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Law
Q:
Rita believes that Shady Grove Apartments, Inc., her landlord, has vioÂlated the law in a way that entitles her to withhold the rent. This remedy is generÂally associated with
a. breach of the covenant of quiet enjoyment.
b. breach of the implied warranty of habitability.
c. discrimination.
d. failure to provide security against crimes in comÂmon areas.
Q:
Grace applies for a homeowners' insurance policy on her house with Heroic Insurance Company through Ian, a broker. In this transaction, Ian is
a. an agent for both parties.
b. Grace's agent, and not Heroic's agent.
c. Heroic's agent, and not Grace's agent.
d. not an agent.
Q:
A contract involving a lease is the only contract relating to an interest in land that must be in writing to be enforceable.
Q:
Dhani is the beneficiary of a life insurance policy on Elmo's life obtained from Famed Insurance Company. The insured under this policy is
a. Dhani.
b. Elmo.
c. Famed.
d. the agent or broker through whom the policy was obtained.
Q:
All contracts involving interests in land must be in writing to be enforceable.
Q:
Property Management Corporation (PMC) owns several apartment buildings in two states. Regarding standards for maintenance of the buildÂings, PMC should consult
a. the applicable city ordinances and state statutes.
b. the previous owners.
c. the long-term tenants.
d. the Uniform Landlord' Maintenance Manual.
Q:
Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for
a. avoiding the assumption of responsibility.
b. predicting a potential loss based on unknown factors.
c. shifting the imposition of liability.
d. transferring and allocating risk.
Q:
An oral contract for a transfer of an interest in land is never enforceable.
Q:
Dora leases a house from Evan for a two-year term. To ensure the validÂity of their lease, it should include
a. a description of the premises.
b. a due date for the payment of the property taxes.
c. a requirement that Dora perform structural repairs to the house.
d. a requirement that Evan carry liability insurance.
Q:
The Statute of Frauds requires that statutes must be in writing.
Q:
Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth wishes to terminate his tenancy. Under the common law, he must give his landlord
a. at least one week's notice.
b. at least two week' notice.
c. at least thirty day' notice.
d. at least sixty day' notice.
Q:
A constructive trust is "constructed" by a property owner to fulfill certain unique functions outside the usual bounds of a trust.
Q:
Under the Statute of Frauds, a contract that is not in writing is void.
Q:
Sid rents an apartment from Town Properties, Inc. The lease, which ends on May 31, does not include an option for reÂnewal, and Sid and Town do not discuss whether Sid can stay on at the end of the term. On June 1, Sid has
a. an implied option to renew the term.
b. a right to remain contingent on notice from Town.
c. a right to remain subject to notice to Town.
d. no right to remain.
Q:
A spendthrift trust provides for a beneficiary's transfer of his or her right to future payments of trust funds.
Q:
An express trust is created or declared in explicit terms.
Q:
Ben, an accountant, certifies several audit reports on Corporate Business, Inc. (CBI), Ben's client, knowing that CBI intends to use the reports to borrow money from Delta Credit Company. Ben believes that the reports are true and does not intend to deceive Delta, but does not check the reports before certifying them. Can Ben be held liable to Delta?
Q:
LaDonna signs a one-year lease with Mae to occupy an apartment in Ames, Iowa, near the University of Iowa. LaDonna needs the apartment only for two semesters and may have to sublet it for the rest of the term. LaDonna's tenancy is
a. a periodic tenancy.
b. a tenancy at will.
c. a tenancy at sufferance.
d. a fixed-term tenancy.
Q:
Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the summer. Jamal's tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at sufferance.
d. a tenancy at will.
Q:
The trustee is the person for whose benefit a trust is held.
Q:
Alf rents an apartment. The lease does not specify how long it will last, but it does specify that Alf must pay rent every month. Alf's tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at will.
d. not a tenancy.
Q:
Don is an elderly man who lives with his nephew Evan. Don is dependent on Evan for support. Evan advises Don to "invest" in Evan's "professional gambling" venture, or Evan will no longer support him. Don liquidates his other investments and signs a contract with Evan, to whom Don gives the funds. Can Don set aside this contract?
Q:
Fact Pattern 14-2
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to perform, Ripe Produce files a suit to enforce the contract.
Refer to Fact Pattern 14-2. If Pete and Ripe Produce are in a state that does not recognize the doctrine of unconscionability, to defend successfully against enforcement of the contract on similar grounds, Pete might rely on traditional notions of
a. fraud.
b. materiality.
c. mistake.
d. unconscionability.
Q:
If no children or grandchildren survive a decedent who dies without a will, a surviving spouse is entitled to the entire estate.
Q:
A will is probated in part to establish its validity.
Q:
Consumer Shops, Inc., signs a lease for a storefront owned by Downtown Building Company. Unlike a purchaser of real property, Consumer Shops
a. acquires only temporary possession of the premises.
b. enjoys exclusive possession of the premises.
c. holds only temporary title to the premises.
d. retains temporary, exclusive possession and title to the premises.
Q:
Fact Pattern 14-2
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to perform, Ripe Produce files a suit to enforce the contract.
Refer to Fact Pattern 14-2. To defend successfully on the ground of unconscionability, Pete must show that enforcement of the contract would be
a. economically meaningless.
b. legally worthless.
c. manifestly unfair or oppressive.
d. undeniably valuable.
Q:
To acquire the ownership of a mountain cabin by adÂverse possession, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
b. until the owner files a suit.
c. without the owner's knowledge.
d. with the state's permission.
Q:
Dora, an accountant, convinces her client Emily to invest in Fine Gems, Ltd., a business with little potential. When Emily learns the truth, she
a. can do nothing.
b. may enforce the contract but cannot rescind it.
c. may rescind the contract but cannot enforce it.
d. may enforce the contract or rescind it.
Q:
Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants only that Opal held good title during her ownership of the property. This deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
Q:
Silas sells his farm to Kathy. The title is transferred by deed. Kathy is the
a. grantee.
b. grantor.
c. tenant.
d. adverse possessor.
Q:
Mary induces Nick to sign a contract by placing a gun to Nick's head. The contract is void
a. only if the contract has an illegal purpose.
b. only if the terms are unfair to Nick.
c. under any circumstances.
d. under no circumstances.
Q:
Lou uses undue influence to induce Mona to sign a contract to invest her student loan funds in National Overseas Bank. Mona may
a. avoid the contract or choose to carry it out.
b. do nothing once she has signed the contract.
c. recover from her lender for a failure to influence her "due."
d. recover from the bank for a failure to undo Lou's influence.
Q:
Moby leases from National Theater Corporation a theater in which to stage a series of concerts. Ollie buys a ticket to the series. What distinÂguishes Moby, a tenant, from Ollie, a licensee, is
a. the exclusivity of possession.
b. the quiet enjoyment of rights.
c. the temporary nature of possession.
d. the title to the property.
Q:
A divorce occurring after the execution of a will revokes dispositions of property to the former spouse.
Q:
To "publish" a will means to record it in the appropriate county office.
Q:
Tyro has the right to drive across Ula's land, which is next to Tyro's propÂerty, to reach an access road. Tyro's right is
a. an easement appurtenant.
b. an easement in gross.
c. a profit appurtenant.
d. a profit in gross.
Q:
Dale files a suit against Eve, alleging her fraud in entering into a contract with him. Proof of an injury is required
a. to recover damages.
b. to rescind the contract.
c. to undo Eve's influence.
d. under no circumstances.
Q:
A nuncupative will is an oral will.
Q:
Irma falsely states a material fact to Jack, who relies on the misstatement to his detriment. Irma's statement constitutes fraud
a. if Irma intended to deceive Jack.
b. if Jack justifiably relied on Irma's statement.
c. if Jack suffered an injury.
d. only if Irma intended to deceive Jack and Jack justifiably relied on Irma's statement.
Q:
Mineral Products Corporation, which owns no land, has a right to mine the copper from Natural Resource Company's land. Mineral's right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Q:
Utility Power Company has the right to run its power lines across Velma's land. This is
a. a license.
b. an easement.
c. a profit.
d. a tenancy at sufferance.
Q:
Ben sells a sport utility vehicle to Cody without disclosing that the odometer, which reads 40,000 miles, was disconnected 80,000 miles ago. Ben is liable for
a. duress.
b. fraud.
c. puffery.
d. undue influence.
Q:
Mix-It Concrete Company has the right to enter Nim's land and remove the rock from Nim's quarry. This is
a. a fee simple absolute.
b. a license.
c. an easement.
d. a profit.
Q:
Roy buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roy later learns that the law does not permit the land to be used for housing. Roy may
a. not rescind the contract.
b. rescind the contract only if Roy did not know the law before the deal.
c. rescind the contract only if Steve knew about the law before the deal.
d. rescind the contract only if the law is not common knowledge.
Q:
Region Construction Company has a right to drive its trucks across Staple Business, Inc.'s property, which is adjacent to Region's office. This right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Q:
Cow Country Corporation (CCC) sells half of its land to the Double R Ranch. On the land is a reservoir. In the deed, CCC retains the right to remove a limÂited amount of water per day from the resÂervoir. This right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Q:
The Next Monet, Inc., operated art schools. At one of its classes, John Picasso (no relation to the great artist) was praised by an instructor for his potential as "the next Monet." The instructor then sold John twenty half-hour art lessons for $20.00 each. Over the next three years, the instructor continued to praise John's artistic potential, and John bought 4,000 hours of art lessons during that period. When John realized that he still couldn"t paint a bowl of fruit, he sued The Next Monet alleging fraudulent misrepresentation. Based on the decision in Case 14.2, Vokes v. Arthur Murray, Inc., the court in this case would most likely rule in favor of
a. John, because the instructor had superior knowledge of as to whether John had artistic potential.
b. The Next Monet, because the instructor's opinion cannot be challenged by a court that knows little about art.
c. The Next Monet, because the instructor did not guarantee success.
d. None of the above.
Q:
The word "Mom" can qualify as a signature on a will.
Q:
With respect to Egor's land, Fig has an easement, Gabe has a profit, and Huck has a license. A right to possess the land is owned by
a. Egor.
b. Fig.
c. Gabe.
d. Huck.
Q:
Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is
a. duress.
b. fraud.
c. puffery.
d. undue influence.
Q:
A will must normally be attested to by two or three witnesses.
Q:
Ray, an agent for Standard Products, Inc., engages in fraud to obtain the consent of Tony, a representative for United Business Company, to an expensive, one-sided contract. This contract is
a. not voluntary because the transaction lacks "mutual assent."
b. not voluntary because without business there is no "social contract."
c. voluntary because both parties are "sophisticated and knowing."
d. voluntary because both parties have the "freedom to contract."
Q:
Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, inÂcluding extracting silver from an existing mine, for life. Patsy also has the right to lease the land for a period not to exceed her life. Patsy's ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. the power of eminent domain.
Q:
Harold believes his old baseball bat has little value, but Murray is convinced it is a valuable collector's item. Harold sells it to Murray for $100 before learning it is worth $1,000. The contract
a. may be rescinded because a mutual mistake was made.
b. may serve as the basis for a court order to Murray to return the bat.
c. may be rescinded because Murray used superior knowledge about the bat to take advantage of Harold.
d. will not be canceled because the mistake relates to the value of the item.
Q:
Undue influence can occur when a named beneficiary is in a position to influence the making of a will.
Q:
Fact Pattern 36-1Nika owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses.Refer to Fact Pattern 36-1. Nika conveys some of her land to Reggie with the right to possess and use the property for a certain period of time. Nika has given Reggiea. a fee simple absolute.b. a leasehold estate.c. a life estate.d. an easement.
Q:
Fact Pattern 36-1Nika owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses.Refer to Fact Pattern 36-1. Nika deeds some of her land to Polly. The deed states, "To Polly, for life, then to Quay." Nika has given Pollya. a fee simple absolute.b. a leasehold estate.c. a life estate.d. an easement.
Q:
Bob agrees to sell to Carol, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath the land is a gold mine. A court would
a. cancel the contract due to Bob's failure to know the land's real market value.
b. cancel the contract due to Carol's failure to accurately estimate the price of the land.
c. cancel the contract due to the difference between the price of the land and its likely real market value.
d. enforce the contract.
Q:
To execute a valid will, a testator must remember the "natural objects of his or her bounty."
Q:
In most states, a person must be sixteen years of age to execute a valid will.
Q:
Hailey, a salesperson for International Investments, Inc., uses fraud to induce Jill to sign a contract to invest in risky securities. Jill can
a. disaffirm or enforce the contract.
b. disaffirm the contract, but not enforce it.
c. enforce the contract, but not disaffirm it.
d. not disaffirm or enforce the contract.
Q:
Fact Pattern 36-1Nika owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses.Refer to Fact Pattern 36-1. Nika's ownership interest isa. a fee simple absolute.b. a leasehold estate.c. a life estate.d. an easement.
Q:
Bakri owns a house. In the house, on a tile floor is a throw rug. Most likely to meet the definition of a fixture is
a. the house.
b. the throw rug.
c. the tile floor.
d. none of these choices.
Q:
A testator is a decedent who dies without a will.
Q:
Fact Pattern 14-1
Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Opal accepts the written offer.
Refer to Fact Pattern 14-1. Nano's best defense against enforcement of the contract is that Opal knew
a. a bilateral mistake supports the cancellation of a contract.
b. a mistake of value supports the cancellation of a contract.
c. a unilateral mistake supports the cancellation of a contract.
d. the price was below the prices of comparable devices.
Q:
Fact Pattern 14-1
Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Opal accepts the written offer.
Refer to Fact Pattern 14-1. Opal's best argument in favor of enforcement of the contract is that
a. a bilateral mistake does not afford relief from a contract.
b. a mistake of value does not afford relief from a contract.
c. a unilateral mistake does not afford relief from a contract.
d. the price was below the prices of comparable devices.
Q:
William owns a field where he grows cotton. When William sells the field to Grace, he includes the cotton that is growing in the field. This sale is governed by
a. the Uniform Commercial Code.
b. common law.
c. real property law.
d. personal property law.
Q:
An executor is a personal representative appointed by a court for a decedent who dies without a will.
Q:
Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The exterior boundaries of the land extend
a. 100 feet into the earth and 100 feet into the atmosphere.
b. one mile into the earth and one mile into the atmosphere.
c. to infinity and beyond.
d. to the center of the earth and up to the farthest reaches of the atmosphere.
Q:
If no heirs are found, the property of a decedent is transferred to a charitable organization.
Q:
At an auction for the first time, Max bids on an object, believing that the auctioneer requested an amount less than the price actually asked. Max is
a. liable on the bid.
b. not liable on the bid because Max misunderstood the auctioneer.
c. not liable on the bid because the auctioneer misstated the price.
d. not liable on the bid because the object is probably overpriced.
Q:
Jack owns the surface rights for Rocky Ridge Ranch, but does not own the subsurface rights. Ginny owns the subsurface rights. Rocky Ridge Ranch has a historic barn, which is damaged when Ginny is excavating minerals from the ranch. Who is most likely responsible for the damage to the barn?
a. Ginny only
b. Jack only
c. Ginny and Jack
d. no one
Q:
An insured's lack of an insurable interest is an absolute defense against payment.
Q:
Because insurance law follows contract law, bad faith tort actions against insurers are not allowed.
Q:
Gamma Corporation agrees to buy seven servers from Omega Computer Products, Inc. If the servers have less capacity than Gamma and Omega believe, Gamma may
a. avoid the contract only.
b. enforce the contract only.
c. avoid or enforce the contract.
d. none of the above.
Q:
Owen, a famous chef, sells to Pat a restaurant that Owen closed years ago. Pat discovers in the restaurant a collection of Owen's recipes, which are considered valuable. In a suit to obtain the recipes, Owen will likely
a. not prevail because he should have known that the recipes were in the restaurant.
b. not prevail because the sale of a restaurant includes everything in it.
c. prevail because there was no mutual assent.
d. prevail because the sale of a restaurant includes nothing in it.
Q:
Marshall owns a piece of land, but James owns the mineral rights to Marshall's land. James wishes to sell the mineral rights. James
a. cannot sell the mineral rights.
b. can only sell the mineral rights if Marshall agrees.
c. must give Marshall 30 percent of the proceeds of the sale of the mineral rights.
d. can sell the mineral rights without consulting Marshall.
Q:
An insurer has a duty to avoid the payment of claims.
Q:
Phil owns a farm in South Dakota. He does not like it when planes from the local airport fly over his property. Phil is unlikely to win a case claiming that airplanes flying over his land violate his property rights unless
a. the planes fly over more than twice a day.
b. he can prove there are more efficient routes for the planes to take.
c. the flights are low and frequent and cause direct interference with Phil's enjoyment of the land.
d. the planes belong to private individuals.