Test #5 B-Law Quiz Guide

Bob, as landlord and Mary, as tenant entered into a lease for 1 year to begin January 1 and end on December 31. The rent is $500 per month. On March 1, Mary fails to pay the rent. Bob evicts Mary on March 15. Bob leases Mary's apartment to Sue beginning June 1. How much will Mary owe Bob under the lease? $5,000 $1,500 $250 $500

$1,500

Bob was conveyed an interest in real property as follows: To Nancy, for life and then to Bob. (1) How can Bob convey this interest in real property to a third party? (2) Will that third party be entitled to immediate possession of the real property? (1) Deed and Gift, only (2) Yes (1) Deed, Will, Inheritance and Gift (2) Yes (1) Deed and Gift, only (2) No (1) Deed, Will, Inheritance and Gift (2) No

(1) Deed, Will, Inheritance and Gift (2) No

Which of the following statements is TRUE? If confusion of goods results by accident and there is not enough left to distribute a full share to each owner, each party will lose his entire interest if he cannot prove his share. In order for a gift to be valid it must be supported by consideration. A gratuitous promise to make a gift is binding and may be enforced in a court of law. A gift must be completed by delivery to be effective.

A gift must be completed by delivery to be effective.

Under federal patent law? An inventor granted a patent has unlimited monopoly power regarding the invention forever. Patentable items include any new and useful process, machine, manufacture, composition of matter or scientific principal. A patent holder has exclusive rights to the use of a patented process for the life of the patent, even against a person who independently develops the same process, but did not apply for a patent, either before or after the application date of the patent. A patent may be renewed.

A patent holder has exclusive rights to the use of a patented process for the life of the patent, even against a person who independently develops the same process, but did not apply for a patent, either before or after the application date of the patent.

Which of the following statements is TRUE regarding Trade Secrets? A trade secret is information that provides economic advantage and is therefore protected by a business, not by federal registration. Trade secrets may be protected by federal registration from industrial espionage or disclosure by disloyal employees. If the owner of a trade secret voluntarily discloses the secret to another person or entity without a nondisclosure agreement, the secret will still be protected. While employed, an employee who has no restrictive employment contract with his employer may divulge trade secrets to a competitor with no liability to his/her employer.

A trade secret is information that provides economic advantage and is therefore protected by a business, not by federal registration.

Example of Certification Mark

AAA rated by SE labs

Which of the following would render the title to be unmarketable? All of the items listed in the answers would render the title to be unmarketable. Defects in the chain of title appearing in the land records A mortgage not excepted in the contract for sale as an encumbrance Events depriving the seller of title, such as adverse possession

All of the items listed in the answers would render the title to be unmarketable.

Which of the following statements is FALSE regarding a contract of sale for real property? To be enforceable, a contract for the sale of an interest in land must be in writing and signed by the party against whom enforcement is sought. None of these answers are false. An oral agreement for the sale of land is enforceable under the statute of frauds. Two of these answers (not including this one) are false.

An oral agreement for the sale of land is enforceable under the statute of frauds.

Bob leases an apartment in New York City. The lease runs from January 1 to December 31. Bob needs to travel abroad for work for 2 years. On June 1, Bob enters into an agreement with Nancy for Nancy to move into Bob's apartment through December 31. Bob's arrangement with Nancy can be best described as a(n): Assignment Sublease Assignment or Sublease Assignment and Sublease

Assignment

Bob leases an apartment in New York City. The lease runs from January 1 to December 31. Bob needs to travel abroad for work for 2 years. On June 1, Bob enters into an agreement with Nancy for Nancy to move into Bob's apartment through December 31. If Nancy does not pay, who can the landlord sue for nonpayment of rent? No one, the transaction between Nancy and Bob terminated the lease. Bob and/or Nancy Only Bob Only Nancy

Bob and/or Nancy

The loss of trademark rights is not caused by: Failure to put the word "Trademark" or a similar term next to the mark itself. Abandonment of the mark. The general usage of the mark as a generic term by the public. Consistent failure to take enforcement action against known infringers.

Failure to put the word "Trademark" or a similar term next to the mark itself.

Ownership interest of Alice in this situation: O conveys Greenacre to Alice

Fee Simple

Ownership interest of Alice in this situation: In his will, a man conveys his house and lot to Alice in "fee simple forever so long as she does not remarry"

Fee Simple Defeasible

Which of the following is NOT personal property? Trees that have been cut into logs. A negotiable instrument. An air-conditioning system before it is installed in a house. Building materials such a lumber stacked in a lumber yard. Front door of a house.

Front door of a house.

What is Earnest Money

Funds deposited by the Buyer, usually with the title company

In 2017, John conveyed Blackacre (land) to Bob. In 2016, John had conveyed an easement to Oncor Power affecting Blackacre. Oncor failed to record this easement. What is the most likely outcome of this situation? Even if Bob had knowledge of the easement to Oncor when John deeded Blackacre to Bob, and if Bob paid value to John, then the easement will not be an encumbrance on Blackacre. If Bob had no knowledge of the easement to Oncor and paid value to John, then the easement will not be an encumbrance on Blackacre. Since the easement was granted in 2016, before John conveyed Blackacre to Bob, the easement will be a valid encumbrance on Blackacre. If Bob had no knowledge of the easement to Oncor and the conveyance was a gift from John then the easement will not be an encumbrance on Blackacre.

If Bob had no knowledge of the easement to Oncor and paid value to John, then the easement will not be an encumbrance on Blackacre.

Possession is said to be 9/10ths of the law. To test this concept, which of the following is correct regarding who has the best claim to ownership of the personal property through possession? If I mislaid my purse at a restaurant and another customer finds my purse. Other than me, the customer will have the best claim to ownership of the purse. I find a valuable necklace buried at a public park. Other than the true owner, I have the best claim to ownership of the necklace. I find a wallet washed up on the beach lying on top of the sand. The wallet has been lost by its true owner. Other than the true owner, the owner of the beach will have the best claim to ownership of the wallet. If I mislaid my purse at a restaurant and another diner finds my purse. Other than me, the restaurant has the best claim to ownership of the purse.

If I mislaid my purse at a restaurant and another diner finds my purse. Other than me, the restaurant has the best claim to ownership of the purse.

Which of the following statements is FALSE? A tenant may remove trade fixtures provided he can do so without causing material injury to the real property to which it is affixed. If an item is determined to be a fixture it can be removed by the seller of the land because the item is not part of the real property. A fixture is personal property which is so firmly attached to real property that an interest in it arises under real property law. The intention of the parties with conflicting claims to the property, as expressed in their agreement, is controlling in determining whether personal property has become a fixture.

If an item is determined to be a fixture it can be removed by the seller of the land because the item is not part of the real property.

Trademark Calssification

Intangible Personal Property

Lease Classification

Intangible Real Property

Encumbrance that is a right to possession of real property

Lease

Ownership interest of Alice in this situation: O conveys Greenacre "to Alice for life, then to B"

Life Estate

Marketable title means that the title to the real estate is not affected by which of the following? Encumbrances not disclosed to the buyer in the Contract of Sale or the Deed. Claims of third parties by adverse possession. Marketable title means that the title is free (not affected by) from all the items listed in the other answers. Defects in the chain of title appearing in the land records.

Marketable title means that the title is free (not affected by) from all the items listed in the other answers.

Example of Collective Mark

Member of Rotary

Bob wrote to author Ella to convey an idea for Ella's next novel. Bob suggested that it concern a lawyer who leaves her practice and moves to Waco, Texas. Ella told Bob that the idea was ridiculous. Two years later, Ella's novel, Fixer Upper Lawyer is a best-seller. Does Bob have a claim against Ella? No, because after voluntary communication to others, ideas become available for common use. Yes, because the idea was so original that it was protected. Yes, because the letter to Ella is sufficient to show ownership of the idea. No, because Bob did not reduce his idea to a tangible form.

No, because after voluntary communication to others, ideas become available for common use.

If not dealt with in the lease itself, for which of the following types of leasehold estates, must the landlord or tenant give prior notice to terminate the leasehold estate. Definite Term, Periodic Tenancy, Tenancy at Will (residential) Definite Term, Periodic Tenancy, Tenancy at Will (both commercial and residential), and Tenancy at Sufferance Periodic Tenancy and Tenancy at Will (both commercial and residential) Periodic Tenancy and Tenancy at Will (residential)

Periodic Tenancy and Tenancy at Will (residential)

Case, Fine, and Mick own a parcel of land as joint tenants with right of survivorship. Case's interest was sold to Peter. As a result of the sale from Case to Peter: Fine, Mick, and Peter each own a one-third interest in the land as joint tenants Fine and Mick each own a one-third interest in the land as tenants in common Peter owns a one-third interest in the land as a joint tenant. Peter owns a one-third interest in the land as a tenant in common.

Peter owns a one-third interest in the land as a tenant in common.

What is the purpose behind recording a deed? Recording a Deed imputes notice (knowledge) to all third parties of the conveyance made under the Deed only if the third party is aware of the existence of the Deed. Recording a Deed imputes notice (knowledge) to all third parties of the conveyance made under the Deed, even if the third party is unaware of the existence of the Deed. None of these answers are correct. Recordation of a Deed is required for the Deed to be a valid transfer of real property.

Recording a Deed imputes notice (knowledge) to all third parties of the conveyance made under the Deed, even if the third party is unaware of the existence of the Deed.

encumbrance that is a right to control the uses and appearance of real property

Restrictive Covenant

Inventory of a Business Manner of Transfer

Sale through a document called a Bill of Sale

Accounts Receivable Manner of Transfer

Sale through a document called an Assignment

Delivery Truck Manner of Transfer

Sale through a transfer of title

Laptop Classification

Tangible Personal Property

Land Classification

Tangible Real Property

Example of a Trademark

The Nike Swoosh

Which of the following statements is TRUE? The holder of a fee simple defeasible interest may transfer that interest, but all transferees will take the property subject to the initial condition imposed by the interest. Unlike joint tenants, tenants in common are persons who hold undivided interests in the property, each having the right to possession, but neither claiming any specific portion of the property. A reversion, a life estate, and a remainder are all considered future interests. A freehold estate is a right of ownership of real property for a definite time.

The holder of a fee simple defeasible interest may transfer that interest, but all transferees will take the property subject to the initial condition imposed by the interest.

Example of Trade Dress

The shape a the Fiji Water Bottle

Example of a Service Mark

The similar design of all Chipotle Locations

Which of the following statements is TRUE regarding title insurance? Title insurance protects an owner of real property from losses due to defects in title and undisclosed liens or encumbrances. Title insurance only protects the Seller of real property. Title insurance protects an owner of real property from losses due to defects in title but not against undisclosed liens or encumbrances. Title insurance protects an owner of real property from losses due to undisclosed liens or encumbrances, but not defects in title.

Title insurance protects an owner of real property from losses due to defects in title and undisclosed liens or encumbrances.

Which of the following statements is TRUE regarding copyrights? Two (2) of the other listed answers are TRUE. An artist would like to protect one of her original oil paintings from being sold as original prints. She may protect her painting by applying for a copyright A corporate symbol can be protected by copyright. All of the listed answers are TRUE. In most cases, copyright protection lasts for the period of a person's life plus an additional seventy years.

Two (2) of the other listed answers are TRUE.

Ownership interest of Alice in this situation: O conveys Greenacre "to Bruce for life, then to Alice"

Vested Remainder

Which of the following are requirements for a valid deed? Written, delivery, Grantor signature and valid legal description of the real property. Written, delivery, notarized and recorded. Written, valid legal description of the real property, recorded and notarized. Written, delivery, Grantor signature and notarized. Written, delivery, Grantor signature and recorded.

Written, delivery, Grantor signature and valid legal description of the real property.

In many states, if a person openly and continuously occupies the land of another without permission for a statutorily prescribed period, that person will gain title to the land by: foreclosure adverse possession. easement recordation

adverse possession.

Encumbrance that is a right to cross or otherwise use someone else's real property for a specified purpose

easement

By a __________ deed, the grantor obliges herself to make the grantee whole if the grantee suffers any damage because the grantor's title was defective. quitclaim adverse possession general warranty special warranty

general warranty

Under copyright law, the doctrine of works for hire states that: if an employee prepares a work within the scope of her work, the employee is considered the author of the work for copyright purposes. a person's original creations, if committed to tangible form, are always considered to be authored by the actual creator in the law of copyright. if an employee prepares a work within the scope of her employment, her employer is considered the author of the work and therefore owns the copyright. None of these answers are correct.

if an employee prepares a work within the scope of her employment, her employer is considered the author of the work and therefore owns the copyright.

In determining whether an item is a fixture, the test of "purpose or use" applies only if the item: is affixed to the realty in some way but cannot be removed without material injury to the realty. is not affixed to the realty in some way. The "purpose and use" test is always used when determining if an item is a fixture. is affixed to the realty in some way and can be removed without material injury to the realty.

is affixed to the realty in some way and can be removed without material injury to the realty.

encumbrance that is a lien granted to a lender to secure the payment of funds loaned to the owner of the real property

mortgage/deed of trust

Ownership interest of Alice in this situation: Alice conveys her house and lot to Mary in "Fee simple forever, so long as Mary does not remarry"

reversion

what is the due diligence period

the period after the Seller and Buyer has signed the contract of sale and the buyer can inspect the real property

what is a Title Company

usually holds the Earnest Money pending the completion of the sale, researches title, and upon completion sale issues title insurance

what is "Closing"

when the delivery of the deed is made in return for the purchase price