Test 3 Business Law

Uniform Anatomical Gifts Act

(adopted by every US state) provides that any individual 18 years old and older may give any or all parts of his/her body to a done on death May donate part of body or whole body to a hospital, surgeon, medical or dental school, college, organ bank, or a person they specify that needs a transplant Organ donor card: expresses a person's desires to donate organs or tissue

Trespass to Personal Property

: Temporarily exert control over someone's property without intent to keep it

exclusionary rule

All evidence obtained in violation of the Fourth, Fifth and Sixth Amendments is not admissible in court

defamation

Intentional publication of a FALSE statement that harms someone's reputation/character

Garage Liability Insurance

Protects the garage owner from liability to persons inured by the operation of the garage

Abandonment

Tenant moves out of the leased premises before the end of the term, has no intent to return, and had defaulted on rent payments If landlord accepts property, tenant usually relieved of the rent obligation and the lease is terminated

Corresponding Rights

Tenant's right to retain possession Tenant's right to quiet enjoyment Landlord right to reimbursement for tenant's waste

Landlord's liability:

Tenants can expect landlords to keep common areas safe; if an injury occurs in an elevator, hallway, or stairwell, the landlord is likely to be responsible for the injury

Income Corpus

Trust income generated through interest and/or appreciation

Settler

a person who creates a trust

extortion

aka blackmailthe making of threats for the purpose of obtaining money or property

Mislaid property

differs from lost property in that the owner had intentionally placed the property somewhere but has forgotten its location. The person who owns the realty on which the mislaid property was placed has the right to hold this mislaid property since the true owner will probably return looking for the mislaid property. ***finder of lost or mislaid property acquires title to the property against all except the true owner

Bill of landing

document issued by a person engaged in the business of transporting goods that verifies receipt of the goods for a shipment

fraud

encompasses a variety of means by which an individual intentionally uses misrepresentation to gain an advantage over another

Arbitration Clause

force both the insurer and the insured to submit any dispute to an arbitratorcan quickly settle disputes b/t parties

Intangible property

items like bank accounts, stocks, and insurance policies Voluntary Transfer of Property

Zoning is police power

ower of state to regular to protect health, safety, welfare of public

Commercial insurance

policy that covers some type of business risk like title, contractor, or fidelity insurance

Casualty Insurance

protects a person or property from accidental injury like workers compensation, health, and machine insurance

Joint Tenancy

tenants can sell their shares without the consent of the other owners, can have their interests attached by creditors Joint tenants all own equal shares of the property If a tenant dies the property is divided equally among the surviving joint owners

Under "reasonable corporate officer" doctrine,

the a court may assess criminal liability even on a corporate executive or officer who did not engage in, direct, or know about a criminal violation Executives have the responsibility and power to ensure that the company is in compliance with the law if one fails to do this they can be criminally liable Vicarious liability: courts have held employers liable for the wrongful acts of their employees if the employer directed, partook in, or authorized the wrongful act General Rule: when a lower-level employee commits a crime, he will be individually liable for the crime, and under the responsible corporate officer doctrine, the employee's manager, and any other corporate official who could have prevented the crime, can also be held vicariously liable for crime

insider trading

the buying or selling of a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about security

rent

the compensation paid to the landlord for the tenant's right to possession and exclusive use of the premises If tenant fails to pay rent when it is due, the landlord may charge a late fee (it cannot be excessive and must be related to the amount of past rent due)

Effective Date

the date the policy becomes effective

Donative Intent

the doner makes the delivery with the purpose of turning over ownership at the time of the delivery

Forgery

the fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another (i.e. signing your colleagues name in the back of a check made out to her) See page 155 for list of types of frauds

False pretenses

the illegal obtaining of property belonging to another through materially false representations of an existing fact, with knowledge of their falsity and intent to defraud

Trustee:

the person the title to property is transferred to

Misappropriation

using someone's likeness for your own economic gain without that person's permission Example: Someone photo shops Taylor Swift into an add without her permission

Private Nuisance

using your property as a nuisance to your neighbor Example: you cause flooding or continuous smoke to go onto someone else's property or if you make excessive noise

Nominal Damages:

A minimal amount that signifies defendant's behavior was wrongful, but caused no harm. Example: someone trespassed on your property but they did not cause any harmthere are no damages to pay and the owner did not suffer any harmcourt will award nominal damages Losing party may have to fee court fees

surrender

A mutual agreement between a landlord and a tenant to return your interest in the premise Generally, must be in writing Landlord accepts the tenant's offer to surrender the interest in the premises

Variance

A owner who wants to use land in a way that is prohibited by zoning may seek permission

Fraud or undue influence

A person can contest a will if he/she believes that although the will meets those 4 requirements to be valid, the testator was a victim of?

valid will

A person can contest a will if she/he believes that the will does not meet the 4 criteria to be a?

Eviction

Actual Eviction When a landlord physically prevents you from entering the leased premises Full Eviction If landlord physically prevents you from entering any part of the premise Partial Eviction: Landlord prevents you from entering a part of the premise.Example: you rent an office building and landlord changes some of the locks on certain offices in the building

False Claims Act

Allows employees to sue employers on behalf of the federal government Employee retains share of recovery

Damages Available in Tort Cases Compensatory Damages:

An award that puts plaintiff in same position he/she would have been in had tort not occurred Example: medical bills, costs of repairing property Attorney fees are NOT covered in compensatory damages

False Imprisonment

Any intentional confinement of a person against their will for an unreasonable amount of time "shopkeeper's tort" retailers occasionally need to question people who are suspected of shoplifting confine them by physical force, threatening to use physical force, refusing to release someone's property Use of moral pressure DOES not establish false imprisonment Example: Mother goes in for "training for new mothers" by a toy company and it really is just an hour long add and they say "only a bad mother would leave now" that is just moral pressure it is NOT false imprisonment

Duties of the Bailee

Bailee must take reasonable care of the bailed property, repairing and maintain it as necessary Bailee must use the bailed property only as stipulated in the bailment agreement Bailee must not alter the bailed property in any unauthorized manner Bailee must return the bailed property in good condition at the end of the bailment

Bailment Agreements

Bailments can be expressed or implied When a bailment is express, there is no requirement for a written agreement unless the statue of frauds applies.

Quitclaim Deed

Carries no warranties. Grantor conveys whatever interest he/she holds. If grantor had a defective title then the grantee receives a defective title Insecure deed...not a lot of grantees accept this Once a deed has been properly drafted and signed by the grantor and grantee it has been executed Notarization: certification by an official of the that says he/she saw the signing of the deed and that the signers provided evidence that they are who they claim to be

Invasion of Privacy False Light

Create publicity about someone that creates an impression that is NOT valid Example: tabloid published a photo of a 90 year old postal woman in Arkansas saying "100-year-old postal worker has to retire because she's pregnant" but this story was about a postal worker in a different state.....they cast the Arkansas woman in false light

Punitive Damages

Damages that punish defendant, seeking to deter such conduct in the future. The more wrongful the defendant's act the more the court will want to deter the rest of society from doing thisdefendant's wealth will be taken into consideration The richer the defendant is and the more wrongful the act the higher the damages award

3 elements for a valid gift

Delivery, Donate Intent, acceptance.

Tenancy by the entirety

Describes co-ownership by married couples One owner cannot sell his or her interest without the consent of the other If one owner dies, the surviving spouse assumes full ownership If the owners divorce, the interest become a tenancy in common

Assault

Does NOT have to be "assault AND battery" Someone has put you in fear of immediate bodily contact Example: You stole someone parking spot and they start pounding on your window and they say "get out I am going to beat you up" Requires that there is reasonable apprehension (reasonable if a reasonable person in a similar situation would experience apprehension) Requires immediacy Example: Someone calls you and says "I am going to beat you up tomorrow" this is NOT an assault because it is not immediate

Intentional Infliction of Emotional Distress

Example: "I just saw your kid being arrested for attempted murder"you make up a crazy lie like this just to get back at someone that fired you Extreme and outrageous conduct that causes severe emotional distress that no reasonable man can endure

Destruction of the Premise

Example: If a fire destroys the subject matter of the lease (i.e. the apartment)most states allow termination of lease

Insurer duty to defend the insured

Example: Kelly runs a red light a crashes into Josh's car. Kelly's insurance company has a duty to defend her against claims filed by Josh's insurance company. Kelly must notify her insurer and they mist provide her an attorney. Insurer duty to pay sums owed by the insured Insured duty to disclose information Insured Duty to cooperate with the insurer

Appropriation for commercial gain

Example: clothing company misuses Woody Alan's image and makes it look like he is dressed in their close...cant use someone's image, likeness, voice without their permission

Termination of the LeaseBreach of Condition by the Landlord Forfeiture

Example: either the tenant or the landlord fails to perform a condition stated in the lease. This breach is a forfeiture because the party is forfeiting his/her interest in the property

Public disclosure of private fact

Example: publishing info about someone's sex lifemost reasonable people don't want people knowing their sex life Appropriation for commercial gain

14th amendment

Extension of the right to due process to all state matters Extension of most constitutional rights to defendants at the state level

8th amendment

Freedom from excessive bail Freedom from excessive fines Freedom from cruel and unusual punishment

Any deed drafted must contain:

Identification of the grantor, the person conveying the property, and the grantee, the person receiving the property An expression of the grantor's intent to convey the property A legally sufficient description of the property, including its physical boundaries and any easements Any warranties or promises made by the grantor in conjunction with the conveyance

Defenses to Crimes

Infancy Mistake of fact tries to prove defendant made an honest and reasonable mistake that negates the guilty mind of a crime Involuntary intoxication: person unable to understand that the act they commited was wrong Insanity Duress Entrapment Necessity Justifiable use of force

Duties and Corresponding Rights of Landlord and Tenant Duties

Landlord duty to put tenant in possession Landlord duty of covenant of quiet enjoyment Tenant duty not to commit waste

Maintenance of the Premise

Landlord must ensure that the premise meet certain safety and health codes If landlord leases residential propertylandlord must make sure it is habitable Landlord ensures premises meet certain statutory responsibilities Common areas: landlord responsible for making repairs to common areas like yards, lobbies, elevators, stairs, and hallways that are used by all tenants In long-term leases tenant is responsible for more of the repairs to the rental property If landlord fails to maintain leased property Withhold rent paymentthis can be justified since landlord breached implied warranty of habitability Have repairs made by 3rd party and deduct the costs of the repairs from the rent due to your landlord Before you attempt to repair and deduct you must notify landlord who then must refuse to make repairs Repair and deduct options are restricted to essential services lie gas, water, and electric Sue landlord for damages

Extent of Ownership

Landowner's rights go beyond just the surface of the land Airspace above land: sometimes if a tree's branch is hanging into the airspace of the property next door, the owner of that airspace is entitled to cut them. Water Rights: landowner has legal ability to use water flowing across or underneath property. Owner cannot deprive landowners downstream of the use of the water by diverting it elsewhere. Mineral Rights: landowner has legal ability to dig or mine materials from the earth below the surface and may sell or give these rights to another. Subsurface Rights: includes the right to enter onto the property to remove the underground materials.

Misdemeanors

Less serous crimes punishable by fines or imprisonment for <1 year

Express Trusts

Living Trust: Created when settlor is alive Testamentary Trust: Created through a will ***Implied Trusts: Created by court

Types of advance directives (through which person can express his/her wishes about efforts to prolong life, and the "right to die") include:

Living Wills: Allow individuals to express their wishes regarding extent of medical treatment desired if they are in an accident or suffer from a life-threatening illness Health Care Proxies/Durable Powers of Attorney: Allow individuals to make medical decisions for others

Misuse of Legal Procedure

Malicious prosecution False criminal claims Wrongful civil proceeding you file it but you know its not true Abuse of process you can't file a false defamation claim to get your ex-wife to drop alimony

Sarbanes-Oxley Act

Passed by Congress in response to the business scandals of the early 2000s (Examples: Enron, WorldCom, Global Crossing, Arthur Anderson) Criminalizes specific non-audit services when provided by a registered accounting firm to an audit client Increases the punishment for a number of white-collar offenses Extends the statute of limitations regarding the discovery of fraud (two years from the date of discovery of the fraud, five years from the date of the criminal act)

conversion

Permanent taking of someones property. Example: At the airport baggage claim you take someone else's luggage because it looked like yours you have no way of getting bag back to someone

5th amendment

Prohibition of "double jeopardy" Right not to incriminate oneself Right to "due process"

The Racketeer Influence and Corrupt Organizations (RICO) act

Prohibits persons employed by or associated with an enterprise from engaging in a pattern of racketeering activity Anyone whose business or property has been damaged can sue to recover treble damages and attorney fees in a civil action Makes it a federal crime to Use income obtained from racketeering activity to purchase any intest in an enterprise Acquire or maintain an interest in an enterprise through racketeering activity Conduct or participate in the affairs of an enterprise through racketeering activity Conspire or do any of three preceding things

Trust Corpus:

Property held in trust

4th amendment

Protection from "unreasonable search and seizure" Restrictions on warrants

Product Liability Insurance

Protects the producer or manufacturer of a good from loss due to damages paid to people injured using the good

6th amendment

Right to a speedy and public trial Right to a trial by an impartial jury Right to be informed of the accusations against oneself Right to confront witnesses Right to have witnesses on one's side Right to counsel at various stages of the proceedings

Rights of the Bailor

Right to expect that the bailee take reasonable care of the bailed property, repairing and maintaining it as necessary. Right to expect that the bailee use the bailed property only as stipulated in the bailment agreement. Right to expect that the bailee will not alter the bailed property in any unauthorized manner. Right to expect that the bailee will return the bailed property in good condition at the end of the bailment.

Rights of the Bailee

Right to possess the bailed property during the term of the bailment Right to use the property in a manner consistent with the terms and purpose of the bailment Right to receive compensation for the bailment unless the bailment is gratuitous Right to retain the bailed property until payment is received

Common Crimes Affecting Business

Robbery: forceful and unlawful taking of personal property If force/fear absent then it is just theft Burglary: occurs when someone unlawfully enters a building with the intent to commit a felony Larceny: the secretive and wrongful taking and carrying away of personal property of another with intent to permanently deprive the owner of its use or possession Arson: the intentional burring of another's dwelling

Intrusion on an individual's affair

Someone uses a 2-way mirror in a gym dressing room

General Warranty Deed promises that:

The grantor owns the interest he or she is conveying The grantor has the right to convey the property There are no mortgages or liens against the property unless stated in the deed The grantee will not be disturbed by anyone who has a better claim to title of the property, and the grantor will defend the grantee's title against such claims or reimburse any money spent in their defense and/or settlement The grantor will provide any additional documents that grantee needs to perfect his/her title to the property

Insurable Interest

To have insurable interest a person must be subject to economic loss if there is damage or harm to person or property Only people with an insurable interest can enter into valid insurance agreement Insurable interest can be in either a person or property Example: Microsoft can insure Bill Gate's life b/c the corp. would probably suffer an economic loss if he died If insurable interest is a life, the interest must exist at the time the property is obtained If insurable interest is in property, whenever that person derives a financial benefit from its continued use there is insurable interest

Corporate Criminal Liability

Under common law a corporation cannot be considered a criminal because it is not an actual person so it does not have a mind Corporations CAN be held criminally accountable for almost any crime except those punishable only by a prison sentence Today you have to show that the individual was acting within cope of her employment, the individual was acting with the purpose of benefiting the corp, the act was imputed to the corp

the will

When a person with standing (i.e. a potential beneficiary) has doubts about whether a particular will is legally valid, they can contest ?

Settlement of an estate

When someone dies a personal representative, chosen by testator, collects the testator's property, pays debt and taxes, and makes sure that the reminder of the estates is distributed Probate: the process of settling an estate Nonprobate property: property that is not part of the probate

Elements of a Crime

Wrongful behavior, that is, actus reus, or a guilty act Wrongful state of mind, also known as mens rea or a guilty mind Prove defendant acted with purpose, knowledge, recklessness, or negligence Certain crimes allow punishment without proof of guilty mindactions that are strictly prohibited such as selling alcohol to a minor a business mught not have intended to sell to a minor but the statutory violation still allows liability to be assessed

Battery

You can have battery without assault Intentional unwanted bodily contact If you welcome or consent to it...NOT battery If you argue self-defense successfully you will not be charged with battery...you're allowed to use force to defend yourself Another defense to battery would be successfully arguing defense of others...you're allowed to use force to help save someone You can use reasonable force to defend your property from intruder BUT deadly force is usually NOT acceptable

Revoking a will

You can revoke a will by physically destroying Then you can execute a new will

Comercial bribery

a bribe in exchange for information or payoffs

Tort

a civil wrong giving the injured party the right to bring a lawsuit against the wrongdoer to recover compensation for the injuries Purposes of Tort Law: Compensate innocent injured persons Prevent private retaliation by injured parties Reinforce vision of a just society Deter future wrongs

Personal insurance

a policy that covers an individual's life or health

Use of premise Implied Warranty of Habitability

a requirement that the premises be fit for ordinary residential purposes

White-Collar Crimes

a verity of nonviolent illegal act against society that most often occur in the business context

In Partial and Full Evictions, the tenant is released from the obligation to pay rent Constructive Eviction

after a tenant notifies the landlord of a problem, the premises become unsuitable for use because of landlord's wrongful or omitted act Example: Suppose the heater in your office space breaks and your landlord refuses to fix itif it is winter the premises are unsuitable for use without heat so you can abandon the premises and terminate the lease

Life insurance

allows a business to take out a policy on a key employee and provide a payment in the event of the person's death

Computer crimes:

any wrongful act that is directed against computers, uses computers to commit a crime, involves computers Hackers and cyber terrorists

Fraudulent Misrepresentation

anytime you mislead someone to facilitate your own personal gain

Definite-term lease

automatically expires at the end of the specified term. Landlord is not required to give any notification of termination.

Vicarious liability

courts have held employers liable for the wrongful acts of their employees if the employer directed, partook in, or authorized the wrongful act General Rule: when a lower-level employee commits a crime, he will be individually liable for the crime, and under the responsible corporate officer doctrine, the employee's manager, and any other corporate official who could have prevented the crime, can also be held vicariously liable for the crime

Easement by prescription

created by state law when certain conditions are met. In most states if someone has openly uses a portion of another person's property for a statutory period (usually 25 years) an easement arises by law Easement of necessity: created if a piece of property is divided and one portion is landlocked as a result

Periodic-tenancy lease

created for a recurring term, such as month to month. Indefinite period Landlord or tenant can terminate during the recurring period Must give party sufficient notice of termination

Tenancy-at-sufferance lease:

if a tenant fails to leave the property this type of lease is createdlandlord can choose either to permit the tenant to remain on property or demand repossession of property

Petty Offenses

ike violating a building code are punishable by jail time < 6 months or a small fine Federal or state depending on whether they are enacted by the state or federal legislature

classification of crime Felonies:

include serious crimes (i.e. murder) that are punishable by imprisonment for >1 year or death

Fair Housing Act

landlord may not discriminate against a prospective tenant with regard to: Race Color Sex Religion National origin Familial status Disability

Tenancy-at-will lease

may terminate at any time

Liable

more permanent formwritten defamation (or TV that can be recorded)someone can sue you and gain general damages Truth as a Defenses If you say someone is a convicted felon and he is then it is NOT defamation

Slander

not permanentspoken defamation Example: you say someone has an STD but you know they don't

Undue Influence

occurs when a person that the testator trusted took advantage of his weak physical or emotional condition to persuade him to write the will a certain way

Negligent Tort

occurs when defendant fails to act in a responsible way, subjecting others to an unreasonable risk of harm

Intentional Tort

occurs when defendant takes action intending that certain consequences will result, or knowing they are likely to result Example: You purposely want to scare someone and so you threw a baseball at themeven though you only intended to scare them you should have known that the ball could hit someone and it did

Strict Liability Tort

occurs when defendant undertakes an "inherently dangerous" action, causing harm to others

Unfair Competition

occurs when someone starts a business only to drag down another business

Fraud

occurs when the testator relied on false statements when he made the will

Strict Liability offenses

offenses that do not require mens rea (guilty mind)

Bribery

offering, giving, soliciting, or receiving money or any object of value for the purpose of influencing judgment or conduct of a person in a position of trust Bribery of a public official us a statutory offense under federal law

Rent escalation clause

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

Tenant cannot commit waste Waste:

permanent and substantial injury to the landlord's property Example: Tenant cuts down several trees in the yard without the landlord's permission In most states tenants cannot make alterations (changes that affect the premise) without the land

Contractor's liability insurance

protects contractors against liability for injuries that might occur while completing a job ( excluding injuries to employees)

Professional Liability insurance

protects members of specific professions from liability associated with their professional act

Property Insurance

protects property from loss or damage like fires, theft, or homeowners insurance

Term-life insurance

provides coverage for a specific term (i.e. 1 year) Premiums usually smaller but beneficiary only gets payment if the insured dies within the specific term

Whole-life insurance:

provides protection for the entire life of the insured but is distinctive because it has a cash-surrender value. If owner decides to cancel policy he/she will receive a certain amount of cash back (increases as more premiums paid) Allows owner of policy to borrow $ from the insurance company at a favorable interest rate

Tenant's liability

responsible for keeping the premises in which he or she is in control in a reasonably safe condition Example: Tenant who runs a restaurant would be responsible for the injuries of a customer who slipped and fell on a wet floor inside the restaurantBUT if the customer slipped and fell after entering a room that says "employees only" the tenant would not be responsible

Intentional Torts (Against Economic Interest) Disparagement:

similar to defamation but it invoves a business sense instead of a personal sense Example: CEO of burger king is asked about McDonalds and they say "we don't worry about them as a competitor because we know that they use rat meat in their burgers" Intentional Interference with Contract: there is a contract that exists b/t two parties (employer and employee) and the defended knew of the of contract but still took steps to make the other party dishonor the contract Example: business recruitment apple knows Microsoft has a great employee that has a 3 year contractif apple tries to recruit this employee knowing that they have a contract then Microsoft can sue for intentional interference with contract

Lease

the actual agreement between the landlord and the tenant Landlord grants the tenant the temporary, exclusive right to occupy and use a specific space for a specific amount of time Tenant is obligated to pay rent to landlord (landlord retains the title of the land) Landlord-tenant relationship requires: The names of the tenants and landlord An express or implied intent to create a landlord-tenant relationship A description of the property The specific length of the lease The amount of rent to be paid to the landlord

Landlord's lien:

the landlord's right to some or all of the tenant's personal property you would be required to initiate court proceedings so that the sheriff would seize the tenant's property this property is considered as security for the unpaid rent

Family Incentive trust

the person who designs the trust can create incentives for certain behavers Example: You got your first teaching jobyou get access to some more money

Nonconforming use

when community allows an exception to zoning for a particular property

Acceptance

willingness of the donne to take the gift from the donor

Delivery order

written order to deliver goods directed to a party who issues warehouse receipts or bills of landing

Intentional Torts (Against Property) Trespass to Reality

you trespass on someone else's property without their property or you put an object on the land without owners permission If you stay on the owner's property after they have already asked you to leave Example: You are a guest at a party and you're being an ******* so the host asks you to leave if you do not leave you become a trespasser If you leave something on someone's land and they ask you to remove it and you don't Example: You leave your broken down car at someone's house, but after awhile owner asks you to remove it if you don't it is trespassing

Duties of the Bailor

Bailor must provide the bailee with any agreed-on compensation for the bailment Bailor must reimburse the bailer for any necessary costs uncured by te bailee during the bailment

Voluntary Transfer of Real Property

Execution: deed must be properly drafted and signed by the grantor and grantee Delivery: the deed must be given to the grantee with the intent of transferring ownership to the grantee Acceptance: the grantee must express intent to possess the property by accepting the deed Recording: The deed should be filed properly

Appraisal Clause

If you and your insurance company cannot agree on the amount of damage you suffered you and the insurance company can select a disinterested appraiser.

Involuntary Transfer of Personal Property

Occurs when property has been abandoned, lost, or mislaid. Finder of such property may acquire ownership rights to such property through possession

Premium

The insured party makes a payment called a (?)in exchange for a later payment in the event of damage or injury to property or person

Will

a legal document that outlines how a person wants his/her property distributed on death

Warehouse receipt

a receipt issued by one who is engaged in the business of storing goods for compensation

Bailment of personal property

a relationship that arises when one party, the bailor, transfers possession of personality to another, the bailee, to be used by the bailee in an agreed-on manner for an agreed-on time period Example: Woman leaves her coat in a coat check room. She hands her coat to the clerk and is given a ticket identifying the object of the bailment so that it can be reclaimed.

Incontestability Clause

a state-mandated clause ensuring that after an insurance policy has existed for a specified period (usually 2 years) the insurance company cannot contest any statement made in the application. Prohibits insurer from delaying payments b/c it decides to investigate the application for fraud

License

a temporary and revocable right to use another's property Example: someone who purchases a movie ticket has the right to a specific use of the property for a limited time No property interest goes to license holder

Personal Property

all property that is not land or not permanently affixed to land Tangible property: is property that can be identified by the senses. You can see or touch it. (cars, furniture, etc.)

Trust

allows a person to transfer property to another person, and this property is used for the benefit of a third person

Zoning

allows for the orderly growth and development of a community and protects the health, safety, and welfare of its citizens

Binder

an agreement that gives temporary insurance until the company decides to accept or reject the insurance application

Easement

an irrevocable right to use some part of another's land for a specific purpose Example: Perry has the right to drive his car across Jenny's property to get to his property

Fixture

an item that was originally a piece of personal property but became part of the realty after it was permanently attached to the real property in question Example: If a tenant installs a built-in dishwasher in the property he is renting, the dishwasher becomes part of the real property. When the tenant leaves, he may not take the dishwasher with him. **** Exceptions: Written agreement between the parties that specific features will be treated as personal property Trade fixtures: treated as personal property on the basis of the presumption that neither party intends such fixtures to become a permanent part of the realty Example: Business person rents a storefront for a barbershop and installs barber charsthose chairs are trade fixturesif barber relocates he can take the chairs with him

In Gross Easement or Profit

are not dependent on owning property adjacent to the land on which the nonpossessory interest exists. Example: Gas company may obtain easement in gross to run gas lines across someone's property

Gift causa mortis

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.

Inter vivos gifts

gifts that are made by a person during his or her lifetime

Tenancy in common

gives each co-owner the right to sell his or her interest without the consent of others, to own an unequal share of the property, and to have their creditor attach his or her interest Heirs of a tenancy in common receive the property interest on the tenant's death

Condominium interest

gives the holder exclusive ownership rights of a unit within the condo minimum and tenancy in common with the other condominium owners over the land, buildings, and improvements of the common areas of the development

Fee-Simple-Absolute- Estate

grants exclusive rights to ownership and possession for life, and upon death property is passed on to heirs.

Profit

he right to go onto someone's land and take part of the land or a product of it away from the land. Example: Perry has the right to go onto Jenny's property and remove the topsoil he needs from it from his landscaping business

Individual insurance

if the insured party is the one purchasing the policy

Group insurance

if the purchaser is neither the insured nor the insurer

Moral Hazard

individuals who are insulated from risk sometimes behave differently Example: if someone has car insurance they might be careless when locking the car since the insurance will cover this risk of theft To lessen the impact of moral hazard, insurance companies requires individuals with insurance to make co-payments or pay a deductible This makes people refrain from making claims

Innkeepers' Liability

innkeepers and anyone else who is in the business of regularly providing lodging to to others are held to a strict liability standard for their guest's property. Some states allow innkeepers to avoid or limit strict liability for their guests' property if they provide guests with a safe for their valuables...guests must be notified that there is a safe Generally, innkeeper does not have any responsibility for a guests car unless they provide parking facilities

Application for insurance

insurance companies can void a contract if the insured had made a material misrepresentation in the insurance application

Cooperative

investor resident is a shareholder in the corporation owning an apartment building and receivers a permanent lease on one unit of the facility upon acquiring stock. All unit owners are governed by a board of directors (they're usually elected from among the unit owners to manage property and establish rules for the owners)

Insurance

is a contract in which the insured party makes payments to the insurer 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 property

Life Estate

is granted for the lifetime of an individual, but upon death of the owner the grantor decides who acquires property Waste occurs when the holder of a life estate uses the property in a way that reduces the value of the estate that the future holder will receive; it is unlawful

Zoning ordinances must not be unreasonable

it is unreasonable if: It encroaches on the private property rights of landowners without a substantial relationship to a legitimate government purpose such as health, safety, welfare There is no reasonable relationship b/t the ends to be obtained and the means used to attain them It is unreasonable for zoning ordinances to destroy the economic value of a piece of property If it does owner entitled to fair compensation

Real Property (aka realty):

land and everything permanently attached to it

delivery

may be actual, where the gift is physically presented, or constructive, which entails the delivery of an item that gives access to the gift or represents it (i.e. car keys)

Common carriers

mutual-benefit bailment is created, but because the bailee is a common carrier, her or she is held to a higher standard of carecarrier is absolutely liable for any harm done to the property even if there was not negligence (only exception is an act of god, an act of a public enemy, act of the shipper, or inherit nature of good)

Appurtenant Easement or Profit

occurs when the easement or profit runs with land adjacent to the property on which it exists. Example: Perry's property is adjacent to Jenny's he has an easement )or profit) that is appurtenant

Transfer by Express Agreement:

occurs when the landowner expressly grants the agreed-on use of the land to the holder of the easement Example: allowing a farmer to run a ditch across part of his neighbor's property to drain a field. This easement should be recorded in the appropriate county office or described on the deed to protect the holder of the easement if the property is sold If the transfer of the interest is to be by inheritance: terms are simply incorporated into the property owner's will

Estate Planning

process by which an individual decides what to do with his/ her real and personal property during and after life Uniform Probate Code covers a wide range of topic from wills to gifts to life insurance

Covenant of quiet enjoyment:

promise that the tenant has the right to quietly enjoy the land ***Landlord promises that he/she will not interfere with the tenant's use and enjoyment of the property If landlord does interfere the tenant can sue the landlord for breach of this covenant

Special Warranty Deed

promises only that the grantor has not done anything to lessen the value of the estate

Abandoned property

property that the original owner had discarded. Anyone that finds such property becomes the owner by possessing it.

Lost property

property that the true owner has unknowingly or accidentally dropped or left somewhere. He or she has no way of knowing how to retrieve it. In most states, the finder of the lost property has title to the lost good against all EXCEPT the true owner

Codicils

re separate documents with new provisions that outline changes to the will Testators must go through the same procedures to make a valid codicil as those followed in making the original will After a person writes a codicil, it is read with the will as a unit that expresses the testator's wishes

Conditional Estate

right to own and possess the property, but interest will terminate on the happening or nonhapening of condition Example: Todd may be given property rights to a Victorian house on the condition that he preserve it in its original form if he violates this condition by turning the house into a piano showroom or a beer hall, the house will either revert to the original owner or be transferred in accordance with the terms of the deed

Leasehold Estate

right to possess property for an agreed-on period of time Interest is transferred by a contact aka a lease The owner of the property (the lessor) and the tenant (the lessee) sign the lease. Contract specifies the property to be leased, the amount of the rent payments and when they are due, the duration of the leasehold, and any special rights or duties of either party. Landlord not allowed to enter property except in an emergency or when tenant gives permission to make repairs near end of lease landlord can enter with notice to tenant to show other people the property. Initial tenant is liable throughout the entire term of the lease for payment of the rent to the landlord even if they sublease it .

The insurer

sometimes called the underwriter receives payments from the insured party and pays the beneficiary, the person named to receive the insurance proceeds in the event of injury or damage The insured and insurer express their agreement in a document called a policy

Testamentary Capacity

testator, the person who writes the will, must be old enough to write the will (most states 18) and be of sound mind Writing Usually typed up, but can be handwritten Testator's signature Attestation A witness must witness the signing of the document Witness cannot be a beneficiary (person who receives property under the will) and must be of sound mind

Transfer of property by purchase

the acquiring party gives some consideration to the seller in exchange for the title to the property Usually no formalities, but in a few cases changes of ownership mist be registered with a government agency.... this would include sales of motor vehicles, watercraft, airplanes, etc. Certificate of title must be signed by the seller, taken to the appropriate government agency, and then reissued in the name of the new owner Gifts: do not require consideration

Determining who benefits from bailment is a key factor in determining the standard of care owed by the bailee. If bailment intended to benefit only the bailor--->?

the bailee is liable for damage to property caused by the bailee's gross negligence

If bailment is for the mutual benefit of the bailee and bailor

the bailee is liable for harm to the bailed property arising from the bailee's ordinary or gross negligence If property is harmed by an unpreventable "act of God" there is no liability on the part of the bailee under any circumstance Conspicuous signs can be hung to limit liability Example: a health club sign may say "rent a locker for $1. Health club is not responsible for items stolen from unlocked lockers."

Bailment solely for the bailee's benefit

the bailee is responsible for harm to the property caused even by the slightest lack of due care on the part of the bailee Example: Jim borrowed his roommates bike to go to the library and even though he parked the bike as far away from other bikes as he could....if someone scratched the bike while Jim was in the library, Jim would have to compensate his roommate for the damage done to the bike

Risk

the potential for loss Through the insurance agreement, the insured party transfers his/her risk of loss of property or life to an insurance company Insurance company distributes this risk among a large group of persons who share the same riskif loss occurs one party not forced to bear the entire weight

Embezzlement the

the wrongful conversion of another's property by one lawfully in possession of it Example: Suppose Katherine gives Devin, her lawyer, $6000 to put in an account where Devin will have access for it even though it is not his to use as he pleases if Devin uses some of the money to gambles and then fixes the records to cover himself he has embezzled money Embezzlement is different from larceny because the embezzler does not take property from another; he is already in possession of it

Antilapse Clause

typically for life insurance...it provides a grace period of usually 30 days in which to make an overdue payment

Documents of Title

when a bailment is for the purpose of transportation or storage of goods these documents of title may be issued in conjunction with the bailment A document of title "must purport to be issued by or addressed to a bailee and purport to cover goods in the bailee's possession which are either identified or are fungible portions of an identified mass

Intestacy Statues

when a person dies without a will these state laws outline how the person's property will be distributed

Intestate

when a person dies without a will they died intestate Surviving spice usually splits real and personal property with the children of the marriage and not of the marriage and the deceased's parents