety, a creditor of one spouse cannot lay claim to property owned as tenants by the entireties. True False

True

It is presumed that a co-tenancy is a tenancy in common unless there is specific language indicating the intent to establish a joint tenancy. True False

True

Most states imply a warranty—the implied warranty of habitability—in the sale of new homes. True False

True

Someone who finds abandoned property acquires title to it and that title is good against the whole world, including the original owner. True False

True

Nero and Omar agree to buy natural gas to sell to Power Fuel Refinery and to share storage costs until Power Fuel can take delivery. The gas is commingled so that Nero's cannot be distinguished from Omar's. This is: production. confusion. in violation of the law. a bailment.

confusion.

Jill sells shares in Fast Food Franchise Company to Mark. Jill does not hand the stock certificates to Mark, but gives him the key to a safety-deposit box in First Home Bank in which the certificates are locked. Presenting the key is: incomplete delivery. production. constructive delivery. conversion.

constructive delivery.

Larry is declared mentally incompetent. Beth, Larry's friend, insists that Larry transfer her considerable assets to Beth "for safekeeping." If Larry makes this "gift," a court might conclude that it is not effective on the ground that there was no: constructive delivery. acceptance by the donee. donative intent. relinquishment of control.

donative intent.

Paul is declared mentally incompetent. Quinn, Paul's friend, insists that Paul transfer his considerable assets to Quinn "for safekeeping." If Paul makes this "gift," a court might conclude that it is not effective on the ground that there was no: donative intent. acceptance by the donee. relinquishment of control. constructive delivery.

donative intent.

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: the power of eminent domain. a life estate. a fee simple absolute. a profit.

a fee simple absolute.

You go to a theater to see a play one Saturday evening. You have: purchased an interest called a "profit." an easement by reservation. no property right in the theater just by purchasing the ticket for the play. a license to enter the theater.

a license to enter the theater.

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 leasehold estate. an easement. a fee simple absolute. a life estate.

a life estate.

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: an easement. a leasehold estate. a life estate. a fee simple absolute.

a life estate.

Al rents an apartment. The lease does not specify how long it will last, but it does specify that Al must pay rent every month. Al's tenancy is: a fixed-term tenancy. a tenancy at will. not a tenancy. a periodic tenancy.

a periodic tenancy.

Al rents an apartment. The lease does not specify how long it will last, but it does specify that Al must pay rent every month. Al's tenancy is: a fixed-term tenancy. not a tenancy. a tenancy at will. a periodic tenancy.

a periodic tenancy.

Al rents an apartment. The lease does not specify how long it will last, but it does specify that Al must pay rent every month. Al's tenancy is: not a tenancy. a fixed-term tenancy. a tenancy at will. a periodic tenancy.

a periodic tenancy.

Mix-It Concrete Company has the right to enter Nina's land and remove the rock from Nina's quarry. This is: a profit. an easement. a license. the power of eminent domain.

a profit.

Diane and Elton buy a duplex in Fargo, North Dakota. On the death of either owner, that owner's interest in the duplex passes to his or her heirs. This is: a tenancy in common. a joint tenancy with right of survivorship. ownership in fee simple absolute. a life estate.

a tenancy in common.

Kelsey and Ed buy a duplex in Wells, Maine. On the death of either owner, that owner's interest in the duplex passes to his or her heirs. This is: ownership in fee simple absolute. a tenancy in common. a joint tenancy. a life estate.

a tenancy in common.

John sells some property and the deed reads, "I transfer this property to the Pinellas County Cat Kindness Society so long as it is used to promote kindness to cats, and if it ceases to be so used, then it comes back to the grantor (the seller)." The type of ownership estate created is: fee simple defeasible. fee simple subject to remainder. life estate. fee simple absolute.

fee simple defeasible.

Rhonda is a server in a restaurant. One day she finds a purse while clearing a table. The purse is most likely: lost property. abandoned property. real, intangible property. mislaid property.

mislaid property.

Brick & Mortar Stores, Inc., signs a lease for a storefront owned by Commercial Properties, Inc. Unlike a purchaser of real property, Brick & Mortar: enjoys exclusive possession of the premises. retains temporary, exclusive possession and title to the premises. holds only temporary title to the premises. acquires only temporary possession of the premises.

acquires only temporary possession of the premises.

Jenna signs a lease for a storefront owned by Commercial Properties, Inc. Unlike a purchaser of real property, Jenna: retains temporary, exclusive possession and title to the premises. holds only temporary title to the premises. enjoys exclusive possession of the premises. acquires only temporary possession of the premises.

acquires only temporary possession of the premises.

Smith Construction Company has a right to drive its trucks across Gravel Business, Inc.'s property, which is adjacent to Smith's office. This right is: the power of eminent domain an easement a license. a profit.

an easement

Mallory's sister Alexis gives Mallory a bracelet kit for Christmas. Mallory uses the kit to make a bracelet. Mallory's acquisition of the bracelet is by: accession. confusion. production. gift.

production.

A tenancy with no fixed duration is a: month to month tenancy tenancy for years. tenancy at will. periodic tenancy.

tenancy at will.

Adam had a two-year lease with Cheri. At the end of the two years, Adam stayed in the leased premises and kept making his rent payments. Cheri consented to this arrangement. This arrangement is best described as a: tenancy for years. tenancy at sufferance. periodic tenancy. tenancy at will.

tenancy at will.

In order to constitute as a gift, the donor must intend to transfer ownership of property involuntarily. the donee need not actually accept the gift. the donor may revoke the gift at any time. the donor must deliver the gift property to the donee.

the donor must deliver the gift property to the donee.

The element that distinguishes a contract from a gift is: whether or not the subject of the gift or contract is illegal. whether or not the offeree or donee accepts the offer. performance of the offeror's or donor's promise. the element of consideration which is present in a contract, but not in a gift.

the element of consideration which is present in a contract, but not in a gift.

Buck owns five acres of land in Colorado. On the land Buck has a house and a toolshed. There are ten large maple trees around the house. The real property includes the land only. the land, the house, the toolshed, and the trees. the land and the house only. the land, the house, and the toolshed, but not the trees.

the land, the house, the toolshed, and the trees.

A couple of weeks before her sister graduates from USF - St. Pete, Leslie says to her, "I promise to give you a new computer when you graduate." Her sister graduates and Leslie takes the computer to her sister, who is thrilled to get the computer. Leslie has a change of mind and sues to recover the computer from her sister. A court is most likely to rule that: her sister must give the computer back because a promise to make a gift is not enforceable as it lacks consideration. the sister must give the computer back because all the requirements of a gift have not been met. the sister need not give the computer back because the gift has been completed. the sister must give the computer back if Leslie has asked for its return within a reasonable time.

the sister need not give the computer back because the gift has been completed.

Jay, an inventor, has tools in his workshop, including hammers, a table saw, and drills. He has a patent on his most recent invention, a kitchen gas grill. He licenses the patent to Home Appliances, Inc., a company in which he owns stock. His tangible personal property includes the: Home Appliances stock. workshop tools. all of the choices. patent on the gas grill and license to Home Appliances.

workshop tools.

James works at Kay's Breakfast Café. After work, in the parking lot, James finds a diamond ring lost by Lani. Title to the ring is possessed by: Lani. the state. James. Kay's.

Lani.

A joint tenant cannot transfer his or her rights by sale or gift without the consent of the other joint tenants. True False

False

A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land. True False

False

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

False

An easement is the revocable right of a person to come onto another person's land. True False

False

Constructive delivery occurs when property is physically transferred. True False

False

If property is mislaid, the finder of the property will have a superior claim to possession of the property against everyone except the true owner. True False

False

Owners in a joint tenancy with the right of survivorship cannot transfer their interest during their lifetime. True False

False

Persons cannot share ownership rights simultaneously in particular property (including real property and personal property)—one person's interest is always superior. True False

False

The landlord's duty to provide quiet enjoyment of the premises and the landlord's duty to deliver and maintain the premises in a habitable condition are one and the same True False

False

The time period for adverse possession in Florida is twenty-one (21) years. True False

False

Tom rented an apartment from Margaret on a month-to-month basis, with rent due on the first of the month. This type of tenancy is known as a "tenancy at will." True False

False

Joneen owns a farm. In a signed writing, Joneen gave Sue the irrevocable right to use a road on his farm so that Sue could more easily reach her own property. What kind of interest in land did Joneen give to Sue? Reserved easement Easement appurtenant Easement by implication Easement by prescription

Easement appurtenant

Hannah intends to give her granddaughter, Laura, her antique hat pin. This heirloom has been kept under lock and key in the wall vault in the library of Hannah's house in Virginia. The hat pin is currently the only item in the vault. When Hannah is visiting Laura in Connecticut, Hannah gives Laura the only key to the vault. Laura is grateful for the present and excitedly accepts. In this situation has there been a completed gift? Yes. There has been physical delivery of the hat pin. No. There has only been constructive delivery of the hat pin. Yes. There has been constructive delivery of the hat pin. No. There has been no physical delivery of the hat pin.

Yes. There has been constructive delivery of the hat pin.