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Law
Q:
Paul makes an honest but erroneous statement that misrepresents a material fact in a contractual transaction with Quinn. Paul is guilty of
a. a unilateral mistake.
b. duress.
c. fraud.
d. nonfraudulent misrepresentation.
Q:
Elsa, the owner of Fertile Farm, sells Gina a right to camp on Fertile land overnight. Gina's right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Q:
An easement can be created by prescription.
Q:
Life tenants are persons who share ownership rights simultaneously.
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, Fig, and Gabe only.
b. Egor and Gabe only.
c. Egor only.
d. Fig, Gabe, and Huck only.
Q:
Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraud
a. if Mark is unaware of the material fact.
b. if the amount of consideration received is grossly inadequate.
c. if the fact concerns a serious defect known to Mark and unlikely to be known by Nancy.
d. under any circumstances.
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 distinguishes 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:
The owner of a fee simple absolute has the right to use property for whatever purpose he or she sees fit.
Q:
Don, a salesperson for Excel Autos, promises Fern that a certain car will give her a "smooth ride." Don offers a test drive, which Fern declines. She buys the car but soon realizes that its suspension is in poor condition. Fern
a. can rescind the contract on the ground of fraud.
b. can rescind the contract on the ground of misrepresentation.
c. can rescind the contract on the ground of mistake.
d. was not defrauded.
Q:
In selling software to A-One Corporation, Blythe tells A-One's purchasing agent that the software is "almost human." This is
a. fraud.
b. duress.
c. puffery.
d. undue influence.
Q:
In a fee simple absolute, the owner has the greatest aggregation of rights, privileges, and power possible.
Q:
Tyro has the right to drive across Ula's land, which is next to Tyro's property, 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:
Bart is convicted of arson for burning down his warehouse to collect the insurance. On an application for insurance on a new building, in answer to a question about prior convictions, Bart does not disclose his conviction. This makes the contract
a. binding because the statement is immaterial to the decision of the insurance company to issue coverage.
b. binding due to the failure of the insurance company to discover Bart's conviction.
c. voidable at the option of Bart because the question is immaterial to the decision to issue coverage.
d. voidable at the option of the insurance company because the statement is material to the decision to issue coverage.
Q:
A contract for the sale of commercial realty should indicate what items are included in the sale.
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:
An item cannot be a fixture unless it is physically attached to the land.
Q:
Glen owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Holly agrees to buy "Glen's ATV" for $750. Glen believes, in good faith, that he is selling the $500 ATV. Holly believes, in good faith, that she is buying the $1,000 ATV. In this situation
a. Glen is entitled to $750 for the $500 ATV.
b. Holly is entitled to the $1,000 ATV for $750.
c. Holly must buy both ATVs for $1,500.
d. there is no contract.
Q:
Plant life is not considered to be real property.
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:
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:
Land includes the artificial structures attached to it.
Q:
Through fraudulent means, Frank induces Ethel to sign a contract to invest with him the profits from her business. When Ethel learns the truth, she may
a. only enforce the contract.
b. only recover what she invested with Frank.
c. enforce the contract or recover what she invested with Frank.
d. do nothing.
Q:
May is a stockbroker. Due to May's statements, Nora believes that the price of OK Goods, Inc. (OKGI), a widely traded stock, is going to increase substantially. Nora buys 500 shares of OKGI at $10 per share, but the price soon drops to $2. Nora can successfully recover
a. nothing.
b. the amount of the purchase price.
c. the amount of the purchase price plus the expected increase.
d. the amount of the purchase price plus the unexpected decrease.
Q:
The owner of real property has relatively exclusive rights to the airspace above the land.
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:
Sandy engages in fraud to procure Todd's assent to an expensive, one-sided contract. In this circumstance,
a. a court would not likely set aside the contract.
b. the agreement cannot be enforced against Sandy.
c. the transaction is not voluntary because there is no "mutual assent."
d. Todd cannot refuse to perform his part of the deal.
Q:
Which of the following is considered personal property?
a. Stocks and bonds
b. Land
c. A garage
d. A boundary fence
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 limited amount of water per day from the reservoir. This right is
a. a leasehold estate.
b. a license.
c. an easement.
d. a profit.
Q:
Roslyn is an inventor. She has many tools, including a hammer, a handsaw and a drill. Roslyn has a patent on her most recent invention and she owns stock in Handy Appliances, Inc., which is a company that often uses her inventions. Roslyn's tangible personal property includes the
a. hammer, handsaw and drill.
b. Handy Appliances stock only.
c. patent on her invention only.
d. Handy Appliances stock and the patent on her invention.
Q:
Alpha Cable Company, a subcontractor, understates its bid on a project for Beta Communications, Inc., the general contractor, due to an addition error. Alpha can most likely
a. recover damages from Beta for not catching the error.
b. require Beta to pay the difference between the bid and the true cost.
c. rescind the contract.
d. none of the above.
Q:
Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, including 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:
Fact Pattern 14-1
Dina, an employee of Eagle Industries, is injured in a work-related accident. Based on the diagnosis of Frank, a doctor, Dina accepts $50,000 from Eagle and waives the right to future claims. Frank's diagnosis later proves to have been wrong.
Refer to Fact Pattern 14-1. Dina may, according to the decision in Case 14.1, Roberts v. Century Contractors, Inc.,
a. obtain damages from Eagle for nonfraudulent misrepresentation.
b. obtain damages from Frank for fraudulent misrepresentation.
c. recover nothing because Dina waived the right to future claims.
d. set aside the settlement with Eagle due to a mistake of fact.
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:
Sara has a flat-screen TV, a Blu-ray disc player, set of computer games and an investment portfolio that includes stock in the Internet game company Zynga. Sara's intangible property includes
a. the TV and Blu-ray player.
b. the computer games.
c. the Zynga stock.
d. the TV only.
Q:
Fact Pattern 14-1
Dina, an employee of Eagle Industries, is injured in a work-related accident. Based on the diagnosis of Frank, a doctor, Dina accepts $50,000 from Eagle and waives the right to future claims. Frank's diagnosis later proves to have been wrong.
Refer to Fact Pattern 14-1. According to the reasoning of the court in Case 14.1, Roberts v. Century Contractors, Inc., Frank's misdiagnosis is, in terms of its impact on Dina's agreement with Eagle,
a. a mutual mistake of fact.
b. a unilateral mistake of fact.
c. fraudulent misrepresentation.
d. nonfraudulent misrepresentation.
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:
Faye owns the land on which Golden Spurs Ranch is situated, plus the ranch house, barn, and other structures permanently attached to the land. Faye's brother Huey owns everything else in the ranch's operaÂtionlivestock, feed, and so on. The personal property is owned by
a. Faye and Huey.
b. Faye only.
c. Golden Spurs Ranch.
d. Huey only.
Q:
Ron, a renowned architect, sells to Jan an apartment that he has not lived in for many years. After Jan moves in, she discovers a number of Ron's drawings in the closet that were produced during his early career and would now be considered valuable. Ron files suit to get the drawings. Ron should
a. prevail because there was no mutual assent.
b. prevail because the sale of an apartment includes nothing in it.
c. not prevail because the sale of an apartment includes everything in it.
d. not prevail because he should have known the drawings were in the closet.
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:
Helen owns heavy construction equipment and the tools to service it, as well as office furniture, including computers. Ilya owns a number of patÂents, trademarks that identify the products made under those patents, and stock in the company that sells those products. Personal property inÂcludes the items owned by
a. Helen and Ilya.
b. Helen only.
c. Ilya only.
d. neither Helen nor Ilya.
Q:
In most bailments, the bailee can retain the goods given by the bailor and return equivalent property.
Q:
Local Investment Company and Midstate Properties, Inc., contract for the sale of a retail mall. A mutual mistake of fact will make it possible for either party to rescind the contract
a. if the mistake of fact is immaterial.
b. if the mistake of fact is material.
c. under any circumstances.
d. under no circumstances.
Q:
Orin owns Pilot's Landing Office Park. His ownership rights include the right to sell or give away the property without restriction, as well as the right to commit waste, if she chooses. Orin's ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. the power of eminent domain.
Q:
A bailee must exercise reasonable care in preserving the bailed property.
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:
Jill and Karl contract for the sale of Jill's horse for $1,000. Unknown to either party, the horse has died. Karl is
a. entitled to another horse of equivalent value.
b. not required to pay due to the mutual mistake.
c. not required to pay due to the unilateral mistake.
d. required to pay because she assumed the risk the horse might die.
Q:
A bailment must be in writing to be valid.
Q:
An adhesion contract can occur in a one-sided transactions in which one party has substantially superior bargaining power.
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:
Constructive delivery satisfies the delivery requirement for an efÂfective bailment.
Q:
Luke owns a farm near Marshalltown, Iowa, with stands of trees serving as windbreaks. Luke grows corn on the property. When Luke sells the farm to Nina, if the contract does not specify otherwise, the sale includes
a. neither the crops nor the trees.
b. the crops and the trees.
c. the crops only.
d. the trees only.
Q:
Economic need is always sufficient to constitute duress.
Q:
A contract entered into under duress is voidable.
Q:
Airline passengers are subjects of a bailment.
Q:
Most bailments are created by agreement, but not necessarily by contract.
Q:
Chita owns the land on which Downwind Farm is situated, plus the farmhouse, barn, and other structures permanently attached to the land. Chita's brother Elvin owns everything else on the farmimplements, seed, and so on. The real property is owned by
a. Chita and Elvin.
b. Chita only.
c. Downwind Farm.
d. Elvin only.
Q:
To serve as a basis for an action for fraudulent misrepresentation, a misleading statement must be consciously false.
Q:
In a bailment, possession of the property is transferred to the bailee.
Q:
Kailin owns a farm near Manhattan, Kansas, with a farmhouse, barn, and other structures permanently attached. Kailin grows soybeans on the property. A pond lies within the boundaries. Land includes
a. the pond, the soil, and the structures.
b. the pond and the soil only.
c. the soil only.
d. the structures and the soil only.
Q:
To rescind a contract for fraud, a plaintiff must prove an injury.
Q:
Even after a tenant assigns a lease, the tenant may be obligated to pay rent.
Q:
For an effective bailment, the bailor must deliver possession of the bailed property with its title.
Q:
Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.
Q:
Even after a tenant sublets leased premises, the tenant may be obligated to pay rent.
Q:
A seller's failure to volunteer certain pertinent information about a product for sale will never give rise to an action for fraud.
Q:
A finder of abandoned property acquires title to it, and the title is good against the whole world, including the original owner.
Q:
One of the elements of fraudulent misrepresentation is intent to deceive.
Q:
Property voluntarily discarded by its owner with no intenÂtion of reclaiming it is abandoned property.
Q:
A tenant cannot withhold rent for any reason.
Q:
An act of concealment, with an affirmative misrepresentation, will not be sufficient to give rise to an action for fraud.
Q:
A finder acquires title to mislaid property good against the whole world, inÂcluding the true owner.
Q:
Generally, a tenant must pay agreed-to rent even if the tenant moves out as long as the move is unjustifiable and the lease is in force.
Q:
When a landlord sells leased premises to a third party, any existing leases terminate automatically.
Q:
A finder of mislaid property is an involuntary bailee.
Q:
An expert's false statement to a naive buyer about a technical detail will not usually entitle the buyer to rescind a contract.
Q:
A tenant has a duty to maintain in a reasonably safe condition those areas under his or her control.
Q:
Property voluntarily placed by its owner and inadverÂtently forgotten is mislaid property.
Q:
Confusion of fungible goods results in the owner' loss of their rights in the property.
Q:
Reliance on a non-expert's statement of opinion will not normally entitle a party to relief.
Q:
A tenant is not responsible for any damage to leased premises.