Archives: Quiz

EPA regulation of industry growth is more stringent in non’‘attainment areas. Prime meridians are placed every 24 miles. Answer: F The buyer and seller can agree as to whether the purchase contract or the escrow instructions will be controlling. Answer: […]

The Prior Appropriation Theory requires the rights of all appropriators to be equal. SIPs are state plans for implementation of air quality standards. Answer: T A broker/agent has a duty to provide legal advice to clients. Answer: F Federal lands […]

An agency relationship exists between brokers and sellers. Zoning limiting adult bookstores to certain areas is unconstitutional. Answer: F A recipient of a counteroffer must accept the counteroffer upon receipt if they made the original offer. Answer: F Parol evidence […]

The 1963 Clean Air Act was largely ignored. Townships are numbered according to their distance from guide meridians. Answer: F The Fair Housing Act applies to ads for the sale or lease of property. Answer: T Title insurance affords coverage […]

A lessee can never have a mechanics’ lien validly imposed upon the lessor’s property. Appraisals now require a physical visit to the property. Answer: T Rent controls are generally in place for housing that qualifies for low-income housing credits. Answer: […]

For the best protection for property rights, domestic partners should register their partnerships in states that recognize such relationships. In the deed of trust financing arrangement, the land owner is the trustee. Answer: F Oil and gas rights are always […]

The effect of filing a financing statement in the incorrect filing office is losing perfection on the security interest. Two black professors and their families (who had recently transferred to a university in a small town) sought to purchase homes […]

A public utility easement is an easement appurtenant. The Uniform Status of Children of Assisted Conception Act deals with the rights of posthumous heirs. Answer: T When a remainder is given to the heirs of a then’‘living person, the remainder […]

Freehold means that an interest in land is inheritable. Offer your best advice for handling change orders during construction. Answer: Have them in writing, no oral change orders. Copy all parties up and down the construction change. Put provisions in […]

The Judsons deeded their property to the Synders, using a deed with a description that a court has determined to be legally inadequate. The Snyders, using the same description, deeded the property to the Crismons. The Crismons lived on the […]

“To A for the life of B” creates a life estate in B. A vested remainder subject to partial divestment exists when a remainder is given to a group which can expand in size. Answer: T A landlord can be […]

Reed Watkins made and executed a valid will in which he left all of his property to his son and daughter. They failed to visit him or call. When Reed’s neighbor was visiting one day, Reed got the will out […]

First Lincoln holds a deed of trust on Ellen Tracy’s home (amount secured = $175,000). Ellen has defaulted on her payments. Describe the steps First Lincoln must take to sell the property. Secured and perfected creditors who finance home improvements […]

To deliver marketable title, the seller must deliver property to the buyer that is free from mortgages and other liens. Master-planned communities have experienced more blight from foreclosure than other types of developments. Answer: T The superfund is available to […]

Aesthetic zoning is unconstitutional. Under the RULPA, limited partners cannot be employed by the partnership and still enjoy limited liability. Answer: F The ADA does not apply to buildings built prior to 1988 that are not accessible to the disabled. […]

The broker has no duty or liability to the buyer/offeror in a transaction. The delivery of marketable title is a condition precedent to performance of a contract for the sale of land. Answer: T A PMSI in fixtures recorded before […]

Misrepresentation requires proof of intent. A street address is a legally sufficient description. Answer: F An option has the same rights and legal effect as earnest money. Answer: F The YSP need not be disclosed unless the borrower wishes to […]

The note or debt instrument should be referenced in the mortgage. Brokers are only required to disclose direct profits they might make from an offer to the seller. Answer: F Water running from one landowner’s property to another causing flooding […]

A plat map shows the dimensions of lots. A son’s murder of his testator father disqualifies the children of the murderer/son from inheriting. Answer: F If an individual does not have an advance directive on life support, then life support […]

The disadvantage of the sole proprietorship is a. lack of flexibility in managing the business. b. unlimited liability for debts of the business. c. ease of formation. d. none of these. Freeman contracted to build a wooden garage for Douglas. […]

Which statement is correct regarding the transfer of contractual rights? a. The assignor acquires only such rights as the assignee has under the contract. b. The assignee acquires only such rights as the assignor has under the contract. c. The […]

The person who issues a check to another is called the a. maker. b. payee. c. drawee. d. drawer. A voluntary agreement by a debtor to have a portion of his or her wages turned over to a creditor to […]

Terry made an offer by letter to Swire. Unless otherwise specified by Terry, Swire’s acceptance of this offer would become effective when his letter of acceptance was a. written and signed by Swire. b. properly mailed by Swire. c. received […]

Which of the following statements is true? a. The assignee acquires the same rights as the assignor. b. The right to work for someone cannot be assigned without permission. c. An assignment usually requires no special form. d. All of […]

An agreement that lacks consideration is said to be a. illegal. b. a benefit to the promisor. c. a benefit to the promisee. d. unenforceable. A check is made payable to “Mark Spitz.” If Spitz wishes to negotiate the instrument, […]

Billings and Durick, who are competing distributors, made an agreement whereby Billings promised that he would not sell his goods in a specified area, and Durick promised that she would not sell her goods in another specified area. The agreement […]

The authority that an agent has because the principal leads third parties to believe that the agent has it is called a. implied authority. b. customary authority. c. apparent authority. d. none of these. A partner who has an equal […]

Which of the following statements is true about the term subjective impossibility? a. The defense of subjective impossibility is accepted by the courts in only a few situations. b. Hardships such as strikes, riots, and acts of God are automatically […]

Which contract would ordinarily be considered illegal? a. Paying a fee for a license in a state where the purpose of the licensing statute was merely to raise revenue for the state. b. A contract between a minor and an […]

If bailed property is destroyed because of the bailee’s negligence, the result is that the a. bailment ends. b. bailment continues. c. bailee is liable to the bailor for damages. d. bailment ends and that the bailee is liable to […]

In a civil case, the plaintiff must establish the truth of his or her claim by a. proving his or her facts beyond a reasonable doubt. b. a preponderance of the evidence. c. direct examination. d. asking for a motion […]

Marks, who innocently purchased a used television that had been stolen by the seller, was requested to surrender the television. Marks would not surrender the set until he was reimbursed the money he paid. Marks is guilty of the tort […]

Martin sold his used car to Nixon for $2,000. Later Martin discovered that the car was worth $3,000. Martin then claimed that Nixon owed him an additional $1,000. If Martin attempted to take legal action to collect the additional $1,000, […]

Collision insurance a. usually has a deductible. b. covers damage to a vehicle regardless of the amount. c. covers only collision with another vehicle. d. provides no coverage if the driver is negligent. To be classified as a tort, a […]

An instrument stating on its face, “Pay to Robert Stevens or bearer” is a. nonnegotiable. b. negotiable. c. an order instrument. d. a draft. One who takes possession of an instrument after proper negotiation is a(n) a. indorser. b. holder. […]

A contract implied in law is known as a(n) a. quasi contract. b. express contract. c. voidable contract. d. unilateral contract. The holder of a promissory note fails to present the note to the maker for payment on the date […]

Of the following, the one that is not a duty owed by a principal to an agent is a. reimbursement. b. compensation. c. obedience. d. indemnification. Past consideration a. is synonymous with moral consideration. b. is a promise made for […]

The kind of signature required to satisfy the statute of frauds must be a. handwritten. b. typed. c. printed. d. all of these. Rodell Construction Co. contracted to build several greenhouses for Delmar Corp. The specifications in the contract called […]

The unemployment insurance program is financed by a. taxes paid only by employers. b. taxes paid only by employees. c. taxes paid by both employers and employees. d. none of these. Of the following, the only one that is a […]

Joy orally promised to pay Toth $150 if he repaired Joy’s computer. Toth repaired the computer but has not yet been paid. At this point, this contract is a. valid, unilateral, and executory. b. valid, bilateral, and executory. c. valid, […]

If the seller delivers nonconforming goods to the buyer after time for performance is past, the buyer may: a. accept the nonconforming goods. b. reject all the goods c. accept any part of the goods and reject the rest. d. […]

Receiving an instrument by negotiation a. is the same as receiving the instrument by assignment. b. makes the third party who takes possession of the instrument a holder. c. converts the instrument into bearer paper. d. prevents the instrument from […]

Misstatement of the insured’s age will result in a. voiding of the policy. b. possible cancellation of the policy by the insurance company. c. adjustment of the face value of the policy by the insurance company. d. none of these. […]

A written stop-payment order is effective for a. ten days. b. fourteen days. c. six months. d. one year. A written order by one person directing the person’s bank to pay a certain sum of money to another person is […]

The liability of stockholders for the debts of the corporation is a. limited to the amount invested. b. determined by the number of shares owned. c. unlimited. d. nonexistent. The power of courts to hear and decide a case is […]

When the contract is executory and a minor misrepresent his or her age, several states will: a. permit the minor to disaffirm an agreement and recover any consideration paid. b. not permit the minor to disaffirm the agreement. c. allow […]

Double taxation means that the a. government taxes both salaries and dividends. b. government taxes both earnings to corporations and dividends to individuals. c. tax rate for corporations is double that of individuals. d. government taxes both stocks and bonds. […]

Conrad, an accountant, who performed tax services for Glenn, a small business owner, earned a $5,000 fee over a three-month period. Conrad then assigned this fee to her bank to apply toward a loan. Based on this information, which of […]

If a written lease does not state the length of the lease term, the lease is a. unenforceable. b. enforceable for one year. c. considered complete in spite of the omission. d. considered a tenancy at sufferance. Recording a deed […]

A limited partnership is dissolved a. when its term ends. b. by agreement among all partners. c. by the bankruptcy of a general partner. d. by any of these. A trust not set up during the trustor’s lifetime is called […]