ACCT 324: Exam 3

T or F: Assault and battery are intentional torts against individual's physical or mental integrity.

True

T or F: The costs of white-collar crimes can be tremendous.

True

T or F: The finder of lost or mislaid property acquires title to the property against all except the true owner.

True

T or F: An Arbitration clause helps swiftly settle disputes between parties.

True both the insurer and the insured are to submit any disputes to an arbitrator

T or F: The purpose of criminal law is to punish an offender for causing harm to public health, safety or morals.

True so in criminal trails society is seen as the victim, and the government files charges against the defendant.

T or F: Trade fixtures are treated as personal property on the basis of the presumption that neither party intends such fixtures to become a permanent part of realty.

True, an example of a trade fixture is barber chairs installed in a barbershop

Which of the following statements is true regarding a causa mortis? a. A gift causa mortis must be accepted before the death of the donor. b. A gift causa mortis lacks donative intent. c. A gift causa mortis must be tangible in nature. d. A gift causa mortis is a fixture.

a. A gift causa mortis must be accepted before the death of the donor. Gift causa mortis is a gift that is made in contemplation of one's immediate death. A gift causa mortis must have the three elements of a gift: delivery, donative intent, and acceptance, all of which must occur before the donor's death.

A ____________ clause provides a grace period in which to make an overdue payment on, typically, a life insurance policy. a. Antilapse Clause b. Incontestability Clause c. Appraisal Clause d. Arbitration Clause

a. Antilapse Clause

What is the term for transferring one's entire interest in a leased property to another? a. Assignment b. Surrender c. Quitclaim d. Forfeiture

a. Assignment

Which tort is generally defined as the intentional publication (or communication to a third party) of a false statement harmful to an individual's reputation? a. Defamation b. Negligence c. Strict liability d. Absolute liability

a. Defamation

When a defendant appears at the arraignment, she has the opportunity to enter all but which of the following as a plea? a. Demurrer b. Nolo contendere c. Not guilty d. Guilty

a. Demurrer At the defendant's arraignment, he or she enters a plea of guilty, not guilty, or nolo contendere. The nolo contendere plea is a plea not to contest the proceedings; it is neither a guilty nor a not guilty plea. The advantage of a nolo contendere plea over a guilty plea is that it may not be used against the defendant in a civil suit.

What is the term for the process by which an individual decides what to do with their real and personal property during and after life? a. Estate planning b. Trust planning c. Demise planning d. Intestacy planning

a. Estate planning

Abandoned property is best defined by which of the following statements? a. Property discarded by the original owner b. Property donated via a silent auction c. Property mislaid by the true owner in a public place d. Property sold at a no-reserve auction

a. Property discarded by the original owner Involuntary transfers of property include that property which is lost, abandoned, or mislaid. Abandoned property is that which the original owner has discarded.

Which of the following type of deeds does the grantor simply convey whatever interest they have in the real property? a. Quitclaim deed b. Special Warranty deed c. General liability deed d. General Warranty deed

a. Quitclaim deed

What is the term for when a will is formally canceled and no longer has legal effect? a. Revoking b. Amending c. Probate d. Codicil

a. Revoking

Under the _____, it is now a felony to willfully fail to maintain proper records of audits and work papers for at least five years. a. Sarbanes-Oxley Act b. False Claims Act c. RICO Act d. Audit Recordkeeping Act

a. Sarbanes-Oxley Act Congress passed the Sarbanes-Oxley Act of 2002. While much of the act consists of new rules and regulations for accounting firms, part of it specifically addresses white-collar crimes. It also makes it a felony for a business to willfully fail to maintain proper records of audits and work papers for five years, and the punishment is now up to 10 years in prison.

__________ liability applies to actions that, regardless of the care taken, are specifically prohibited, such as selling cigarettes or alcohol to a minor. a. Strict b. Fault c. Probable d. Crime

a. Strict Strict liability applies to actions that, regardless of the care taken, are specifically prohibited, such as selling cigarettes or alcohol to a minor.

What is the term for permanent and substantial damage that a tenant causes to a landlord's property? a. Waste b. Tenancy-at-will c. Eviction d. Constructive destruction

a. Waste

In addition to the necessity that a testator sign a will, who else is required to sign it? a. Witnesses -- in order to attest the will b. A bank officer where the testator's accounts are held c. Beneficiaries -- in order to acknowledge their gifts d. The Secretary of State

a. Witnesses -- in order to attest the will

An agreement that gives temporary insurance until the company decides to accept or reject the insurance application is called...... a. a binder b. the effective date c. a premium d. antilapse clause

a. a binder

Which of the following is the intentional publication of a false statement that is harmful to an individual's reputation? a. defamation b. false light c. slander d. trade libel

a. defamation if defamation is published in a permanent form then its libel, if its made orally then it is slander.

The tenant has the right to _______ possession of the property named in a lease. a. exclusive b. limited c. restricted d. partial

a. exclusive The most distinguishing factor of the landlord-tenant relationship is the tenant's right to exclusive possession of the property named in a lease.

A(n) ______ trust is a trust created by the settlor while alive or through a will. a. express b. directed c. implied d. constructive

a. express

______________ are property that are initially moveable but then becomes attached to the land. a. fixtures b. real property c. personal property d. none of the above

a. fixtures They are originally treated like personal property but become real property once attached to realty.

For an insurance company to cancel a policy, the company must give the ______ advance notice, typically including a ______ period, before the policy is canceled. a. insured; grace b. insured; renunciation c. beneficiary; revocation d. beneficiary; deactivation

a. insured; grace An Insurer is permitted to cancel a policy when the insured misrepresented a material fact on the application or fails to pay premiums after a certain period.

Gifts that are made by a person during his or her lifetime are what type of gifts? a. intervivos gifts b. intravivos gifts c. gift causa mortis d. gift mortis cause

a. intervivos gifts

Marsha worked as a personal secretary to the manager of a firm. She was caught taking away stationery from the office for personal use. It was revealed during trial that she had been doing this ever since she joined work. This is a case of _____. a. larceny b. burglary c. arson d. aggravated robbery

a. larceny This is a case of larceny. In the business context larceny occurs, for example, when an employee takes office supplies, such as paper or blank CDs, for personal use. States generally make a distinction between grand larceny and petty larceny. Grand larceny involves items of greater value; thus, it is a felony and carries more severe penalties than does petty larceny.

The holder of a ___________ has a possessory but not ownership interest in an estate. This interest is also transferred by a contract known as a lease. a. leasehold b. leasing c. apartment d. tenant

a. leasehold

Cara and Katy signed a five-year lease with Apartments, Inc., the leasing company for Beacon Creek Apartments. The monthly rent was $1000. Section B.1.c of the lease states, "After twelve months, the rent shall increase by five percent." Section B.1.c is an example of a(n) _______ clause. a. rent escalation b. annual increase c. acceleration d. rent lien

a. rent escalation Once a lease has been signed, the landlord cannot increase the price of the rent unless there is a rent escalation clause included in the lease. This clause permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant's commercial business.

After defendants have been arrested and read their Miranda rights, the immediate next step in criminal proceedings would be a. taking them to the police station for booking. b. issuing an indictment against them. c. entering a plea of guilty or not guilty in court. d. making their first appearance before a magistrate.

a. taking them to the police station for booking. After being arrested and read their Miranda rights, defendants are taken to the police station for booking, a procedure during which the name of the defendant and the alleged crime are recorded in the investigating agency's or police department's records.

If a tenant fails to leave the property after the termination of the lease, a _______ lease is created. a. tenancy-at-sufferance b. tenancy-at-will c. periodic-tenancy d. quitclaim

a. tenancy-at-sufferance If a tenant fails to leave the property after the termination of the lease, a tenancy-at-sufferance lease is created, and the landlord may permit the tenant to remain or to demand repossession of the property. Parties to a tenancy-at-will may terminate the lease at any time. A periodic-tenancy is created for a recurring term.

What is the term for when a landlord physically prevents a tenant from entering a leased premises? a. Covenant of quiet enjoyment b. Actual eviction c. Abandonment d. Periodic lease

b. Actual eviction landlord physically prevents you from entering the leased premises

Which of the following is not required in order to properly draft a deed? a. Identification of the grantor and the grantee. b. An expression of the grantee's interest to convey the property. c. A legally sufficient description of the property, including its physical boundaries and any easements. d. All of these are required in order to properly draft a deed.

b. An expression of the grantee's interest to convey the property. A properly drafted deed must contain the following elements: (1) Identification of the grantor (person conveying the land) and grantee (person receiving the property); (2) An expression of the grantor's intent to convey the property; (3) A legally sufficient description of the property, including its physical boundaries and any easements; and (4) Any warranties or promises made by the grantor in conjunction with the conveyance. An expression of the grantee's interest to convey the property is not required to properly draft a deed.

_______ is the legal process by which a transfer of property is made against the protest of the property owner. a. Sublimation b. Condemnation c. Alienation d. Reformation

b. Condemnation Condemnation is the legal process by which a transfer of property is made against the protest of the property owner.

The owner of a _______ estate possesses the same interest as the owner of a fee simple absolute, but it is subject to a condition. a. Situational b. Conditional c. Leasehold d. Life

b. Conditional Should a prohibited event occur or a required event fail to occur, the interest will be terminated.

______ occurs when a person permanently removes personal property from the owner's possession and control. a. fraudulent misrepresentation b. Conversion c. Intentional interference with contract d. Nuisance

b. Conversion

What contract principle says that the landlord, in a lease, promises that the tenant be allowed to quietly enjoy the land? a. Fee simple absolute b. Covenant of quiet enjoyment c. Tenancy-at-will d. Implied warranty of habitability

b. Covenant of quiet enjoyment

Which of the following privacy torts involve attributing characteristics or beliefs to a person that she does not possess or creating the impression that an individual has taken certain actions he has not taken? a. Intrusion on an individual's affairs b. False light c. Public disclosure of private facts d. Mistake of fact

b. False light

The __________ clause prohibits the insurer from delaying payment because it decides to investigate the application for fraud. a. Antilapse Clause b. Incontestability Clause c. Appraisal Clause d. Arbitration Clause

b. Incontestability Clause definition: state-mandated clause ensuring that after an insurance policy has existed for a specified period (usually 2 years), the insurance company cannot contest any statements made in the application.

_______ property is property that the true owner has unknowingly or accidentally dropped or left somewhere. a. Intangible b. Lost c. Abandoned d. Mislaid

b. Lost Lost property is property that the true owner has unknowingly or accidentally dropped or left somewhere.

A ______________ tort occurs when the defendant acts in a way that subjects other people to an unreasonable risk of harm. a. Intentional b. Negligent c. Criminal d. Strict-liability

b. Negligent

What is the term for when a landlord prevents a tenant from entering a part of the leased premises? a. Fee simple absolute b. Partial eviction c. Periodic lease d. Breach of implied warrant of habitability

b. Partial eviction changing locks on a room is a partial eviction

Which of the following is a commonly recognized objective of tort law? a. Satisfy our primal sense of right and wrong b. Satisfy our collective sense of right and wrong c. Satisfy our subjective need for retribution d. Satisfy our subjective sense of right and wrong

b. Satisfy our collective sense of right and wrong

With what type of deed does the grantor only promise that they have not done anything to lessen value of the property transferred? a. Quitclaim deed b. Special Warranty deed c. General liability deed d. General Warranty deed

b. Special Warranty deed

Which of the following is not an element necessary for a valid gift? a. Intent to transfer ownership of the gift b. Value given in exchange for the gift c. A willingness of the donee to take the gift from the donor d. Actual or constructive delivery of the gift

b. Value given in exchange for the gift The three elements necessary for a valid gift are delivery (actual or constructive), donative intent to transfer ownership of the gift, and acceptance (the donee's willingness to take the gift from the donor).

A variety of nonviolent illegal acts against society that most often occur in the business context defines what type of crimes? a. Blue collar crimes b. White collar crimes d. Red collar crimes d. Corporate Crimes

b. White collar crimes Includes mail fraud, bribery, embezzlement, and computer crimes. The costs

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 going rate of land in that particular area. This acquisition best exemplifies _______ a. a mortgage. b. condemnation c. bailment d. adverse possession.

b. condemnation This acquisition best exemplifies condemnation. Condemnation is the legal process by which a transfer of property is made against the protest of the property owner. It includes the government's constitutional right to take private property for the use of the public, upon providing the owner fair compensation.

If the leased premises becomes unsuitable for use due to landlord neglect of repairs or other required acts, then it is a(n) ______ eviction. a. partial b. constructive c. actual d. notified

b. constructive

Intentional torts occur when the ______ takes an action intending certain consequences or knowing they are likely to result. a. claimant b. defendant c. plaintiff d. complainant

b. defendant

_____ occurs when a person is retried for the same criminal offense after being declared not guilty. a. bitrial b. double jeopardy c. double tried d. second offenses

b. double jeopardy a person found not guilty of a criminal offense may still face a civil charge. OJ Simpson is an example

The __________ defense applies if the idea for a crime originated with a police officer or some other government official who suggested it to the defendant, who would not otherwise have committed the crime. a. enlightenment b. entrapment c. instigation d. immunity

b. entrapment The entrapment defense applies if the idea for a crime originated with a police officer or some other government official who suggested it to the defendant, who would not otherwise have committed the crime.

Usually in a leasehold estate, the lessee has _______ to use and possess the property. a. limited access b. exclusive rights specified by the lease c. lifetime rights d. an easement

b. exclusive rights specified by the lease A leasehold estate gives the lessee, or tenant, exclusive rights to the use and possession of the land, including the right to exclude the property owner under most circumstances, for the term specified by the lease.

A _______ is the most complete estate a person may have. a. fee complex absolute b. fee simple absolute c. fee complex conditional d. fee simple conditional

b. fee simple absolute A fee simple absolute is the most complete estate a person may have. It grants exclusive rights to ownership and possession of the land and is what most people refer to when they speak of "buying" a house or piece of land. This interest passes to the heirs when the owner dies.

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) _______ a. inter vivos gift. b. gift causa mortis. c. fixture. d. premium.

b. gift causa mortis. Gift causa mortis is a gift that is made in contemplation of one's immediate death. It can be revoked any time before the death of the donor, and it is automatically revoked if the donor recovers. The three elements of a gift causa mortis are delivery, donative intent, and acceptance, all of which must occur before the donor's death.

Caroline Jones takes some very expensive jewelry from a store. The next day, Caroline sells the jewelry at the local pawn shop, receiving $15,000 for it. In removing the jewelry from the store, Caroline has most likely committed: _______. a. burglary. b. grand larceny. c. petty larceny. d. a white collar crime.

b. grand larceny. Larceny is the secretive and wrongful taking and carrying away of the personal property of another with intent ti permanently deprive the rightful owner of its use or possession. Grand larceny involves taking items of greater value and is a felony.

The holder of a _______ has a possessory, but not an ownership, interest in real property. a. fee simple conditional b. leasehold c. easement d. fee simple defeasible

b. leasehold The holder of a leasehold has a possessory, but not an ownership, interest in real property. A leasehold gives the lessee, or tenant, exclusive rights to the use and possession of the land for the term specified by the lease.

A _________ estate is granted for the lifetime of an individual and on the death of the person the property will go to a another party designated by the original grantor. a. fee simple absolute b. life c. half life d. conditional

b. life

A(n) _______ is granted for the lifetime of an individual. a. death estate b. life estate c. inter vivos estate d. intestate estate

b. life estate A life estate is granted for the lifetime of an individual. On the death of this life holder, the property will go to another party designated by the original grantor. The individual who holds the life estate is called the life holder.

____ property is property that the true owner unknowingly or accidentally dropped or left somewhere. a. mislaid b. lost c. abandoned d. none of the above

b. lost

If the defendant acts in a way that subjects others to an unreasonable risk of harm, that defendant has committed a(n) _____ tort. a. intentional b. negligent c. strict liability d. criminal

b. negligent Torts are classified as intentional, negligent, and strict liability. A negligent tort occurs when someone acts in a manner that subjects another to an unreasonable risk of harm. An intentional tort occurs when a defendant takes an action intending certain consequences to occur or knowing those consequences are likely to result. A strict liability tort is one that occurs when someone takes an inherently dangerous action that cannot ever be undertaken safely regardless of what precautions the defendant may take.

________ property is anything that can be moved or not attached to land. a. fixtures b. personal property c. real property d. all of the above

b. personal property can be tangible like cars, furniture or books, or intangible like bank accounts, stocks, and insurance policies.

____________ are minor misdemeanors usually punishable by a jail sentence of less than six months or a small fine. a. petty crimes b. petty offenses c. petty sentences d. petty assaults

b. petty offenses

A covenant of _______ means that the landlord promises not to interfere with the tenant's use and pleasure of the property. a. peace b. quiet enjoyment c. basic rights d. rights and duties

b. quiet enjoyment One of the most important promises that a landlord makes in a lease is the covenant of quiet enjoyment, a promise that the tenant has the right to quietly enjoy the land. The landlord promises that he or she will not interfere with the tenant's use and enjoyment of the property.

Jacob holds a baseball bat over Abigail's head and threatens to hit her unless she hands over her laptop computer. Jacob has committed the crime of: _______. a. arson b. robbery c. conversion d. burglary

b. robbery Robbery is defined as the forceful and unlawful taking of personal property. If force or fear is absent the crime is theft.

The tort of unfair competition exists when a. other businesses sell products of higher quality in the same industry in which a firm operates. b. someone enters an industry with the sole intent of driving another firm out of business. c. pop-up advertisements for a competing business appear on a company's website. d. competitors of a business firm price their products higher than that of the firm.

b. someone enters an industry with the sole intent of driving another firm out of business. The tort of unfair competition exists because U.S. law protects businesses acting on the profit motive. Thus, when someone enters an industry with the sole intent of driving another firm out of business, the law punishes this act as unfair competition.

Eric is a student at a Chicago college. He leases an apartment from a landlord based in Evanston. Eric has taken a summer internship in California. Lisa has agreed to move into his apartment for the summer (with permission of Eric's landlord). Lisa is going to pay Eric the same amount that he owes in rent. Here Eric and Lisa have entered into a(n) _______. a. occupancy b. sublease c. assignment d. charter

b. sublease Here, Eric and Lisa have entered into a sublease. A sublease is a transfer of less than all the interest in a leased property. A sublease creates a landlord-tenant relationship between the original tenant (Eric) and the sublessee (Lisa). Lisa's legal obligations are to Eric and not his landlord.

_________ of a trust can occur through a provision in the trust that either indicates the date or specifics an event. a. enforcement b. termination c. continuing d. starting

b. termination

A(n) ______ allows a person to transfer property to another person, and then have the property used for the benefit of a third person. a. advance directive b. trust c. intestate directive d. will

b. trust

A private nuisance occurs when a person uses her property in a(n) ______ manner that harms a neighbor's use or enjoyment of his property. a. exclusive b. unreasonable c. reasonable d. non-exclusive

b. unreasonable

Negligent torts occur when the defendant acts in a way that subjects other people to an ______ risk of harm. a. elemental b. unreasonable c. unforeseeable d. equitable

b. unreasonable

_______ is an example of tangible personal property. a. Stocks and bonds b. Certificates of deposit c. A motor vehicle d. That which is affixed to real property

c. A motor vehicle All property that is not land or not permanently affixed to land is personal property. Personal property may be either tangible or intangible. Tangible property is property that can be identified by the senses. It is property that you can see or touch. Tangible property includes items such as furniture, cars, and other goods. Property that is merely evidenced by paper (stocks, bonds, certificates of deposit, insurance policies, etc.) is considered intangible property.

Which of the following torts occurs when someone uses another person's name, likeness, voice, or other identifying characteristic for commercial gain without that person's permission? a. Amelioration for commercial gain b. Annuitization for commercial gain c. Appropriation for commercial gain d. Amortization for commercial gain

c. Appropriation for commercial gain

Compensatory damages are intended to compensate the plaintiff for her damages and typically include all but which of the following? a. Property damage b. Pain and suffering c. Attorney fees d. Lost wages

c. Attorney fees Compensatory damages typically include expenses for property damage, medical expenses, pain and suffering, and lost wages. Attorney fees, however, are not recoverable as compensatory damages. Because the plaintiffs in personal injury cases must usually pay their attorneys anywhere from one-third to one-half of their recovery, some argue that compensatory damages fail to meet the intended goal of properly compensating victims.

__________ occurs when a person permanently removes personal property from the owner's possession and control. a. Diversion b. Reversion c. Conversion d. Condemnation

c. Conversion Conversion, an intentional tort against someone's property, occurs when a person permanently removes personal property from the owner's possession and control.

______ imprisonment occurs when an individual is confined or restrained against his or her will for an appreciable period of time. a. Equitable b. Confiscatory c. False d. Dilatory

c. False The imprisonment can occur by physical restraint, physical force, a threat to use immediate physical force, or refusal to release the plaintiff's property.

Serious crimes, such as murder, that are punishable by imprisonment for more than one year or death, are called _______________. a. Misdemeanors b. Petty Offenses c. Felonies d. none of the above

c. Felonies

Which of the following refers to property the owner has intentionally placed somewhere, but forgotten where? a. Lost b. Abandoned c. Mislaid d. Concealed

c. Mislaid because it is intentionally mislaid is why it is not lost property

______ damages are a small amount of money given to recognize that a defendant did in deed commit a tort where the plaintiff suffered no compensable damages. a. Contract b. Punitive c. Nominal d. Liquidated

c. Nominal Nominal damages are a small amount of money given to recognize that a defendant did indeed commit a tort in a case where the plaintiff suffered no compensable damages. A plaintiff may receive nominal damages by simply failing to prove actual damages.

Which of the following refers to the transfer and distribution of risk? a. Risk assessment b. Risk absorption c. Risk management d. Risk assumption

c. Risk management

What is the term for someone that creates a trust? a. Incidental beneficiary b. Delegatee c. Settlor d. Trustee

c. Settlor a settlor then delivers and transfers legal title to property to another person, called a trustee.

Which of the following is not a common trust component? a. Trust corpus b. Income corpus c. Statute corpus

c. Statute corpus trust corpus- property held in trust income corpus- trust income generated through interest and/or appreciation

All but which of the following is an objective of tort law? a. To compensate innocent people who are injured b. To deter future wrongs c. To compensate society against wrongs committed by the state d. To reinforce a vision of a just society

c. To compensate society against wrongs committed by the state Tort law's primary objective is to provide compensation for injured parties. It also serves to reinforce a vision of a just society, deter future wrongs, and prevent private retaliation by injured parties.

__________ property is property that the original owner has discarded. a. mislaid b. lost c. abandoned d. none of the above

c. abandoned Anyone who finds abandoned property becomes its owner by processing it.

If the insured and the insurance company cannot agree on the _______ of the loss, the insured can demand an evaluation of the loss under the policy's ______ clause. a. value, arbitration b. insurable value, actual value c. actual value, appraisal d. appraisal, actual value

c. actual value, appraisal

To punish an individual for criminal behavior, the governemnt must demostarte which two elemenst of a crime? a. actus rea and mens rea b. actus mens and actus rea c. actus reus and mens rea d. actus reus and mens reus

c. actus reus and mens rea actus reus- wrongful behavior ( guilty act) mens rea- wrongful state of mind (guilty mind)

An intentional, unwanted, offensive bodily contact is known as ______. a. crime b. assault c. battery d. defamatory

c. battery

A separate document that outlines changes to an original will is called a(n) ______. a. income beneficiary b. settlor statement c. codicil d. testament

c. codicil wills are ambulatory, meaning testators can change them by signing the codicil in front of a witness.

Money damages awarded in civil courts to repay a plaintiff for damages caused by the defendant are __________ damages. a. retribution b. nominal c. compensatory d. punitive

c. compensatory Money damages awarded in civil courts to repay a plaintiff for damages caused by the defendant are compensatory damages.

Intentional infliction of ______ ______ occurs when someone engages in outrageous, intentional conduct likely to cause extreme psychological anguish to another party. a. false light b. false distress c. emotional distress d. emotional privacy

c. emotional distress

If a landlord prevents a tenant from entering any part of the leased premises, then it is considered a(n) ______ eviction. a. wasteful b. partial c. full d. constructive

c. full landlord physically prevents you from entering any party of the premises

A gift that is made in contemplation of one's immediate death is what type of gift? a. intervivos gifts b. intravivos gifts c. gift causa mortis d. gift mortis cause

c. gift causa mortis

Strict liability torts occur when the defendant takes an action that is ______ dangerous. a. conditionally b. not c. inherently d. subjectively

c. inherently

A ___________ is a temporary and revocable right to use another's property. a. profit b. easement c. license d. none of the above

c. license an example is you purchase a movie theater ticket and you have the right to watch a movie for a limited time, and subject to good behavior.

When a common carrier accepts a package for transport, a _______ is created. a. bailment for the sole benefit of the bailee b. constructive bailment c. mutual benefit d. for the sole benefit of the bailor

c. mutual benefit When a common carrier accepts a package for transport, a mutual benefit bailment is created. The bailor has the package delivered, and the bailee gets compensated for providing the service. Both parties have benefited from the bailment.

A lease created for a recurring term is known as a _______ lease. a. periodic-indefinite b. periodic-at-will c. periodic-tenancy d. periodic-exclusive

c. periodic-tenancy The periodic-tenancy lease is created for a recurring term, such as month to month. It is distinct from the definite-term lease because the periodic-tenancy lease is for an indefinite time period.

A __________ occurs when a person uses her property in an unreasonable manner that harms a neighbor's use or enjoyment of his property. a. private taking b. private trespass c. private nuisance d. public nuisance

c. private nuisance A private nuisance occurs when a person uses her property in an unreasonable manner that harms a neighbor's use or enjoyment of his property.

___________ property is land and anything permanently attached to the land. a. fixtures b. personal property c. real property d. all of the above

c. real property

Land and anything permanently attached to the land is _______. a. intangible property b. tangible property c. real property d. personal property

c. real property Real property includes land and anything permanently attached to the land.

The four main areas that the duties and rights of the landlord an tenant can be classified as possession, use, maintenance and _______. a. control b. access c. rent d. payments

c. rent

If a defendant is not informed of his or her Miranda rights, a. there is no effect on the criminal case. b. the arresting officers' testimony is limited at the time of trial. c. the information provided by the defendant at the time of arrest will not be admissible at trial. d. the defendants are automatically released and the charges are dismissed.

c. the information provided by the defendant at the time of arrest will not be admissible at trial. To comply with the Supreme Court's requirements for protecting a citizen's rights, law enforcement officers must inform any individual they arrest of his or her Miranda rights. If the officers fail to do so, any information a defendant offers at the time of the arrest is not admissible at trial.

______ allows a person to transfer property to another person (trustee). a. will b. deed c. trust d. none of the above

c. trust the property is then used for the benefit of a third person, the beneficiary. Trust are usually created through formal, written documents.

Which of the following are not ways courts decide if a testator is of sound mind when creating a will? a. whether the testator knows the extent of their property b. whether the testator knows they are making a will c. whether the testator knows they are creating a trust for their estate d. whether the testator understands traditions regarding who should get their property

c. whether the testator knows they are creating a trust for their estate

One who has a leasehold estate has what type of interest in the estate? a. A causa mortis estate b. A future interest c. An ownership interest d. A possessory interest

d. A possessory interest The holder of a leasehold has a possessory but not an ownership interest. This interest is transferred by a contract known as a lease. A leasehold estate gives the lessee, or tenant, exclusive rights to the use and possession of the land for the term specified in the lease.

What is the term for a legal document that outlines how a person wants his or her property distributed on death? a. A trust b. Inter vivos c. A health care directive d. A will

d. A will

Smith, the CEO of a steel company, wanted to win the tender to supply steel rods for a reputed real estate company. Hence, he paid money to an executive of the real estate company to disclose the dollar amounts of other competing bids so that his company could offer a better bid. What is this crime referred to as? a. Insider trading b. Extortion c. Larceny d. Commercial bribery

d. Commercial bribery This crime is referred to as commercial bribery. Bribery is the offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust. Commercial bribery involves paying a bribe in exchange for information or payoffs.

What type of trust is created by a court to hold property for its rightful owner? a. Ambulatory trust b. Express trust c. Probate d. Constructive trust

d. Constructive trust

_____ occurs when someone in a position of trust or responsibility over the assets of another person uses those assets for his or her personal use and not on behalf of the person who entrusted the assets to person in a position of trust or responsibility. a. Burglary b. Larceny c. Breach of trust d. Embezzlement

d. Embezzlement Embezzlement requires entrustment of one's assets to another person, who has a position of trust or responsibility over those assets. Entrustment is the voluntary transfer of possession, not ownership, of one's assets to another person. If that person uses those assets for his or her personal use and not on behalf of the entrusting person, the crime of embezzlement has occurred.

What is the term for a trust created by the court that has no settlors? a. Express trust b. Ambulatory trust c. Inter vivos d. Implied trust

d. Implied trust also called involuntary trusts

What is the term for the contract principle that requires the landlord to provide a premises be fit for ordinary residential purposes? a. Fee simple absolute b. Actual eviction c. Covenant of quiet enjoyment d. Implied warranty of habitability

d. Implied warranty of habitability

______ is a contract in which the _______ party makes payments to the _______ in exchange for the insurer's promise to make payment or transfer goods to the insured or a named beneficiary in the event of injury to or destruction of the insured party's property or life. a. Insured, insured, insurance b. Insurance, insurer, insured c. Insured, insurance, insurer d. Insurance, insured, insurer

d. Insurance, insured, insurer

What tort occurs when a defendant takes an action intending certain consequences to occur or knowing that those consequences are likely to result? a. Negligent b. Criminal c. Strict liability d. Intentional

d. Intentional Torts are classified as intentional, negligent, and strict liability. An intentional tort occurs when a defendant takes an action intending certain consequences to occur or knowing those consequences are likely to result. A negligent tort occurs when someone acts in a manner that subjects another to an unreasonable risk of harm. A strict liability tort is one that occurs when someone takes an inherently dangerous action that cannot ever be undertaken safely regardless of what precautions the defendant may take.

Which of the following is not a type of deed? a. General Warranty Deed b. Special Warranty Deed c. Quitclaim Deed d. Loose Warranty Deed

d. Loose Warranty Deed

In the context of leased property, which of the following statements is true? a. A landlord cannot sell the property that has been leased before the expiry of the lease agreement. b. Even after the sale of the leased property, the old owner remains the landlord until the lease agreement expires. c. The landlord can transfer possession of a property to a new owner but not the right to receive rent. d. On sale of a leased property, the new owner cannot force the tenant to move out of the property before the expiry of the lease agreement.

d. On sale of a leased property, the new owner cannot force the tenant to move out of the property before the expiry of the lease agreement. While a landlord can transfer ownership of a property to someone else, the lease is still legally binding. In other words, if a person is renting an office space and the landlord sells the title to the leased property, the new owner cannot force the person to move out of the office space until your lease expires.

Which of the following would be considered a(n) partial eviction? a. The landlord refuses to allow smoking in the building. b. The landlord refuses to allow a tenant on any part of the property. c. The landlord requests that tenants avoid the common area for two days while painting work is being done. d. The landlord changes the locks on the apartment and refuses to give the new keys to the tenant.

d. The landlord changes the locks on the apartment and refuses to give the new keys to the tenant. Generally, interference with a tenant's quiet enjoyment of property is in the form of an eviction. When a landlord changes the locks on an apartment and does not give the new keys to the tenant, a partial eviction has occurred. If the landlord allows the tenant access to some part of the property (e.g., the common areas), a partial eviction has occurred. The landlord can interfere with the use and possession of a property by a tenant by locking out or evicting the tenant. If the landlord prevents the tenant from any part of the property, a full eviction has occurred.

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

d. When the injuries occur in the common areas like elevators. Generally, a landlord is responsible for injuries that occur in common areas, such as elevators, hallways, and stairwells. Also, the landlord can be responsible for injuries when he or she has a responsibility to make repairs to the premises yet wrongfully or negligently makes those repairs. In this case, the landlord's liability depends on the tenant's notification of need for repair.

It is the _______ duty to provide the bailee with any agreed-on compensation for the bailment. a. property owner's b. bailee's c. seller's d. bailor's

d. bailor's The bailor has two fundamental duties. One is the duty of compensation and reimbursement. This duty requires that the bailor provide the bailee with any agreed-on compensation for the bailment. The bailor's other duty is to provide the bailee with property that is free from hidden defects that could harm the bailee.

Let the buyer beware, or _______, means that the seller has no obligation to tell a buyer about any problems. a. caveat vendee b. fraud in the execution c. fraud in the factum d. caveat emptor

d. caveat emptor The traditional answer to the question concerning the extent to which a seller has a duty to disclose known defects to a buyer was caveat emptor, or "Let the buyer beware," meaning that the seller had no obligation to tell the buyer about any problems.

McGee allows Jethro 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) _______ a. conditional estate. b. life estate. c. affiliate d. easement.

d. easement. An easement is an irrevocable right to use some part of another's land for a specific purpose without taking anything from it.

A bailment may be _______ a. neither gratuitous nor for consideration. b. for consideration. c. gratuitous. d. either gratuitous or for consideration.

d. either gratuitous or for consideration. A bailment may be gratuitous or for consideration. Bailments may be for the benefit of the bailor, the bailee, or both (a mutual bailment).

If a landlord prevents a tenant from entering any part of the premises, a _______ has occurred. a. voluntary possession b. condemnation c. partial eviction d. full eviction

d. full eviction When a landlord physically prevents a tenant from entering the leased premises, this eviction is known as an actual eviction. An actual eviction may be full or partial. If a landlord physically prevents the tenant from entering any part of the premises, it is a full eviction.

In the United States, white collar crimes: _______. a. only occur in major cities b. are very rare c. have limited financial impact d. happen often

d. happen often One in three US households are a victim of white-collar crimes every year.

The term "computer crime" refers to any wrongful act that a. uses computers to commit a crime and involves computers, but is not directed against computers. b. involves the theft of computers. c. involves computers and is committed by a hacker. d. is directed against computers, uses computers to commit a crime, and involves computers.

d. is directed against computers, uses computers to commit a crime, and involves computers. The term "computer crime" refers to any wrongful act that is directed against computers, uses computers to commit a crime, and involves computers. Computer crimes can be difficult to detect and may be committed by an insider, such as an employee, or an outsider, such as a hacker.

In order to void an insurance contract due to the applicant's misrepresentation of significant information in an insurance application, the insurance company must demonstrate that the misrepresentation was ______, and the company's knowledge of it would have resulted in the ______ of the offer. a. non-material; rejection b. non-material; acceptance c. material; acceptance d. material; rejection

d. material; rejection

Which of the following areas are landlords typically not liable if injuries occur? a. hallway b. elevator c. parking lot d. tenant's apartment

d. tenant's apartment landlord are liable for common areas

Henry announces to his neighbors that Jessica has been convicted of shoplifting. Jessica wants to sue Henry for defamation. Henry may use _____ as an absolute defense and, thus, avoid liability. a. partial privilege b. conditional immunity c. full immunity d. truth

d. truth A person accused of defamation can raise two defenses: truth and privilege. Truth is frequently considered an absolute defense. That is, the defendant cannot be held liable for defamation, regardless of whether damages result, if the statement made was true.

Which of the following is not a requirement for a valid deed? a. identification of grantor b. an expression of the grantor's intent to convey the property c. a legally sufficient description of the property (includes physical boundaries and easements) d. any warranties or promises made by the grantor with the conveyance. e. all of the above are required

e. all of the above are required

Which of the following is not a requirement of a valid will? a. the testator must have testamentary capacity b. A will must almost always be in writing to be valid c. the will must be signed by the person writing the will d. witnesses must attest to the will, meaning they sign the will also e. all of the above are required for a valid will

e. all of the above are required for a valid will testamentary capacity- means the person must be old enough to write a will (18+) and be of sound mind.

Which of the following is not a type of estate a person holds? a. fee simple absolute estate b. leasehold estate c. life estate d. conditional estate e. half life estate

e. half life estate

Which of the following is not a purpose of Tort Law? a. to compensate innocent persons who are injured b. to prevent private retaliation by injured parties c. to deter future wrongs d. To reinforce a vision of a just society e. to intentional harm and punish individuals who do harm

e. to intentional harm and punish individuals who do harm

T or F: A gift made by a person during their lifetime requires delivery, donative intent, and acceptance.

true

T or F: An assault occurs when a person is placed in fear or apprehension of an offensive bodily contact; if the contact actually occurs, it constitutes a battery.

true

T or F: An insured party can discontinue their policy at any time by stop paying their premiums or telling the insurance company to cancel the policy.

true

T or F: In both partial and full evictions, the tenant is released from the obligation to pay rent.

true

T or F: Revoking or canceling a will can be done by physically destroying it.

true

T or F: The date an insurance policy becomes effective is called the effective date.

true

T or F: The four privacy torts are false light, public disclosure of private facts, appropriation for commercial gain, and intrusion on an individual's affairs or seclusion.

true

T or F: The tenant has a responsibility to keep the premises in which he or she is in control in a reasonably safe condition.

true

T or F: Through the insurance agreement, the insured party transfers their risk of loss of property or life to the insurance company.

true

T or F: an easement is an irrevocable right to use some part of another's land for a specific purpose without taking anything from it.

true

T or F: To prove mens rea, the government must prove that the defendant acted with purpose, knowledge, recklessness, or negligence.

true, because its a guilty mind

Promises/representations in a General Warranty Deed:

- Grantor owns interest he/she is conveying - Grantor has right to convey the property - There are no outstanding mortgages or liens against the property that are not stated in the deed - Grantee will not be distributed by anyone who has better claim to property title, with promise to defend grantee's title against such claims or to reimburse grantee for any money spent in defense or settlement if such claims - Grantor will provide grantee with any additional documents that grantee needs to perfect their title to property

Landlord and Tenant Duties

1. Landlord duty to put tenant in possession 2. Landlord duty of covenant of quiet enjoyment 3. Tenant duty not to commit waste

Landlord and Tenant Rights

1. Tenant's right to retain possession 2. Tenant's right to quiet enjoyment of the property 3. Landlord right to reimbursement for tenant's waste

T or F: John has invited his friend, James, back to his place of business for a meeting. While he is there, James takes some cash off of John's desk. James has committed the crime of burglary.

False because James did not enter the premises unlawfully

T or F: Only the use of fire in burning down the dwelling of another is sufficient to charge a suspect with arson.

False because a charge of arson is also appropriate when incendiary devices are used (explosive devices)

T or F: the least desirable type of deed from the grantee's perspective is a general warranty deed.

False, a general warranty deed is the most desirable. A quitclaim deed is the least desirable.

T or F: a beneficiary of a will can also attest to the will

False, a person who will receive property from the will can not witness and sign the will

T or F: If someone threatens you over the phone it can be considered assault.

False, because it must be immediate fear or apprehension

T or F: Insurance companies cannot void a contract if the insured has made a material misrepresentation in the insurance application.

False, insurance companies can void

T or F: A conditional estate is the most complete estate a person may have because it grants exclusive rights to ownership and possession of the land. The interest passes to the heirs when the owner dies, too.

False, it is a fee simple absolute estate

T or F: An antilapse clause provides a grace period of usually 60 days in which to make an overdue payment.

False, its 30 days

T or F: Misdemeanors are serious crimes punishable by fines or imprisonment for more than one year.

False, less than one year

T or F: Someone who is overly fearful is assaulted every time they experience apprehension.

False, they are not assaulted every time. The test for assault is reasonable apprehension.

T or F: A profit is the right to go onto someone's land and take all of the land or a product of it away from the land.

False, they can only take part

T or F: Property crimes against businesses include mail fraud, bribery, embezzlement, and computer crimes.

False, they include robbery, burglary, larceny, and arson.

T or F: For a gift causa mortis, you must have the three elements of a gift: delivery, donative intent, and revoke before the death of the donor.

False, you need delivery, donative intent and acceptance