HM 203 Exam 2

Jared owns 100 acres of woodland. One day, he and Margie are hiking through Jared's woods and Margie finds a gold ring. The true owner is never discovered. Which of the following statements about this situation is correct?

Because the ring was found on Jared's property, he is probably entitled to keep it

Novel

An invention must be new to be patentable

trademark

Any combination of words and symbols that a business uses to identify its products or services and distinguish them from others

Under the fair use doctrine, instructors cannot be liable for copyright violations

False

​A person always has an insurable interest in his or her own life and the life of his or her spouse or fiancee, but not in parents or children

False

Victor purchased $1 million of insurance on his home even though the house was only worth $500,000. Victor's house was destroyed by lightning. Under the insurance policy, Victor will be able to recover $1 million

False

A plant patent lasts for

20 years from the date of application

common carrier

A company that transports goods and makes its services regularly available to the general public

contract carrier

A company that transports goods for particular customers

condemnation

A court order awarding title of real property to the government in exchange for just compensation

What is the best definition of a trade secret?

A formula, device, process, method, or compilation of information that, when used in business, gives the owner an advantage over competitors

inter vivos gift

A gift made during the donor's life, with no fear of impending death

gift causa mortis

A gift made in contemplation of approaching death

tenant

A person given temporary possession of the landlord's property

Donor

A person who gives property away

donee

A person who receives a gift of property

Covenant

A promise or undertaking contained in a lease whose breach does not result in eviction

condition

A promise or undertaking contained in a lease whose breach may result in eviction

binder

A short document acknowledging receipt of an application and premium for an insurance policy It indicates that a policy is temporarily in effect

gift

A voluntary transfer of property from one person to another, without consideration

adverse posession

Allows someone to take title to land without paying for it, if she meets four specific standards

Key person life insurance

Companies buy insurance on their officers to help the companies recover if they were to die

Charles agrees to store Tuan's car in Charles's garage for the winter months while Tuan visits his grandmother in California. As a bailee, Charles is automatically entitled to use Tuan's car while Tuan is away

False

Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the entrance of the restaurant. Even though no employee of the restaurant is present, the provision of the cloakroom makes Jerry think it will be safe. In this situation, the restaurant is the bailor of Jerry's coat.

False

Jose and Juanita are first cousins. Jose lives in San Francisco, California; Juanita lives in Toronto, Canada. The two have met only once in life, and may never meet again. Nonetheless, because they are blood relatives, Juanita has an insurable interest in Jose's life

False

Stephen wants to give his niece, Dawn, a piece of jewelry as a gift. Stephen gives Tracy, his agent, the bracelet to take to Dawn. The delivery element of making a gift has been completed

False

The Supreme Court has held that parody of copyrighted material is a violation of copyright law

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

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."

False

Ginny sublet her apartment to Fred by assigning her lease to him. If Fred doesn't pay rent, who is liable to do so?

Ginny and Fred are both liable, and the landlord may sue both parties to recover the unpaid rent

In which of the following scenarios has a gift been made?

Grandpa chuckles as Jessica admires his pocket watch. "Go on, put it in your own pocket, Jessica," he tells her. "You can have it." Jessica thanks her grandpa and happily tucks the watch into her pocket

Jake owns an old piece of exercise equipment. He has been using the equipment merely to hang his clothes on, so Jake decides to get rid of the thing. He takes the unused exercise machine to the landfill and throws it off the back of the truck. Maggie, a teenager, is at the landfill rummaging for useful items. Maggie sees the exercise equipment and decides it is just the thing to give her sister for Christmas, so she decides to take it home. As she is loading it into the back of her pickup truck, Jake stops and tries to get it back. The landfill owner sees the commotion and decides he would like to have the equipment as well. Who has the best rights in the exercise equipment?

Maggie

Monic, a college professor, makes 30 photocopies of a magazine article and passes the article out to her students. The students are assigned to read the article and write an opinion paper about it. Has Monic violated copyright law?

No. Monic has acted within the fair use doctrine

Patent

Patents give investors the right to prevent others from making, using, or selling their inventions for a limited time

value-based care

Payment to medical providers is based on patient outcomes, not quantity and complexity of services performed

fair use doctrine

Permits limited use of copyrighted material without permission of the author

eminent domain

Power of a government to take private property for public use.

assignment

Process under which the original tenant transfers all of his rights and duties to a new tenant

Abandoned property

Property that the owner has knowingly discarded because she no longer wants it

annuities

Provide payment to a beneficiary during his lifetime

liability insurance

Reimburses the insured for any liability she incurs by accidentally harming someone else

Disability Insurance

Replaces the insured's income if he becomes unable to work because of illness or injury

A college professor copies seven chapters from a book called "How to Get Better Grades—A Creative Approach to College Success!" There are ten chapters in the book. She incorporates this material into a packet that is printed in her college's copy center. The packet is then placed on the required materials list for students to purchase and is sold in the local book store. The author of the book believes the professor has violated his copyright

The author is right. The professor should not have copied the chapters and placed them for sale in the bookstore

mitigate damages

The duty to keep losses at a minimum

reversionary interest

The landlord's right to occupy the property at the end of the lease

landlord

The owner of a freehold estate who allows another person temporarily to live on his property

bailment

The rightful possession of goods by one who is not the owner, usually by mutual agreement between the bailor and bailee.

Buck, fearing death from severe injuries suffered in a machinery accident, assigned over a certificate of deposit worth $100,000 and delivered the certificate to Pearl, a friend, who gladly accepts. Buck ends up recovering from the injuries. Why must Pearl give the certificate of deposit back to Buck?

This type of gift is known as a gift causa mortis. It is a conditional gift which is conditioned on Buck actually dying. Because Buck recovered, the gift is automatically revoked

A user's presence must be visible and generally known in the area, so that the owner is on notice that his title is contested

True

If a trademarked name acquires a generic meaning, the owner of the trademark loses protection

True

If an insurance company lies to a customer when selling him a policy, it has committed fraud

True

Landlord-tenant relationships are governed by a mixture of property law, contract law, and negligence law

True

Landlords have the right, and may have a duty, to evict tenants who seriously disturb others

True

Patrick owns an office building and leases space on a year-to-year basis. Patrick maintains a reversionary interest on the property

True

Unlike with patents, the ideas underlying copyrighted material need not be novel

True

​When Sue bought a new car, she stopped by the insurance company and completed an application and made a payment. The agent accepted the offer orally. If Sue has an accident on the way home, she is covered by the new policy

True

tenancy in common

Two or more people holding equal interest in a property, but with no right of survivorship

joint tenancy

Two or more people holding equal interest in a property, with the right of survivorship

concurrent estates

Two or more people owning property at the same time

Which type of health insurance plan is based on patient outcomes?

Value-based care

partition by kind

a form of partition in which a property is divided among co-owners

leasehold

a right to produce real property temporarily

While driving down his street one evening, Jonah notices that his neighbor has laid out an electric fan for the garbage to pick up the next morning. Jonah stops and has a look at the fan; it seems to be perfectly fine, so he takes it home with him. The fan would most likely be considered

abandoned property

Personal property

all tangible property other than real property

revocable gifts

are not gifts at all because the donor can take them back

A company's trade secret lasts for

as long as it is kept confidential.

Which type of automobile insurance covers the cost of damage caused by fire, theft, or vandalism?

comprehensive insurance

The landlord's first important duty to a tenant is to

deliver possession

Intellectual property is

expensive to produce but cheap to reproduce and transmit

managed care plans

health insurance plans that limit treatment choices to reduce costs

A bailment is different from a gift because

in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee

lost property

property accidentally given up

mislaid property

property the owner has placed somewhere and then forgotten

Zoning statutes

state laws that permit local communities to regulate building and land use

The cheapest life insurance option is

term insurance

Which of the following insurance policies continues for a stated period of time with the premiums increasing with the age of the insured?

term insurance

The element that distinguishes a contract from a gift is

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

bailor

the one who delivers the goods

bailee

the one who possesses the goods

quiet enjoyment

the right to inhabit the property in peace

freehold estate

the right to possess land for an undefined length of time

​If a tenant leaves a toy car on the stairs of his apartment and a guest trips over it and is injured, who is most likely liable?

the tenant

​A tenant's foremost obligation is

to pay rent

Pamela applies for a life insurance policy with Forever Young Insurance Company. When completing the application form about past surgeries, Pamela forgot about a past outpatient surgery when she had an infected hang-nail removed and her toe treated. One year after issuing the policy, Pamela died suddenly from a brain aneurysm. Forever Young denies payment under the policy based on misrepresentation. If Pamela's sister, Paula, sues Forever Young, she will most likely

win, because Pamela's misrepresentation was not a material fact and did not increase Forever Young's risk in insuring Pamela's life