Unit 9 exam

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

If property is mislaid, the finder of the property will have a superior claim to possession of the property against everyone except the true owner.

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

Jimmy stole Dave's motorcycle and completely revamped the engine and changed the body. These accessions were very expensive, but Jimmy was completely satisfied with the results, intending to sell the motorcycle for a huge profit. If the motorcycle is recovered from Jimmy, Dave must pay Jimmy for the improvements.

False

Parents may not disinherit their minor children without good reason.

False

The Uniform Probate Code has been adopted in all states.

False

The difference between an inter vivos gift and a gift causa mortis is that the inter vivos gift is made during the donor's lifetime and a gift causa mortis is a gift is made after the donor's lifetime by the donor's estate.

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

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

Which of the following is a possessory interest in land?

Fee simple absolute

Legal requirements for a will depend on state law, but generally include all but which of the following?

Signatures of at least three witnesses

In order to constitute as a gift,

the donor must deliver the gift property to the donee.

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.

Mark signs a periodic tenancy lease at the River's Edge Warehouse for one year. After the year expires, Mark stays in the warehouse and the landlord acquiesces. Mark

has another one-year lease

A bailee always has a right

to possession of the bailed property.

A tenancy with no fixed duration is a

tenancy at will

Roxy applies for a life insurance policy with Young Insurance Company, naming her brother Paul as the beneficiary. When completing the application form about past surgeries, Roxy forgets to disclose that twelve years ago she had corrective laser eye surgery. One year after issuing the policy, Roxy died suddenly in a car accident. Young denies payment under the policy based on misrepresentation. If Roxy's brother, Paul, sues Young, he will:

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

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

Per capita means each heir gets an equal share of an estate.

True

Property of a person who dies without a will is distributed according to intestacy laws.

True

Reva prepares and signs a document that she intends to be her will. If she has not followed the legal technicalities of her state regarding executing a will, the court may not enforce the will.

True

​In a condemnation, a court order specifies what compensation is just for the property owner and awards title to the government.

True

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

True

Which of the following is NOT required to create a valid trust?

Witnesses

Singleton married Sharon, his second wife, on his 80th birthday. The next day, he made a will leaving everything to his son, Joey. Two years later, Singleton died suddenly. If Singleton and Sharon lived in a non-community property state, can Sharon recover any of Singleton's estate?

Yes, Sharon can receive a forced share equal to a certain percentage of Singleton's estate.

David Delta rents an apartment on the second story of a building. The landlord leases space on the first floor below David's apartment to a cleaning company that mixes its cleaning chemicals in the leased space. The fumes from the company's chemical mixing drift up into David's apartment, even when the windows are closed. They cause David to suffer severe nausea and headaches, and he cannot sleep in the apartment. David's girlfriend and friends also refuse to come over due to the strong odors. If David brings a claim for nuisance, is he likely to win?

Yes, and the court will order an abatement.

In 1985, Susannah Jones purchased a farm and several acres of land. An old wooden fence stood 200 yards south of the actual southern boundary of the plot of land that Jones purchased, but Jones thought that the fence ran along the southern boundary of her land. Jones installed a new, electrified fence, cleared the land on "her" side of the new fence, and began to graze cattle there. In 2000, Sam Kerry purchased the land that bordered the other side of the fence. In 2007, Kerry had the property surveyed and discovered that the true property boundary lay 200 yards north of the fence. The statutory period for adverse possession is 20 years. If Jones files suit the same year seeking a declaration that she now owns the 200 yards between the legal boundary and the fence, will Jones win?

Yes, because Jones has adversely possessed the land.

Mark leases a house to Julia. When Julia mentions that the bedroom door is difficult to close, Mark comes to the house and fixes the door. Unfortunately, Mark leaves a sharp edge on the door that Julia catches her foot on, making a deep cut requiring multiple stitches. Julia sends Mark her medical bills associated with the injury. Under the common law rules, must Mark pay?

Yes, because Mark negligently performed a repair.

Molly leaves her car with Happy's Garage to replace her tires. Sally, who owns the same model car as Molly, mistakenly takes Molly's car from Happy's Garage. One mile away from Happy's Garage, Sally crashes the car. Molly sues Happy's Garage. Can Happy's Garage recover from Sally?

Yes, because Sally interfered with Happy's Garage's right to possess the car.

Andy hires a moving company to ship his furniture from Seattle to Houston. Through no fault of the moving company, the furniture is damaged when rats decide to make a home in the inside of the moving van. The rats chew holes in the furniture and it is ruined. Is the moving company liable to Andy for the damage to his furniture?

Yes, because common carriers are strictly liable.

Martin owns a piece of land with a bike path that runs along its western boundary. Martin subdivides the property into two parcels, an eastern parcel and a western parcel. Martin continues to live on the eastern parcel and sells the western parcel to Marjorie, reserving an easement over the edge of the western parcel so that Martin can continue to access the bike path. Years later, Martin sells the eastern parcel to Miriam. Does Miriam have an easement over Marjorie's land to access the bike path?

Yes, because easements appurtenant run with the land.

Melissa is moving to a new city and has to put her belongings in storage while she looks for a new apartment and lives out of a hotel. Melissa rents a storage unit from Safety Storage, Inc. and signs a multi-page written contract that includes a sentence in the middle of the document stating that Safety Storage, Inc. is not liable for any loss or damage, even if caused by Safety Storage's negligence. Shortly after, a Safety Storage employee negligently causes a fire that destroys the warehouse, including the unit Melissa rented and all of her belongings inside of it. If Melissa sues Safety Storage for the value of her property in the storage unit, will she likely win?

Yes, because often a court will reject an exculpatory clause against a bailor who is a consumer.

Donna rents a carpet cleaner from Vac-Rent, a company that leases equipment to the public. Vac-Rent had inspected the vacuum cleaner the week before and had not noticed anything wrong with it. After Donna uses the vacuum cleaner without experiencing any problems, she notices that her carpet begins to grow a horrible mold. Assuming the Vac-Rent machine caused the mold, is Vac-Rent liable for any damage caused by Donna's use of the vacuum cleaner?

Yes, because the bailment from Vac-Rent is subject to implied warranties.

Mrs. Rosenberry enters into an agreement for the sale of her mansion to Mr. Green. The house has a very large decorative gas fireplace, which Mrs. Rosenberry had specially designed. The fireplace is connected to the gas line in the house; it can be removed and replaced by a professional in a matter of hours, but may result in damage to the wall and floor surrounding the fireplace. The agreement does not specify whether the fireplace is included in the sale of the mansion. Does Mr. Green's purchase of the mansion include the fireplace?

Yes, because the fireplace is a fixture.

Victor purchased $1 million of insurance on his barn even though the barn was worth only $500,000. Victor's barn was struck by lightning and burned down. Under the insurance policy, how much will Victor be able to recover?

500,000

The percentage of people dying without a will is approximately

65%

Cameron and Mitchell own a commercial office building as joint tenants. Mitchell transfers his interest in the building to his sister Claire. A year later, Claire dies. Who receives Claire's 50 percent interest in the office building?

Claire's heirs receive Claire's interest.

Which of the following does NOT act as a revocation of a will?

Creating a codicil

Louise lives in a small town that was ravaged by tornadoes. When staying in a shelter set up by the American Red Cross, Louise is so grateful for the help of the volunteers that she writes on a napkin "I, Louise Hermione Smith, leave all of my assets to the American Red Cross upon my death," signs the napkin, and puts it back in her purse. When another severe storm comes through Louise's town, she is badly injured by a falling tree. When arriving at the hospital, Louise tells a doctor and a nurse "I know I'm not going to live. I want all my money to go to the love of my life - David Potter." Louise dies in surgery later that day, and a nurse finds the napkin in Louise's purse when looking for contact information for Louise's family. Who will receive Louise's estate?

David, as Louise's statement to the doctor and nurse is a valid nuncupative will.

Grandpa owns a farm. In a signed writing, Grandpa gave Sue the irrevocable right to use a road on his farm so that Sue could more easily reach her own property. What kind of interest in land did Grandpa give to Sue?

Easement appurtenant

A later will revokes a prior will only if that revocation is clearly stated.

False

All bailments have to be by agreement between the bailor and bailee.

False

Myron had two children, Cheryl and Pete, who predeceased him. Cheryl had three children and Pete had one child. Myron had a will. Which of the following is true?

If Myron's will indicates that the issue are to inherit per stirpes, Pete's child will receive one half of Myron's estate.

James is the trustee of a trust that was established by his parents to pay his children's college tuition. One of his children is going to Princeton, where the tuition is more than $50,000. Another child is attending a state university, where the tuition is one-tenth of Princeton's. Each of James' children voluntarily and independently selected their schools without regard for the tuition. James is paying both of these tuition bills from the trust. Has James violated his fiduciary duty?

No, James has not violated a fiduciary duty as long as he discloses to both how much he is paying for tuition.

Rosemary has gone sailing with her nephew Steve on her boat every summer since he was a small boy. On their latest sailing trip, Rosemary told Steve, "I'm getting too old to take care of this big boat. Next summer, I will give it to you to keep." Steve replied that he would be delighted to accept the boat. When Steve goes to pick up the boat from Rosemary the following summer, she tells him that she sold it to her neighbor for $25,000. Steve claims that the boat belonged to him and that he is entitled to the $25,000. Is he correct?

No, because Rosemary did not intend to transfer ownership of the boat immediately.

Anna agrees to lend Charlie her car while she is away for the weekend. On Friday evening, Anna gives her car keys to Charlie's roommate Betty, who says she will give the keys to Charlie. Before giving the keys to Charlie, Betty takes Anna's car to the corner store and the car is stolen while Betty is inside the store. Is Charlie liable to Anna for the loss of the car?

No, because no bailment with Charlie was created.

Wanda has a terminal illness and fears she is near death. She intends to give all of her money -- $50,000 -- to a local church. Wanda's daughter, Tabitha, tells her that she can get treated by a healer in the Amazon and Wanda decides to give it a try. Wanda instructs Tabitha to give the $50,000 to the church if she dies. If Wanda dies in a plane crash en route to the Amazon, is the church entitled to the $50,000?

No, because the money was never accepted by the church.

Joel creates a trust for his son with instructions for the trustee to provide a monthly allowance to his son starting on his 18th birthday. When Joel's son is 17 and a senior in high school, he declares that he will not go to college. Joel contacts the trustee and convinces him to transfer all of the trust's assets to a new trust, which requires that Joel's son graduate college before payments can be made. When Joel's son turns 18, he claims that he is entitled to his first monthly payment. Is Joel's son correct?

No, if the trust was created in a state that allows decanting.

Noelle invests in her best friend's new software company. A few years later, Noelle is able to sell her stock in the successful company for $5,000,000. She places all of these earnings in a domestic asset protection trust (DAPT). After Noelle loses her job, she accumulates a large amount of credit card debt. When she tries to purchase an extravagant $2,000,000 apartment, she cannot get a loan because of her poor credit. The trustee of the DAPT denies Noelle's request to withdraw money from the trust to be able to purchase the apartment, saying that Noelle is trying to live beyond her means. Can Noelle force the trustee to release the $2,000,000 to purchase the apartment?

No, the donor of a DAPT can spend the trust assets only with the approval of the trustee.

Dan checks into a nice beachfront hotel. He does not want to expose his $10,000 Patek Phillipe wristwatch to salt water, so he leaves it in the dresser in the room. When he returns from the beach, the watch is gone. The state where Dan is vacationing has the following statute: If the proprietor of any hotel shall provide a safe or other secure storage unit in the hotel's office or in another convenient place, for the safekeeping of any valuables belonging to guests of the hotel, and shall place, in a noticeable position in the room or rooms occupied by each guest, a notice stating the fact that a safe is provided in which valuables may be deposited, and any guest shall neglect to deliver valuables to the person in charge of the safe, the proprietor shall not be liable in any sum for the loss of valuables sustained by that guest, by theft or otherwise. . . . "Valuables" includes money, bank notes, bonds, precious stones, jewelry, ornaments [etc] and any other articles of similar value.Is the hotel liable?

No, unless Dan had not been notified that he should use the hotel's safe.

Jack and Jill are engaged and decide to buy a house together. Jack cannot attend the closing of the purchase of the house because he is away on business, so he signs a power of attorney to Jill so that she can sign the necessary papers at the closing for both of them. Jack is in a car accident on his way to the airport that causes him to go into an irreversible coma. Jill knows that Jack would not want any extraordinary measures taken to unnaturally prolong his life, but Jack's parents disagree. Does Jill have the authority to make Jack's medical decisions?

No, unless Jack also appointed Jill as his health proxy.

As Bill was walking through the mall to Tonne's Department Store, his wallet fell out of his pants. While trying on a new suit at Tonne's, Bill left his leather jacket in the fitting room. Sue found Bill's wallet. Annie, a sales associate, found his jacket. What rights do Sue and Annie have in the found property?

Sue's rights to the wallet are superior to all except Bill. Annie generally has no rights to the jacket.

Ted and Janet were married and owned a piece of jungle property in a tenancy by the entirety. When Janet died, her will left of all her real property to T.J., their adult son. T.J. claims he is the sole owner of the jungle property. Ted objects and files a lawsuit for sole ownership of the jungle property.

Ted will win because property owned in a tenancy by the entirety includes rights of survivorship for the surviving spouse. Ted will get the title to the entire property

Jasmine signs a lease for a residential apartment for 2 years. Jasmine does not renew the lease, but when the lease expires she does not want to move out. Instead, Jasmine remains in the apartment and sends the landlord that month's rent. The landlord returns the rent to Jasmine and tells her to sign a new lease or leave. What kind of tenancy does Jasmine currently have?

Tenancy at sufferance.

Which of the following types of concurrent ownership does not provide for rights of survivorship?

Tenancy in common

The Smith family is renting a house from Barry Becker in Maine under a one year lease running from September to September. During the first week of February, the house's water heater breaks during a blizzard, leaving the family with no hot water. After the Smiths repeatedly call Becker, he arrives one week later to fix the water heater. While working at the house, he accidentally causes an electrical failure and cannot get the power to turn back on. Although the water heater is functioning when Becker leaves, it breaks the next day. An electrician comes to the house ten days later and turns the power back on. On the ninth day without power, the Smiths moved to a hotel and stayed there for one week until they could find a new house to rent. Becker sues the Smiths for nonpayment of rent and the Smiths countersue for their moving fees and hotel bill. Who wins?

The Smiths, because they were constructively evicted from the house.

Ollie leased a building in Old Town. Ollie installed a washer and dryer unit and a new furnace in the basement of the building with new duct work throughout the building. Upon expiration of the lease, Ollie intends to remove the washer and dryer, but not the furnace. The washer and dryer can easily be removed without harming anything. Removal of the furnace, however, will damage the building. Are the washer, dryer, and furnace fixtures?

The furnace is a fixture, but the washer and dryer are not.

Kenmart Realty sued to evict Mr. and Ms. Armondo from a residential apartment for nonpayment of rent and sought the unpaid monies, totaling several thousand dollars. In defense, the Armondos claimed that their apartment had toxic mold. They testified that there were large patches of dark mold in the walls and floor of the living room, bedroom, and kitchen, that there was a foul odor from the mold and that they had begun to suffer frequent headaches. They testified that the landlord had refused numerous requests to remove the mold. Please rule on the landlord's suit, assuming that they reside in a jurisdiction with the implied warranty of habitability.

The landlord will lose because the conditions violate the warranty of habitability.

Chef Ramsey lends his professional food processor to his neighbor who is preparing a fancy dinner. When the neighbor returns the food processor to Chef Ramsey, the blade is mangled and it will not turn on. If Chef Ramsey sues his neighbor for the value of the food processor, who will have the burden of proof in the case?

The neighbor will have to show that he acted with extraordinary care.

Charlie writes a will leaving all of his belongings to his wife. After Charlie's wife dies, his daughter, Marie, invites Charlie to come live with her. Charlie has his lawyer draw up a new will leaving everything to Marie, except for $1 which he left to his son Stephen "who never visits me". Shortly after, Marie goes with Charlie to his lawyer's office, where Marie and Charlie's lawyer witness Charlie sign the will. Charlie's daughter never read the new will and is shocked when she learns of her inheritance after her father's death. Stephen, however, is outraged. What is Stephen's best argument against the new will?

The will was not validly executed because Marie served as a witness.

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's actually dying. Because Buck recovered, the gift is automatically revoked.

Tom is renting an apartment from Brady. After Tom fails to pay rent for three months, Brady sends Tom a notice that he is in breach of the lease for nonpayment of rent. The next month, Tom again fails to pay any rent. Brady places Tom's belongings in storage, changes the locks to the apartment, and leases the apartment to a new tenant. If Tom sues Brady for a wrongful eviction, who will win?

Tom, because Brady did not follow the proper eviction procedures.

Carlos conveys his property "to Noah for life, then to Maxie." Noah has a life estate and Maxie has a remainder.

True

Ed wants to give Howard his old car, but Howard says he doesn't want it. Howard later reconsiders and tells Ed he does want the car. His previous repudiation means there is no gift, and Howard has no rights in the car.

True

Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.

True

If one party makes accessions without agreement and the improvements can be "undone" without damaging the property, the improver must undo them.

True

If the court awards a partition to co-tenants, the court will normally attempt a partition by kind. If partition by kind is impossible because there is no fair way to divide the property, the court will order the real estate sold, and the proceeds equally divided

True

If you grant a nonpossessory interest to Eagle Logging to enter your land and remove timber from ten acres, you have granted Eagle a profit.

True

In purchasing life insurance, Kelsey concealed the fact that she has a muscular disease. The insurance company can void the policy if the muscular disease is found to be a material fact.

True

Hanna intends to give her granddaughter, Melodee, her antique hat pin. This heirloom has been kept under lock and key in the wall vault in the library of Hanna's house in Virginia. The hat pin is currently the only item in the vault. When Hanna is visiting Melodee in Connecticut, Hanna gives Melodee the only key to the vault. Melodee is grateful for the present and excitedly accepts. In this situation has there been a completed gift?

Yes. There has been constructive delivery of the hat pin.

A landlord's substantial interference with a tenant's use of the property is considered

a constructive eviction.

George gave his great-grandfather's pocket watch to Nurse Nadene because he expected to die soon. This is

a gift causa mortis.

Lying on her hospital bed alone one night, Phyllis grabs a pen and paper. With the last of her strength, she wrote her last will and testament leaving all her worldly possessions to her next-door neighbor, Aaron. This type of will is

a holographic will.

You go to a theater to see a play one Saturday evening. You have

a license to enter the theater

A trust created in a will is

a testamentary trust.

Carl took out a life insurance policy naming his wife Jenny as the beneficiary. Years later, Carl dies after his car is struck by a drunk driver who swerved into his lane. Jenny files a claim under the life insurance policy. The terms of the policy state that the insurance company will pay out $200,000 if Carl dies in an accident that was not Carl's fault but only $50,000 if it is an accident caused by Carl. The insurance company denies Jenny's claim for $200,000, stating that the accident was Carl's fault and Jenny is only entitled to $50,000. If Jenny sues the insurance company, how much may she recover?

a. $200,000 plus potential punitive damages for the insurance company's wrongful denial of a claim.

Which of the following occurs when a person uses labor and/or materials to add value to personal property belonging to another?

accession

Louie has the right to drive across Bernie's land, which is adjacent to Louie's property, to reach the ocean front. Louie's right to drive across Bernie's land is called

an easement appurtenant.

Angelina owned a lot near a lake. Although she never had permission from the owner of the adjoining land, each weekend when she camped on her lot she crossed his land to take her boat to the boat ramp at the lake. If Angelina continued this use of her neighbor's land for the number of years required by local statute, she would have

an easement by prescription

In order to travel extensively and not worry about handling her affairs, Lee transfers most of her assets into a trust, with her bank serving as trustee. She has created ________ trust.

an inter vivos

Joel is displeased with his son's lifestyle choices and, instead of dividing his estate, Joel wants to leave all of his property to his daughter, Marie, when he dies. Joel may

disinherit his son for any reason as long as Joel indicates in the will that the son was omitted on purpose.

Dr. Gavornne advises his very ill patients to prepare a living will. The purpose of a living will is to

express a desire not to have extreme medical treatment that would prolong their lives.

Bertha, from Chicago, traveled to San Francisco to attend a conference. Her sister, Martha, lives in San Francisco and consequently, Bertha made arrangements to spend a couple of days with her sister. The next morning sitting at the breakfast table, Bertha realizes that she packed a mismatched pair of shoes (one is black and the other is blue). Luckily, Martha wears the same size of shoes and lends Bertha a pair of black leather pumps. During the day, the shoes are damaged while Bertha is wearing the shoes. Bertha's duty of care would be a duty of

extraordinary care, because this is a bailment for the sole benefit of the bailee.

While shopping at the mall, Everett's wallet fell out of his pocket. Jon found the wallet. The wallet is abandoned property and Jon may keep it.

false

Insurance obtained by a limited partnership on the life of the general partner would be

key person life insurance, because the general partner is a key person, contributing a great deal to making the business successful.

Personal property means all property EXCEPT

land and all things permanently attached to the land.

Which of the following property is NOT affected by a will?

life insurance

Rhonda is a server in a restaurant. One day she finds a purse while clearing a table. The purse is most likely

mislaid property.

The bank who lends money in exchange for a mortgage on the borrower's house is considered to be the

mortgagee

Percival takes his computer to a repair shop to have the disk drive repaired. This is most likely a

mutual benefit bailment.