Deck 2: The Nature of Property

Question 1

Erwin Paper Company purchased 750 acres of timber from Roscoe for $750,000.Erwin is to cut and remove the timber.

A)This is a contract for the sale of goods and it must be in writing to be enforceable.
B)This is a contract for the sale of real estate and must be in writing.
C)This is a contract for the sale of fructus industriales and does not have to be in writing.
D)None of the above.

Answer 1

A

Question 2

A severance:

A)occurs when personal property is transformed into real property.
B)occurs when real property is transformed into personal property.
C)occurs when a tenant fails to remove his trade fixtures before the expiration of the lease.
D)occurs when personal property is annexed to real property.

Answer 2

B

Question 3

An example of intangible personal property is a stock certificate.

Answer 3

True

Question 4

Another word for real property is chattel.

Question 5

The Uniform Commercial Code requires that the sale of goods must always be in writing to be enforceable.

Question 6

The Uniform Commercial Code is the primary source of real property law.

Question 7

Real property includes:

A)land.
B)fixtures.
C)air space above the land.
D)all of the above.

Question 8

The Uniform Commercial Code defines personal property as all things that are movable at the time of identification to the contract for sale.

Question 9

Dan owns a house that was mortgaged to First Bank.Dan purchases a central air conditioning unit in January 2011, from Bob's Appliances on credit and gives Bob's a security interest in the unit.In most states, in order to gain priority over First Bank, Bob's Appliances must:

A)perfect by a fixture filing.
B)perfect within 20 days after the unit is installed.
C)notify First Bank in a letter of his security interest before the unit is installed.
D)two of the above.(a and b)
E)none of the above.

Question 10

If a contract of sale calls for timber to be cut and removed by the buyer and would cause no harm to the land, the contract is considered to be a sale of goods.

Question 11

An article considered to be a tenant's fixture may be legally removed if the removal takes place within a reasonable time after termination of the tenancy.

Question 12

Fixtures are taxed as personal property.

Question 13

A construction mortgage, unless the construction mortgagee agrees to a subordination, has by law priority over security interests.

Question 14

As a general rule fixtures pass to the purchaser when real estate is sold.

Question 15

Both fructus naturales and fructus industriales, when unsevered, pass to the purchaser when real estate is sold.

Question 16

The law governing commercial transactions is uniform in all states but Hawaii.

Question 17

A fixture is transferred by an instrument called a bill of sale.

Question 18

Real property can include not only the land but also the air space above the land.

Question 19

Carlos rented an apartment in which he installed a new gas stove.The stove is:

A)a fixture, which must remain in the apartment when the lease terminates.
B)a trade fixture.
C)a domestic fixture.
D)an agricultural fixture.
E)none of the above.

Question 20

If Derek's house is built with George's bricks that were stolen by Ben, who was the builder,
the remedy George has against Derek would be monetary damages for his loss.

Question 21

Most American courts apply three tests to determine whether a personal property has been transformed into a fixture.Which of the following is not one of these tests?

A)Adaption.
B)Annexation.
C)Transfer.
D)Intention.