Economics Chapter 49 A recording statute allows deeds to be recorded to give notice 

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subject Authors Frank B. Cross, Kenneth W. Clarkson, Roger LeRoy Miller

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1
Chapter 49
Real Property and
Landlord-Tenant Law
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
B1. The protection of an individual’s right to his or her property has become one of
our most important rights.
B2. The exterior boundaries of land extend down to the depth of the deepest hole
and up to the height of the tallest structure and no further.
B3. The rights that accompany a fee simple absolute include the right to use the
land for whatever purpose it is best suited, not necessarily for whatever
purpose the owner sees fit.
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2 TEST BANK BUNIT TEN: PROPERTY AND ITS PROTECTION
B4. Persons cannot share ownership rights simultaneously in particular property
(including real property and personal property)—one person’s interest is always
superior.
B5. A joint tenant cannot transfer his or her rights by sale or gift without the consent
of the other joint tenants.
B6. It is presumed that a co-tenancy is a tenancy in common unless there is
specific language indicating the intent to establish a joint tenancy.
B7. Community property it is created when a real property owner or lessor agrees
to convey the right to possess and use the property to a lessee (tenant) for a
certain period of time.
B8. The mere possession of land without right is called a tenancy at will.
B9. A easement is the revocable right of a person to come onto another person’s
land.
B10. A license is a right to go onto land owned by another and take away some part
of the land itself or some product of the land.
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CHAPTER 49: REAL PROPERTY & LANDLORD-TENANT LAW 3
B11. A sale of real estate is a complicated transaction that involves certain
formalities that are not required in a sale of goods.
B12. Most states imply a warrantythe implied warranty of habitabilityin the sale
of new homes.
B13. Marketable title means that the grantor’s ownership is saleable even if there
are encumbrances or defects.
B14. A quitclaim deed offers the most protection against defects in the title.
B15. A recording statute allows deeds to be recorded to give notice to the public.
B16. For a party to take by adverse possession, the party’s possession must be
peaceable, and not hostile or adverse.
B17. Eminent domain is the condemnation power of government to take land for
public use.
B18. One of the basic elements of zoning is the classification of land by permissible
use as part of a comprehensive municipal plan.
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4 TEST BANK BUNIT TEN: PROPERTY AND ITS PROTECTION
B19. In most states, statutes require leases for terms exceeding one year to be in
writing, and state or local law often dictates permissible lease terms.
B20. A sublease releases the tenant from his or her obligations under the lease.
MULTIPLE CHOICE QUESTIONS
B1. Buck owns five acres of land in California. On the land Buck has a house and a
toolshed. There are ten large maple trees around the house. The real property
includes
a. the land only.
b. the land and the house only.
c. the land, the house, and the toolshed, but not the trees.
d. the land, the house, the toolshed, and the trees.
B2. Barlow owns the surface rights for Canyon Ranch, but does not own the
subsurface rights. Dusty owns the subsurface rights. Canyon Ranch includes a
house, a bunkhouse, and two barns, which are damaged when Dusty is
excavating for minerals under the surface. Most likely responsible for the
damage is
a. Dusty.
b. Barlow.
c. Dusty and Barlow.
d. no one.
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CHAPTER 49: REAL PROPERTY & LANDLORD-TENANT LAW 5
B3. Franz owns GuestHouse Hotel. His ownership rights include the right to sell or
give away the property without restriction, as well as the right to commit waste,
if he chooses. Franz’s ownership interest is
a. a fee simple absolute.
b. a profit.
c. a life estate.
d. the power of eminent domain.
B4. Roderick possesses five hundred acres of forested property. Roderick has the
right to use the land, including cutting its timber, for life. Roderick also has the
right to lease the land for a period not to exceed his life. This ownership interest
is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
B5. Dian and Elton buy a duplex in Fargo, North Dakota. On the death of either owner,
that owner’s interest in the duplex passes to his or her heirs. This is
a. a joint tenancy.
b. a life estate.
c. a tenancy in common.
d. ownership in fee simple absolute.
B6. Qiana and Rex take title to a Shakes n’ Burgers restaurant in such a way that if
one dies, the other will be the sole owner. Qiana and Rex own the restaurant
as
a. co-owners in fee simple.
b. joint tenants.
c. tenants by the entirety.
d. tenants in common.
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6 TEST BANK BUNIT TEN: PROPERTY AND ITS PROTECTION
B7. Alf rents an apartment. The lease does not specify how long it will last, but it
does specify that Alf must pay rent every month. Alf’s tenancy is
a. a fixed-term tenancy.
b. a periodic tenancy.
c. a tenancy at will.
d. not a tenancy.
B8. LaDonna signs a one-year lease with Mae to occupy an apartment near the
University of Iowa. LaDonna needs the apartment for two semesters only and
may have to sublet it for the rest of the term. LaDonna’s tenancy is
a. a periodic tenancy.
b. a tenancy at will.
c. a tenancy at sufferance.
d. a fixed-term tenancy.
B9. Kenneth has a periodic tenancy that requires him to pay rent weekly. Kenneth
wishes to terminate his tenancy. Under the common law, he must give his
landlord notice of at least
a. one week.
b. two weeks.
c. thirty days.
d. sixty days.
B10. 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 license.
b. an easement.
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CHAPTER 49: REAL PROPERTY & LANDLORD-TENANT LAW 7
c. a profit.
d. the power of eminent domain.
B11. With respect to Italo’s bottomland, Jacob has an easement, Kristin has a profit,
and Leopold has a license. A right to possess the bottomland is owned by
a. Italo.
b. Jacob.
c. Kristin.
d. Leopold.
B12. Mix-It Concrete Company has the right to enter Nim’s land and remove the rock
from Nim’s quarry. This is
a. the power of eminent domain.
b. a license.
c. an easement.
d. a profit.
B13. Marco conveys three acres of wetlands to Nature Preserves, Inc., with a deed
that warrants only that Marco held good title during his ownership of the
property. This deed is
a. a grant deed.
b. a quitclaim deed.
c. a special warranty deed.
d. a warranty deed.
B14. To acquire the ownership of Bart’s mountain cabin by adverse possession,
Cody must occupy the cabin exclusively, continuously, and peaceably for a
specified period of time
a. in an, open, hostile, and adverse manner.
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8 TEST BANK BUNIT TEN: PROPERTY AND ITS PROTECTION
b. until Bart files a suit.
c. without Bart’s knowledge.
d. with the state’s permission.
B15. Brick & Mortar Stores, Inc., signs a lease for a storefront owned by Commercial
Properties, Inc. Unlike a purchaser of real property, Brick & Mortar
a. acquires only temporary possession of the premises.
b. enjoys exclusive possession of the premises.
c. holds only temporary title to the premises.
d. retains temporary, exclusive possession and title to the premises.
B16. Residential Property Corporation owns apartment buildings in three states.
Regarding standards for maintenance of the buildings, Residential Property
should consult
a. the applicable city ordinances and state statutes.
b. the previous owners.
c. the long-term tenants.
d. the Uniform Landlords’ Maintenance Manual.
B17. Tropic Breeze Residences, Inc., owns apartment buildings. Umberto leases
one of Tropic Breeze’s apartments. Umberto’s transfer of his interest in the
lease to Vito for a period shorter than the lease term is
a. an assignment.
b. a license.
c. adverse possession.
d. a sublease.
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CHAPTER 49: REAL PROPERTY & LANDLORD-TENANT LAW 9
B18. Rita believes that Shady Grove Apartments, Inc., her landlord, has violated the
law in a way that entitles her to withhold the rent. This remedy is generally
associated with
a. adverse possession.
b. breach of the implied warranty of habitability.
c. discrimination.
d. failure to provide security against crimes in common areas.
Fact Pattern 49-1B (Questions B19B20 apply)
Stores & Shops, Inc., leases space in a certain mall to Trends Clothing Company and
Unique Fashions Store. Later, Unique Fashions begins to sell items that are similar to
Trends Clothing’s goods, and Trends Clothing abandons its space before the end of
the lease term.
B19. Refer to Fact Pattern 49-1B. Trends Clothing is liable to
a. no one.
b. Stores & Shops and Unique Fashions for disputing Unique Fashions’s
business decision.
c. Stores & Shops for at least some of the unpaid rent.
d. Stores & Shops’s tenants, except Unique Fashions, for abandoning
Trends Clothing’s space.
B20. Refer to Fact Pattern 49-1B. In some jurisdictions, Stores & Shops would be
a. entitled to damages from Unique Fashions for its business decision.
b. entitled to increase other tenants’ rent to cover Trends Clothing’s unpaid
rent.
c. entitled to the unpaid rent from Trends Clothing.
d. required to mitigate its damages.
ESSAY QUESTIONS
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10 TEST BANK BUNIT TEN: PROPERTY AND ITS PROTECTION
B1. Lamar owns a field behind Megan’s house and property. The only access to
the field is Megan’s driveway, which Lamar uses to get to his field. If Lamar
sells the field, can the buyer use the right-of-way across Megan’s property?
B2. Metro City exercises its power of eminent domain to acquire land for a public
project, including part of a public transit rail system and a traffic bypass. Metro
City relocates more than 10,000 residents from the land and destroys their
homes to begin the project. Nathan’s Deli is adjacent to the project. Nathan’s
loses most of its business when the residents are moved. Nathan’s files a suit
against Metro City, alleging that its acquisition of the land resulted in a taking of
the deli’s property interest, entitling it to compensation. What is a taking? What
might Nathan’s claim is its “property interest” to support this allegation? What is
the court likely to rule? Why?
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