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[Skyrocketing Rent] Ethan Leased Space for His Health Food Store

Question 53

Multiple Choice

[Skyrocketing Rent] Ethan leased space for his health food store from Simone. After a few years, Simone decided to sell the building in which the health food store was located to Mack. Simone told Ethan that the lease would be terminated and that whether he could stay or not depended on what he could work out with Mack. Mack told Ethan that he could stay only if he paid double the amount of rent he had been paying to Simone and that if Ethan complained, the rent would go even higher. Ethan told Mack that Simone had no right to make any changes and that he had the absolute right to continue paying the same set amount to Simone until the lease expired. The lease did not address transfers.
-Which statement is true regarding whether Mack has the right to raise the rent?


A) Mack had the right to double the rent, but that was the maximum amount that he could raise it.
B) Mack could raise the rent as high as he wanted, and Ethan could either pay it or move.
C) Mack could raise the rent by only a rate of 10% per year.
D) Mack did not have the right to raise the rent during the term of the lease, although Simone had the right to sell the property.
E) Mack may not raise the rent because Simone had no right to sell the property in the first place.

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