chapter 7 practice questions
Generally, to be considered valid, a mortgage and deed of trust only need to be put into writing and do not need to be registered in any county records office.
False
House-sitting would be an example of a bailment because you are in temporary possession of someone's house with the intention to return full possession to the owners upon their return.
False
In all states, if foreclosure and auction do not produce enough money to satisfy the debt owed by the mortgagor, the creditor-mortgagee can still sue the debtor for the balance owed, called a remainder.
False
In the property system, the state plans what people should do, and acquires and redistributes resources to them.
False
Kerry is leaving the house and cannot find her cellphone. After a 30 minute search, she locates it in her bathroom drawer. Kerry's cellphone would be considered lost until it was found.
False
Mike repaired Rosie's car, and Rosie refused to pay the bill. Mike was still in possession of the car and therefore could claim a mechanic's lien on the car.
False
Ownership by confusion arises when non-fungible goods are mixed together.
False
Property is infinite, and its boundaries are free from any ambiguity.
False
The physical dimensions of real property are generally easy to define.
False
The property interest is divided equally in both joint tenancy and tenancy in common.
False
A purchase money security interest is perfected by attachment alone.
True
An interest in property that is defined as a fee simple estate will have no limitations or conditions attached.
True
Because people can keep and benefit from what they produce, property is said to generate prosperity by creating incentive.
True
If a donor transfers something to a donee without a mutual exchange of resources, the donor has given a gift to the donee.
True
If one of the joint tenants in a joint tenancy dies, the remaining tenant becomes the sole owner of the entire resource.
True
If the capture rule is applied to subsurface rights, a property owner of Parcel A would be allowed to drill and extract oil that flows underneath Parcel B, which is owned by his neighbor.
True
In a number of states, courts have made merchants in mutual benefit bailments liable for any defect in a bailed object that causes personal injury.
True
Private property is a system of law under which the state recognizes and enforces an individual's rights to acquire, possess, use, and transfer scarce resources.
True
Property helps generate prosperity by establishing the conditions necessary for capital formation.
True
Property is the legal right to exclude others from resources that are originally possessed or are acquired without force, theft, or fraud.
True
Securities are an example of intangible personal property.
True
Storing something in a storage warehouse or renting appliances from a rental store are examples of bailments.
True
The bailee in a bailment for the sole benefit of the bailor owes a slight duty of care while the object is in the bailee's possession.
True
The right of redemption allows a mortgagor, before foreclosure, to get back land upon payment of the full amount of the debt.
True
To satisfy a past due debt, a creditor can request a foreclosure of land, which is usually done by auction. After auction, the proceeds will go to pay the debt, and any remaining funds will go to the debtor.
True