Business Law Chapter 49
66. Town House Apartments fails to provide the utilities to its tenants' apartments, making their use and enjoyment of the premises exceedingly difficult. This is most likely a. a tenancy at sufferance. b. an exercise of the landlord's property rights. c. an assignment of the lease. d. a constructive eviction.
d
37. Bob owns twenty acres of land on the side of a mountain in Colorado. He files a suit against the Durango Flight School, claiming that its planes flying over his land violate his property rights. To succeed, his best argument is a. the planes fly over more than twice a day. b. there are other routes the planes could take. c. the flights are low and frequent, interfering with enjoyment of his land. d. the planes are effectively taking private property for private use.
c
41. Veda owns a house. In the house, on a tile floor is a throw rug and a heavy decorative urn. Most likely to meet the definition of a fixture is a. the urn. b. the throw rug. c. the tile floor. d. all of the choices.
c
46. Ghani owns Hillside Vineyard. Ghani conveys some of the land "to Iona for her life." Ghani has given Iona a. a fee simple absolute. b. a license. c. a life estate. d. a profit.
c
47. Edna and Flavia buy a cottage in Gulfport, Mississippi. On the death of either owner, that owner's interest in the dwelling passes to her heirs. This is a. a joint tenancy. b. community property. c. a tenancy in common. d. ownership in fee simple.
c
49. Beck and Carli are married. Carli purchases a condominium near Downhill Ski Resort. Beck and Carli each technically own an undivided one-half interest in the condo. This is a. a joint tenancy. b. fee simple ownership. c. community property. d. illegal.
c
51. Sergio rents an apartment from Taylor for a stated period of one year. The lease does not include a provision for renewal or extension. At the end of the lease term, possession of the apartment most likely a. remains with Sergio absent notice by the tenant. b. remains with Sergio until notice by Taylor. c. remains with Sergio under an implied renewal or extension provision. d. returns to Taylor.
d
53. Rafe signs a one-year lease for an apartment owned by Suki. Rafe is a student and needs the apartment only for two semesters, at the end of which he plans to sublet it for the rest of the term. Rafe's tenancy is a. a periodic tenancy. b. a tenancy at will. c. a tenancy at sufferance. d. a fixed-term tenancy.
d
64. Urban City wants to acquire undeveloped private land within the city limits to construct a public park. The city brings a condemnation proceeding to obtain title to the land. This is a. the right to adverse possession. b. an easement. c. a profit. d. the power of eminent domain.
d
Multiple Choice 36. Colleen owns a parcel of land. She tows a mobile home to the parcel and anchors it to the land near a stand of Douglas fir trees. Her real property consists of a. the land. b. the mobile home. c. the trees. d. all of the choices.
d
12. There are no interests in land that do not include any rights to possess the property. a. True b. False
False
18. A license is a personal privilege that cannot be withdrawn or revoked. a. True b. False
False
4. The rights of the owner to the subsurface of a piece of land would have little value if the owner could not use the surface to exercise those rights. a. True b. False
True
59. Logging Corporation has a right to go onto Mountain Timber Company's land and harvest select trees. Logging's right is a. a license. b. an easement. c. a profit. d. a right to adverse possession.
c
39. Gaye owns the surface rights for High Desert Ranch, which includes a house, a bunkhouse, and two barns. Industrial Mining Inc. owns the subsurface rights. When the company drills for and extracts the oil beneath the ranch, the surface subsides and the structures collapse. Most likely responsible for the damage is a. Industrial Mining. b. Gaye. c. Industrial Mining and Gaye in proportion to the value of their rights. d. no one.
a
43. Derek deeds a parcel of timberland to Elaine as a gift. Derek has given Elaine a. a fee simple absolute. b. a life estate. c. the right to adverse possession. d. the power of eminent domain.
a
29. Rendering the leased premises unfit for occupancy is constructive eviction. a. True b. False
True
3. The owner of real property has relatively exclusive rights to the airspace above the land. a. True b. False
True
38. Owen owns a farm in Pennsylvania. Owen's brother Quentin owns the subsurface rights to the farm. Either brother can pass title to what he owns a. without the other's consent. b. only with the other's consent. c. only when the other also passes title to what he owns. d. only by first offering to buy out the other's rights.
a
45. Aggie owns Buffalo Ranch. Aggie's ownership rights include the right to sell or give away the property without restriction, and the right to use the property for whatever purpose she sees fit. Aggie's ownership interest is a. a fee simple absolute. b. a license. c. a life estate. d. a profit.
a
48. Kim and Leola own a warehouse in which they operate Mini-Storage Corporation. On the death of either owner, that owner's interest in the warehouse passes to the surviving owner. This is a. a joint tenancy. b. community property. c. a tenancy in common. d. ownership in fee simple.
a
13. An easement is the right to go onto land owned by another and take away some part of the land itself or some product of the land. a. True b. False
False
31. If the leased premises are destroyed by fire or flood, and the tenant is forced to move out, the tenant must still continue to pay the rent until the lease ends. a. True b. False
False
34. If the assignee of a lease is required to pay rent, the original tenant is free of the obligation to pay the rent. a. True b. False
False
5. Real property consists of land, and does not include anything attached to it. a. True b. False
False
6. To be a fixture, an item of personal property must be physically attached to the land in some way. a. True b. False
False
7. The most important factor in determining whether an item is a fixture is the perception of a disinterested third party. a. True b. False
False
True / False 1. An individual's right to his or her property is absolute. a. True b. False
False
10. A fee simple absolute is an estate or interest in land with no limits in terms of disposition or duration. a. True b. False
True
23. Society's interest in ensuring that real property remains in the stream of commerce is one of the reasons for the doctrine of adverse possession. a. True b. False
True
25. As long as zoning ordinances are rationally related to the health, safety, or welfare of the community, a municipal government has broad discretion to carry out zoning as it sees fit. a. True b. False
True
27. A lease of property for a prohibited use is unenforceable. a. True b. False
True
30. The tenant's use of the leased property must not injure the landlord's interest. a. True b. False
True
32. If the landlord sells the leased property, the tenant becomes the tenant of the new owner. a. True b. False
True
8. Tile and carpeting permanently attached to the floor of a house are most likely intended to be fixtures. a. True b. False
True
58. Italo owns one hundred acres of fertile bottomland. With respect to the land, Jana has an easement and Kessler has a profit. A right to possess the bottomland is owned by a. Italo. b. Jana. c. Kessler. d. all of the choices, in proportion to the value of their respective interests.
a
60. Frank tells Giselle that she can camp on Frank's beach and swim in his lake whenever she wants. With respect to the right to camp and swim, a. Frank can withdraw or revoke the right. b. Giselle can exercise the right for the duration of her life. c. Giselle can pass title to the right to her heirs. d. Giselle can use Frank's property with impunity for perpetuity.
a
40. Nancy owns Office Tower, a commercial building situated on an acre of land that she also owns in Peoria, Illinois. Subject to certain qualifications, the exterior boundaries of Nancy's land extend to a. the size of a cubic acre. b. the limits of the current building market. c. infinity and beyond. d. the center of the earth and up to the sky.
d
55. Kristen signs a one-year lease for a mobile home owned by Lamont. If Kristen dies during the lease term, the lease interest a. returns to Lamont. b. automatically expires. c. automatically renews. d. passes to Kristen's heirs as personal property.
d
54. Estes, the owner of Forest Mountain, and Gert, the tenant of a cabin on Estes's mountain, may create a fixed-term tenancy by a. implied contract. b. express contract. c. any of the choices. d. sufferance.
b
61. To transfer the title to Olivia's warehouse to Pete by deed requires a. Pete's signature. b. Olivia's signature. c. all of the choices. d. the signatures of the building's tenants.
b
11. The owner of a life estate has the same rights as a fee simple owner, including the right to sell the property or pass it to his or heirs. a. True b. False
False
26. The purpose of zoning is to prevent development altogether and to limit the government's ability to adapt to changing circumstances. a. True b. False
False
Essay 71. All-Mart Discount Stores Corporation contracts to buy ten acres from Suburban Enterprises, Inc., as a site for a new store. The contract calls for a "warranty deed." According to a survey that All-Mart commissions, one corner of an adjacent, enclosed parking lot is on part of the property that Suburban is attempting to convey. Can All-Mart avoid the contract? If so, on what basis? If not, why not?
All-Mart can avoid the contract for the sale of Suburban's property on the ground that Suburban has breached the warranty of title. According to this warranty, a seller of real estate warrants that he or she has title to, and the power to convey, the property, that the buyer will not be disturbed in his or her possession of the land, and that the transfer is made without any Analyze of the adverse claims of third parties. The parking lot on a part of the property to be conveyed indicates that its owner may have acquired that part by adverse possession, and this fact of course breaches Suburban's warranty of title.
16. When one tenant in common dies, that party's interest in the property automatically passes to the surviving owners. a. True b. False
False
17. When a joint tenant dies, his or her interest in the property passes to his or her chosen heirs. a. True b. False
False
2. Land includes the soil on the surface of the earth, but not the waters contained on it. a. True b. False
False
20. The condemnation power of the government to take land for a public use is known as the right of adverse possession. a. True b. False
False
21. The covenant of quiet enjoyment guarantees that the buyer will not disturb the land or any of its neighbors. a. True b. False
False
22. To acquire property by adverse possession, the possession must be secret or clandestine. a. True b. False
False
24. Under the takings clause of the Fifth Amendment to the U.S. Constitution, private property may be taken for public use without "just compensation." a. True b. False
False
72. Larissa leases to Metal Fabrication Corporation a 10,000 square-foot building under a written lease with a twenty-year term, rent payable annually. The lease includes a clause stating that Metal Fabrication is responsible for making all necessary repairs, including rebuilding the structure after its destruction by any cause beyond Larissa's control. The lease does not include a clause concerning its assignment. One day after the tenth rental payment, Metal Fabrication, without Larissa's knowledge or consent, assigns its interest in the lease to National Steel, Inc. Meanwhile, Larissa dies and Olina inherits her interest in the building. Without the knowledge or consent of either Metal Fabrication or National Steel, Olina sells the building to Prime Properties, Inc. The next month, the building is destroyed in devastating storm. Metal Fabrication rebuilds it and files a suit against Prime Properties for the expense. The defendant responds that the lease has terminated. Is Prime Properties correct? If so, when did the lease terminate? If not, is Prime Properties liable for the cost of rebuilding the structure? Why or why not?
Prime Properties is not correct. The lease has not terminated. Absent a provision in the lease to the contrary, its assignment is not prohibited, even without the consent of the landlord. The death of a landlord does not terminate a lease, unlike some other contracts. The owner's sale of leased premises to a third party does not terminate a lease, even without the consent of the tenant. Normally, the destruction of rental property would terminate a lease, but this commercial lease contained, as do many long-term commercial leases, a clause that required the tenant to rebuild the structure if it was destroyed by a cause beyond the landlord's control, which includes a flood. Such clauses are legally binding. Thus, none of these events—Metal Fabrication's assignment of the lease to National Steel, Larissa's death, Olina's sale of the property to Prime Properties, or the destruction of the building in a storm—terminated this lease. There may be a reduction in the amount of rent Metal Fabrication, who remains liable despite the assignment, must pay while the premises are being rebuilt. Prime Properties is not liable for the cost of rebuilding the structure. Again, the lease required the tenant to rebuild the destroyed structure at the tenant's expense.
9. Because no one can actually hold a piece of land, certain rights and duties are recognized to constitute the ownership interests in real property. a. True b. False
True
14. In both a tenancy in common, and a joint tenancy, each co-owner owns an undivided interest in the property. a. True b. False
True
15. With a tenancy at will, either party can terminate the tenancy without notice. a. True b. False
True
19. A valid deed must contain words indicating an intent to convey (transfer) the property. a. True b. False
True
28. If the covenant of quiet enjoyment is breached, the tenant can terminate the lease and sue for damages. a. True b. False
True
33. If a lease requires the landlord's consent to an assignment, the landlord can nullify an assignment made without consent and evict the assignee. a. True b. False
True
35. The same restrictions that apply to an assignment of the tenant's interest in leased property apply to a sublease. a. True b. False
True
63. To obtain the title to land without delivery of a deed, one person must possess the property of another a. in an open, visible, and notorious manner. b. in secret. c. with or without interruption. d. with the other's permission.
a
65. Bebe wants to lease a duplex for two years from Country Living Inc. In most states, the lease agreement a. must be in writing. b. can be oral or written. c. must be oral. d. must be signed by a judge.
a
67. Seaside Vistas leases an apartment to Tori. During a severe storm, the premises are destroyed by flood. Under most state laws, liable for the rent for the rest of the lease term is a. no one. b. Seaside and Tori in proportionate amounts. c. Seaside only. d. Tori only.
a
68. Property Management Corporation (PMC) owns several apartment buildings in two states. Regarding standards for maintenance of the buildings, PMC should consult a. the applicable city ordinances and state statutes. b. the previous owners. c. the long-term tenants. d. the Uniform Landlord's Maintenance Manual.
a
69. Jade owns a loft that she leases to Keyes and Luc. If Jade sells the loft, Keyes and Luc a. become the tenants of the new owner. b. remain Jade's tenants until the end of the lease term. c. must immediately vacate the premises. d. become the landlord.
a
42. Richard owns Scholars Apartment House. His ownership rights include the right to sell or give away the property without restriction, as well as to use the property for whatever purpose he sees fit. His ownership interest is a. a fee simple absolute. b. a life estate. c. the right to adverse possession. d. the power of eminent domain.
a
44. Mike owns a beach house in North Carolina in fee simple. This ownership interest is a. potentially infinite in duration. b. limited to the period of Mike's life. c. limited to the period of the lives of Mike and his immediate heir. d. subject to the withdrawal or recall of the previous owner.
a
52. Brick & Mortar Stores Inc. signs a lease for a storefront owned by Commercial Properties Inc. The lease does not specify how long it is to last but does specify that rent is to be paid at certain intervals. This is a. a periodic tenancy. b. a fixed-term tenancy. c. a tenancy at will. d. a tenancy at sufferance.
a
50. Ellen conveys to Floyd an apartment with the right to possess and use the premises for a period of time specified in their express contract. This is a. a periodic tenancy. b. a fixed-term tenancy. c. a tenancy at will. d. a tenancy at sufferance.
b
56. Ché has an easement that allows him to drive across Dale's land to get to Ché's house. With respect to Dale's land, Ché's right is a. a possessory interest. b. a nonpossessory interest. c. a right to adverse possession. d. the power of eminent domain.
b
57. Rosen is the life tenant of five hundred acres of land, on which is situated a previously existing mine. Rosen has the right to a. use the land, including the mine, for any purpose, without qualification. b. extract minerals from the mine, but not to dig a new mine. c. extract minerals from the mine and to dig new mines. d. none of the choices.
b
62. Bayside Inc. pays Coastal Marina to release its claim to a strip of waterfront property. Coastal gives Bayside a deed that conveys only whatever interest Coastal has in the strip. This deed is a. none of the choices. b. a quitclaim deed. c. a deed of quiet enjoyment. d. a warranty deed.
b
70. Rita has a fixed-term tenancy for her apartment with Studio Apartments. If Rita abandons the premises before the lease expires a. Studio Apartments must make a reasonable attempt to evict Rita. b. Studio Apartments may be required to mitigate its damages. c. Rita may be required to mitigate her damages. d. Rita is no longer obligated to pay the rent.
b
