Business Law, 8e (Cheeseman)
Chapter 49 Landlord-Tenant Law and Land Use Regulation
1) In a landlord-tenant relationship, the tenant receives a nonfreehold estate in the real property.
2) A rental agreement between a landlord and a tenant is called a lease.
3) The Statute of Frauds permits lease contracts that last for less than five years to be orally
contracted.
4) Any lease for a stated period irrespective of its duration is called periodic tenancy.
5) A tenancy for years terminates automatically, without notice, upon the expiration of the stated
term.
6) Under a periodic tenancy system, the notice period is usually the same as the length of the
payment period.
7) The death of one of the parties of a tenancy of will does not terminate the contract.
8) A tenant at sufferance is liable for the payment of rent during the period of sufferance.
9) A landlord owes a duty to deliver possession of the leased premises to the lessee.
10) Unlawful eviction occurs when the tenant’s right to quiet enjoyment is violated.
11) If a landlord wrongfully locks the tenant out of the premises of the rented property, it is
termed as constructive eviction.
12) In modern real estate law, the doctrine of “caveat lessee” is widely applied to leases.
13) The housing codes impose specific standards on tenants to repair leased premises.
14) The liability of tenants who destroy the premises of a rented property is called premises
liability.
15) In a net lease arrangement, the tenant is responsible for paying rent and property taxes.
16) In a double net lease arrangement, property taxes are shared between the tenant and landlord.
17) In a gross lease, the landlord is responsible for paying the property taxes and assessments on
the property.
18) Not painting the house on time is a violation of a tenant’s duty not to commit waste.
19) Rent-control prohibits a landlord from raising the rent during the term of the lease even if the
lease allows it.
20) A landlord’s right to receive rent is not transferable.
21) A new owner-landlord can alter the terms of an existing lease during the term of the lease.
22) An assignee is obligated to perform the duties that the assignor had under the lease.
23) If the landlord recovers from the assignor, the assignor has no course of action to recover
from the assignee.
24) A partial transfer of a tenant’s rights under a lease is known as an assignment.
25) In a sublease, no legal relationship is formed between the landlord and the sublessee.
26) The landlord can sue a sublessee to recover rent payments or enforce duties under the
original lease.
27) A person who leases a single-family dwelling and does not own more than three single-
family dwellings does not come under the purview of the Fair Housing Act of 1968.
28) The Fair Housing Act specifically prohibits discrimination against disabled individuals in
employment, public services, public accommodations and services.
29) The Americans with Disabilities Act applies only to places of accommodation operated by
public entities.
30) Title III of the ADA requires construction of ramps to accommodate wheelchairs.
31) Monetary damages are not provided in cases involving violation of the ADA.
32) The attorney general may seek equitable relief and civil fines for any violation of the ADA.
33) Complaints regarding violations of the ADA are filed with the U.S. Department of Justice.
34) The Due Process Clause of the Fifth Amendment to the U.S. Constitution requires the
government to compensate the property owner when it exercises the power of eminent domain.
35) The compensation provided by the government for the power of eminent domain is final and
cannot be disputed further.
36) The power of the eminent domain allows the government to take private property for public
use after paying consideration.
37) A landlord-tenant relationship is characterized by ________.
A) the transfer of title to the tenant
B) the receipt of a nonfreehold estate by the tenant
C) the creation of a future interest for the tenant
D) the free simple absolute ownership of the tenant
38) An estate where the tenant has a right to possess the real property but does not own title to
the property is called ________.
A) free simple absolute estate
B) gifted estate
C) nonfreehold estate
D) easement estate
39) A tenant’s interest in the real property is called a(n) ________.
A) easement estate
B) free simple absolute estate
C) gifted estate
D) leasehold estate
40) A transfer of the right to the possession and use of real property for a set term in return for
certain consideration is known as a(n) ________.
A) title transfer
B) lease
C) novation
D) easement
41) A tenancy created when a landlord and a tenant agree on a specific duration for a lease is
known as a ________.
A) tenancy for years
B) periodic tenancy
C) tenancy by the entirety
D) tenancy at sufferance
42) A tenancy created when a lease specifies intervals at which payments are due but does not
specify how long the lease is for is called a ________.
A) tenancy at sufferance
B) tenancy for years
C) periodic tenancy
D) tenancy at will
43) If a person lives in a house by paying rent on a monthly basis, which of the following types
of tenancy would that represent?
A) tenancy at will
B) tenancy at sufferance
C) tenancy for years
D) periodic tenancy
44) What is a tenancy at will?
A) a tenancy created when a lease specifies intervals at which payments are due but does not
specify how long the lease is for
B) a tenancy created by a lease that may be terminated at any time by either party
C) a tenancy created when a tenant retains possession of property after the expiration of another
tenancy
D) a tenancy created when a landlord and a tenant agree on a specific duration for a lease
45) A ________ is a tenancy created when a tenant retains possession of property after the
expiration of another tenancy or a life estate without the owner’s consent.
A) periodic tenancy
B) tenancy at will
C) tenancy at sufferance
D) tenancy for years
46) What is an unlawful detainer action?
A) a legal process that a tenant must complete before he or she is allowed to sublet
B) a legal lawsuit brought against the landlord for breach of the implied warranty of habitability
C) a lawsuit brought by the tenant against the landlord on wrongful eviction
D) a legal process that a landlord must complete to evict a holdover tenant
47) Which of the following forms of tenancy involves the possession of property without right?
A) tenancy at sufferance
B) periodic tenancy
C) tenancy for years
D) tenancy at will
48) Which of the following is true of tenancy at sufferance?
A) It can be terminated only after an eviction proceeding.
B) It cannot be terminated as the holdover tenant has the title of transfer.
C) It has a specific time period before expiration.
D) It requires a notice period that equals the length of payment period.
49) A landlord’s ________ grants the tenant exclusive tenure of the leased premises until the
term of the lease expires or the tenant defaults on the obligations under the lease.
A) duty to maintain the leased premises
B) duty to deliver possession of the leased premises
C) implied warranty of habitability of the leased premises
D) duty not to interfere with a tenant’s right to quiet enjoyment
50) When is a tenant wrongfully evicted?
A) when the landlord breaches the tenant’s right to quiet enjoyment
B) when the landlord fails to maintain the leased premises properly
C) when the tenant violates a building code statute
D) when the tenant sublets the premise without permission from the landlord
51) Building codes specify the ________.
A) policies of the implied warranty of habitability for residential leases
B) rules on proper delivery of possession to the tenant
C) standards for property owners to maintain and repair leased premises
D) laws regulating the extent to which a landlord can interfere with a tenant’s right to quiet
enjoyment
52) The ________ is an assurance that provides that leased premises must be fit, safe, and
suitable for ordinary residential use.
A) duty to pay rent
B) implied warranty of habitability
C) duty to deliver possession
D) duty not to use leased premises for illegal or nonstipulated purposes
53) Which of the following duties has a landlord breached if he leases a rodent-infested
warehouse to a farmer?
A) implied warranty of habitability
B) duty not to commit waste
C) duty to deliver possession
D) duty not to interfere with a tenant’s right to quiet enjoyment
54) Holly Graham had been complaining to her landlord that the leakage from a utility area tap
in the garage of their apartment was making the entrance to the building slippery. Holly claimed
that she herself had slipped twice and had retained balance only because of the railings. Two
days back, an elderly gentlemen walking toward his apartment from the garage slipped and
dislocated his ankle. From the information provided, the landlord can be legally prosecuted on
the grounds of ________.
A) eminent domain
B) rent-control ordinances
C) premises liability
D) discrimination against protected classes
55) A lease in which the tenant pays a lump sum to the landlord and the landlord is responsible
for paying the property taxes and assessments on the property is known as a ________.
A) gross lease
B) net, net, net lease
C) double net lease
D) net lease
56) Which of the following clusters of payments are made by a tenant in a double net lease?
A) paying property taxes and assessments on the property
B) paying rent, property taxes, utilities, and insurance
C) paying rent and property taxes
D) paying rent, property taxes, and utilities
57) In a ________ arrangement, the tenant is responsible for paying rent and property taxes.
A) double net lease
B) net lease
C) gross lease
D) net, net, net lease
58) A ________ is a lease where the tenant is responsible for paying the rent, property taxes,
utilities, and insurance.
A) net lease
B) gross lease
C) net, net, net lease
D) double net lease
59) Kurt, who is a computer sales representative, ran a small restaurant business from his home
to supplement his income. He converted his large living room into an eatery with minimal
seating arrangements. His mother and brother managed the kitchen, while he coordinated orders
and waited upon customers. Upon realizing that Kurt’s was running a restaurant, the landlord
evicted Kurt and his family from the house. From the information provided in the scenario, we
can infer that ________.
A) Kurt had received this rented property in conditions that were uninhabitable
B) Kurt had been evicted for using the rented property for illegal or nonstipulated purposes.
C) Kurt had failed to comply with the building codes of the area in which he lived
D) Kurt had failed to claim his freehold estate on the rented property within the stipulated period
60) Jack Mendez, who runs a car remodeling company, needed a temporary spot to store a car
engine for a day. Finding no other recourse, he decided to store the engine at his rented
apartment. After Jack rolled his engine into the hall, the floor beneath the spot developed cracks
and buckled in. Which of the following duties of a tenant had Jack breached by bringing the
engine into his home?
A) duty to deliver possession
B) duty not to commit waste
C) duty to pay rent
D) duty not to use leased premises for illegal or nonstipulated purposes
61) Rent-control ordinances are ________.
A) enacted and enforced by the federal government
B) stipulated amounts for rent and annual increases
C) deemed unconstitutional by the U.S. Supreme Court
D) derived from zoning ordinances and building codes
62) Which of the following is true of a landlord’s rights to leased property?
A) A landlord cannot sell the rights to receive rent.
B) A new owner-landlord can alter the terms of an existing lease during the term of the lease.
C) If the complete title is transferred, the property is subject to the existing lease.
D) A landlord can sell his ownership interest in a property only after the expiration of a valid
lease contract.
63) The transfer by a tenant of all of his or her rights under a lease to another party is known as
a(n) ________.
A) assignment
B) easement
C) accommodation
D) arraignment
64) Who is an assignor of a lease?
A) a tenant who partially transfers his or her rights under a lease
B) a tenant who transfers all of his or her rights under a lease
C) a landlord whose property has been made an assignment
D) a landlord who sells property that has already been leased
65) A party to whom a tenant transfers all of his or her rights under a lease is known as a(n)
________.
A) lessee
B) assignee
C) consignee
D) licensee
66) An arrangement in which a tenant transfers some of his or her rights under a lease to another
party is known as a ________.
A) gross lease
B) net lease
C) sublease
D) triple lease
67) Which of the following is true with regard to an assignment?
A) The assignor is liable to the landlord for damages.
B) The assignee and landlord has no legal relationship between them.
C) The assignor is no longer responsible for the obligations under the lease.
D) The assignee acquires all the rights that the assignor had under the lease.
68) Which of the following statements is true with regard to a sublease?
A) The sublessee acquires all rights under the original lease agreement.
B) The landlord can sue the sublessee to recover rent payments.
C) The landlord and the sublessee do not have a legal relationship.
D) The sublessee has a duty to pay rent only to the landlord.
69) Which of the following kinds of lease agreements exists between Chris and Dave?
A) an accommodation
B) a gross lease
C) an assignment
D) an easement
70) Which of the following kinds of lease agreements exists between Dave and Pam?
A) an easement
B) a sublease
C) a cooperative
D) a net lease
71) Under this arrangement, Pam has to pay rent to ________.
A) Donald
B) Chris
C) Dave
D) Chad
72) Under this arrangement, ________ is obligated to pay rent to Chad.
A) Donald
B) Dave
C) Pam
D) Chris
73) Under this arrangement, ________ is legally obliged to pay Donald for the damages caused
to the kitchen.
A) only Pam
B) only Dave
C) only Chris
D) either Chris or Dave
74) Which of the following legislations collectively prevents all the “protected classes” from
discrimination in accommodation?
A) the Rent Stabilization Law of 1969
B) the Americans with Disabilities Act of 1990
C) the Fair Housing Act of 1968
D) the Civil Rights Act of 1866
75) The ________ is a clause of the U.S. Constitution that allows the government to take
property for “public use.”
A) Due Process Clause of the Fifth Amendment
B) Just Compensation Clause of the Fifth Amendment
C) Double Jeopardy Clause of the Fifth Amendment
D) Ratification Clause of the Fifth Amendment
76) The government’s power to take private property for public use, provided that just
compensation is paid to the private property holder is known as ________.
A) future interest
B) constructive eviction
C) adverse possession
D) eminent domain
77) Which of the following is true of the government’s power of eminent domain?
A) It does not allow the owner of the property to make a case for keeping the property.
B) It requires payment of compensation by the government.
C) It does not apply to state and local governments.
D) It allows the government to set up zoning areas.
78) What is a lease?
79) How are tenants guaranteed a safe and secure leased premise?
80) What is tenant’s duty not to use leased premises for illegal or nonstipulated purposes?
81) Explain a landlord’s right to transfer leased property.
82) How does the Americans with Disabilities Act influence housing and accommodation?