Deck 7: The Property System

Question 1

In the making of a gift,a mutual exchange of resources occurs.

Answer 1

False
Explanation: Receiving a gift is a way of acquiring ownership. In the making of a gift, no mutual exchange of resources occurs. Instead, a donor who owns something gives it to a donee, who becomes the new owner.

Question 2

Property helps generate prosperity by establishing the conditions necessary for capital formation.

Answer 2

True
Explanation: Property helps generate prosperity by establishing the conditions necessary for capital formation, which refers to that quality of resources that produces new or different resources.

Question 3

State law generally specifies that a landlord and tenant must give each other written notice of 30 days or 60 days in order to terminate a lease that does not run for a definite duration.

Answer 3

True
Explanation: State law generally specifies that a landlord and tenant must give each other written notice of 30 days or 60 days in order to terminate a lease that does not run for a definite duration.

Question 4

An easement by prescription ceases to exist when one person uses another person's land by crossing it wrongfully and using the land for a continuous period of 20 years.

Question 5

If one of the joint tenants in a joint tenancy dies,the remaining tenant becomes the sole owner of the entire resource.

Question 6

Property is infinite,and its boundaries are free from any ambiguity.

Question 7

Bailment arises when you store something in a warehouse or rent furniture from a rental store.

Question 8

In the property system,the state plans what people should do,and acquires and redistributes resources to them.

Question 9

House-sitting would be an example of a bailment because you are in temporary possession of someone's house with the intention to return full possession to the owners upon their return.

Question 10

In a number of states,courts have made merchants in mutual benefit bailments liable for any defect in a bailed object that causes personal injury.

Question 11

Private property is a system of law under which the state recognizes and enforces an individual's rights to acquire,possess,use,and transfer scarce resources.

Question 12

In a bailment for the sole benefit of the bailor,the bailee owes a very high duty of care.

Question 13

Intangible personal property includes intellectual property.

Question 14

The physical dimensions of real property are generally easy to define.

Question 15

Mike repaired Rosie's car,and Rosie refused to pay the bill.Mike was still in possession of the car and therefore could claim a mechanic's lien on the car.

Question 16

A fee simple absolute represents restricted,limited ownership of personal property.

Question 17

Common carriers are responsible for acts of God or of public enemies.

Question 18

Property is the legal right to exclude others from resources that are originally possessed or are acquired without force,theft,or fraud.

Question 19

The property interest is divided equally in both joint tenancy and tenancy in common.

Question 20

Ken has to go to work and cannot find his car keys.After searching for 20 minutes,he finds them in the pocket of the jeans he wore the previous day.In this scenario,the keys would have been considered lost until he found them.

Question 21

Foreclosure means that the court will order the land sold to satisfy the debt owed,usually by auction to the highest bidder,with any excess after payment of what is owed to the secured creditor going to the debtor.

Question 22

The women in the house next to you party and keep you up most nights.In this scenario,they are creating a public nuisance.

Question 23

In the context of attachment in secured transactions,collateral may include not only things currently owned by the debtor but collateral known as after-acquired property that the debtor acquires in the future.

Question 24

Zoning ordinances apply to types and locations of physical structures but not to aesthetic characteristics such as color and exterior design.

Question 25

Indirect taxes,like the progressive income tax,are authorized by the Bill of Rights.

Question 26

Mike gives Maria a life estate in one of the homes he owns.Maria lives there for a while and then accepts a job in another state,so she gives the property to her sister Jackie as it is permissible.Jackie owns the property until

A) Mike revokes the life estate.
B) Maria dies.
C) Mike dies.
D) the life estate is taken over by the government.
E) Maria returns to the life estate.

Question 27

According to the Congressional Budget Office,poorer taxpayers pay a higher percentage of their incomes in state and local sales taxes than do wealthier taxpayers.

Question 28

Exclusive right is primarily an ethical or moral end in itself.

Question 29

The right of redemption allows a mortgagor,before foreclosure,to get back land upon payment of the full amount of the debt.

Question 30

In the determination of private nuisance,a court will declare a nuisance based solely upon the plaintiff's showing that the defendant's use of his or her land produces an offensive result for the community.

Question 31

In the context of legal framework,which of the following statements is true about the property system?

A) The state takes ownership of resources directly as a result of legislation provided.
B) The citizens acquire resources primarily through taxation.
C) The state enforces rights when people legally have exclusive property rights in scarce resources.
D) The state primarily plans what people should do and allocates the resources.
E) The state limits and excludes any redistribution of resources through voluntary exchange.

Question 32

Which of the following statements is true about the property boundaries in the physical world?

A) The physical dimension of tangible personal property is the most difficult to define.
B) Law rather than intuition should ideally provide physical boundaries for a real property.
C) The physical boundaries for real property are relatively easier to establish than for other forms of property.
D) An individual rather than the law defines and sets forth the boundaries of an intellectual property or a security.
E) The law regarding physical boundaries is fixed across all the states regardless of the type of land involved.

Question 33

If the federal government claims part of your field for military equipment storage,it has exercised its eminent domain powers and owes just compensation.

Question 34

Generally,mortgages and deeds of trust must be registered in a recording office in the county where the land is located.

Question 35

A purchase money security interest is perfected by attachment alone.

Question 36

A buyer in an ordinary course of business has priority over a perfected security interest.

Question 37

Public nuisance claims may be brought only by a public official,not private individuals,unless the latter have suffered some special damage to their property as a result of the public nuisance.

Question 38

In many states,if foreclosure and auction does not produce enough money to satisfy the debt owed by the mortgagor,the creditor-mortgagee can still sue the debtor for the balance owed,called a remainder.

Question 39

Zoning limits the use to which land can be put.

Question 40

Which of the following statements is true about property?

A) People can privately own every resource, especially every resource of use.
B) A private property in a resource can be created if you can legally exclude others from that resource.
C) The federal law has little control over the exercise of ownership or sale of any type of property across all states.
D) A property is usually infinite but has an ambiguous boundary.
E) A property includes resources but not the use of resources.

Question 41

Vincent conveys his land to his friend "as long as it is used for non-commercial purposes." A few months later,Vincent finds out that his friend has been using the land as a parking garage for tourists and charging unreasonable rates.In this case,Vincent's friend would most likely be in violation of the ______.

A) remainder interest
B) future interest
C) fee simple absolute
D) fee simple defeasible
E) reversion interest

Question 42

The rules of a testamentary gift require that such a gift pass ownership by

A) mere delivery.
B) transfer of interest.
C) death of the donor and proving of a valid will that specifies the gift.
D) providing evidence of the physical existence of the gift and the transferor.
E) physical transfer to the donee.

Question 43

Which of the following statements is true about adverse possession?

A) The practice of adverse possession requires that possession be interrupted to grant ownership.
B) The possessor should have the owner's permission to be on the land.
C) The practice of adverse possession discourages land use.
D) The practice of adverse possession increases the possibilities of an absent owner to claim rights many years down the road.
E) The most common way to destroy a claim of adverse possession is to sue for trespass.

Question 44

Ruth is visiting her granddaughter Marcy and decides to give Marcy her very expensive cameo brooch.The brooch,an heirloom,has been in the family for over 100 years and is the only item in a safe in Ruth's home.Ruth offers the brooch to Marcy who accepts it.Ruth then gives Marcy the only key to the safe.According to the information given,which of the following statements is true?

A) This is not a valid gift because there has been no delivery.
B) This is a valid gift because the gift is a physical entity.
C) This is a testamentary gift, and Marcy can claim the gift only after Ruth's death.
D) This is a valid gift because there has been a constructive delivery.
E) This is not a valid gift because Ruth must provide a document for chain of custody.

Question 45

Solomon plans to sell his property.He intends to sell the cattle on his property to the prospective buyer but not the clothes and the household goods.Which of the following is the reason for the clothes and the household goods not being sold with the house?

A) The clothes and household goods are intangible goods.
B) The clothes and household goods are fixtures.
C) The clothes and household goods are personal property.
D) The clothes and household goods form real property.
E) The clothes and household goods are abandoned.

Question 46

Which of the following is an example of intangible property?

A) cars
B) books
C) clothing
D) securities
E) land

Question 47

The Homestead Act of 1862 illustrates ownership through ______.

A) possession
B) exchange
C) gifting
D) confusion
E) accession

Question 48

Which of the following statements is true about concurrent ownership?

A) The property interest is divided in joint tenancy.
B) The joint tenants can have unequal ownership of shares.
C) The tenants in common can own different shares of the resource.
D) The tenants in common can have the right of survivorship.
E) The ownership is divided such that each concurrent owner owns a specific piece of the resource.

Question 49

Mike rents a car from Brandy Car Rentals at $40 per day.In this scenario,which of the following statements is true?

A) This is a bailment for the sole benefit of the bailor.
B) Brandy is the bailee.
C) Mike owes the duty of slight care.
D) Mike is under a duty to use "reasonable care" to take care of the car.
E) This is a bailment for the sole benefit of the bailee.

Question 50

Simon's relatives come to visit him and want him to show them around the town.Linda helps Simon by lending him her car for a week.This is an example of a(n):

A) bailment for the sole benefit of the bailor.
B) easement by prescription.
C) bailment for the sole benefit of the bailee.
D) bailment for the mutual benefit of the parties.
E) easement by necessity.

Question 51

Which of the following statements is true of an easement?

A) It creates ownership of the land in question.
B) It exists for the benefit of pharmaceutical corporations.
C) It occurs when landlocked property is purchased.
D) It creates a leasehold estate.
E) It places a particular use of land behind the exclusive legal fence.

Question 52

Goods that are identical are known as a(n)______.

A) fungible
B) accession
C) lien
D) gifts
E) collateral

Question 53

Seth takes his laundry to Denise's Dry Cleaners.When Seth gets his clothes back,he notices that two of his shirts,perfect when brought in,are ripped.In this scenario,which of the following statements is true?

A) This was a mutual benefit bailment, and Denise's owed a duty of reasonable care.
B) This was a bailment for the sole benefit of the bailee, and Denise's owed a duty of slight care.
C) This was a bailment for the sole benefit of the bailor, and Denise's owed a duty of great care.
D) This was not a bailment.
E) This was an unintentional bailment, so Denise's does not owe a duty of care.

Question 54

A ______ promises the grantee that the grantor has good ownership and the full power to convey it.

A) special warranty deed
B) pass title deed
C) quitclaim deed
D) freehold deed
E) warranty deed

Question 55

Which of the following is an example of a bailment done for the sole benefit of the bailee?

A) borrowing a laptop
B) renting a car
C) babysitting for free
D) finding lost or misplaced property
E) using a car without permission

Question 56

Which of the following is a similarity between joint tenancy and tenancy in common?

A) In both these forms of ownership, the property interest is divided.
B) In both these forms of ownership, the tenants can own different shares of the resource.
C) In both these forms of ownership, the tenants can exercise right of survivorship.
D) In both these forms of ownership, the tenants can have disproportionate ownership of share.
E) In both these forms of ownership, the tenants can force the separation of ownership under the doctrine of partition.

Question 57

Which of the following exclusively applies to real property?

A) securities
B) books
C) clothing
D) bailments
E) easements

Question 58

In the context of real property,when an object of personal property becomes an object of real property by physical annexation (attachment),it is known as a(n)______.

A) fixture
B) gift
C) fee simple
D) lien
E) accession

Question 59

Sarah has given 24 acres of land to Kent County as long as the land is used as a park.In this case,Kent County has a

A) life estate.
B) fee simple defeasible.
C) fee simple absolute.
D) tenancy in common.
E) warranty deed.

Question 60

A ______ makes no guarantees other than that the grantor surrenders all claim against the land.

A) simple warranty deed
B) trust deed
C) quitclaim deed
D) special warranty deed
E) fiduciary deed

Question 61

Which of the following types of easement is also called easement by necessity?

A) negative easement
B) easement by prescription
C) easement by reservation
D) natural easement
E) functional easement

Question 62

A(n)______ means that an adjoining landowner cannot do anything that would cause your land to cave in or collapse,such as digging a ditch that would cause the land on your side to collapse.

A) easement by prescription
B) negative easement
C) mutual benefit bailment
D) eminent domain
E) accession

Question 63

Vincent keeps his bag of books and magazines at his friend's storeroom,as he believes that he will not be using it for a few months.This is an example of a(n)______.

A) bailment for the sole benefit of the bailor
B) easement by prescription
C) bailment for the sole benefit of the bailee
D) negative easement
E) easement by necessity

Question 64

In many states,if foreclosure and auction does not produce enough money to satisfy the debt owed by the mortgagor,the creditor-mortgagee can still sue the debtor for the balance owed,called a(n)______.

A) collateral
B) deficiency
C) attachment
D) perfection
E) accession

Question 65

Josh borrows Amanda's car to get to school.Josh is obligated to exercise ______.

A) the level of care imposed by Amanda
B) a reasonable duty of care
C) a slight duty of care
D) the level of care imposed by Amanda's parents
E) a very high duty of care

Question 66

Which of the following is a mutual benefit bailment?

A) renting a car
B) lending your car to a friend without receiving consideration
C) borrowing a car from a friend without paying consideration
D) buying a car
E) riding a bus

Question 67

Ben lives in an apartment building next to a children's park.He is in his apartment when a baseball flies in through the window and lands in his room.Which of the following statements is true of this scenario?

A) Ben must return the baseball to the owner immediately as it is not an object of great value.
B) Ben can keep the baseball because of the rule of first possession.
C) The owner of the apartment building must take the final decision as the baseball landed on his premises.
D) The owner of the baseball can exercise his right of eminent domain and claim the baseball.
E) The baseball must be turned over to police and can only be claimed after a week has passed.

Question 68

When the owner of an old airplane engine has it restored and has an airplane built around it,the owner of the engine now owns the entire airplane through the doctrine of ______,which refers to something "added."

A) accession
B) collateral
C) eminent domain
D) negative easement
E) easement by prescription

Question 69

Which of the following statements is true about lost items?

A) The law distinguishes things that have been lost from things that have simply been mislaid.
B) The things that have been lost belong to the person who owns the premises where the item was lost.
C) The finder of a lost item becomes the owner of the item even before reducing it to possession.
D) The ownership is lost at the end of a statutory period for the finder of a lost item.
E) The assumption of knowledge about the original owner is irrelevant in determining the ownership of the mislaid item.

Question 70

A(n)______ arises when someone contributes materials and/or services to real estate,usually a building,and is not paid.

A) general lien
B) chattel lien
C) surety lien
D) mechanic's lien
E) assayer's lien

Question 71

Which of the following statements is true about bailment?

A) In a bailment for the sole benefit of the bailee, the possessor of the object is known as the bailor.
B) In a bailment, the possessor of the object is predominantly the owner.
C) In the business world, most bailments are of mutual benefit to both parties.
D) In a mutual benefit bailment, the bailee is under a duty to use high care in taking care of the object in possession.
E) In a bailment for the sole benefit of the bailor, the bailee owes a very high duty of care while in possession of the object.

Question 72

Which of the following statements is true of an easement?

A) A negative easement is otherwise known as easement by necessity in many states.
B) An easement can also be reserved in a deed.
C) An easement usually excludes any such uses of land as the laying of water pipes or the stringing of power wires across land.
D) A titleholder can prevent a person from continuing to use the land in instances where an easement by prescription arises.
E) An easement works exclusively without the rights of passage across the land.

Question 73

The general way of perfecting a security interest under Article 9 is to file a(n)

A) artisan's lien.
B) financing statement.
C) deed of trust.
D) warranty deed.
E) creditor's instrument.

Question 74

Rachel owns a beach house and wants to build a deck.Zoning restrictions limit decks to 120 square feet,but Rachel wants to build one that is 144 square feet.Which of the following should Rachel do next?

A) She can go ahead and build it as the law permits that once the deck is built it cannot be brought down.
B) She should ask for a nonconforming exemption.
C) She should ask for a variance.
D) She must shift to some other location, because once zoning ordinances are in place, they allow for no changes, variations, or exceptions.
E) She should lobby her local zoning board to force them to change the restriction as that is the only plausible recourse.

Question 75

A secured transaction involves a creditor who has sold something on credit or made a loan to a debtor who agrees to give the creditor a security interest in a valuable object,called ______.

A) collateral
B) gift
C) lien
D) easement
E) reversion

Question 76

Which of the following is an example of a bailment?

A) babysitting your sister's child for the weekend
B) house-sitting for a friend over the weekend
C) feeding a neighbor's dog by tossing food over the fence
D) borrowing a friend's car for a day
E) losing your car keys in a restaurant

Question 77

In 2008,Donald gives Tony a life estate in one of his houses,specifying that upon the end of the life estate,the property is to go to Tony's son,Mike.Tony dies in 2012.In this scenario,which of the following statements is true?

A) If Donald is still alive, he may revoke the transfer to Mike and keep the property.
B) Mike gets a reversion interest in 2012.
C) Mike gets a remainder interest in 2012.
D) In 2012, Mike and Donald become joint tenants until Donald's death when Mike becomes the sole owner.
E) The property is held in trust until Mike comes of age.

Question 78

Ivana's car was stolen.The car needed some repairs and the thief,Donald,had the rearview mirror replaced as well as the muffler.Donald was apprehended and the car was returned to Ivana.In this scenario,which of the following is true?

A) Ivana owns the car but Donald owns the rearview mirror and muffler.
B) Ivana owns the car but must pay Donald for the rearview mirror and muffler.
C) Donald becomes the owner of the car due to accession.
D) Ivana owns the car and owes Donald nothing.
E) Donald and Ivana both own the car as both have contributed equally to the finished product.

Question 79

Identify a correct statement regarding joint tenants.

A) Joint tenants do not have the right of survivorship.
B) Joint tenants must have equal ownership shares.
C) The property of joint tenants is owned through fee simple absolute and fee simple defeasible.
D) If one of the joint tenants dies, the remaining tenant is allowed to take ownership of only his or her share.
E) Joint tenants cannot force the separation of concurrent ownerships like the tenants in common.

Question 80

You and your roommate are driving through a residential area when you see some furniture piled on the curb to be picked up by the trash collectors the next morning.As you pick up a chair,the homeowner opens a window and yells,"Get away from my stuff." Which of the following statements is true in this scenario?

A) You may claim the chair as lost property.
B) You may claim the chair as mislaid property.
C) You may claim the chair as abandoned property.
D) The homeowner retains ownership until it is picked up the next morning, so you must leave it.
E) The homeowner retains ownership of the property until you buy it from him.